ABSTRACT
§ 1. We have now seen that there is little hope of an amelioration of the maldistribution of the world’s gold from the supposed automatic tendency of commodity prices so to respond to international gold movements as to destroy the forces which caused the flow of gold. Owing to Central Bank management of the internal credit situation of each country, gold movements, particularly when inward, are not allowed to work their normal effects upon domestic prices, so that when their causes are more deep-seated than a mere seasonal or other purely temporary disequilibrium, there is little prospect of their being removed by an adjustment of commodity-trade balances.
