I should be greatly obliged if you will transmit this memorandum
to that Government.
[Enclosure]
Memorandum
The Government of the United States has studied with interest
the observations made by His Majesty’s Government in the
Commonwealth of Australia in regard to various questions
that will arise for discussion in the Monetary and Economic
Conference. It is pleased to observe with how many points
its own judgment corresponds with that expressed in the
memorandum.
The emphasis which His Majesty’s Government in the
Commonwealth of Australia places upon the necessity for
pursuing a monetary policy which will make it possible for
it to meet its large external indebtedness is well
understood.
The Government of the United States wishes to take occasion
to note particularly the remarks of His Majesty’s Government
in the Commonwealth of Australia in Paragraph 5 dealing with
silver and in Paragraph 6 dealing with prices.
To the proposal contained in Paragraph 5 this Government is
prepared to give full adherence. In addition it believes
additional measures necessary in order first to bring about
a moderate improvement in the price of silver (approximately
to the point where its price might be had it not been
subject to special demonetizing influences) and then to
stabilize its price.
The measures which it has discussed with various other
Governments include the possibility of an agreement between
the Governments holding large stocks of silver and the
Governments of the important silver producing countries
whereunder the movement of silver in the world market might
be safeguarded, and an agreement whereunder central banks
might be authorized optionally to keep, in addition to their
gold reserve, a five percent, reserve when and as silver
might be obtainable below an indicated price.
[Page 514]
With the judgments expressed in Paragraph 6 on prices the
Government of the United States is in complete agreement. It
hopes that at the Conference a means will be found for
bringing out the simultaneous adoption of a vigorous public
works policy by many countries, as a means of getting
accumulative, immediate stimulation of private economic
activity.
This Government looks forward to the opportunity for full
cooperation with His Majesty’s Government in the
Commonwealth of Australia at the Monetary and Economic
Conference.
Washington, May 24,
1944.
