Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-19
NATION NOW RESTS
ON ROCK OF GOLD
c. E. Howe Tells Safe Deposit
Men Reserve System Has
Built Up New Stability.
snncial nlspatch 70 The Star.

Special Dispatch TO The Star.
BALTIMORE, May 15.-Speaking be-
fore the National Safe Deposit Conven-
ton here today, Charles E. Howe,
treasurer of the American Security g.
Trust Co. Of Washington. said that gold
was one Of the most precious metals
more than 5000 years ago. Discussing
THE Age Of Cold Mr.. Howe traced
the establishment of the gold standard
in this country permanently, which
brought new assuran to our industrial
life and established confidence through
ont the world.
For practical purposes, he said. the
Government deemed it advisable to re-
duce the amount of gold coin In circu-
lation and to issue in lieu thereof gold
certificates which could be exchanged
if so demanded at the Treasury or Sub
treasures for gold coin. This demand
is quite small and only at certain
times do we find these certificates pre-
scented for exchange into gold, and then
shipments Of gold to countries where
the exchange rate is less favorable.
Amazing Growth Noted.
Since the discovery of gold In Cali
fornia our growth in wealth has been
rapid. and our rich and virgin soil is
continuing to produce enormous wealth
The treasures Of Europe are coming to
our shores and the Old World is nov
paying tribute to the younger Nation.
which at the beginning of the Great
War was paying tribute to them. The
business world is transformed. Within
10 years We have changed from
debtor Nation to q creditor Nation.
The end is not yet. Our great size and
importance is destined to create for us
argosies of gold which will establish
more firmly than ever our trade rela-
tionS with the nations beyond the seas.
1T seems strange" the speaker ex-
planned, that from the earliest dis
covery of this metal to the present
time the gold of the ancients was found
only in limited quantities, and at no
time did the metal become cheapened
bv over-production. Throughout all
the ages an apparent stabilized ratio
appears to have been maintained be-
tween production and consumption.
The great gold fields which have been
discovered during the last century have
not materially disturbed this ratio. AS
business expands the amount of gold
seems to be produced in sufficient guam
titles to maintain at all times gold
standard SUFFICIENT for our industrial
needs.
System Rests Upon Rock.
To-day" Mr.. Howe continued. "our
great financial system rests upon a
solid rock OF gold The Federal Re-
serve System. which was enacted into
law in 1913, gradually brought together
gold reserves in our country in such
vast amounts that we have been able
to more thoroughly stabilize the gold
-
done under our old system This for
eign stabilizing of gold can also be
found in the leading banking institu-
lions Of the other great nations of the
world. We have no other basis TO
establish our great system of credits
than the gold plan which is now uni
versally used BY reason of this enor-
nous gold basis, our great industrial
and financial corporations have shown
an enormous growth. This. no doubt. is
due to the solid foundation on which
our business interests rest. To destroy
this confidence We would witness a
complete collapse Of our trade relations,
both at home and abroad.
AS our growth continues, we are find
ing that our rapidly increasing wealth
is being exchanged into stocks, bonds,
deeds. mortgages and precious Jewels
needing A safe place for their protec-
ton from the thief by day and the
burglar by night.
New Protective Methods.
When We emerged from the great
Civil War we began to realize that the
system in vogue in Europe of lodging
their securities with banks or gold
smiths should be superseded by a more
modern system, and out of this condi-
ton we developed what we believe is
sale and better method of caring for
personal property than is now in use
IN France and Great Britain.
The safe deposit business in its in
fancy had few rules and few conditions
covering the receipt, care and Surren-
der OF the personal property intrusted
TO the bank. Various questions have
arisen since this system has been
adopted. and We are now confronted at
times with the question whether our
relations with the renter is that of
bailor or bailee or that of landlord or
tenant, or little Of each Many such
questions are now arising and we find
that 1t is most important that a proper
contract should be drawn and such
rules and regulations be adopted which
will give to the safe deposit company
the greatest degree of protection, and
At the same time offer every assurance
to the renter that his personal property
is lodged in safety and free from theft
May this vast power of wealth. which
has been intrusted to our keeping
never be abused, and may our national
emblem ever be a symbol of righteous
ness and freedom to all mankind" said
the washington banker In conclusion.