Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-10-21
GOLD INITIATION
PRESENTS A NEW
PROBLEM TO u. S.
America Rich, but May Suffer
by Monetary and Trade
Situation.
IMPAIR GOLD STANDARD

WASHINGTON, Oct. A-The United
States Is in the peculiar position today
Of accommodating more gold than 1t needs,
Of possessing half Of the worlds avail
able gold. while facing the incontroverti-
BILE fact that 1t cannot live and prosper
alone.
Ordinarily the man whose pockets are
filed with gold is supposed to be IN
dependent of the rest of the world. Uncle
Sam. with his pockets bullying with gold,
finds himself far from being independent
economically and financially, Of the rest
Of the world.
It is this strange situation that is Civ
ing the American Government, from the
President and the Secretary Of the Treas
ury to the Republican leaders of Con-
gress, such knOtty problems to solve as
the sterilization of commerce and the re-
adjustment of the tariff, taxation and the
foreign debt.
The United States is receiving gold In
such large quantities as to threaten ii
with 4 gold imitation, it WAS pointed out
by D. r Crissinger, the Comptroller OF
the Currency, while there is not salts
factory compromising movement of our
products TO the countries which are send
ing US the gold.
And yet it is as necessary for US TO
sell as for others to buy, as necessary
for as to Join in extending credits to
nose who would buy as for them to
secure credits.
FREEDOM OF
EXCHANGE LACKING.
Members Of the Senate Finance Com
mittee realize as do Secretary Of the
Treasury Mellon and Comptroller Girls
singer, to what extent the prosperity and
the rehabilitation Of the American peo-
pie must depend upon the restoration Of
the world as a whole.
Frozen credits" and adverse foreign
exchange rates are also important factors
Of the situation bound up with the Adj
ministration's efforts toward refunding
some part Of the principal and interest
of the s11. Gee, 100000 due US from our
foreign debtors.
There is not that freedom of com
mercial Interchange which In normal
times is the great equalizer and leveler."
Comptroller Crissinger said. 1.-The sit
uation demands attention lest the gold
standard be gravely impaired. After the
Civil War our own currency was I'm
paired by reason o. paper imitation
Other countries had drawn from us much
OK our gold and had thereby been able
TO establish the metal basis OF their own
currencies more firmly, while our own
had lost that foundation.
at was obviously sound policy for US
then, 20 debate, to lift our own to the
level OF other currencies. We did re-
sumo specie payments we did it go
soon after the Civil War, and despite the
existence Of so great debt, that it con-
stituted striking demonstration OF our
economic capacity.
sAGACTTY CT
ALO0FNEsS QUESTIONED.
''But the situation Is now reversed We
are not ony the great creditor Nation
but we have put the reverse on the
Crime OF '7S' by making ourselves we'll
nigh the mOnopolists of the worlds
available gold.
'-The question is, what can we do
about itf This brings us back to con
siderations of money, OF foreign ex-
change, Of international trade relations
We need to increase our exports, but IN
our new quality as a great creditor Ma
ton we find 1t more difficult than ever
to export more than we import. The diff
fculty is increased by the fact that our
money is the best In the world the most
expensive. On gold basis five italian
Ira would buy dollars worth of goods
from US. But the Italian Ira is so de-
prsciated that It takes more than twenty
now to buy q dollar
ut will be Well for US to consider what
our position in international trade would
be, If because Of our aloofnass from other
nations they should unite without as and
give special inducement and incentive to
international trade with US left out"