The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1920-10-14
Of Nations Considering
Worlds Money.

Professor Cassl considers that the value OF gold. 70 against conmodi-
les has been reduced to something like = per cent 6e tho pre-war value
len II stabihzine the dollar exchange which he holds would Be asgra-
mted 4 thu United States increased the values Of us money by a process
O defauon" continuing:
1T Is nw clearly In tho interest OF all countries endeavoring to sta
n monetary policy effectively raising the internal value of III dolar. In
act the problem Of stabNizing tho worlds exchanges being lin its nature
. International problem. it is desirable that one country should take the
lead . fixing the internal value Il its money, and 1t seems natural that
thisc country should b. thu United StateA : = =
The present low value 81 gold is mainly the consequence of a rea-
uveIyd Unfinished demand for gold fol- monetary purposes. The actual cr-
have reduced their claims on relative gold coverings considerably. Should
a return to pre-~a conditions in this respect set in, the inevitable n
sequence would be n enhancement of the value of gold. To avoid this it
Is necessary that all countries should abstain from easu for reintro-
dueins a actual gold cHcuaiona and content themselves will their present
andar of gold holdings as basis for their paper circulation. y 3
IF W e have a stabilized monetary demandf for gold, we must, of course
economic progress of the world, and. in addition, salncient to cover the
yearly waste of gold. Assuming the same rate IT progress in the years
before US a occurred during the period of 1S.J-l91O. we should need a
present al annual production OF gold q about G1oOO0o0Oo. Increasing in
subsequen years at thu rates of IS per cent. yearly. The total for the
worlds production in 1919 is estimated to be lot more than G75o0000o.
The production is consequently at present not sufficient fr a norma in
crease in the worlds stock of gold. AS h necessary annua production OF
gold would, under the assumed rate OF progress, in 10 years. be $4,000
and in &c years 9174000000, he danger of a quite Insufficient supply OF
gold is much nor imminent thar seems to be generally recognized"
Emphasizing his fear of a gold shortage. Professor Cassel points to
draws this conclusion: IF we are not prepared to abolish at me- and for
ever tn use of gold a a standard of value we clearly nus dc something
to stabilize its value, INC thisis certainly lot possible without a rational
regulation OF TIL monetary demand for gold" rs
Professor assel was one of leading economists Of Europe requested
by the League of Nations council to submit recommendations to h Brus-
sells conference. His colleagues were Prof G, Bruins of Rotterdam; Prof
Italy. Briefly, they recommend: STOP imitation of credit nd currency every
where; cut all government expense o the minimum; avod artifciaLy
low bank rates.; fund floating debts a IS soon a s practicable; max every
effort for the speedy restoration of normal trade intercourse between III
TONS and limitation Of these credits to te rnct argent necessnies, e-
pecaly in providing means offs subsistence for the labaing populations.