New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-17

he says, will at once turn into incon-
/ vertible permanent indebtedness the
existing treasury and Bank Of Eng
/ land issues, and free all existing gold
reserves TO be used for the purposes of
the act" that is, the new act which is
TO carry out these measures. He would
then create a gold fund. out of all
existing gold or bullion reserves
maintain, if thought desirable but
not necessary. as the gold market as a
commodity will be free to ALL, store
Of bullion. to be dispensed at the mar
ket price of the day." on proof that il
is required for export or art pur-
poses; compete in the market for
bullion that may be required; invest in
neutral securities; ak the maximum
exchange for selling on foreign centres
by the controllers Of the currency
supply all banking and financial insti-
tutions with currency, "on the deposit
of adequate collaterals on the basis OF
legitimate and non-speculative trade;
and pool the British fund with the gold
funds of all friendly countries adopt
ing the system. So, he thinks, we
should be able TO issue eighty million
more notes and earn revenue for the
| Exchequer of sixteen or seventeen mil
lions sterling. In other words, If we
understand his scheme Alright, We
/ should send our gold abroad to be in
vested in neutral securities, except IN
| so far as we kept it for the purpose
| that il is now fulfilling, and food the
country with fresh mass Of paper
with the fresh attribute of inconverti-
bilitv. The effect Of such policy on
prices, on tte cost Of the war and on
the popular temper, which is already
highly sensitive on the subject Of prof
iteering, may easily be imagined But
Mr.. Larkworthy seems to think that
the benefits of the scheme should be
extended 70 all mankind; at least he
gives a table showing "the extent OF
the funds the great nations OF the
world could respectively raise on the
basis Of So per head. and he remarks
that eli notes were made legal tender
exclusively the possibilities Of eX'
tension would be great The total ar
rived at by adding up his table is 6,i5C
millions sterling. Here Is wealth IN
deed, on and in paper, beyond the
dreams Of avarice If we could take
20 eating paper money We should no
longer need a food controller, but the
paper supply might be a difficulty. But
really. with all Difference to Mr.. Lark
worthy's ripe experience, to model oui
currency on Greek lines would be Ike
building a battleship on the lines of
Thames wherry. A gold exchange
standard works quite we'll in norma
times for a comparatively small STATE
that is content to depend on balance
in foreign market for regulating u
exchange; but its liability to brea'
down in times of emergency IS well eX
emplifed by the fact that the Val
aoritis scheme, which Mr.. Larkwortnl
l. asking rs TO copy, is now, owing u
war. the blockade and the embargo
necessarily suspended" Our system
of shipping gold and securities TO I'M
centres in which we have to make pay
ments seems to have borne muci
more severe strain than Greece's muci
more successfully. 1t has financed GU
needs and those of our allies TO TN
extent of hundreds of millions ma
mot broken down. and will not breai
down. if our finance is properly handed
and our rulers practice economy II
public spending and impose 1t on u
in private spending.
When We thus hear banker sppar
entity advocating worldwide imitation u
the tune of $3.50 millions sterling W.
can hardly be surprised to find bod!
called the Stockholders Union, Lin
tied. arguing that
II the price Iof wheat showed ten
do,cv In fall the government woul
have IL in their power to prevent this ten
dency. by issuing additional currency note
IN the nation. Instead OF taking from tn
pcoplc BY taxation in order TO make Up tn
loss to the farmers, as they will have u
do under the present corn production
bill. the government would be giving TO tn
he v,rtra NJ Nap
from falling. unless the supply was exces
sive.
The farmer. would continue 70 have. II
effect. the safeguards 10 which their indus
try ia entitled. and the nation would no
be taxed l. O.. made poorer. but actuall.
and permanently enriched. since this add
tional money would. under these proposals
only be put properly into circulation b!
being paid out for works Of public utility
And so imitation grows in popularity
and the opinion spreads that al
economic ills can be cured if we onl,
print enough paper. II is wondrou'
evidence Of our economic education II
this twentieth century. II is refresh
ing 10 find that in America cleare
view prevails, and it is seen that too
much currency has already worked Sc
rious mischief Mr.. A. c. Miller.
member Of the United States Fedora
Reserve Board. lately delivered an ad
dress 10 the Bankers Club. of Cleve
land, on the subject Of Making Ready
for New Financial Tests" He pointed
ont that "the process which has beer
r I'll urine, tho mast two years N