The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-04-09
Leipzig Professor Suggests Plan
for Universal Medium of
Exchange.
By Herbert Bateman

BERLIN. April S-Professor William
ostwald Of Leipzig the Nobel prize win
ner OF 1909. aspires to be the modern
Francis Bacon He is not content with
his worldwide reputation as the first liv-
ing German chemist, but has made In
cursions into every field of intellectual
aclivity-eXact science. philosophy, poll
ties and sociology.
His newest propaganda is the interna-
tionalism OF the money system, The
not manage much longer without uni
rersal unit OF values. and there IS an
easy way 10 attain 1t II only governments
will get wise TO the fact.
ostwald claims that his proposal for
a world money is not only scientific, but
also practicable. 1t can be introduced
standards, and IL does not raise at the
beginning the difficult problem of Il
world coinage. 1t Is the confusion be-
tween money and coinage which has
hitherto baffled all would-be innovators
in this line.
All suggestions for adopting. the pres;
ent monetary systems for international
sor. The theory that the problem, is
helped forward by the fact that dollar
is roughly four English shil;ings' sour
German marks, five French francs. and
so on. Is entirely wrong. There is no
even arithmctical relation between Aus
triau. Russian and Scandinavian money.
For these reasons Il is impossible to de-
sent multiples OF existing colnages. TO
alter the existing coinage values so as
other is not feasible: during the process
nothing but confusion would result
Gold Gram the Basis.
The world-money which is TO he a sue
cess must avoid the arbitrary standards
upon which colnages are based. II must
have real foundation II must express
weight Of gold. The weight chosen
must be one which all the world accepts
OSWALD declares for the gram Inc
gram Is already the only official weight
| in ali the Latin countries, and in Ger
many: while in the United States, Eng
| land and Russia 1t Is universally recog-
| nlzcd for scientific purposes It's Vaiue
unshSnEsabs Ss Cents, sTam French S 2uTs raHeE ESa
| 2.79 German marks. and 2.9i Austrian
| llronen, A.,
A gold gram" should therefore he the
| monetary unit adopted in all civilized
states. This could he effected without
| at all raising the difficult question OF an
international coinage, An inler,,alIoinii[ ,il
coinage. however, offers no insnper;a nlc
ultimate difficulties. France. Belgium
Italy. Switzerland Greece, and other
| minor European states have already q
unitary coinage; and the money OF each
Except small change COINS COINS IS III reeTS ,EG
| rest But the money OF The iuture. the
| gold gram need not be coined at first
J 1t can be used merely for purposes ol
All that is necessary Is for the govern
mcnts and chambers of commerce TO rec
ognize the gold gram" as usa6le IN
the form OF checks and bills OF exchange
on international accounts. By far the
| greater parl OF international trade does
not require any corresponding transfer
Of money from one state TO 'he otlers
| Accounts are merely booked. and squareo
| off against one another. The So!G
| gram" would therefore merely appear ir
account books. checks and bills. and
4.
| as coin.
Bank Certificates Proposed.
Where money actually had TO be trans
! nItted, or where any individual peTsor
| required payment in money OF debl
booked in gold canrT MANS in ouestion tne wou
| he used In the United States Il DEBT o.
100 gold grams would be paid over II
the shape OF $3.50 In United state:
money. In France In the shape OF 81.
francs. and so on. AT the same Time
| rc5l gold coinage with. say. units ol .
10 and 20 gold grams. could be mintet
| and ueed by hotels visited by foreigner!
and other international institutlons,
would not interfere with the ordinary
coinage Of the country where used. no
would its acceptance at i,rsI H,,d pe hoGeyer hgTGye
begin to use Il merely because of 1t:
| superior simplicity.
p The next step would be taken py s'at'
treasures and by banks which have th'
riah, to Issue notes. These would Issue
"coid gram" certificates which would re
niace ordinary coinage and notes In In
tcruatIonal affairs. Customs duties
would be so paid: international railway.
would accept the notes. and so iortn ~
uoy,i, devslopcd countries and colonies
,be International money system could b'
introduced from the first The new
money soon would be preferred 20 The
IA for international purposes. and n.
the volume OF international trade grow:
enormously. and continually increases It'
proportion to the whole In relatively