The Alaska daily empire., 1919-05-23
ment of war-obligations in gold is 
 Need of Common Sense.

lmpOSSlDle.
 Need of Common Sense.
 When the law and common sense conflict, common sense takes prece- dence to the extent that no court will decree specific performance of an absolute impossibility, for the simple reason that no court and no power on earth could execute the decree.
 The superficial view is all too com mon that the people and the Gov crnment of this nation are separates; while, in truth, the people and the Government of this nation are one and inseparable. There are about 20 100000 government bondholders n this country now, and when the Victory Loan is placed there will be even more-the equivalent of at least one bondholder for every family in the nation.
 Our citizens have individually contributed to common pot for common purpose, and with the general understanding among our selves that those contributions are sometime in the future to be return ed to each with interest. In other words, we individually made loan to ourselves collectively and collec- lively we will pay it back to our selves individually with interest, that is the whole story and the whole arrangement in as far as we, ourselves, are concerned.
 It is not presumable, nor even thinkable that this great nation even intended to warp into that family arrangement any condition or requirement impossible of human performance.
 That these loans can be repaid with interest is all quite possible, practical, and easy; that these war obligations can be paid in gold, or other currency on par with gold, is reasonable and practicable of per- formance by ourselves; but to pay interest and principal of these war obligations in the present gold stan dard value is manifestedly, openly, and obviously, humanly impossible.
 Gold Production.
 The average annual gold produc- tion of the United States <. for the years 1906 to 1915 inclusive was about $96,O00,000; and for 1915 it fas about $101, 100000, since when it's rate of production has rapidly de- clined to about $68,000,000 in 1918; and 1t is believed the annual rate of production at present does not ex- ceed $45, 100000 and is still declin- ing-none of this $45 100000 is likely to reach the U. s. Treasury in exchange for our present depreciated currency.
 A large portion of the present small production of gold is from mines of other minerals, the ores of which incidentally carry some gold as by-product. Under present prevailing conditions gold produc- tion tends to decrease rather than increase.
 For several decades preceding the present world-war insufficient gold was produced to meet the legitimate requirements of the worlds rapidly expanding business. In other words, the production of gold had not in- creased apace with the worlds in- crease in population and business, so that at the commencement of this war the world was somewhat short on gold for ordinary uses of the na- tions in time of peace; and it was the momentum of custom and habit rati CT than gold, itself, that was ther sustaining the totterfng stan dard, the sudden coming Of world war with its consequent vast and sudden imitation of paper issues based on gold quickly caused its ut ter collapse.