Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-08-25
BY I. HASKIN,

great value as measures of wealth in
the Roman world, were regarded no
more highly by the barbarians thar
their W clay jugs and The Romans
found that the clay n silver vessels
were used Unfortunately. Tie one
test OF their value placed upon them
was their utility.
a leeionary who had been recruited
from a barbarian province and knew
nothing of the Injuries of precious
metals and jewels, was taking part in
the rout of a Persian host and the
iooting OF its camp. He found a
leather bag filled with pearls of great
price. After an examination he threw
! the 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 use
full object.
Human nature does not greatly
change. The war has shown how
IN many ways people return to prim-
itive 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 It's 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 considertne
making platinum the monetary stand
ara, and the basis behind their cur
rency. Such a plan scarcely would
be adopted for the same objection
would obtain that would apply to gold
with all the gold in the hands Of one
nation. Russia has practically a nat
ural monopoly of platinum. She might
very conveniently name platinum a
monetary standard, but as other ma
tons have scarcely any platinum at
all, they would not consent to the new
yardstick and therefore it would be
useless.
The economists a that to put the
worlds currencies to rights and re-
establish Exchanges and normal trade.
the gold or whatever precious and
convenient metal is used as a stand
ard must be distributed with some
semblance of evenness. Else, the ma
tons must return to a strict system
or barter. In such a a the Amer
lean exporter would send cattle to
Germany and be paid in potash; Eng
and would sell piecegoods to India
n 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
measure of commerce and the world
would be back on a normal basis
again. :.
Frederic c.. G~oodenough, chairman
OF Barclays Bank, London. one 81
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 establishment of a ~curHencv
with a ratio to an effective reserve Of
! 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 quoted
extensively from the big bankers Of
this country.
But. always, back Of these Fconsid-
erations Is the query: II the United
States made another big gold loan
abroad, would 1t not serve to encOur-
age Europe to look upon this country
as a p%aternal institution on which Il
could lean at will and, IN the end,
would not Europe come9to demand az
q right, supplies Of money noW pro-
posed to be&advanced as q business
proposition? a8#
n entire case 10 Abeset with tho
greatest difficulties and the statesman
or economist who can settle Il viii
be one tof the greatest figures OF mod
ern history. ~
y ANsWERssm QUESTIONS.
@. Why did the Sherman act pros
vide that the holder of the notes
lcould5 demand gold or silver? r. L. =.
a. h treasury notes issued In
the purchase of silver under the pro-
VISIONS OF the Sherman act OF 1884
were made . legal tender for the pay
ment OF all debts public and private,
except where excluded by contract,
and were redeemable by the secretary
Of the treasury I'm gold coin at his
discretion." II Will be seen that the
option ITO the coin Of payment was
reserved to the government, but an
other clause In the measure which de-
clared tito be the established policy
OF the United States TO maintain the
two metals on Q parity with each
nfhAralln0n thA nreaAnf AealAArafio A.