Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-29

titc output worker lot all
four branches is 100 per cent--nearly
double that in 1900. This increase is
not wholly due to short hours, but
mostly to improved systems and ma
chinery, yet the worker is sharing in
these improvements of the overhead.
X r * X
The French have two expressions
which serve as connecting links when
one has wandered from his starting
point. One is "a propos les bottles" and
the other is "revenons a nos mou-
tons" Whatever they mean. they
bring us back to the gold hoard in the
United States Treasury.
To read of the billions of pure gold
in the Treasury and to be told that
it is as much as all the rest of the
world holds gives an erroneous and
inflated idea that the Treasury is
boarding and somehow taking profit
eering advantage of the worlds finan-
eial embarrassment. That is not true.
Europe has increased her gold re-
serves IL per cent while we increased
ours only per cent. Besides, not all the
gold held in the Treasury belongs to
the Government. 1t is held in trust,
like treasure in q safely vault.
On March "a, 1927, the Treasury
held as gross assets: 81
Gold coin. ......... $500 CTS, 493.2S
Gold bullion. ......... 3,06S, 909 ,361.59
Total ..........S SO ,69S, 5S7, 854.S7
Against that gold there were liza
bilities as follows:
Outstanding gold GER
tlnCdLeS y, o4S, % I,00S.UO
Fund of the Federal
Do MI 100 40 QQ1 Sc
Gold reserve. .....-.. 155,420.720.9S
Gold in general fund. 4,446,2 44.03
Total ..............$3,69 SOS, 5S7, S54.S7
This means that of the total only
$164, 000, 900 belongs to the Govern
ment; the rest is held in trust for the
real owners who hold gold certif-
icates'' or /. o. us" of the Govern
ment, showing that the gold belongs
to them and will be turned over when
ever demanded in exchange for either
a.. ''greenbacK," "gold certificate" or
Federal Reserve banknote of the
amount represented. Instead of 81
per capita, there is in the Treasury,
united, only about $1.36 for each in
habitant of this country-a small
working capital, indeed, requiring
pretty slxillful handling by the man
ayers of this, the greatest business
concern in the worlds history.
All the principal countries of Eu-
rope, except Russia and old Austria
Hungary tits heirs and asSignsl, are
CARRYING more gold in their treasures
than they did before the war. France
on July 10, 1914, had gold reserve of
4 ,O00, 900 900 francs, and on March 10.
1927, it held 4,400, 100000 gold francs.
And "gold francs" do not depreciate,
regardless of what paper francs
may do.
The Federal Reserve Bank annual
report for 1926 states:
Gold movements into and out OF
the United States We're, in the ag-
gregate amount, smaller in 1926 than
in any other year since the eStab-
lishment of the Federal Reserve sys-
tenn, with the exception of the period
of the gold embargo of 1918 and 1919.
Also, it may be noted that the origin
and destination of gold shipments
We're different. Almost no gold was
received from Europe, the countries
sending Il net amount of gold TO the
United States during the year being
chiefly Canada, Latin America, Aus
tralia and Japan. Net gold exports,
on the other hand, went chiefly to
Germany, which pursued n policy OF
building up the Reichsbank's vault re-
serve by withdrawing gold held ear
marked for its account in the United
States. During the four years
of large gold imports. 1921-1924. most
of the gold came from Europe. repre-
senting in part the reshipment from
London Of newly mined South Afri-
can gold and in part the export OF
gold from the reserves of certain Eu.
ropean countries, chiefly Russia and
Germany. Since the closing months
of 1924. with the restoration of mone-
tary stability in Germany and the
setting up of the financial and fiscal
under the Dawes plan, that
country has been restoring her gold
reserves, and u considerable part or
the gold exported from the United
States since that time has been taken
by Germany"
The danger of too great a gold re-
serve In the Treasury lies In the
il offers for imitation OF
credits, which results in increase or
prices on all cost of living. etc: with
an abundant surplus OF gold the Fed
eral Reserve banks may lower inter-
est rates on rediScounts OF notes
taken from customers or the local
hanks. That entices local banks to
lend freely and encourages loose in
with borrowed money. Yet
all that is within the power of the
Federal Reserve Board to regulate by
interest charges on redis.
Today the rate on all kinds
Of paper taken in fediscounts for
All parts OF the country is a uniform
uer cent--ratheF an unusual ScDnfli-