The Owosso times. (Owosso, Mich.) 1897-1926, 1920-02-20
COUNTRY FACING A CRISIS
In Danger of Being Carried OF OF
Gold Basis

(From the American Economic)
We have for some time past been
sounding a note of warning over the
depletion of our gold and silver re-
serve. We have plainly seen the men,
ace and have pointed the remedy.
And now the note of warning is be-
ing sounded in Washington, not only
by Treasury officials, but. by Mem
bers of Congress.
The washington STAR eie~J January
30th contains most important ar
ticle in which is given nsest-impof-
tant article in which is given the views
of different prominent officials. 1t ap-
pears that Members of Congress have
called upon Treasury Officialss to re-
port the real facts concerning govern
ment finances. The Star says that the
report startled the members" 1t is
time to be startled, time for them to
close the leaks. The reports refers
to the enormous appropriations which
are demanded of Congress, such as
$1,500, 100000 for soldiers bonuses,
$500, 100000 for universal military
training, $3.50, 100000 to feed starving
Europe.
1t is pointed out that all the coun-
tries of Europe are off the gold basis.
A few months ago certain European
business men, as well as representa-
tives, both official and otherwise, of
this country, at the International
Trade Conference in Atlantic City, de-
cried our immense gold reserve and
"ohe. of them, at least, went so far as
to say that it was a menace to the
country. Just now it does not look as
much like menace.
Chairman Good of the House Appro-
priations Committee is reported to
be against the soldiers bonus propo-
sition. There is great opposition to
the bill for universal military train
ing. With a League of Nations which
President Wilson offers as a preven-
tive Of war, why should there be any
necessity for expanding nearly bill
lion dollars for training for war which
will never come?
House Leader Mondell said:
eve are passing through the most
trying financial period of the war,
though the armistice was signed more
than year ago. We are entering up
on the financial period that is going
to determine whether or no, having
piled up a national debt of $26, 0OO,-
900 1000, having an unbounded over
hang of $4,000, 900, 900, we are to pur-
sue policy which will bring us safe
lysthrough the period of war fnanc-
ing, or policy under which year
and half after the war is over we are
to- be engulfed in financial difficulties,
which we happily escaped during the
period of conflict" ,, l&
The statement of Chairman Ford
nek, of the Ways and Means Commit
tee is of the utmost Importance. The
following is the resume of his state
ment as given by the Washington
Star: ,.t.us,
.fChairman Fordney of the ways and
means committee explained that the
danger of being thrown of the gold
st3hdard is due to the, fact that the
gold supply Is going out faster than it
is coming in. It is going to South
America and the Orient, and it is not
coming in from Europe, because Eu-
rope hasn't IL. The balance of trade
with Europe is in favor of the United
States-Europe hasn't the gold to
pay. The balance of trade with South
America and the Orient is in their
fayor-and United States gold is GO
in9 to pay.
sMr, Fordney argued that this
I -, 49, r.. MaRS