Perth Amboy evening news., 1922-08-25

to trade with Germany and other
European nations. Therefore, some
Americans believe hat we should
lend our surplus gold abroad 10 sta
bilize foreign currencies and start
a trade which would result in the
countries on both sides of the At
lantic making more money and pay
ing Oft debts.
An interesting argument in favor
of such a loan is the warning winch
has been issued by competent econo-
mists against keeping all the gold
in America. Gold has been coming
in for years until we have more
than any other nation ever had in
the history of the world. 1t still is
coming in. Our hoard is rising and
Europe's dwindling. The warning
is this: European countries, hav-
ing sent all their gold here might
say, Gold is an artificial medium of
exchange, having no value except
by common consent. We have no
more gold and therefore it has 10
value to us. We will not lea in it
any longer and will not recognize
it Is a thing of value. We can't
eat it or wear it for warmth and
this is no time to talk about adorn-
ment."
The United States would find that
it had given food clothing, machin-
cry and other valuable commodities
and received in return what had be-
come a very heavy, unwieldy and
useless metal.
This seems an extreme statement,
yet the fact must be recognized
that if nearly everybody had not
long 6 agreed hat gold should be
made the yardstick of trade, gold
would not be much coveted. AS a
commodity it is not nearly SO useful
as iron.
Take a case or two in point. When
the Roman emperors sent as gifts
to barbarian chieftains in Germany
and Helvetia, gold and silver jugs
and vases, these objects which were
OF great value as measures of wealth
in the Roman world, were regarded
n % more highly by the barbarians
than their W clay jugs and the
Romans found that the clay md sill
yer vessels were used indiscriminate-
ly. The II test of their vaiue
placed upon them was their utility,
A ~legionary who had been re-
cruited from a barbarian province
and knew nothing of the luXuries OF
precious metals and jewels, was TAX
ing part in the rout of a Persian
host and the footing OF its camp. He
found a leather bag filled with
pearls of great price. After an eX-
animation he threw the pearls away
and kept the leather bag. He could
think OF no possible use for the ma
creouS little stones but knew that
the leather bag was a useful object
Human nature does not greatly
change. The war has shown how
in many ways people return to prim-
tive facts. 1t is regarded by many
observers as not at all improbable
that If a majority of the nations be-
come absolutely bereft of gold. they
will repudiate its use as a monetary
standard.
Soviets May Make Change
1t is a fact that reports already
have come out of Russia to the ef.
feet that the Soviets are considering
making platinum the monetary
standard and the basis behind theii
currency. Such a plan scarcely would
be adopted for the same objection
would obtain that would apply tc
gold with all the gold in the hands
of one nation. Russia has practical
ly a natural monopoly of platinum
She might very conveniently make
platinum a monetary standard, out
as other nations have scarcely any
platinum at all. they would not con.
sent to the new yardstick and there.
fore it would be useless.
The economists say that to pu'
the worlds ~currencies t rights an(
re-establish exchanges and norma
trade, the gold or whatever preciou!
and convenient metal is used as {
standard must be distributed will
some semblance of Else
the nations must return to a stric
system of barter. In such a case
the American exporter would sent
cattle to Germany and be paid il
potash; England would sell plec,
goods to India and receive in retur
rice or hides; Australia would shil
wool to France and be paid in wine
Sooner or later this system woul,
develop a new measure of commerce
and the world would be back on
normal basis again.
Frederic c. G~oodenough. chair
man of Barclays Bank, London, on
of the two or three biggest bank
in the world, recently said:
THE establishment of a fun
abroad through loans and credit
from which payments will be mad
either in gold or the equivalent q
gold would be the first step toward
the re-establishment of a currenc