The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1932-11-04
FAILURE Threatened
NATION, WITH GOLD
STANDARD AT STAKE
What Might Have Happened
If Presidents Plan Hadn't
Succeeded.

"If the United States had been
forced off the gold standard, you
would have sold your produce for de
preciated currency" said President
Hoover In his first speech in this years
campaign. "You would be paid your
bank deposits and your insurance pol
Icy In currency, but you would have
to pay a premium on such of your
debts as are written in gold.
THE Federal Government, many of
the States, the municipalities, to meet
their obligations, would need to in
crease taxes which are payable In cur
rency in order to pay the gold prem
ium, provided, of course. they did not
repudiate.
"Being forced off the gold standard
In the United States meant utter
chaos.
'Tn the midst of this hurricane, the
Republican administration kept cool
head and rejected every counsel of
weakness or cowardice.
I'VE determined we would stand up
l1hc "cn anu IcIlCi lllC u CulI VI IhS
United States Government impregna-
BILE through the drastic reduction of
Government expenditures and In
creased revenues until we balanced our
budget.
I'VE determined to place the shield
of the Federal Government in front
of the local communities in protection
Of those in distress and that we would
increase employment through profit
able construction work with the aid
of Government credit.
1.-THE foreigners drew out most of
their money, but finding that the Amer
lean dollar rang honest on every coun-
ter, In new confidence they are send
ing IL back Since June, $275,000,0O0
of gold has flowed back to us from
abroad. Hoarders in our country
finding our institutions safeguarded
have returned $25O,OO0,OOO to the use
full channels of business.
The Turn Toward Recovery.
1.-THE rills of credit are expanding
The pressure on the debtor to sacri
fee his all In order to pay is relaxing
Men are daily being re-employed. If
we calculate the values of this years
agricultural products compared with
the low points, the farmers, as a
whole, are, despite the heart breaking
distress which still exists. 81 000,000,000
better of. Prices have long way to
60 before the farmer has an adequate
return, but, at least, the turn is to
ward recovery.
81 have been talking of currency, OF
gold, Of credit, of bonds, of banks, OF
insurance policies, of loans. Do not
think these things have no human in
depreciation. The happiness of 120,.
100000 people was at stake in the
measure to enable the Government to
meet its debts and obligations, in saw
ing the gold standard, in enabling
$500 banks, insurance companies
building and loan associations, and a
multitude of other institutions to pay
their obligations and ease pressure up
on their debtors.
their failure would have carried down
with them every man and institution
who owed money, and the whole en-
ployment and marketing fabric of the
United States.
What Financial Failure Means.
"The financial system is not alone
intrusted with your savings. Its fail
ure means that the manufacturer can.
not pay his worker, the worker his
grocer, the merchant cannot buy his
stock Of goods, the farmer cannot sell
his products.
"The great clock of economic life
would stop. Had we failed. disaster
would have translated itself into des-
pair in every home, every city, village
and farm.
1--WE won this great battle to protect
our people at home We held the Glib.