Nogales international., 1932-10-26
Mythical Gold Standard Peril

{. When President Hoover told Des MONIES audience
that the United States unknown date had been within
two weeks of going off the gold standard and that he had
saved the situation he made strong bid for reinstatement
il public estimation popular hero and miracle worker
Naturally the voters would visualize him ST. Geo
Staying modern dragon, another Jack the Giant
Killer cutting off the head Of ogre that about de-
Uncle Sam That picture that might be called
genuine thriller with the election only weeks
off.
But fortunately for the country and unfortunately
the fighting candidate there accurate statistics in
minute detail concerning gold including it's export and inn
port and ownership There eminent in public life
keep Thoroughly informed Of the fiscal affairs of the
Government One of these is Senator Carter Glass of V
gnia principal author of the Federal Reserve Act for
Secretary Of the Treasury and member Of the Sem
Committee Banking and Currency In the lasnamed
capacity Senator Glass conference with President
Hoover concerning legislation designed to check bank fail
which resulted in the passage of the sStegal
bill He at hte House conference at which, accord
ing to Senator Watson the Republican leader of the Sen
ate the peril to the gold standard discussed but SEN
aor Glass says he heard Of it. He further asserts
that there positively ntmaon at the conference
that anybody felt the least apprehension that the United
States might be driven from the gold standard"
And Senator Glass at the conference next Secre
tary of the Treasury Mills who Mr. Hoover said told him
that the country within two weeks of going off the
god standard The Senator quotes Secretary Mills who
peaed the following day before the Banking and Currency
Il here responsible government official sup
posed to you facts and youhat perfectly
confident of ability to meet all demands that may be
made upon u.s."
Senator Glass quotes Eugene Meyer Governor of the
Federal Reserve Board little later stating to the SEN
ate Committee Banking and Currency that there is not
the slightest doubt in the mind of responsible official
about either the ability intention Of the United States
to stay on the gold standard
One week after the White House conference on bank
legislation Senator Glass says the Federal Reserve
tortes officially reported to him that they had suff
ce supply of gold in to extend additional discount
facilities in the enormous of 1000 100000
After detailing the of the Federal Reserve
system, which he calls financial Gbralter' Senator
Glass draws the following concusions
Thus, for any responsible public official now, part
Of prediction campaign, to assert that this country
about be driven off the gold standard betokens intellect
ua perversy, the view be honestly entertained, and
moral nsensibity if the idea be simulated for party
personal advantage"
Senator Cordel Hull of Tennessee recognized auth
oEty economics and finance refers to Mr. Hoover
alse alarm statesman and says that the danger he
CT thought he saw, only mares nest'' 49,
Thus it would appear that the mythical god-standard
peril gone to pot with the mythical chicken of the 1928
campaign.