Evening star., 1931-12-20

TARIS.-A dramatic financial strug-
gle is now proceeding in all
parts Of the world for the main
tenance or overthrow of the
gold standard. The moves and
countermoves are obscure, but the re-
suits are obvious and affect ultimately
every one All buyers, all sellers, all
debtors, all creditors, all persons with
fixed incomes or with savings.
The leader of the paper money
countries, which now form long and
imposing list. is Great Britain. The
leaders of the gold standard countries
are the United States and France. OF
the seven great powers in the world
three. Great Britain, Japan and Russia,
are now off gold, one. Germany, is
badly hit, another, Italy, is defending
itself thus far effectively. But for gen.
eral defensive purposes the brunt falls
on the United States and France. be-
cause, of the Sll 900 900 900 of gold in
the world, these two hold more than
half, the United States $4,000,000,000
and France $2700 100000.
The struggle for the moment seems
to center on Canada and South Africa,
which are the only two British
coninions that remain on gold. and N
holland, which has been adversely
affected by Great Britain'S and Japan'S
going off, but there are signs that those
who seem to want the whole world to
adopt paper money are by no means
done with attacking even the United
States by rumors and press campaigns
Dispatch Widely Reproduced.
For example, the following dispatch
from the New York correspondent of
the London Daily Telegraph has been
widely reproduced on the Continent.
New York, Wednesday. Serious dis
CusSiCns here as to the possible bene-
fits that the United States might de-
rlvc by deserting the gold standard
strengthen the rumors that are heard
on every side that high banking Off
Gals are contemplating that step
A recent rise in the grain prices in
Chicago is attributed In part to such
runners, on the ground that Americas
abandonment of gold would remove the
last barrier to world wide imitation Of
commodity prices
Great Britain's evident reluctance to
st>ti,ize the sterling until the present
uncertainties are settled and Japan'S
ban upon gold exports have influenced
those who hold that view They point
out that America is facing a period OF
MAN. months in which the high price
rencieS will effectively reduce the eX-
pcrt trade unless she takes a similar
aC.iCn.'
Fear Believed Motive.
The British motive in spreading such
bascless reports is believed to be fear
that. unless the United States and
France can be forced off gold the dollar
or the franc is likely to replace the
sterling permanently as medium Of In
ternational exchange.
Many observers consider the Franco
American agreement to defend the gold
standard by far the most important re-
suit Of the Laval-Hoover conversations
1t is known that the Federal Reserve
Bank of New York and the Bank of
France are in contact daily. but there is
scmc feeling that a good deal more
energy is being shown at present by
those favoring paper money than by
1hHec favoring gold European publ
CH-i"nT are flooded with articles and re-
r""t5 on speeches advocating silver or
p.0c. CT both.
C"stav Cassel, well known Swedish
e GomiSt. calls on the London news
papers for conference Of the paper