The dollar and gold
Keywords:Gold, price, United States, Federal Reserve, dollar, money supply, national income, reserves
The article calls attention to a domestic American aspect of the size of gold reserves and of the proposals for raising the price of gold. After recalling the main facts relating to the gold movements to and from the United States from 1934 to the present time and to their effects on the monetary and banking situation, the author raises the question of whether, on the bases of the present gold price, the United States gold reserves will much longer suffice to meet the cover requirements for the sight liabilities of the Federal Reserve Banks. Postulating certain alternative rates of increase in the American gross national product, and certain ratios between the money supply and the national income, he forecasts possible movements in the required money supply, and therefore in the gold reserves that would be necessary, assuming the present laws concerning reserve requirements to remain unchanged.
JEL: E01, E42, E51, E58