Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-11

Goschen. chancellor Of the exchequer
in Great Britain in 1878, referring to
the propaganda for the gold standard
and the destruction OF silver, stated
that II 1t continued q financial crisis
would be provoked.
One Of the leading bankers of Great
Britain, In recent letter to me, states
that:
THE momentous question that con-
fronts the world today, following the
catastrophe appreciation in the value
of gold, is the maladjustment between
prices, wages and debts. Are wages to
be adjusted to prices. or prices to
wages? Are debts TO be adjusted to
prices, or prices to debts? 1t is diff
cult to see how chaos is to be avoided
unless there Is a material adjustment
on the side of price5. so that business
can once again become profitable. BY
the rehabilitation of silver to its time
honored position as a money metal
new factor. operating simultaneously at
various points throughout the world,
would be introduced into the present
critical economic situation, and this
should prove effective in raising the
general Level of commodity prices"
Premier Macdonald recently asked,
rs finance to be based upon enc GER
tain metal? Is credit to be controlled
by the supply, demand and distribution
of that particular metal? Is the policy,
theory and practice which we accept
and express in our coinage to thWart
our commercial welfare?"
These questions clearly indicate that
this distinguished statesman recognizes
the need of utilizing silver as a part
of the metallic base of Great Britain.
Rely on Borrowing.
Aside from France and the United
States, most countries of the world that
have established and are trying to
maintain the gold standard have been
compelled to rely upon borrowed capital
and 1t is well known that when the
fountains of credit cease to yie'i, there
was the greatest difficulty in averting
disastrous consequences. Great Britain.
as have indicated, was unable with all
her resources to maintain the gold
standard, and it is obvious that If there
shall not be an increase in commodity
prices and the development Of markets
for Britain's products. her economic and
financial condition will grow progress
Sivelv worse. The gold standard is like
the mythical vampire which sucked the
blood of it's victims and when there
were none others to destroy, it destroyed
itself
But few days ago an association was
formed in Great Britain having for its
object the restoration of silver TO
place in the worlds monetary system.
Among the influential members of the
organization are Sir Robert Horne,
former chancellor of the exchequer,
now prominent in the banking world.
and Mr.. Leopold Amery, former colonial
secretary. Sir Robert Horne declared
that the use of silver would bring many
benefits to the trade of the world both
by mitigating the harsh decline of gold
prices, which the Macmillan committee
declared to be the source OF most of
Britain'S troubles. and by increasing the
purchasing power OF nearly half the
people in the world, whose stores of
value are in silver"
He referred to the report of the In
dian Currency Commission TO the effect
that the fall in the price of silver in
flicted heavy losses on the poorer
classes, who have put their savings in
silver ornaments and who would find
their stores of value deprecated by per-
hapS so per cent by the action of the
Indian government" He also stated
that China, where silver has been used
as the store of value for 1000 years,
has lost so per cent of the stored wealth
which it had few years ago." and he
further added that the consequences of
the fall in silver prices had resulted in
a decline in trade with the manufactur-
ing establishments Of both Great Britain
and the United States.
Will Force Prices Down.
The advocates of the gold standard
cannot be unaware of the fact that
its continuance will mean a further
decline in commodity prices and dis
aster in the economic field If for
no other reason, this result is inevitable
because the production Of gold, accord
ing to accepted authorities, will diminish.
All economists concede that with the
normal increase in population and bust
ness there must be an addition to the
gold base of from to per cent an
nually in order to maintain fairly stable
prices. 1t is obvious that as gold
diminishes in quantity it appreciates in
price or value measured by commod-
tiles. The gold standard means of
RESORTS.
VIRGINIA