The Re-Distribution of Gold

The equitable distribution of gold in the nineteenth century was achieved by the British administration of the gold standard on international lines. Britain is also in a position to take practical action towards effecting the re-distribution of gold. The combination of the policies of cheap money and a free gold market is the British contribution towards effecting the re-distribution of gold. More positive measures to assist re-distribution must await the determination of the amount of gold required by Britain for her national and international requirements. Despite the complex internal monetary problems of the United States, and the continuous liability to a drain of gold to Europe, the monetary authorities of that country are already taking the first steps to effect a re-distribution of gold to the countries most in need of it. Large gold reserves are required by the monetary authorities of both these nations, who are compelled to base their monetary policies on the currency requirements of their peoples.