Albuquerque morning journal., 1920-02-05
OUR MONEY SITUATION.

The whole financial world is be-
coming alarmed over the condition
of the exchange market. There is
bnt one way, for example. of set
Ting for goods purchased of n for
eign natton-settleme in gold. the
international measure Of values, or
its equivalent,
The war has left some nations,
particularly the United States, ia
pan Spain, Holland and the Scan
dinavan countries with too much
gold, while the other nations of Eu-
rope, if we except little Switzer-
land, haven't enough 10 sustain
their paper currency at anything
like par, Also they are not pro-
ducing enough to pay in goods for
the things they must buy abroad.
One proposed way Of settling
the difficulty is the issuance of an
international loan, to be under
written by the great powers of the
world, particularly the United
States. That would enable dhe
bankers Of this country to take up
The bonds with the assurance that
they would be paid, as the United
States would be one of the under
writer's for its own securities.
The international loan feature
Is one of the strongest reasoRs for
the fight that is being made 10
compel this country to enter the
league of nations. Lloyd George |
and Viscount Grey have made IT |
very clear that they do not care
what reservations we may write |
into the treaty so long as We Join
the league, thereby insuring stable |
International finances.
We do not believe that such loan |
is necessary though an intcrna-
tional credits board. composed of |
men of sound financial Judgment |
and knowledge and of the highest
integrity. might solve the problem
by determining the amount of cred |
its each country Is entitled to have,
just as a bank carefully searches
-out the assets and moral risks of
Hts borrowers.
An international currency might
then be issued, apportioned to each
of the nations according to it's abll-
ity to pay, which would be entirely
apart fro mthe currency of purely
national circulation.
5.,tr No,
ance was proposed a number of
yeare ago by DR.. Ely of Wisconsin
university, as a substitute for gold
as the medium of international cx-
change. So far, Dr. Ely's plan
never has been successfully attack
ed by any economist.
Gold, as the basis for money and
credit, is about the most foolish
fetish that has come down to us
from barbarism. 1t attained its
vogue among barbarous nations be- {
cause of its untarnishing luster
and the ease with which it was con-
vertcd into iewelry and other forms I
of ornamentation. The crown of
the king was made of gold as a set $
ting for jewels, his throne was :
yllded. The stgnet ring with which q
ne stamped royal documents was 7
If gold i
The rich of every country wanted f
o display gold as armIets, ear G
'ings, finger rings, ana the like.
t was easy to carry from one
country TO another and hard to
counterfeit, Thus its exchange
'alue grew. As utilitarian prod y
Ict, it is OF saall value and its q
position in the world is 9
N illustration of what tradition u
nay do for us and to us. q
Any nations credit should be %
'ased upon its productive energy Is
Is ability to benefit humanity by d
Ne production of the really useful
hings of life, Such international o
.redit might he arrived at by a u
'oard of experts, and gold might u
'e relegated to its proper place p
longside diamonds, for example, II
fhose chief value is orflamentation. u