The Rock Island Argus and daily union., 1922-08-26
Frederick Haskin's Letter
PROPOSED LOAN-TO-EUROPE

@6nLs yob tue t2CI must De tecOR,
mixed that II nearly everybody hsS
not long ago agreed that rold
should be made the yardstick NJ
trade, gold weuld not be much
coveted. A. a commodity it is hot
nearly 80 useful Q siron.
Take q case or two In mimi
When the Roman smperors sent "a
gifts to barbarian chieftains in
Germany and Halvetia. cold as6
silves jugs and vases. these obieets
which we're OF great value m
measures OF wealth in the nomsn
world, were regarded no more
highly by the barbarians than thar
own clay Jugs and the Romans
found that the clay and silver YES
sells were used indiscriminatelv
The one test of their value plscsd .
upon them was their utility.
A legionary who had been r..
cruited fro ma barbarian provinee
and knew nothing of the luxuries
Of precious metals and jewels, was
taking part in the rout of PersiAn
host and the lOoting OF its can,p.
He found leather bag filled with
pearls of great price. After sn
examination he threw tie pearls
away and kept the leather bag. He
could think of no possible use for
the nacreous 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 primi.
tive facts. 1t is regarded by many
observers as not at all improbable
that II a majority OF the nations be-
come absolutely bereft of gold, they
will repudiate its use as a none.
tsry standard.
Soviets May Make Change.
1t is q fact that reports already
have come out of Russia to the ef-
feet that the Soviets are consider.
ing making platinum the monetary
standard and the basis behind their
currency. Such a plan scarcely
would be adopted for the same OBJ
lection would obtain that would
apply to gold with all the gold ia
the hands of one nation. Russia has
practically q natural monopoly Of
platinum. She might very conven-
iently make platinum a monetary
standard, but as other nations have
scarcely any platinum at all, they
would not consent to the new yard
stick and therefore it would be use.
less.
The economists say that to put
the worlds currencies to rights aud
reestablish exchanges and normal
trade, the gold or whatever prec-
iOus and convenient metal is used
as standard must be distributed
with some semblance Of evenness.
Else, the nations must return to
strict system of barter. In such 4
case, the American exporter would
send cattle to Germany and be paid
in potash; England would sell
piecegoods to India and receive
in return rice or hides; Australia
would ship wool to France and be
paid in wine. Sooner or later, this
system would develop a new meas
ure Of commerce and the world
would be back on a normal basis
again.
Frederic c. Goodenough, chair
man of Barclays Bank, London, one
of the two or three biggest banks in
the world, recently said:
"The establishment of a fund
abroad through loans and credits
from which payments will be made
either in gold or the equivalent OF
gold would be the first step towards
the reestablishment of a currency
with ratio to an effective reserve
OF gold or its equivalent By means
Of this plan the ultimate return to
a full gold standard for currency
will be achieved.
The same sentiment can be quot
ed extensively from the big bankers
Of this country.
But. always, back of these con-
slderations is the query: If the
United States made another big
gold loan abroad, would il not
serve to encourage Europe 20 look
upon this country as a pa.ernal
Institution on which it could lean
at will and, in the end, would not
Europe come to demand as a right,
supplies of money now proposed to
be advanced as a business PROPOSE
ton?
The entire case is basct with
the greatest difficulties and the
statesman or economist who can
settle it will be one of the great
est figures of modern history.