Evening star., 1923-02-12
Controller Crissinger Says
Stoppage of Metal Import
Will Restore Foreign Credit.
HALF OF STOCKS IN U. s.
Menace of Inflated CuErencies
Will Soon Cease, He De.
clares in Report.

reached a long step will have been
taken toward the restoration of a
world economic equilibrium, Con-
troller of the Currency Crissinger. de-
clares in his annual report, trans
mitted today to Congress. This ma
ton holds virtually one-half of tho
world gold stock, he says, describ-
Ing the situation as mo less unfor-
tunate for us than it Is for other
countries to have their stocks so
badly depleted"
Discussing the steady flow of gold
TO Americas shores. the report de-
ctares that the ''water-saturated
currency" of many countries now has
begun to yield to the inevitable pres
sure ana the more stable money units
OF other countries are being called in
ana utilized. Mr.. Crissinger regards
thls situation as all to the good" and
as proof that lin the end the gold
standard will be recognized as the
.aaaest; Soundest and most reliable
.hdt hscai and economic wisdom ha
yet devised
Economic Balance Needed.
The controller warns that thought
must be given to future conditions
winch may be presented when world
soid stocks again are liberated and
1ree to travel about the world in
eauaIlzation ECU Of industrial and finan-
cal requirements.
We have need" he says. "to keep
our stocks of gold so we'll in hand.
our creuit so sound, our fabric 10 Sc
cure, mat we will be able to meet
.nesf demands without shock or jar
" the industrial and business con-
Germs or the country 1t is because
we must look forward to the time
wnen we shall have to return our
present gold holdings to those from
Whom IN recent years il has come to
US, that we must give thought to the
.,hporfance of having our financial es-
ttoiY'hrnent in order and prepared for
'Ao demands which will come to It,
FROM the purely financial point Of
view, ths cessation of gold imports
Would represent a long step toward
Lne restoration of that economic eoui-
horium which is absolutely necessary
rs prerequisite to the re-estab-
Inroughout the world. While it is
lfue that the paper money of some
unfortunate countries has experience
ed disaster, 1t is also true that these
very disasters have been a lesson to
statesmen and business men every-
where. and on the whole. have en-
phaSlzed In the public mind our de-
pehdence upon a sound money sys-
.ein. ossed upon gold, and enabling
.n'srnatlonai commodity transactions
curity. Some of the monetary svs
TENS which have been watered down
70 the point of complete saturation,
nave oesun to yield to the inevitable
money units of other countries are
oeinE alled in and utilized. All this
Es entirely to the good, for IL testi-
meS that in the end the gold standard
III oe recognized as the soundest.
safest. and most reliable that fiscal
dhm economic wisdom has yet devised
mere Will hardly be serious dis
sent from the proposition that when
Hnaii,, apcai ana economc balances are
IN the way of ultimate redress, our
own country must shoulder a large
responsi6tlity In connection with the
aeesta o!ishment of sound conditions
ana relationships. One of the things
Mnich then must happen will be the
disintregaiton, in a considerable part.
ha .hat enormous stock of gold which
nsr,,' oGeh uo"Inf to our shores since
carly IN the European war.
Huge Stock in U. 8.
We hold now well-nigh half of the
monetary gold stock Of the world, and
such dlsproportionate holding is
only less unfortunate for us than II
is Tor other countries to have their
gold reserves so badly depleted. We
economic thought in which many Of
MS quite sincerely believe that the
more gold a country could accumu-
Late. nuerv the eh better for 1t. regardless of
come TO understand that 1t Is equally
undesirable for a country to have
either vastly excessive or an utterly
lnadequate share of the monetary
gold Just in proportion as gold is
liquid, free and safe to move about
the world when in the process of
equalizing industrial and financial re-
luirements, so we shall have an ap-
m a tn, t,I,t
ditions that general level of pros
perity and Industrial activity Which
Is so greatly to be desired"
:. Turning to discussion Of ques-
troller declared that the banking in
stitutions of the country have made
satislactory progress through the
rseriod OF dehation and liquidation
time exRansion of credit and infla-
tion. The banking system, he saws.
has justified the confidence reposed
IN IT, although there are some diff
the country. The most difficult Of
these, the comptroller reports, have
been produced by the depressed con-
ditlons which characterized agricul-
ture in the past few years.
The areas where the bad farming
conditions have developed serious
banking problems are few and appear
only. as slight blemish to the whole
which the comptroller finds existing
In most every section of the nation.
There has been general improve
ment even in agriculture, according
to the comptroller but he notes that
betterment in conditions in farming
. communities have not quite kept pace
with the improvements in other lines
of business and commerce.
ITO state the matter broadly" the
report goes on, sit may be said that
the development of banking condi-
tfons within the year, and their pres
ent status. quite generally and accu-
tions of the country. That Is, the
greatest improvement in banking
conditions is found in sections where
there has been most improvement In
the agricultural, or in those where
the general business position 10 least
progress OF agricultural"
Sees Continued Prosperity.
The banking situation. taken as a
whole. however, is described by the
controllsr as filled with cheerful
prospect He predicts continued i'm
:. provement in all phases OF agricul-
"ture with a consequent greater return
in profit to those who supply the raw
food products of the nation.
Commenting upon conditions as
they have developed since the war.
Mr.. Crissinger says that 1t IL q
unwisdom of many of the most
trusted economic theories that so
many Of the anticipations which were
almost universally entertained during
the war have proved to be erroneous
He calls attention to the wide be-
LIEF during the war that the restora-
Stos of peace would see vast accum-
g./ted deficit in the worlds shipping
capacity. This belief. he says. was
held partly because of the destruction
of cargo craft during hostilities and