The Birmingham age-herald., 1921-04-11
EUROPEAN NATIONS ARE SENDING GOLD
 ID UNITED STATES
Exchange Rates Are Already Being FavorabIy Reflected and Serious Depression In
 Business Been Passed
By HOLLAND

By HOLLAND
 New York, April 10.-(Special) )--W. P G. Harding, who is governor of the fed eral reserve board, is quoted as having said few days ago that European countries are searching their vaults and scraping the bottoms of their treasuries so that they might be able to send gold to the United States. They have already sent within three months $l6o, Oo.0Oo in goIo and some of our bankers believe .iiaC they will send as much more before the end of the present fiscal year
 some have said that we do not need this gold, and that the possession of it may prove to be an embarrassment But II we do not need it Europe needs to send It. It is not to help the United states, but to serve themselves that this soid IS sent. This movement is one or many which make it clear that fun uaihental and irresistible forces are now At work throughout the world with the inevitable result that national prosperity VIII be sooner or later restored.
 what Europe is now doing the United states did B years ago. In the latter part or the second administration of I {1resiuent Cleveland we were then com peHeu to send gold across the sea until at last none remained in the federal treaury. The situation was very critical ana the danger was great of a depres- slon lar surpassing the one through Wnich the country has just passed. But the treasury supply of gold was repIen- lsned and permanently maintained through the aid of international bank CTS who were able to meet the European demand for American gold by sending exchange drawn on London. Cotton, oil wheat and other American products iiquidated that exchange. In a little Whlie prosperity was restored so that in the mai years of the past century it reached point that had no precedent 1 Our own gold mines have for various reasons, chiefly labor friction. been co peiied greatly to curtail their output We should be receiving about Sl00, ,O00 per year Tn newly mined gold from the mines of the west and Alaska. World condi- tons, however, by the export of goI to the United States are now making good the falling off in our own gold produc- ton That is sure to be restored when ended.
 WHAT THE GOLD IS DOING
 This gold is already favorably affect ing exchange rates, and it was no douot chiefly for that purpose that much or It has been sent from Europe to the United States. It has been an irresistible pressure which has compelled the utiliza- tion or this foreign gold to the end that world disturbances may be relieved.
 But this force due to fundamental in- fluences is already demonstrating itself Tn other ways. It is not the part of wisdom to pass judgment upon our in dustrial and business conditions if that Judgment be based upon a single inci- dent Our ablest bankers and financiers are studying the situation from all points of view. They are now persuad- ed that these forces which are funda- mental are in operation and are to pre- vail
 THEY PROMISED TO PAY
 From one point of view the acknowl- edged disposition of our European allies to pay in full the indebtedness of which the United States is the creditor, is re- garded as not only of immediate im- portance to the United States, but also as illustrating the force which is now operating in the nations across the sea, and which will when it's full strength is III play cause normal conditions to re- turn. For instance coincident in point Of time with the bringing to the United States of millions of gold from Europe comes what is practically an official pledge that Great Britain will at an
 
 States on account of the deferred inter- est due upon our loans to Great Britain This means that as much as $200, 900 600 VIII be received on account of procras- tinated interest payment. But these mill lions are really of far less importance to the United States in themselves than is the unquestionable proof they offer that the world expects to maintain it's honorable obligations. So also is the fah ctat tAy,, 1f y;x,.r ;.I~ was made few days ago that France will surely pay the debt to the United States which is now represented by her demand notes held in our treasury de- partment. Italy has already promised to pay her debt.
 THE QUESTION OF WAGES
 Not the least significant of recent evil dences that silent but strong forces a now in operation is the reported tendency on the part of the wage-earners as whole to recognize that they must share as all others are sharing in the neces- sity of so acting as to regain our indus trial and commercial strength. For it is reported from Washington, and also from some who have been in consultation with those who represent labor that the disposition is beginning to be strong to accept reasonable wage deflation. Many or the wage-earners now admit that if wages or 70 per day Will mean as much to them as wages at S per day did when the cost of living was much higher, then they are as well off with a wage of S5, per day as they were with wages at s per day, and at the same time indus trial conditions in the country will be | more easily established
 The cotton situation, desperate as it l has been, like the railroad situation. is likely to be brought into a healthful condition. Secretary Hoover. speaking | for the department of commerce and Governor Harding. speaking for fed eral reserve system, and also as one who has had intimate Knowledge of the cotton industry in all it's phases seem now to be convinced that with rea- sonable aid furnished by the banks and with the utilization of the Cotton | Export association recently organized at | New Orleans, the vast supplies of cot ton now stored and awaiting movement | will be transported to the European mar kets where the need of cotton is rela- lively speaking as great as is the over supply which has been awaiting trans pcrtation from the cotton marts of the south to the cotton manufacturing in dustries of the world
 Il NA~r Teeu> II