The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1922-10-11


cheap money. Thomas A. Edison goes so far
as to say that it will at least make export trade
more profitable. He would discard the gold
standard and substitute currency based only on
"the faith, promise and wealth Of the country"
In other words, he would return to fiat" money
of which this country had enough in Civil war
times. However fluctuating gold and silver ten
dency was downward, until the dollar was worth
but a few cents. What was Americas expert
ence has been Germans one American dollar last
week purchasing 1892 German marks. 1t was
in Germany that the imported china dinner set
was made. and it is German pottery workers that
earn about one-third what American pottery
workers earn. German pottery workers are able
to have meat once a week. American workers
would not be content with such limited diet.
Besides Ford and Edison there are a few
other advocates of cheap money-men prominent
in production that enters into foreign trade. All
may be honest in their idea of pledging the
wealth of the country for the redemption of pro-
misses to pay. America has great wealth but it
belongs to individuals not to the nation as a
whole except for purposes of taxation. In a way
Americas wealth is today pledged for the war
obligations of the government, but not in such
a way as it can be taken" to redeem promises
to pay, except when there is refusal to pey taxes
The United States owns neither railroads nor
mines as Germany does but it is to be noted that
Germany has pledged neither her railroads., the
Ruhr mines, nor the national forests to redeem
her paper marks-the mark might be worth more
if she had, though pledging these mines and for-
ests would not have stabilized its value. But the
United States, representing the people. does own
all the gold now in the treasury on which Amer
lean currency is predicated, SO does the Bank
OF England as the agent of tie British people
own the gold it holds. The American dollar
and the British pound are the two monetary
units in the whole world that are worth today
nearest their face value.
Indeed, the American dollar is the standard
of currency the world over. The British pound
once was, but, with the accumulation of gold in
the United States treasury and the gaining of the
balance in world trade, together with the war
obligations of foreign countries to this nation,
the United States succeeded Britain as the world
banker, and now practically dictates exchange
rates. American gold is wanted in every for
country where industrial revival is necessary.
yet investment would be perilous SO long as cheap
money rules in them. This is why American
investments are not being made abroad. though
! American were never better able to make them.
American bankers have been in Europe study
ing the situation, and invariably have returned
advising Americans to help Europe to come to
its financial senses and give value to its cur
r~encies.
At any rate, the cheap money propaganda
should not be allowed to bring down American
standards because Europe cannot or will not
bring its standard up. It's easier to tear down
than it is to build up. This the American peo-
shake themselves loose from the ~tentacles of
pie will know, for it took years for them to
greenbackism and the 10 to l doctrines of Bry-
an Far better will it be for capitalist and
wageearner alike to do whatever may be neces-
sary to preserve the value of the American dol
lar. and increase that value until the dollar is
worth one hundred cents, than to get down to
Europe's level of currency and standards
through the cheapening of the American dollar.
FIGURES FROM the internal revenue de-
Dartment show that in the United States. every