Money: The Crus of the Matter

The U.S. last week formally stated a plan to cope with a long-troublesome dilemma: the shrinking money supply available for world trade and investment, otherwise known as the liquidity problem. In his economic report (see U.S. BUSINESS), President Johnson declared that "The free world must look to new sources of liquidity—rather than to deficits in the U.S. balance of payments—to support growing international trade and payments."

In their trade with one another, more than 100 free-world nations occasionally settle their accounts by exchanging gold; more often the exchanges are in the U.S....

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