The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-04-13
Frederick Haskin's Letter
Printing Press Money in Europe.
tsbselAl corssspondsaes Of ma ArEu.

I trade, has become very dffffcuIt
under these conditions. The prom
lem of restoring these currencles
10 something like their normal val
ne has perplexed European finan-
elers and economists ever sin.s
the initiation started. It is one If
the big questions before the Genoa
conference which has been called
to solve European economic ana
political problems. The United
States declined an invitation to this
conference, partly because of the
dangers of becoming involved In so
unstable a condition Of affairs as
that created by the cheap curren-,
cies.
Development Surprises Experts.
Now, the new development which
has surprised economists in con-
nection with this situation is the
discovery that there is a tendency
on the part of Europeans to bring
about a hitherto undreamed of
method of correcting the initiation.
Many plans have been suggested
but none has been found practical.
The new development is one
which, if it continues, will tend to
correct the situation without the
aid Of conferences or politicians.
The development is hailed as a
reversal of Grasham's law. The
fact seems to be that the people of
Russia, Germany and Poland and
some of the other nations having
badly deprecated currencies have
become so Disguised with the nui-
sance Of dealing with cheap money
that they are bringing out Of hid
ing their boards Of gold and 9th
er valuable money. A case illus
trating this new development re-
Gently was reported by a British
trading firm. This firm sold a bill
OF goods to a Russian dealer at
Rostov. Payment was received in
cash. 1t consisted of American
gold, checks drawn on American
banks, American bills of exchange,
English currency and checks.
Turkish gold and checks and notes.
French currency and checks and
Russian gold rubles. Obviously.
with the exception of the checks,
this payment was made from good
money which doubtless had been
boarded since the war.
Agents OF the American relief
administration in Russia have re-
ported similar instances of people
bringing out gold and other metal
The same is true in Pc
land, Germany and Austria
Currency Revolution Seen.
What economists see in this de-
velopment is the possibility of a
gradual revolution in European
For instance, the Rus
SLAMS have discovered that their
own rubles are nearly useless but
that they can get big value for
British OF American or other good
Consequently they will
try to get hold of as much of this
foreign money as possible.
In early days in Europe this
same phenomenon occurred. Mon
ey issued at the great banking
centers of Venice, Antwerp and d
few other cities came into general
use all over Europe. displacing
everybody knew 1t was gOoI
Recently, the United States
treasury removed the ban from the
free issue of gold and gold certifi-
Gates. 1t is thought possible by
economists that students of inter
national finance that a good deal
Of this gold money. known all over
the world as being the best OBJ
will reach the countries
abroad having deprecated curren-
~ and become popular as a val
liable medium of exchange. This
has not been possible until the
asst few days because the treasury
and the federal reserve banks
would not let gold go into general
but now it is posi-
Die for foreign-born Americans to
get this money and send it to their
relatives abroad.
It is recognized that this pro-
cess of substitution of foreign
money for the deprecated native
would be a slow one,
out some economists believe that
t is a possible but necessarily slow
solution to the European emer-
sency problem