Gold Cover, Hearings Before ..., 90-2 on S.1307, S.2815, S.2857 ..., January 30, 31, and February 1, 1968

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Page 71 - ... Fund is governed by its quota, which reflects its economic size and importance relative to other countries. When initially paying In its quota subscription, each country subscribes 25 percent In gold and 75 percent in terms of its own currency. In return for agreeing that the 75 percent balance of its own currency may be drawn upon in case of need to finance other countries' drawings from the currency pool, countries obtain the right to draw the currencies of others from the Fund themselves under...
Page 108 - Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of Society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.
Page 5 - ... 2. It is necessary that there be no doubt about our assurance to the world that America's full gold stock stands behind our commitment to maintain the price of gold at $35 an ounce. A gold reserve of $10.7 billion is now required as backing for Federal Reserve notes, United States notes, and Treasury notes. The US gold stock now totals about $12 billion, thus leaving about $1.3 billion in gold not required as cover.
Page 62 - A sure way to instill confidence in our dollar — both here and abroad — is through these actions.
Page 84 - The Fund shall prescribe a margin above and below par value for transactions in gold by members, and no member shall buy gold at a price above par value plus the prescribed margin, or sell gold at a price below par value minus the prescribed margin.
Page 62 - To reduce the balance of payments deficit by at least another $500 million, I have requested and authorized the Federal Reserve Board to tighten its program restraining foreign lending by banks and other financial institutions. Chairman Martin has assured me that this reduction can be achieved: — Without harming the financing of our exports; — Primarily out of credits to developed countries without jeopardizing the availability of funds to the rest of the world. Chairman Martin believes that...
Page 61 - ... no longer needed and indeed began to threaten the strength of the dollar. Since 1961 your government has worked to reduce that deficit. By the middle of the decade, we could see signs of success. Our annual deficit had been reduced two-thirds— from $3.9 billion in 1960 to $1.3 billion in 1965.
Page 13 - The tax shall be paid by the reserve bank, but the reserve bank shall add an amount equal to said tax to the rates of interest and discount fixed by the Federal Reserve Board.
Page 108 - Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily * * *. Lenin was certainly right.

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