HL Deb 19 February 1980 vol 405 cc566-7

2.44 p.m.

Lord BOOTHBY

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether they will now bring pressure upon the Government of the United States to remonetise gold.

The MINISTER of STATE, TREASURY (Lord Cockfield)

No, my Lords.

Lord BOOTHBY

My Lords, arising out of that Answer, may I ask the noble Lord whether he is aware that cogent reasons for a return not to the old rigid gold standard, but to a gold exchange standard with gold at a realistic price, were given in a debate held last week in your Lordships' House by the noble Lord, Lord Boothby? May I further ask him whether he is aware that unless and until gold is accepted internationally as the standard measuring rod of value, no so-called monetary policy can ever succeed, and there is no hope of avoiding further inflation and higher unemployment?

Lord COCKFIELD

My Lords, I had the great pleasure of listening to the noble Lord's contribution to the debate last week, and I am grateful to him for reminding me of it. I would, however, be misleading him if I were to suggest that his views were shared by Her Majesty's Government.

Lord BOOTHBY

My Lords, arising out of that answer, does not the noble Lord think that, as the Treasury has proved to have been wrong about this for 50 years, and I have proved to have been right, he might use his own powers to persuade his department to give me a last chance before it is too late?

Lord COCKFIELD

My Lords, the noble Lord presses his case with great charm and ability. Nevertheless, the simple position is, as his own Question indicates, that the only country which is in a position to do this, either from the point of view of economic strength or from the point of view of possession of the quantities of gold required, is the United States. There is no reason whatever to believe that the United States has changed its policy of wishing to see gold demonetised.

Lord WYNNE-JONES

My Lords, is it true that Her Majesty's Government are thinking of adopting bimetallism?

Lord COCKFIELD

No, my Lords.