Evening star. [volume] (Washington, D.C.) 1854-1972, 1922-01-08
Dollar, Heroic in War Days,
Now Cowardly and a Stacker

pay LID AhoOOkCuhCSSp shos - S.~
take Of frances property 81 per
cent; of Italy's - per cent, and
that it would take more than
three times all Of Germany's
property to pay her Indebtedness.
Japan and the United States seem
to be the only two nations OF any
importance that may be said TO
When the additional fact Is
noted that twenty-seven OF the
smaller governments Of the world
have 100000 men under arms.
with 25.000,000 reserves, 1t would
look very much as though bank.
ruptcy. chaos and black night had
enveloped humanity. This condi-
considerable justification for the
timidity of the dollar and for its
disinclination to go out and tight
the battles Of the world. The con-
test would appear to be hopeless.
But there is another and q
more hopeful side to these ap-
parently appalling facts. A debt
owed by one Is owing to another.
What constitutes one mans liza
bilities may be counted as an
others assets. II gold and silver
are more than the medium of ex-
change and constitute the real
wealth of the world. all other
things being valueless, then. of
course. the world is bankrupt, but
no more SO at that than 1t was
before the war. because there 10
just as much gold and silver in
the world today as there was then.
R,,t OF ht,f
the medium Of exchange, and il
the real wealth of the world con-
sists OF property which once was
the subject of barter and ex-
change, let us not forget that
there are still! as many acres OF
arabic land in the world as ever;
that kindly Providence has not
changed the seasons nor ceased
to give to humankind sunshine
and rain with the attendant pro-
cession of the seasons: that the
mines, mills and factories. save
those destroyed In the war. are
yet the possession of mankind,
and that the destroyed property
of the war did no more than equal
the share off the men who lost
their lives in its waging.
~ y
! am writing no screed against
the banker. can well UNDER
stand how as the custodian Of
other peoples money he must be
conservative in the face of the
penalties which the law inf1icts.
not only toward dishonesty. but
even for lack Of good judgment. l
should be resentful if any one read
into these lines criticism Of the
banker. He has nothing, save my
unbounded sympathy for the trust
which he manages. There might
come adverse circumstances under
Der, after General Hays Withdraws
his marines. but under no circum-
stances would I take the chance
required of bank director.
1t is apparent that while the
world is not bankrupt in all the
essentials of life, a few govern
ments. the principal one of which
is our own. are in control of the
medium Of exchange. From Mr..
Vanderlip to Mr.. Simpson. all men
who have knowledge of affairs
have been crying out that some
thing must be done to better the
economic condition of Europe. Mr.
Vanderlip has conceived the idea
of bank of the world. l cannot
"OnQCE no" 1TedI BRITAIN
would regard any plan for an in
stitution in which the United
States would have a predominant
interest
Another plan suggests a bond is
sue Endorsed by an international
commission and secured by a
pledge of specific assets Of the
governments issuing the bonds
This iS6ssooner announced than
question arises. Who would buy
an7 Austrian bond when Austria
owes tWenty-ssyen times the en-
tire .trade1yalue OF all her prop
erty?' .
believe any one OF several
suggested ~.pians would help.
Financiers, however. cannot agree.
They have not yet reached the
attitude ~of mind of an old client
of nine whose horses had been re-
moved from his farm. Announcing
his loss. he demanded that I be-
gin replevin suit to recover his
animals. When l asked him who
had them and against whom I
should bring suit. he said he didn't
know and he didn't care. that
all he wanted was his horses.
With the timidity of money I
fear it will be q long time be-
fore efforts to rehabiliate Europe
will be agreed upon. Again. / re-
spectfully submit that government
tai efforts must be made to restore
business conditions and the parity
of exchange. An international
economic conference should closely
follow the arms conference.