Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-04-09
q condition of affairs as that
created by the cheap currencles.
Development Surprises Eypers.

a condition of affairs as that
created BY the cheap currencles.
Development Surprises Experts.
Now. the new development which
Eas surprised economists in con-
nectlon with this situation is the
discovery that there is tendency
Oh the part of Europeans to bring
ABOUT hitherto undreamed of
method or correcting the initiation.
Many plans have been suggested, but
none mas been found practical. The
new development is one which, if il
continues, will tend to correct the
situation without the aid of con-
ferences or politicians.
The development is hailed ms n
reversal of Gresham's law. The
fact seems to be that the people of
Russia, Germany and Poland and
some OF the other nations having
badly deprecated currencies have
become so Disguised with the nut
sance of dealing V it'll cheap money
that they are bringing out of hiding
their boards Of gold and other val.
liable money. A case illustrating
this new development recently was
reported by q British trading firm.
This firm sold bill of goods TO a
Russian dealer at Rostov. Paw
ment was received in a miscellan-
eous assortment of cash. 1t con-
sisted Of American gold, checks
drawn on American banks, Ameri-
can bills of exchange, English cur
rency and checks, Turkish gold and
checks and notes, French currency
and checks and Russian gold
rubles. Obviously, with the excep-
ton of the checks. this payment
was made from good money which
doubtless had been boarded since
the war.
Agents of the American relief ad-
ministration in Russia have report
ed similar instances of people
bringing out gold and other metal
money. The same is true in Po-
land. Germany and Austria.
Currency Revolution Seen.
What economists see in this de-
velopment is the possibility Of a
gradual revolution in European
currencies. For instance, the Rus
slams have discovered that their
own rubles are nearly useless but
that they can get big values for
British or American or other good
money. Consequently they will try
to get hold of as much of this for
eign money as possible.
In early days in Europe this
same phenomenon occurred. Money
issued at the great banking centers
of Venice, Antwerp and a few other
cities came into general use all over
Europe. displacing cheaper native
currencies because everybody knew
1t was good money.
Recently, the United States
treasury removed the ban from the
free issue of gold and gold certifi-
Gates. 1t Is thought possible by
economists and students of inter-
national finance that good deal
of this gold money. known all over
the world as being the best obtain
able, will reach the countries
abroad having deprecated currency
and become popular as a valuable
medium of exchange. This has not
been possible until the last few
days because the treasury and the |
federal reserve banks would not let !
gold go into general circulation. |
but now it IS possible for foreign
born Americans to get this money |
and send it to their relatives
abroad.
1t is recognized that this process
of substitution of foreign money for
the deprecated native currencies
would be a slow one. but some
economists believe that it is pos
sible but necessarily slow solution
to the European emergency prob
lem.