The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1922-03-17

article as between country and coun-
try, is due to the speculation in ex-
change, and this speculation is posi-
BILE solely because the fiction that
money establishes value is maintained
by the money sellers. A pound of
French silk or gallon Of Italian olive
oil or a dozen German knives are
units of wealth the world over, as is
the bushel of American flour, subject
in each case to the immutable law of
supply and demand. II given guam
titles of these articles We're traded in
on the basis Of ancient barter each
trader would receive an adequate val
ue in exchange. AS soon, however, as
the modern method of finance on the
gold basis requires that each article
must first be reduced into terms of
gold, values are dislocated, and the
goddess trader is penalized accord
ingly.
What is the underlying lesson in all
this?
1t is that while bankers in general
do not regard foreign exchange opera
tions as very important source of
their profits mot in this country in
normal times) they see an immediate
loss to themselves as soon as def
mite attempt is made to suspend the
gold standard. Yet suspended it must
be, or almost suspended, since Eu-
rope will never again have gold
enough to restore it's own. The ORR
ent is satisfied with silver. Bankers
in America cannot retain the gold
standard and do business abroad, too,
Something must give.
The suggestion arises that the gov
eminent can and must enter into the
breach. The government must, but
whether it can or knows how is con-
iectural The banks control public
opinion. Regardless of the liquidity
of our currency under the new laws,
the professional dealers in money can
instill fear in every voter by the
merest hint. 1t is the weakness of the
electorate, as of everybody else, that
the pocket can be made to hurt-and
financial hypochondria is the biggest
card that the banking profession can
play.
American banking is essentially a
family affair. From the days nearly
a century ago, when Nicholas Biddle
emerged as great financier, to this
moment, when his descendants are re-
lated by blood and other ties to the
leading bankers of the East, this
small clique has reigned supreme in
money matters. This statement
should not be taken to signify that
these clever individuals have exer-
cised their influence against the good
of the nation, but merely that they
have held to a single belief-the doc
trine which today dictates or regu-
lates every bit of financial legislation
enacted at Washington.
This is the silent and powerful
wing that is marshaled for attack or
defense whenever the Congress of the
United States is confronted with the
need of remedial laws. But what can
Congress do? There is no one else to
call AN bankers belong to the same
single-track school of thought. The
rdral banker may not know how to
expound his views with the same GER
tainty, elaboration, wording and eff
feet as can his more sophisticated
fellow of the metropolis, but the class
instinct is cohesive. Whenever an in
dependent voice expresses novel views,
reforms, changes, it is smothered by
the opposition.
MOney-MOst Common Thing-Least
Understood.
The sovereign voter has no chance.
1t is his money, but some greater pow
err controls its destiny. For that he
has himself to blame, although it is
not solely an American shortcOming.
Of a thousand who read asssiduously
the sport pages of the newspaper not
one reads the statement of the condi-
ton of the Treasury. Some do pay
the financial section the honor of a
cursory glance, but that is because
they may be the proud owners of
stock-even if it be the first payment
on a single 500 certificate. Yet the
latter is essentially speculative in
terest; it is not financial analysis.
These negligent individuals do not
realize that as taxpayers they are
primarily held responsible for the
governments success in placing q
block of certificates of Indebtedness,
and that they themselves must pay
for the privilege, by devious and hid
den ways.
But the situation is difficult to
remedy. 1t is a matter of evolution.
The most commonplace thing in the
world-money--is the least under
stood. In this country the govern
ment has rendered the problem even
more difficult by it's shortsighted pol
icy. To reform now would be jolt
and where are the politicians that
dare to give it?
From time to time, too, there APP
pear monographs or statements by
experts and students on the subject of
money, but read as one will, they are
unanimous in placing gold in its ac-
customed miraculous niche. This cir
cumstance must be borne in mind be-
cause these authorities, usually uni
rcr.Sity professors, aIe about the only
ones called at Washington. besides
the bankers, whenever financial leg
islation is under consideration.
One of these authorities processes
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