The Nome nugget., 1920-11-27
PROTECTING GOLD RESERVES

Gold is universally recognized as the basis of credit and the only me- ditlm which can be used in the set tlement of trade balances between the civilized nations of the world This being true. an adequate supply of gold Is essential to every civilized country, The credits of the world have increas- ed many fold since the beginning of the war The gold reserves of the world have made no preceptible in- crease during that period. The United States during this period has gained from imports If gold from foreign na- tions to Il poin: which has enabled it to maintain it's currency at par and to maintain a free gold market. In most other countries currency is at dis count and the free transfer of gold is not permitted. The credit of the Uni- te States is thus mainta ined at par be- cause of our adequate gold reserve. Foreign natl ions % which We hope to sell our goods and with which we hope to maintain active commercial rela- tions are today handicapped in their purchase in our market by depro- ciated currency which can only be ac- cepted in payment for our goods at q heavy discount.
 The fact that the currency of many na tions is now at d discount pr, to state it differently, the fact that gold is at a premium in many nations of the world proves conelusively that those nations have not enough gold. We must expect that the demand of these nations for increasing their gold re- serves if we are to maintain free gold market. which is q condition most greatly to be desired. Gold will ne in greatest demand. This movement of gold is made more likely because of the fact that at this time .he Un- ted States possess more than its share of the worlds gold supply. It is true that defiation of credit is being sought by the financial interests of the coun- I try and it's hopes that deflation may be brot about gradually and without disturbance of the financial situation. Assuming that the crisis shall be pass ed it still becomes necessary for this country to maintain a gold reserve which will fully satisfy the public
 mind that '.s obligations may at all
 times be met in the gold payments re- l It is generally admitted that a
 healthy gold mining industry is essen- :ial to meet these conditions. This l is a national requirement. without re- l ference to it's effect upon the gold . ing industry The nation at large is not interested in the success of .he gold miner but it is interested directly Tn the success of the wheat growers or the Northwest. but a discontinuance of wheat tulllNdtlo1 III tfstt section, 1T the shortage thus created were certain to
 create famine would become mat
 ter of very great importance to the nation and the nation must interest itself in those plans by which the wheat growers of Dakota and Mon,
 tana shall find it profitable to produce That food which the nation needs 4 guaranteed price for wheat was for
 the purpose of protecting the food sup | rly of :he nation.
 \ gold reserve which protects our credit is necessary to the nation and few will be found willing to say that 1t is not the nations business to so stimulate gold production as to pro- tect the nations gold reserves upon which our credit is based and upon which our ability to carry on inter- national trade is predicted.