The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1931-09-22

Official City, State and County
Newspaper
The Disappointed Bears

The Disappointed Bears
America set a fine example for the
rest OF the world Monday when 1t
refused to be shocked by English
abandonment of the gold standard of
exchange and maintained the prices
of securities in the New York mar
ket.
TO understand the significance Of
this fact 1t must be remembered that
Great Britain has been, for centur-
les, the leading banking nation Of
the world. In recent years America
has superseded 1t somewhat but
England is at least second by a wide
margin. just as the sun never sets
OF the British empire neither does
It ever set on English investments.
Another factor is that the gold
standard has been made something
of a fetish in the worlds financial
circles. Numerous agitations have
been made against 1t in nearly every
nation, but 1t Is regarded by finan-
ciers as the only sound medium Of
exchange. The last real fight against
the gold standard in this country
occurred In 1896 when the late Will
lam Jennings Bryan c~ampaigned for
the presidency on a free-silver plat
form. s
The trouble with the gold standard
In England, as explained by the As
sociated Press, is that banks have
found it profitable to acquire pound
notes at less than their face value,
turn them into gold in England and
then export the gold. It was all very
simple and the whole thing was
based on lack Of confidence in the
stability Of England's medium of ex-
change. long the standard for the
world. Suspension Of the gold stand
ard enables England to refuse to
give her gold for her bank notes and
eliminates the banking squeeze
play" in which the nation found it.
self.
Whatever may be said for the
ethics Of world financial circles In
putting John Bull In the hole, Brit
ain had q remedy Of last resort which
it has adopted. The squeeze" ir
SO far as 1t concerns gold. is over
The English just won't play any more
under the present rules.
The action Of the New York stock
market In absorbing q huge sale o.
stocks, despite the apparently dis
couraging news, Is heartening. Il
probably Is true that the same mer
who bought stocks Monday wer'
among those who had helped t,
hammer down the price Of the pouns
sterling, for all is fair In finance a!
in love and wal and what matter i
the financial balance of the worl,
was being upset II they could max
a profit? The same thing probabl,
holds true In even greater measur
for the French financiers who hav
never been known to let patriotism
even for their own country. naterfer
with their vision with regard to tn
main chance.
A leading factor. perhaps, in tn
strength Of the New York marke
was the ruling Of the stock exchans
directors against s~hort-selling. tn!
decision was obviously directed 9
the huge bear influence which hs
beaten down the market in recer
months and which. doubtless. Wa
prepared to reap q huge harvest b
causing q Generalization to whic
the debacle OF October, 1929, and tx
famous Black Friday Of 1868 migt
have been only q marker. It woul
have been q heartless and cor
~scienceless thing to do but thel
seems little doubt that the atteml
would have been made had not Il
opportunity been barred.
As 1t was. all Of the stocks So
were legitimately sold and, relieve
of the s~hort-selling pressure, Il
market responded nobly.
It may be, In the long run, a Cox
thing. It shows that the heart
America Is bullish and that. one
these days, the bear traders are G
Ing to find themselves lover q ba
rel" II they do, It Is to be hop
that the bulls will show no mer
for tho bears have had no little pa
In creating business uncertain
They are the prophets Of gloom.
Tho strength Of the New 70
market. despite the British situate
.A-- 8.8 N-.,Ns 80. Il. ~