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The first set indicated that in 1947 the United States had 43 in
available gold for every dollar of foreign claims agains% ‘Lis
By 1956 the situation had changei to the point where the United
Sold.
States had less than a dollar of cold in relation to eatn a llar of
foreign claims. After stating the various reasons for this cnange,
Dr. Saulnier pointed out that the over-all results were set forth
on pages 12 and 13 of the report
Thereafter, Dr. Saulnier surned to the conclusions oF the
report. No policy changes were reccumended by the committee, but
the committee had stressed the importance of developments i: this
field and called for continuous and close scrutiny.
To emprasize
his
point, Dr. Saulnier read the last two varagraphs of the report.
Dr. Saulnier then suggested that he might refer to more recent
changes thet have characterized the relationship between ‘!. S. gold
reserves and U. S&S. foreign liabilities.
Thus, in March 135°, a
small decline in net dollar holdings, the first in e icng time, was
observable.
In point of fact, this decline set in toward the end of
1956 and continued at a somewhat lower rate into the second cuerter
of? 1957.
It was likely that in whe third quarter of 1957 this trend
would be stabilized, and there would be neither an increase ner a de-
crease in the level of U. S. foreigm liabilities.
These re-ent shifts
were due in the first instance to u sharp increase in U. Ss. exports,
accompanied by no change in the flow of imports into the United States.
The shift also was to some degree the result of the flow of flight
capital to the United States.
It was of particular simmificance that
the loss of gold claims has not peen evenly distributec among the verious countries.
The large gainers were Germany, Canada and Venezuela.
Very heavy losers were Frarce, Japan, the United Rinedom, arc ‘vertsin
others.
These recent developments, continuec Dr.
that this is a two-way road with turns in it.
Saunier
sugsest
Cleims on Vv. 3G. fold
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REPRODUCED AT THE DWIGHT. D. EISENHOWER LIBRERY
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can fell as well as rise.
There are serious problems with “he ercsion
of these claims on U. S&S. gcld as well as with the accumuiat.on of
claims on such gold.
We must therefcre concern ourselves w och the
distribution of these claims as well as with their agsrecat:.
Mr. Cutler asked Secrevary Anderson if he wished cc make
any corments.
Secretary Anderson said he would confine himself uc
pointing out that one of the primary reasons for the reversil was
the heavy payment to Venezuela for oil concessions.
It was also significant that there were only two countries which represented solid
monetery strength in the Free World, the United States and termany.
It was of vital importance that the United States maintain .tself as
@ bulwark of economic strength for the Free World.
Apropos of this referenzte to Gemeny, the Fresideut inauired
to what extent the deutschmark was being used in international trade
as @ substitute for the pound sterling.
Secretary Anderson replied
that the deutschmark was not beine too widely used as an invernetional
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