§ 2.45 p.m.
§ LORD FRASER OF LONSDALEMy Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether they will try to negotiate with the world monetary authorities for an increase in the price of gold.]
§ LORD SHEPHERDNo, my Lords; not in the present or the foreseeable circumstances.
§ LORD FRASER OF LONSDALEMy Lords, may I ask the noble Lord if Her Majesty's Government will take into account one or two factors? One is that traditionally ample supplies of gold, or new finds of gold, new goldfields, always lead to increased liquidity in the world, increased trade and buoyant conditions, and, therefore, that a rise in the price of gold would have the same effect. Secondly, would it not be better to pursue this matter when the pound is strong, than perhaps to be forced to do it when it is weak?
§ LORD SHEPHERDMy Lords, the noble Lord is quite right that to raise the price of gold would increase world liquidity. But the House is aware that the Government are actively in consultation, not only with the United States but with the Committee of Ten, as to the best ways of increasing liquidity. The Government firmly believe that to raise the price of gold is not the right way to meet this problem.