The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-11-05
FAMED MONEY
EXPERT FLAYS
BUSINESS FEAR
Princeton Professor Pictures
Thoroughly Sound and
Sturdy America.
INSISTS U. S. IS SAFE
Return of Confidence All
That Is Needed, Says
{. w. Kemmerer.

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NEW YORK, Nov. 5.-America
needs only a return of confidence to
puts its vast gold stores to work,
Professor Edwin w Kemmerer Of
Princeton university said today.
Speaking to a distinguished au-
oience at an advertising club lunch
con, the famed doctor" of the
worlds monetary ills, said that
Americas gold standard is secure,
indicated the United States ought
not to practice the initiation in
which Great Britain now is indulg-
ing and declared that New York
has become the worlds money cen
ter.
With confidence restored. money
and bank deposits again will move
at their normal rates and wholesale
commodity prices then, in my judg-
.nent will return to a level not far
different from that prevailing dur
ing the eight years preceding the
crash Of 1929, level that will he
at least 25 to 30 per cent higher
than that now prevailing" he said.
Pleads for Confidence
The handsome, grey-haired pro-
lessor, who has administered to and
corrected the gold troubles of eleven
countries in the last twenty-eight
years, painted a picture of a thor
quehly sound and sturdy America.
The tone of his discussion. in effect.
was a plea for the United States to
chase its fears and doubts and make
the depression of 1929-1931 only a
memory.
1T will be found that the high
value to which gold was pushed
during this crisis was only a tenn
porary emergency value created by
q psychology Of extreme and wide
spread public distrust which the
real facts never justified" he said.
Great Britains recent economic
trouble may be attributed in no
small degree to the evils of her de-
flation policy, DR.. Kemmerer pointed
out.
Stresses Safekeeping
What gains Great Britain NAV
realize from the Suspension of the
gold standard will be of temporary
character and will be bought at the
expense of some severe losses. How
long British labor will stand the
punishment of fixed wages, accom-
panied by rising cost of living re-
mains to be seen"
DR.. Kemmerer said it was a de-
Sire for safekeeping that brought
the worlds gold streaming to Amer
lea rather than any desire on the
part of the United States to corner
the supply
Money hoardings in the United
States today amount to upward of
b billion dollars" he said Postal
savings have increased from 100
millions to 500 millions in the last
sixteen months. The gold reserves
of Our federal reserve banks are
still more than a billion dollars
above the legal requirements, and
we have outstanding hundreds of
million dollars in gold certificates.
Fears Not Justified
THE difficulty at present is pri-
inarily one of lack of confidence.
Much CT our gold is still compare
lively idle, but it will be put to work
when people abroad and people at
home come to believe it can be put
to work safely and prof1tably.
THE gold standard in the United
States today is strong-very strong
land the fears entertained by some
timid persons and some ignorant
persons at home, as we'll as fears
publicly expressed by some enviouS
persons and some ignorant persons
abroad, of a possible breakdown of
the American gold standard have
no justification whatever in the cold
facts Of the situation"