The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1920-05-06
Rehabilitation of SiIver--Financial Sta
bility Requires international Agree
ment on Monetary Standard

CSenator Charles 5. Thomas in the
Engineering and Mining JournaD.
On March 20, within "A hours after
the senate cast its final vote upon the
treaty, Monsieur Tardieu informed the
world that President Wilson had
agreed to the principle that the league
of nations would be the agency for the
establishment and maintenance Of
world financing as well as world polit-
ical stability. and that, the treaty once
ratified. he planned a campaign to ad-
vOcate these conditions"
Whatever ones opinion as to the
wisdom Of such policy may be, it is
evident that the Versailles conference
was thoroughly convinced that "hnan-
cial stability" was quite as essential
to world affairs as the need for a per-
manent peace, and that without the
one the other was not attainable.
They are, indeed so Indispensable,
each to the other, that they may we'll
be classified as distinct and essential
expressions. of the same thing for
without peace there can be no stabil-
ity, financial or otherwise.
Hence, all plans for peace must in
volve an adjustment Of fiscal affairs,
although requiring a revolution in
monetary systems. This is especially
true of the present, for all the world
has been at war, all agencies have
been modified for its prosecution, and
all the processes of civilization have
been profoundly disturbed by its long
duration and its holocausts of sacri-
flee. Currencies and credits have
been contracted; and insolvency how
ers about the vanquished and some of
the victor nations.
The obligations of the allies and
the indemnities imposed upon the
central powers are payable in gold.
Their aggregate is many times the
sum of the worlds stock of that
metal Specie payments are lawfully
suspended in many parts of the world
and actually suspended everywhere.
Falling exchanges are demoraizing
international trade, and mounting
commodity prices are reaching heights
which the laws of commercial gray
ity can not tolerate. Peace is not
consistent with such conditions Their
early adjustment is therefore imper
ative Indeed it is not extravagant
to assert that this adjustment must
attend all covenants for treaty set
Elements or leagues of nations 1t is
a huge task one which viii tax the
wisdom, conscript the experience and
enlist the craftsmanship of the time.
A vicious monetary system like a
and driven out of the system, or dis
solution is inevitable
Currency Deflation and Increase of
Money Basis.
1 know of but two remedies for the
financial ills of the world one is
currency deflation; the other, an in
crease of the basis of redemption. |
Both should be applied wherever pos
sible. the former slowly and cautious
ly. with due regard for the painful
consequences of undue haste; the
other promptly and to the fullest ex-
tent permissible with the means at
hand. II is with the second factor OF
the problem that this article is con
cemed.
The worlds supply of gold available !
as coin is estimated at $7OOO,O0O.OOO;
its volume of paper money exclusive !
of Russia, at S51,OOO,OOO,OOO. To this
vast sum must be added, the public
debts of the nations. These i'm round
numbers are $500, 1000 100000. The
German indemnity, payable in gold, |
although not fixed viii be not less
than S25, 100000 The base of this
inverted pyramid, constantly expand |
ing at the top, can not long sustain
the burden, much less satisfy IT, Gold |
is to currency as 1873 to 100; it is to
the public debt as 81 to 100. 1t is at
a premium. Measured in currency il |
will continue rising. Its production is /
a diminishing quantity. Gold miners /
clamor for stimulating government |
bounties under the delusion that such |
methods of announcement viii lead |
to the discovery Of new deposits. But /
were the production quadrupled the |
supply would be woefully Inadequate /
to the monetary demands made upon |
IL 0OlAs as AlAG HNAt lllN4ANN NA -N
is therefore out of the ques
ton Theoretically the doctrine may /
be sound; practically, it is Ike putting |
the world on quarter rations.
Indeed. the world never did and /
never can function financially upon a /
single standard The nations success
lively adopted it after Germany set the |
example in 1871 but. outside Of Eur |
ope the United States and Canada, it |
never prevailed. England's expert |
ment with India. and its CHASTITY fail /
ure. are known to every intelligent |
man familiar with financial affairs.
Asia. South America. Mexico the /
Straits Settlements. comprising three
fourths of the human race. never have
abandoned, never can, and never will |
abandon their ancient standard, all
legislation to the contrary notwith-
standing Because of determinations
against it during the last so years. re-
el,,rt,ra+fo,.- fof1e !