The Washington times., 1915-05-05
Business Will Be Better II For
eigners Keep Their Money
and Confidence.
"CASH is ONLY YARDSTICK'
And America Wants What the
Rule Measures-Not the
Rule Itself.
By JUDSON C. WELLIVER.

Dy JODoON ~. WEbbiN ''
Uncle Sam is in danger of having a
flood of gold started in his direction
that he doesn't want.
It Is literally a fact that big move-
ment of the yellow metal from foreign
parts in this direction. which is threat
ened by reason of the huge trade bal-
ance in our favor. is looked upon In
authoritative financial quarters as
something decidedly not to the inter
est of the United States.
Business will be, better If the for
eigners can keep their gold-and their
confidence. That Is the way the case
Is stated by men who though they are
not willing to be quoted reflect the
sentiment Of the Treasury and the gov
erning board of the new Federal re-
serve system.
Gold Is only the yardstick." said one
Of these men today. ''It isn't the yard
stick we want: 1t Is the business that
the yardstick measures Off. Let the
other fellow keep the yardstick, and
us do the business"
Fear Increase.
That statement of the case is re-
hected in a variety of ways by the
men who for about the first time in
this country's history are viewing with
concern the prospeat of great In
crease in the national stock of basic
money.
How marvelously the United States
position in the business world has
changed since the beginning of the war.
is shown by the different attitude to-
ward this problem Of the gold supply.
At the beginning of the war this coun-
try owed an investment abroad of per-
haps three or four billions Of dollars,
and a floating debt of perhaps half a
billion. 1t wasn't possible for the out
side world to demand instant payment
Of the investment debt, but 1t was pos
sible for it to be unpleasant in it's in
sistence on the quick payment of the
floating obligation. The immediate prob
lem then was to stave off that debt In
some way that would obviate the need
rope.
Now, at the end Of ten months OF
war, the boot is on the other leg. Our
floating debt abroad has been paid, and
vastly more, by the export of products
the warning countries needed. There is
a floating credit In our favor that is
big and getting bigger every day; Eu'
purchases from us, and of course must
pay for them some time.
But Europe has other troubles or
hand. and needs to husband it's re-
sources. Time was when. in the mat
ter of foreign commerce, Europe pos.
sessed the business and we had the
ard-stick-the greatest gold stock In
stick and the business-both. We cant
keep both. If the gold is to flow, In
too strong a stream, to our shores, Eu-
rope will be unable to maintain gold
basis, and the whole scheme of world.
trade will be demoraliZed.
Something Else Needed.
In order that the world may remain
OIL the gold basis, it Is rapidly becom.
ing apparent that the United States will
have to take it's pay in something else
than gold The anomalous condition
has been reached, in which an ounce OF
gold in Europe Is worth more to Ameri.
can business than If 1t were right here
OF course. ultimately Europe will have
to pay it's debts to U.S. IF the war lasts
another year. and we wind up with q
billion and half or two billions OF
floating credits in our favor in Europe
there will have to be settlement II
time. But Europe is not in Il mood fol
settlements now-any moro than we
were in the trying days immedia tel y
commission came owe" from England an,
tried to convince the American bust
ness and Treasury leaders that we ough
to pay them in gold.
We did paw good deal Of real golC
over to them: rather more than $100. 600
100, according to the figures which the
Treasurer of the United States present.
on gold stocks and movements. Blu
after that the tide turned; We were
shipping other things across the At
lnntiC 80 fast at slr'h high ~rices tha
the movement Of gold etonpCd! Now
there is indication of is reversed Of th'
movement. and II is found that Euron'
wants to keen its gold quite as muct
temher and October.
It is almost inconceivshle that tn,
United states. AS a bic debtor nation
should have accumulated such y vas
stock of gold The real explanation IL
that while owe n great deal n
money. it represents 'nvestnnnts W,
have become tho riches. nation nv rar
in the world, despite that VIC owe som,
money.
Just Small Change.
Our national wealth is ca Iculated p
$50 billions. easily twice that Of an
other country. As against that wha
"a the detail of three or four or ever
Aye billions Of small change owini
70 various scattered neopIe who hav
to make some profits from our fin
investments?
Nobody knows. of course. how mucl
gold there is in the country. hecaus
not nearly all of It is vi9ible. Blu
the visible store of ii. that the none
tary statists figure on. was state
two years ag" as almost two billion
NJ dollars. That was ALMOST f"n
times as much as we held in 1885,
when the visible stock was sCarCel
500 millions.
That is our gold stock has increase
during this period at the rate n
about eighty millions N"a-. Will
the United KinTdom's supnlv has in
creased only about Ave millions
yesr in the same period
No country ra"o tho United gate
could have afforded to aCCumuIat
such an immense amount Of gold an
make such poor use OF II as we die
n must be remembered that Will
most countries used gold as a basIl