"Something has got to give," says Edwin A. Reichers, senior vice president of New York's First National City Bank. "This outflow cannot go on forever."
What worries Reichers, and most other top international bankers, is that dollars have been pouring into foreign countries at an extraordinary rate. Principally because banks repaid the sum of money that they had borrowed abroad, the U.S. balance of payments deficit hit $10.7 billion in 1970, and in this year's first quarter alone it amounted to about $4 billion. Two weeks ago, rumors swept the Continent that several strong European currencies would be revalued upward, in...
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