234

for France 

 

and eighty-five million francs for England. These enormous 

discrepancies are not accounted for."

The Right Honorable Reginald McKenna stated that:

__________________________

90 Col. Curtis B. Dall, F.D.R., My Exploited Father-in-Law, Liberty Lobby, 

Wash., D.C. 1970

145

"Study of the relations between changes in gold stock and movement 

in price levels shows what 

 

 

should be very obvious, but is by no means 

recognized, that the gold standard is in no sense automatic in 

operation. The gold standard can be, and is, usefully managed and 

controlled for the benefit of a small group of international traders."

In August 1929, the Federal Reserve Board raised the rate to six 

percent. The Bank of England in the next month raised its rate from five 

and one-half percent to six and one-half percent. Dr. Friday in the 

September, 1929, issue of Review of Reviews, could find no reason for 

the Board’s action:

"The Federal Reserve statement for August 7, 1929, shows that signs of 

inadequacy for autumn 

 

requirements do not exist. Gold resources are 

considerably more than the previous year, and gold continues to 

move in, to the financial embarrassment of Germany and England. 

The reasons for the Board’s action must be sought elsewhere. The 

public has been given only the hint that ‘This problem has presented 

difficulties because of certain peculiar conditions’. Every reason which 

Governor Young advanced for lowering the bank rate last year exists