HC Deb 10 July 1952 vol 503 cc1513-4
57. Mr. Stokes

asked the Chancellor of the Exchequer whether he is aware that 75 per cent. of the world's gold, excluding the Union of Soviet Socialist Republics, is produced from the sterling area; and what steps he proposes to take to obtain a revaluation more in keeping with its true value.

Sir A. Salter

Yes, Sir, and I refer the right hon. Gentleman to the second part of my hon. Friend's reply of 19th June.

Mr. Stokes

The Minister has got into the habit of doing that and his answer is completely unsatisfactory. Is he aware that the declared value of dollar gold has not changed since the early days of the war, that costs of production have gone up, that the price of everything has multiplied three or four times, and that the absurdly low value of gold in dollars acts very deleteriously on the sterling area?

Sir A. Salter

I am aware that the dollar value of gold has not increased over a number of years, a longer period than the right hon. Gentleman suggested, but I am not now clear whether he is suggesting that he would like the sterling value of gold to go up irrespective of its value in other currencies, or its value in all currencies to go up, or its dollar value. If it is the first I should certainly disagree with him, and if he means the third, that, of course, is not primarily a matter for this country.

Mr. Stokes

In view of the fact that we produce 75 per cent. of the gold of the world, surely the Government can take some initiative in this matter. Is the right hon. Gentleman aware that the only reason why the United States will not agree to the dollar value of gold being increased is for fear that it might increase Russia's purchasing power?

Sir A. Salter

No, Sir, that is a very inadequate explanation of the position. I would remind the right hon. Gentleman that the price of any commodity depends not only upon the sellers but also upon the buyers.

Mr. Stokes

Can the Minister explain why the value of dental gold, which is much less fine than monetary gold, should be double the value of monetary gold, and why the whole of the finer quality gold should be put in a hole under Fort Knox and the whole of the gold of lesser quality put into people's teeth?

Sir A. Salter

I really cannot see what that argument has to do with the Question. I would remind the right hon. Gentleman that the dollar price of gold is a matter upon which the United States is primarily concerned.

Several Hon. Members

rose—

Mr. Speaker

We had better get on. This is a very wide subject.