Index Ackley, Garner, 174 banks Africa, 91 central, 1, 4, 35, 65, 83–4, 111, American eagles, 81, 82 122–3, 144, 148 Anglo American Corporation, 13 in Latin America, 57–9 Anglo-Boer War, 71, 84, 93 Swiss, 109, 111–13, 118–25, 127–31 Anglo-South African relations, Banque de France, 19 97–105, 105n2, 129–30 Barclays Bank, 31 Apartheid, 31 Baring Brothers panic, 50, 81 arbitrage transactions, 113 Beirut, 3 arms embargo, 130 Belle Époque, 44 Articles of Agreement, 28 bid-ask spreads, 70–1, 77–8, 80–1, 83 Asia and inventory costs, 68–9 see also China; Hong Kong gold and market power, 67–8 market bimetallic standard, 19, 20, 41 gold consumption in, 13 Boer War, 71, 84, 93 Assay Master, 90 Bolton, George, 114 August Agreement, 95–8, 105 Brazil, 10, 39–60 Australia, 35 banks in, 57–9 gold discovery in, 91 commodity regulation in, 53–5 gold reserves in, 19 economic growth in, 49, 58 gold supply in, 49 Bailey, Christopher, 40 and international debt policy, 50–2 balance of payments, 19, 21–3, monetary system of, 57–9 41, 122, 126, 160–6, 171, per capita income in, 49 173–4, 174n1 railroads in, 55–7 Bank Charter Act (1844), 92, 102 Brazilian Gold Conversion Bank of England, 3, 7, 8, 10, 19, Loan, 52–3 64–87, 90, 105, 133 Bretton Woods system, 5, 11, 22–3, bid-ask spreads, 67–71 110–11, 122, 163–4, 169–70, gold inventory strategies, 70–83 181–96 gold policy, 69–70, 74–5, 82–5, Bridge, Roy, 129 97–8, 113–15, 117 British Empire, 40 and gold prices, 70–2, 76–9, 81–2 Brown, Gordon, 27 gold reserves of, 26–7, 69, 72–5 Browne & Brind, 90 institutional features of, 66–70 Buess, George, 101 inventory costs, 68–9 bullion bars, 90 as market maker of last resort, bullionist controversy, 19 68–9 bullion market, 31–3, 90–1, market power of, 67–8 98, 152 monetary policy, 80–3 reserve requirements, 69 Caixa de Conversão, 54, 58 and St Luke’s Refinery, 101–3 California, 91 Bank of France, 161–2 Calvet, Pierre, 168 199 200 Index Canada, 96 dollar/sterling exchange rate, 82 capitalism, 41 double-edged diplomacy, 42 Cawston, Sir John, 102 central banks, 1, 4, 35, 65, 83–4, 111, East Asia, 139–40 122–3, 144, 148 economic theory, 45–6 Chamber of Mines, 93, 99–100, 104, economies of scale, 18 123, 129 Encilhamento, 50 China, 1, 19, 20, 33, 149, 152, 157 European Economic Community see also Hong Kong gold market (EEC), 160, 164, 165, 171, Chinese Gold and Silver Exchange 173, 174 (CSGE), 140, 142, 148, 156–7 Evans, Samuel, 98, 99 City of London, 7–8, 40, 89, exchange rates, 21, 22, 24, 29, 92–3, 187 54, 81–2 see also London gold market exchange trade funds (ETFs), 35 classical gold standard, 20–1, 64–87 export economies, 10, 44–5, 47, 49, coffee, 49, 53 50, 53–5, 57–9 coins, 17, 19, 21, 29, 31, 72–4, 77–81, 83, 100 Far East, 100, 111, 115, 129, 133, Cokayne, Sir Brien, 101, 102 149, 150 Cold War, 31 Federal Reserve, 4, 23, 29, 110, 143, Collective Reserve Unit (CRU), 165 148, 155, 162 commodities, 1 fiat money, 30–1 export, 44–5, 47, 49 financial crises, 1–2, 20, 21, 24, 29, prices, 24, 25 34–6, 139 regulation of, 53–5 financial innovation, 34–5 Common Market countries, 164, financial markets, 3, 51, 90 166, 174 dollar shortage and, 195 Conant, Charles, 43 European, 124 Credit Suisse First Boston internationalization of, 43 International, 31 LGF as symbolic, 195, 196 Cuban Missile Crisis, 169 London, 89, 97 Cultural Revolution, 152 Mexican, 57 First World War, 5, 21, 84, 95–6 Debré, Michel, 171, 172 Fisher, John Lennox, 114 debt crises, 21 floating exchange rates, 29 deflation, 143 foreign exchange reserves, 22, 24 de Gaulle, Charles, 163–4, foreign gold specie, 72–4, 77–81, 83 168–70, 173 Fowler, Henry H., 171 Deming, Frederic L., 170 France, 4, 11–12, 19, 20, 22, 111, 159, dentistry, 31 161–2, 163–6, 168–74 dependency theory, 45–6 Frank, Andre Gunder, 46 depressions, 21 free markets, 111, 121–2, 123, 126, developing countries, 33–4 132, 150 Dillon, Douglas, 168, 169 free trade, 46 diplomacy, 43, 159–78 French napoleons, 77, 79 Dollar Diplomacy, 43 Funding Loan (1898), 51, 54, 58 dollar price of gold, 23–5, 29, 113, futures market, 34–5, 150 148, 184–5, 190 dollar reserves, 161–2, 166, 169 Galbraith, John Kenneth, 167 Index 201 German marks, 77, 78, 80 gold deposits, 6 German refineries, 93–4, 106n10 gold derivatives, 34–5 Germany, 19, 20, 159, 166–8, 171–4 gold devices, 10, 64–6, 74, 75, 81–4 Giscard d’Estaing, Valery, 163, 164, gold drain, 160–6 169, 170 gold fixing, 31–2, 98, 104, 127–8, global economy, 21, 23, 45 144, 181–96 global financial crisis (2008–2009), gold jewelry, 8, 33–4, 129, 156 1–2, 24, 29, 34, 35, 36, 139 gold markets, 3–4 global financial system, 5–6 analysis of, 7 global gold market, 17, 30–6, 134n1 competition in, 128–33 liberalization of, 111, 118–20, 156 global, 17, 30–6, 110–12, 132–4, post-WWII, 110–12 134n1 reorganization of, 126, 132–4 history of, 6–8 globalization, 21, 22, 40, 41 Hong Kong, 11, 111, 139–57 Gnomes of Zurich, 124 influences on, 6 gold liberalization of, 111, 118–20, 156 demand for, 1, 33–6, 92, 95, 112, London, 7–8, 10, 11, 18–19, 23–4, 129, 149, 156 31–2, 64–87, 90–8, 109–10, demonetization of, 4, 6, 9, 22, 23, 118–34, 134n4, 184–5 26, 28, 36, 126, 155–6 Paris, 8, 128–9 as diplomatic tool, 159–78 regulation of, 111 functions of, 139–40 two-tier, 4 global, 126 Zurich, 11, 23–4, 31, 109, 111, historical research on, 5–9 118–34 industrial uses of, 31 gold mining, 8–9, 93, 105, 112 London, 23 gold points, 64, 81–2, 84 monetary function of, 3–6, 9–10, Gold Pool, 4, 23, 26, 85, 122–3, 17–37, 110–12, 148 125–34 post-WWII, 109–37 gold refining, 10–11, 13 prices, 1–2, 8, 12, 17–19, 23, in Germany, 93–4, 106n10 25–6, 29, 31, 34, 69–72, in London, 88–106 76–9, 81–2, 90–1, 112–14, processes, 106n12 122, 125, 127–8, 133, in South Africa, 88, 93, 98–101, 148, 153–5 103–4 production, 91, 92, 116 gold reserves, 19, 23, 24, 26–8, 30, remonetization of, 29–30 69, 72–5, 122, 143 retail sales of, 157 gold rushes, 49, 69, 92 sources of, 94, 95–6 gold/silver price ratio, 20 as store of value, 17, 31, 40, gold standard, 2–7, 10, 19–22, 139–40 29–30, 36, 96–7, 184–5 as symbol, 40 abandonment of, 133 today’s role of, 1–2, 7 classical era, 20–1, 64–87 as traded commodity, 30–5 in East Asia, 142–3 gold acquisitions, 166–9, 173–4 interwar period, 86n12 gold bars, 32, 66–71, 75–7, 79, in Latin America, 39–60 91–2, 121 political/ideological role of, 41–3 Gold Commission, 29, 143 prewar, 86n12 gold consumption, 13 Gold Standard Act (1925), 71 Gold Crisis of 1968, 24 gold supply, 33, 49 202 Index gold trading, 111, 113 post-WWII, 110–12 liberalization of, 118–20 reform of, 26, 28 regulation of, 111–16, 130–1, role of gold in, 1–6, 9–10, 17–37, 143–4 110–12 Good Delivery List, 91–2 international regimes, 42 Great Depression, 5, 22 international relations, 11–12, Great War. See First World War 159–78 Green, Timothy, 6 international reserve currency, 167 Gresham’s Law, 19, 20 interwar period, 22, 36, 86n12, grey literature, 6 96–8, 105 inventory costs, 68–9 Heavily Indebted Poor Countries inventory strategies, of Bank of initiative, 28 England, 70–83 Helms, Jesse, 29 Italian jewelry market, 129 henequen, 55 Italy, 4, 22 Hilferding, Rudolf, 43 H L Raphael & Sons, 93 Jacobins, 50 Hong Kong and Shanghai Bank jewelry, 8, 33–4, 129, 156 (YHSBC), 146 Johnson, Lyndon B., 166, 168, 171 Hong Kong Gold and Silver Johnson Matthey and Company Ltd., Exchange, 156, 157 93, 94, 101, 102, 104, 106n11, Hong Kong gold market, 3, 11, 111, 106n12, 115 139–57 July Agreement, 97–8, 101–2 development of, 140–8 per cent premium over London Kemmerer, Edwin, 43 gold price, 153–4 Kennedy, John F., 125, 166, 167, 173 trends in post-war, 149–56 Knoke, Werner, 114 volume of, 150–3 Krasner, Stephen, 42 imperialism of economics, 41 laissez-faire liberalism, 46, 47, India, 13, 19, 32, 33–4, 149, 157 53–5, 59 industrialization, 45 Latin America, 39–60 industrial production, 31 commodities regulation in, 53–5 industrial South African gold, 121–2 economic growth in, 47–9 inflation, 5, 18, 30, 139 gold produced in, 113, 116 inflationary expectations, 25 and international debt information costs, 68 policy, 50–3 interest rate policy, 82, 83 monetary systems, 57–9 interest rates, 65 officials in, 43 international debt policy, 50–3 post-independence, 47–9 international gold market. See global railroads, 55–7 gold market tropicalismo and, 45–6 international monetary crisis, 11–12 Latin Monetary Union, 19 International Monetary Fund (IMF), Leroy-Beaulieu, Paul, 42 4, 26–8, 110–12, 114–16, 121, Liang, Y.C., 146 155–6, 162, 164, 167 London Bullion Market Association, international monetary relations, 31–2, 37n7 159–78 London Gold Fixing (LGF), 8, international monetary system 12, 89, 127, 181–96 Index 203 London gold market, 3, 7–11, 18–19, minting policy, of Bank of 23–4, 31–2, 90–1 England, 75 central banks, 112–16 Mocatta & Goldsmid, 90–1 centrality of, 65–6, 109 monetary crises, 126 closure of, 126–8, 184 monetary policies institutional features of, 66–70 Bank of England, 80–3 interwar period, 96–8 Latin America, 44 members of, 134n4 monetary standards, 45, 46 microstructure of, 66–7 see also bimetallic standard; gold post-WWII, 112–18 standard; silver standard reopening of, 116–18, 120, monetary systems 184, 185 Latin America, 47–8, 57–9 rivalry between Zurich and, role of gold in, 1–6, 9–10, 17–37, 109–10, 112–34 110–12, 148 as status market, 193–6 money, 17, 30–1, 40 status of, 188–93 money supply, 21, 22, 41, 48, 143 during WWII, 112 Morro Velho, 49 London gold refining, 88–106 and the Great War, 95–6 Napoleonic Wars, 19 history of, 89–92 Netherlands, 4 interwar period, 96–8, 105 Nevada, silver reserves in, 20 and South Africa, 97–101, New York, 3, 104, 113 103–4, 105 New York commodity exchange suppliers of, 92–5 (COMEX), 34–5 London Precious Metals Clearing Ltd.