Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-13

i&A II VI e Y q z q .
~ There Is enough
= saaR slzA-- = gold in the world
Albert III. wisrin. to do the legi-
innate business OF
the world at comfortable rates of In
terest. but there is not enough gold to
finance such a speculation as We have
recently experienced and there is not
enough surplus gold to justify extremely
cheap money at the present time.
Discussing the gold outflow from the
United States, Mr.. Wiggin believes that
the international money market Is work
ing toward equilibrium and that the
interest rates in the future will more
nearly reflect the facts about the worlds
capital supply than they have done IN
recent years"
Then he uttered a prophetic note:
IF this means higher interest rates
than those of 1927. it also brings the
corrective of more savings and less
wasteful use of capital, and this In
time will produce soundly-based lower
interest rates again"
This chairman of one of the worlds
largest banks, sums up the stock mark
ct speculation and the subsequent crash
as follows:
"The stock market crash was due to
the violent speculation which preceded
it. The speculation was que to the
cheap and excessive credit available
to spectators for several years. The
low rates of Autumn of 1927 intensit1ed
this speculation to degree which made
it almost uncomfortable"
But that's over now.
He believes the business outlook is
both healthy and sound.
Prof Irving Fisher of Yals told a
New York legislative committee that
the present tendency is toward a sud-
den collapse in prices unless better
and wiser international control OF gold
was brought about"
Today gold is cheap in terms of pur-
chasing power. Cheap gold expresses
itself in high prices of commodities.
In 1920 gold had one-half the buying
power it had before the war. Now it
has two.thirds the buying power it
had in 1918.
Gold mining, therefore, has been dis
couraged by this situation, resulting
in a decrease in the amount CT gold in
circulation, coincident with great in
crease in the volume CT commodities.
Eventually this process will result
in a shortage of gold reserve" said the
Yale professor, automatically shutting
off at a certain point further credit
6boAASGos RAS-
cipitating hard times"
The implications of such a statement
are far reaching.
H. Parker Willis, the fiery editor OF
the New York Journal of Commerce,
questions Dr. Fishers 'guesses."
ANY conclusions regarding price
trends that may be reached on the basis
of the status quo may be vitiated by the
credit policies of central bank manage
says DR.. Willis.
The gold problem resolves itself into a
problem whether the different countries
of the world are going to scramble for
the very limited new production.
The Bank of France during the past
three years has actually added $780,
600 900 more than the estimated addi-
tons during the same period to the
worlds monetary gold stocks. a.
The gold question is primarily a
one. But the psychology
cal problem may develop into a habit
like any other.
There's plenty of gold in the world to
meet. the world cerdit needs, II the
central banks of the world and their
officers so decree.
The dope" business is no side line.
It's one of the worlds largest. Fabu-
louS profits are derived by several ma
lions from opium production.
The record shows that in the five
year period from 1920 to 1925 the opium
revenues from British Malaga and
Hong Kong were $915,974, 200 tStraitS
dollars; Netherlands East Indies.
$271 1886, 900, and French Indo-China,
300.
The British government. exclusive of
British India, is getting "a per cent of
its total income in the seven British
possessions IN the East from opium.
The British Indian government LENDS
money to opium cultivators without In
terest and buys the entire output.
The League of Nations is wrestling
with the problem now. Their confer
ences on narcotics this year will deal
solely with the control of manufacture,
but not with the problem of limiting
opium cultivation. The United States
limitation. The United States
holds that In limiting opium cultiva-
ton, not in the control of manufacture,
lies its ultimate extinction.
The opium advisory committee of the
League of Nations meets this week at
Geneva. United States will cooperate
II both production and manufacture
are considered. But otherwise, prob
ably not.
Watch Geneva this week to see what
happens!
While some people bewail the great
amount of advertising spread all over
the Nation in every form of commune
cation, including newspapers, radio,
and even books, such persons
should remember that the great Vol
taire, in his writings, always inserted
a reminder that he sold watches and
Voltaire Med in the little village of
Ferney. a low. marshy. unhealthy spot
in France. He reclaimed the land, built
new houses and started a weaving and
matchmaking colony. He wrote classics
in his spare hours, but his weaving and
business prospered ex-
ceedingly.
He did big export business to Spain,
Italy, Russia, Turkey, Morocco, Portu-
gal. China and America. From small
beginnings, he Increased his income to
over 100000 a year. Today he would
be considered a big business" leader,
for $1,000 then meant more than
81 900, 900 today.
Some one, analysing the success Of
this great man in the field Of mer-
chandising, declared that he had the
secret of interesting people in watches
and stockings because he sold himself"
to his prospective customers first.
Such selling still remains one Of the
most successful factors in good mer-
chandising.
Copyright, 1890, by North American News
paper Allisnce.) T.,