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currency, but that we were very much concerned about the pousi ster-
ling, which 1s still e widely-used international currency.
Mr. Brundage said that he would expect dollar calances to
continue to grow as the United States assumes more and more respon-
sibility for international financing.
Did Secretary Andersor think
this was so? Secretary Anderson replied that he wes not altogether
clear that this would be the case, and he cited factors on oct
sides of the question.
Secretary Wilson said he head a couple of questions to put
to Dr. Saulnier.
First, what had happened to the totel sold supply
in the world in the period of the eight years given in the table of
tne report? Dr. Sauinier replied that the rold surply cf the world
had increased in this period, as ea result cf the mining of new sold.
Secretary Anderson commented that the totel world supoly of cold was
not growing at a very fast rate, rerneps $35 or $40 million e year.
Secretary Wilson said h.s next question
ject of our required gold reserves.
Wouldn't the
serves have to go up in the future?
Accordingly,
change the ratio or get more cold
ttherwise the
impasse in our gold supply.
dealt with tne sublevel of these rews must citner
result wowli be ar
The President reminisced that shortly after his elestion
in the first term, he nad asxed his advisers to pive him some ideas
with respect to the free convertibility of gold.
de hadn't derived
much satisfaction from the answers of the experts. Al) that they
had to say, in effect, was that the President should prey that no
one ever really woke up to the fact that in essence gold is .alue=
idess--you couldn't eat it, vou couldn't ouilé thines with .t. ar
fire it in guns.
The National Security Tounzi
Noted and discussed the repert on the subdjett, prejared by
& committee consisting of representatives of the Treasury
Department, the Bureau cf the Budget, and the Toam-il of
Economie Advisers, pursuant to the last pararrapn cf the
NOTE BY THE EXECUTIVE SECRETARY in NSC 5707/8 (“Bacic National Security Policy"), transmitted by the reference
memorandum cf August 26, 1957, and presented crall. ty
REPRODUCED AT THE DWIGHT, D. EISENHOWER LIBRARY
the Chairman, Counzil ot
E-onomic Advisers.
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