Bisbee daily review. [volume] (Bisbee, Ariz.) 1901-1971, 1915-09-08
A MIDAS NATION.


The United States rapidly getting into the
plight of the mythical king Midas That monarch, when
granted wish by the gods decided that he wanted
everything he touched to turn to gold He had very
enjoyable time Of It until he found that even his food
was changing to gold before it reached his mouth TIC
himself starvation he had to forego wish
year ago there nothing the United states wanted
more than gold Our credit imperied and we had
no of paying foreign obligations. The Amer
lean dollar at discount.
The gold food that poured into our Golfers since
that time is a matter Of familiar history In the year
ending 30 broke our export record SURPRISING
for the first time the exports of all other nations and
thereby accumulated favorable foreign trade balance
Of 123OOOOOO about 5000 100000 than before
The shipment of goods to Europe has continued in
increasing quantities and Europes Indebtedness
rolls up in ever greater proportions
Europe has tried square the account and found it
impossible. Since the first Of the year Great Britain
France and Canada have s2OOOOOOOO worth
Of gold Foregn-owned American securities to the
amount of perhaps S25OOOOOOO been dumped on our
market to pay the belgerents bills. Foreign govern
ment loans and credits been made here to the ex
tent Of s2OOOOOOOO Altogether Europe has paid us be-
has proved drop in the bucket
Europe's credit has fallen lower and lower. And that
means primarily Englands credit which is always the
most stable, and which has used to bolster the
credit Of her allies and friendly neutrals
Ordinarily British pound sterling is rated in the
New York money at the par valuation of sass So
When the current quotation varies as much as cents
either way gold is shipped to England New York
as the case may be- to the equilibrium
Last week the pound sterling as low as $3.50 in
New York That that British debtor-or for that
matter any European debtor-payng bin in this coun
try with British moneywoud have pay above $1O7 for
every dollar he had agreed to pay
Now this situation may look fine for the American
banker and exporter It did-or a while BUT lately the
bankers have found that owing to the constant liability
of disastrous fluctuations they can do very little bust
ness And the exporters whom of millions of dol
lars are constantly coming for shipments of food
stuhs or supplies finding hard to collect theil
buyers will place their food and munitions in
other countries where the exchange is strongly
against them.
So all at once everybody concerned, on both sides Of
the Atlantic is clamoring for adjustment to facii
tate banking and trade operations
Ordinarily, as has been suggested the matter woul5
be Strengthened by the shipment Of gold in sufficient
volume Bu Great Britain and her allies don't wan
to part with the necessary gold 1t would imperi the
own financial systems
Moreover don't their gold We are surfeec
with gold our national banks when their last repor
was made, held $77SOOOOOO above their legal require
ments, and they have far more now The New Yorl
City banks alone had last S4l3279OOO of gold
which S2O4OoOOOO surplus. The federal comptroe
declared recently that surplus gold in the countr,
would justify expansion of credit Of $4,000 OO
to sSOOOoOOOOO
Enough foreignowned American securities might the
orecay be sold here to provide cash to settle the ac
counts. But this method is mpracticabe because for
'ign investors inclined at present to sell hei
American securities. The only solution seems TO be
big credit loan, and it may be determined on by com
mission OF English fnancers expected in New You
shortly
There is talk of loan of s75OoOOoOO of even 81 600
100000 to be made to the British government to proyid
fund through which all accruing obligations in thI
COUNTRY can be paid off American securities held fl
England would probably be given as collateral
If something of the isn't done, the very glut O
sold likely to sagnate our banking and our expor
trade Uncle Sam can't eat gold any more than Mida
could The modern Midas will transform the metal int
good Understanding bonds and the resulting cred
strengthen his prosperity.
OUR VACANT LAND
There's sti room in this country for the pioneer Tn
governuent land o9cc renorts 97o "A nm IAN .,