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....

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!