Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1920-04-13

government and trade which We prac-
|ticed.in our civil war. They will ex-
tricate themselves from their present
difficulties soone and easier than
many have expected, because they do
not need to be educated III OF their
practices and can make anllhonest
profit by giving object-lessons in prac-
teal finance to such backward ma
tions as, let US say, Argentina and
the United States.
The Isl fo1 b%racketing such ,un,
like nations is that at the moment
England is sending gold to both of
them. although neither needs gold,
and England needs it sorely, England
is using the courage of skill, and the
countries which are tsking gold from
her are showing alternately the bray
cry OF ignorance by rash adventures
in the. misuse of !; and the
old-womanish conservatism which re-
Trains from doing the right thing from
fear OF doing the wrong thing. We
are building up our reserves which we
fear to use although they are double
England's1 and we see our oportuni-
ties Of trade being used by England.
The world is clamourins for what we
have to sell and eager to pay us a
profit, but we refrain from selling be-
cause OF our bacRwardness in the
ways Of foreign credits. We are also
afraid to buy. because it seems to us
necessary to pay gold. But England
is showing us how to buy for cash
and sell on credit and is lettering her
condition with seven-league boots
while we arc looking forward for the
worst yet to come.
IL this seems excess of modesty or
self-criticism, attention may be asked
to England's method in paying the
Anslo-French h%alf-billion loan. In
stead of eagerly taking it at some
thing less than our domestic money
rate, because it promoted domestic
trade we have allowed this choicest
OF foreign offerings to go begging IN
the market at luxurious discount.
mat wa fair notice to foreign buyers
that they need offer us no trade on
credit because foreign credits were
not appreciated in the present stage
Of u financial education. We were,
willing to borrow and buy cheap. but
we lent and sold dear. England
therefore faced the necessity of meet
ing he maturity, and many were 40
naive as to fancy that gold would be
paid because so, much gold was being
sent here. The fact is that all our
credits are, gold. n that the Anglo
French loan will be paid like any
other debt, in bank money of credit. !
The gold which is being sent here so
literally is turned into funds ayaila BILE
for use at the due date, for the simple
reason that they bear interest, and
the accumulation Of hundreds of mill
ions Of idle gold is a stupidity Of
which England is incapable. !
Also, the important facts about this
gold are not those which receive most
attention. For the third week OIL
March England sent to Argentina
three millions in gold, against Jen
millions here; For the last week
OF March the gold sent from Eng
land TO Argentina was doubled that
sent here with such publicity, and
was informed that the bulk
OF gold sent here was Intended
for transshipment to South Amer
lca' which is as backward about
accommodating, a good customer as
ourselves. But We are sending gold
10 Argentina on our own account as
well as England. That we are send
on both accounts appeares from
the 1aet that We are sending more gold
than the balance of our debt On mer-
movement. There is no Sc
crecy about it, All who wish NAV find
the ANSALIST the details SHOWING
in 1919 we owed Argentina SEA
100000 on trade movement, and sent
Argentina $50, 500, 900 god.N There was
nothing peculiar about 1919, Last
wednesday a million-dollar cargo left
l'uenos Aires for the United States.
IND in the last week of March twelve
cargoes were consigned to us. worth
$50, 100000.
Argentina is like ourselves in wish
e ~ aeit Ior SOlQ and to borrow |.
below the market. Argentina has al
notwithstanding maturity ap-
preaching in New York and want it
at something like what it was
accustomed to pay England when it
there. Our way is to have
money for the Government and
money for trade. The British
is to have dear money for the
Government and cheap money forl.
rade. British bankers regard bank
'eaerves as for use in emereencies. +
never wa there so much gold
'ent about the world as when tho
greatest need is for the use of
ola to support trade credits, instead
u being passed overseas across the
counter. Argentina and the United
'tates would do we'll to trust each
'ther' and both to trust the world,
ood borrowers. What will Argentina
" the United statas do with the xold
vhlch they insist upon having when
heir ~currenciqs are above par, or are
he worlds par because most Of the
sorids %currencies are deprecated? ,
York Times.
THE WEALTH OF MODERATE
MEANS.
Ell M L- Et 49, r~EH 1