Every evening, Wilmington daily commercial., 1922-04-08
Printing Press Money in Europe


, their normal value bas perplexed Eu-
ropenn nnapoiers and economists ever
since the imitation started. II IL On,
of tho big questions before the Genoa
conference which has been called TO
aoive European economic and political
| problems. The United States declined
| an invitation 20 this conference. partly
| because Of the dangers Of becoming
| involved In 90 unstable a condition of
affairs AZ that created by the cheap
| currencies.
Development Surprises Experts.
! Now. the new development which
has surprsed econofnists In connection
| WITH this situation ~ the discoysry
hat there IL a tendency on the part
! Of Europeans 10 bring about nitber-
70 uDdrearne1 OF method OK correcting
tho imitation. Many plans have been
! suggested bJt none has been found
practical The new development -
| one which. II 81 continues, will tend
10 correct the situation without the
aid OF conferences or politicians.
Tho development Is hailed as a re-
ysrsal % Gresnam's law. The fact
Seems 20 be that the people Of Russia.
Germany and Poland and some OF tho
other nations having badly depreciat-
ed currencies have become 30 disgUet-
"a with the nuisance Of dealing with
cheap money that they are bringing
out OF hiding their boards of gold and
other vsIua bic money. A care illustrate
ing this new development recently
was reported by a British trading firm.
This firm sold n bin Of goods 10 4
Russian dealer at Postov. Payment
wac received in q miscellaneous sssort-
rnent OF cash. II 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
Z rubles. Obviously. with the exception
> Of the checks. this payment was made
D from good money which doubtless had
been boarded since the war
Agents Of the American Relief Ad-
d lIninistration in Russia have reported
iJnilar instances Of people bringing out
= gold and other metal money. The
r sane Is true in Poland, Germany ard
II Austria
. Currency Revolution Seen.
y What economists see in this deveI.
opment is the possibility Of a gradual
q revolution in European currencies
For instance. the Russians have dis.
IN overed that their own rubles are near.
l. ly useless. but that they can get bis
K value for British or American or othei
'e' good money. Consequently they vii
OF try to get hold Of az much Of thi
ey foreign money as possible.
In early days in Europe this sam
vn phenomenon occurrcd> Money is~Je.
vn at the great banking centers Of Venice
Of Antwerp and a few other cities earn
Is into general use all over Europe. dis
or placing cheaper native currencies be
re cause everybody knew II was goo
- money.
ire Recently. the United States Treaslrr
Nv removed the ban from the free issu
~ OF gold and gold certificates. Il
No. thought possible by economists an
-. students OF international finance tina
= n good deal Of this gold money, know
all over ths world as being the bes
80 cbtains-bie, VIII reach the countrte
~ abroad having deprecated currenc
''i end become popular as 4. valuable me
dunn OF exchange This has not bee
IN possible until the last few days b,
ne cause the Treasury and the FEEDER,
'ay Reserve Banks would not let gold 2
sN- into general circulation. but now il
on possible for foreign-born American
iai. TO get this money and send it
-hd their relatives abroad.
ley 1t is recognized that this process
sUs substitution OF foreign money for u
depreciation native currencies wou
be a slow one. but some economis
MAJ believe that It is a possible but nece
Ieo sarily slow solution TO the Europes
ter emergency problem.