Deming graphic., 1919-12-09
THE NERVE OF 'EM

There seems 10 be an idea, IL one
may cali Il that, among certain altru-
ists--for lack OF better name-that
the world Is In u b. OF shape and
that Uncle Sam ought 10 butt right In
ana do something about II. IL must be
admitted that the story OF starving
Armenian children, homeless Belgians
and the like makes mighty appeal
TO human sympathy. And IL Is very
true that Americans ought to do some
thing about IL through the agency OF
the Red Cross or other official agen-
cies where they will let Americans
stick around long enough TO feed 'em
soup.
But when ii comes TO feeding the
British pound, the French franc or
the Italian lire rich and expensive
American dough" that is going a lit
tie too far, We have trouble Of our
own. And while the American dollar
is worth 100 cents so far as foreign
exchange is concerned, II isn't worth
more than two-bits when Ii comes to
buying gingham for the wife or chew
ing tobacco for papa. In the world
today there the dollar is the only coin
that is worth what Il says II is on its
face and naturally European nations
don't like to have to pay a premium
through their own deprecated cur
rency for American goods.
The Briton was ever noted for the
amount of gall he carries around un.
der his vest and just now he wants the
British pound, quoted in Thursdays
market at $3.S7la made legal tender
IN the United States at $kSS& which
is its normal pre-war value. He says
that the United States owes IL to the
world to do this TO stabalize the mar
ket In oher words he wants TO buy
almost five dollars worth OF flour at
20 per cent discount. He could buy
more, he says Sure he could. We
don't owe England or any other old
country any such obligation. The shoe
Is on the other foot. Uncle Sam loan
ed them lots of good American money
to prosecute their war and kept them
going. The thing that hurts them, Is
Iayiug. IL we enter into any such
mi u, american tax payers will pay
their war costs, which would please
them immensely.
What is true Of the pound is also
true OF the franc Let us see what ar
bitrary valuation of the franc did for
us during the war. l don't pretend TO
know much ahop. foreign exchange In
a large way. but | can guess what 1t
did to American exporters from what
it did to the individual American sol
dier in France. When l first went to
France an American dollar was worth,
according to an international agree
ment five francs and 80 centimes or
almost five francs to the dollar. But
the individual soldier In France never
could get that for his dollar outside OF
an American paymaster's Office, and
wnen the native merchant got at him,
ne only got four francs for his dollar
ON the average Another agreement
made the rate 4.45 at which point II
remained until after the armistice was
signed. Ii gave the impression OF
rise in value OF the franc, which was
as intended, but it took II out OF the
pocket of the American doughboy who
always received the pre-war rate. That
is sample of what 1t costs to make
the other fellows 'dobe dollar worth
real MONEY. NOW TIE lEduC II Ut
30 per cent discount and the impress
sion Is loose in France that Uncle Sam
ought to help them out l repeat that
we have troubles enough and debts
enough Of our own.
There is no denying that the money
market Is jerly and that trading under
the circumstances is difficult with the
pound and franc riding the toboggan.
hut II is hard to see just why Uncle
Sam should bear the cost. II foreign
exchange goes TO pot 1t won't hurt at
all to have a few beans around that
win buy something for us and for the
starving Europeans. And what Is 10
he accomplished by allowing the dol
lar to carry the franc and pound
around on its back?
Secretary Glass sounds a warning
in his annual report when he intimates
that some people have a mania for
helping others and charging 1t to the
American tax payer We have loaned
Europe millions and will have TO loan
them millions more TO rehabilitate
themselves, but they win have to work
out their own payments the same as
you and /.