Stabilization of Exchanges

October 4, 1943

Report Outline
Moves for Postwar Currency Stabilization
Foreign Exchange and the Gold Standard 1914–1939
Proposals for World Monetary Cooperation

Moves for Postwar Currency Stabilization

One of the first substantial achievements of the postwar period in the international field is likely to be a stabilization of the external value of the currencies of the United Nations and of the defeated powers as well. Secretary of the Treasury Morgenthau announced, as long ago as April 1, 1943, that letters had been sent to all members of the United Nations inviting them to send experts to Washington for consultations on postwar problems of foreign exchange. An American plan of currency stabilization, offered as a basis of discussion, was made public on April 6; a widely differing British plan was given official publication in London on April 8.

It has been suggested, and with much cogency [said a Treasury statement accompanying the American plan], that the task of assuring the defeat of the Axis powers would be made easier if the victims of aggression, actual and potential, could have greater assurance that a victory of the United Nations will not mean in the economic sphere a repetition of the exchange instability and monetary collapse that followed the last war …The people must know that we at last recognize the fundamental truth that prosperity, like peace, is indivisible.

Secretary Morgenthau said, August 20, that international monetary cooperation after the war was essential “if we are to avoid the collapse of some monetary systems, to prevent the disruption of foreign exchanges, and to facilitate the restoration and balanced growth of international trade.”

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Feb. 26, 1969  Money Supply in Inflation
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Dec. 15, 1965  Anti-Inflation Policies in America and Britain
Mar. 15, 1965  World Monetary Reform
Dec. 02, 1964  Silver and the Coin Shortage
Oct. 17, 1962  Gold Stock and the Balance of Payments
Dec. 15, 1960  Gold and the Dollar
Oct. 10, 1956  Old-Age Annuities in Time of Inflation
Jan. 17, 1951  Credit Control in Inflation
Aug. 10, 1949  Dollar Shortage
Oct. 04, 1943  Stabilization of Exchanges
Jan. 21, 1941  Safeguards Against Monetary Inflation
Mar. 25, 1940  United States Gold in International Relations
Dec. 14, 1937  Four Years of the Silver Program
Oct. 04, 1934  Inflation in Europe and the United States
Jan. 30, 1934  Dollar Depreciation and Devaluation
Sep. 05, 1933  Stabilization of the Dollar
May 29, 1933  Invalidation of the Gold Clause
Mar. 15, 1933  Inflation of the Currency
Oct. 25, 1924  Bank Rate and Credit Control Federal Reserve Policies and the Defaltion Issue