Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-27
NEED OF STABILITY
IN MONEY is URGED
Expert Believes Greater In.
tereSt Will Be Shown in
Standard Currency.
BY JOIlN F. SINCLAIR.

Special Dispa.ch to The Star.
NEW YORK, February 27.-Norman
Lombard. executive director of the
Stable Money Association, thinks the
present depression will create a vastly
wid<r interest in stable money than ever
before. Not that stable money Is de-
Sirable thing in itself, but because it
is the means to desirable end. 1t will
bring industrial stability, employment
stability, financial stability, stability of
debtor and creditor relationShlps-in a
word: social stability.
But unlike most reformers, this Cali
fornian does not believe that the sta
bility of money is panacea for all of
the ills of society. He says:
There will remain many problems to
be solved after the dollar has been
tanned and made to perform its social
and business tasks efficiently; but the
solution of this one will make easier the
solution of all the rest.
"A unit of value which masquerades
as stable unit, when it is not so in
fact is unscfentific. inefficient. unjust,
dishonest. 1t must yield to scientific
efficient, Just, and honest unit.
1T is no mean task to change the
monetary ideals of a hundred million
people-to alter the detectives toward
which the thinking. the laws, and the
complicated machinery of monetary adj
ministration are directed"
But this is the task which Norman
Lombard and the founders of the Stable
Money Association are attempting
Among these founders are such well
known men as Bernard M. Baruch
Pierre S du Pont, Irving Fisher, Otto
H. Kahn, John Moody, Alfred P Sloan,
il; SilaS H. Strawn, John j. Raskob,
John E.. Aldred, James Speyer, James
H. Rand, Jr., and Owen D. Young.
Oil Royalties.
The oil royalty has not yet become a
major form of investment for New
Workers. It's a strange thing, too, for
many OF its cliff jewellers are, at heart,
SPECTATORS and gamblers. Look at
Wall street.
How does an oil royalty come into
legal existence? This way-when a
farmer leases his land 10 an oil COM
pany for oil prospecting purposes, he
usually receives for that right 1917 per
cent of all oil and gas produced from
his land. If oil or gas is struck on the
farm, the lucky farmer has a legal
right to 1919 barrels of oil out of every
100 barrels produced.
But suppose some one comes along
and offers the farmer a considerable
amount of money for his royalty. Say
the farmer decides to sell some part of
it. That part is then sold and resold,
just like any other equity.
That's the royalty! Many of the
wisest oil men follow right behind the
big companies and buy into owners
royalties.
Years Total Large.
j. Edward Jones, New York oil royalty
dealer, estimates that more than $780,
100000 year is paid to owners OF OIL
producing royalties in the United States
by the large oil-producing companies.
"Oil-producing royalties constitute
first charge against actual production
O. the third largest industry in this
country says Mr.. Jones. THE ire
rnendous revenues Springing from the
ownership CT such royalties naturally
attach great value to them and invest
ment in this field is becoming increas-
ingly popular. It Is only within the last
decade that the investing public has be-
gun to appreciate this form OF invest
ment.
American produces something like
1000 900 900 barrels of oil annually,
and practically every barrel carries its
toll for the benefit OF the royalty own
err" continued Mr.. Jones. Such an
interest is nothing more or less than
right exacted by the land owner as part
consideration for the granting OF lease
to an Gil company which exploits his
land for oil or natural gas"
Mr.. Jones expects TO see large IN
crease in the number of oil royalty IN
vestors in the coming decade.
copyright, 1881, by North American News
paper Alliance.)