The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1916-11-04
OPPOSING GOLD INITIATION

the British government not to send
more gold to this side. II is not sur
prising that there should be report
of such action, nor improbable that
the report is correct.
Accommodations of gold In this
country now represent one-third Of
the worlds store, It is calculated.
We are in a period Of initiation Of
which the end Is not in sight. Some
authorities have recently expressed
belief that there will be further
advance Of 80 to so per cent in COM
modify prices in the next half year.
That would impose severe hardship
on the great mass Of people. Stated
incomes cannot possibly be expected
to advance at such q pace. Wages
VIGOROUSLY advance more slowly
than prices in times Of imitation; the
fact that they also recede more
slowly In times Of contraction, while
II makes averages less impressive,
does not help the household that con-
fronts greatly increased costs with
out correspondingly increased in
comes. To say that Americans aver
age five feet eight inches tall doesn't
worry the man who is taller or
shorter; but q Procrustean order to
saw of the excess from the taller
men and to stretch the shorter ones
! to the average length would be dis
tinctly annoying. Likewise, the
worker who Is assured that his
wages will be plenty when prices be-
gin to fall two or three years hence,
will not find the data very filing
| in these times Of $40 wheat.
II 1t is true that the allies have
SO successfully modified their gold
that they are actually able to make q
great nation like the United States
beg them not to send II any more,
then indeed have we come to the
time of fiscal miracles. AS we have
repeatedly pointed out. the world
produces about twice as much gold
per annum now as it did at the be-
ginning Of this century. The larger
part of it Is produced within the
British empire. Recent advices
from South Africa, the greatest gold
field in the world, indicate that wars
necessities have caused a sharp in
crease in production there. So it is
quite possible that the allied ma
tions might actually be in position
to feed gold to the United States
until it would have to cry quits.
It is time to expect such tactics
The advertisement Of the latest
British loan in this country sug'
gested strongly that the supply Of
gilt-edged securities that Britain car
put up as collateral for loans on this
side, is getting low. II 1t become,
exhausted, Britain will confront the
necessity Of choosing between two
alternatives. She must pay us II
~old for what she buys here, or in
duce us to accept government bonds
unsecured by collateral.
: Much conjecture has been indulgec
: as to this country's attitude towar'
a series Of great loans on govern
ment bonds of Britain and France
Financiers, of course, protest tina
they would be perfectly good; mos
, people believe it. But American
: are not much accustomed to tina
kind of finance. They are not hab
{ tied to acting as the worlds banker
: they are rather in the pawnbrokinI
(; stage of financial development
D wanting to see the collateral and b
0 sure 1t is good.
: 1t would be a marvel Of financis
e ingenuity if the British and Frenc
: financial authorities would be abb
d actually to force the United State
Il to buy their bonds, with the thres
r of paying in gold if the bonds wer
y not taken! Such a performanc
would not have been imagined by tn
n most Eighty financier, two year
l. ago. Most people believed, then, thu
d a flow of gold in our direction we
It an unmixed blessing; the more gol
, the better; if we got all the world
n gold, we would have the world
It whole financial power.
IL Now we are learning that Il
h much gold may be as unfortunate {
al too little. If the entente natiol
E. want to compel us to buy the
bonds, and pay for them in commod
a. ties, they might very plausibly for
O. our hand by threatening US wi
III gold. If they have the gold, and a
Is willing to send it, they may indie
to compel this country actually to pr
ne fer bonds.
o. xxxu~--~ - kNYT@N nIDI