Mohave County miner and our mineral wealth., 1920-11-06
MCFADDFN ANSWERS BONUS CRITICS
 GIVES EXPOSITION OF GOLD STATUS

At the recent meeting of the
 American Bankers Association a
 resolution was adopted placing
 that organization against the
 gold bonus measure, known as the
 McFadden bill. The report is too
 long for publication, but in the
 following article from the pen of
 Louis T. McFadden, congressman
 from Pennsylvania and author of
 the measure, it will be noted that
 the salient points of the bankers
 objections are fully met. But one
 of the things that Mr. McFadden
 has failed to mention was the i'm
 plication that during the war
 and the year subsequent all goods
 manufactured in the United Stat
 es were taken for export and
 there was a resultant shortage of
 goods. This has been shown to
 be untrue through government in
 vestigation, every warehouse Tn
 the country being overflowlng
 with goods of every description,
 and to such an extent that the
 mills have closed and turned
 away many thousands of employ
 es. Manufactures have been so
 heavy that if slight panic occurs
 bankruptcy will be the rule all
 over the country. We feel sure
 that our readers will read with
 interest the views of man who
 has made a most thorough study
 of the gold situation and its rela-
 ton to the worlds prosperity:
 Gold is our standard of value and the money of bank reserves. The en- tire body of outstanding indebtedness public and private, including the Llo- ertv Bonds recently issued, is payable in gold coin of the present weight and fineness. The nearly $1O,OOO,O ,OOO,Ooo of loans which the United States GoV- ernment has made in the last two and one-half years to foreign governments are payable in this gold coin. The S3 800 ,OOO, ,OOO adverse European trade balance created since January l, l9l9' has still to be funded. The outstand- ;nq indebtedness of nearly the entire world is contracted in gold. Outside of Asia, gold is still recognized as the init of value and the basis ot none tarv systems, although in many coun- tries the stress of war conditions ana unbalanced trade have compelled a suspension of gold payments. All ol these countries regard such suspen- sion as temporary and desire to get back on the gold basis and estapllsh their currencies in fixed relations to gold at the earliest possible date'
 World Restoration of Gold Standard
 For the United States to adopt rem edial measures to maintain it's normal oo,d production would be construed sbroad not as an element of weakness but rather as one of strength A stimulus to domestic gold production would be regarded not only as evlden- ce of our desire to retain the present gold standard throughout the worid' hut as an aid to European countr1es to more rapidly recover their pre-war cold reseye positions. To allow the industrial consumers of gold Tn tnis country to withdraw gold from the monetary reserves of foreign coun- tries would have a depressing e11ec' mon the exchanges, and would delay the time when foreign exchanges would be restored to par. The dlVer- sion of gold from the monetary re- serves of the nations of the world lnto the manufacture of articles of luxury particularly at a time when tne worlds gold production has so greatly declined will still further delay the financial recovery of all nations rom the pressure of war finance.
 The report of the Gold Committee states, If at any time the bank slt- nation calls for more gold in the Uni ted States, we can purchase it in the international gold markets far more cheaply than we can obtain 1t by the doubtful method of an expensive bonus on gold produced in the United States" Is it not evident that if the United States was forced to withdraw gold from the already depleted re- serves of foreign countries, their pur- chasing power in our markets would be lessened? A still further decline in the. exchanges of such countries from which the gold had been With drawn would result. The loss Of European purchasing power in the markets of the United States upon which our domestic industries depend for prosperity would occasion loss far greater than the premium pro- vided for in the bill, which is borne not by the public at large, but direct ly by the consumers of gold articles, luxuries. Since the consumers oi