Evening star., 1932-05-15
Continued from Seventh Page

French investments in America, which appre-
ciated greatly during the boom days of 1929,
and reparation payments from Germany
These latter credits were borrowed from
American hnanciers by Germany and turned
over to France. Prior to September, France
was content to use her credits in America and
to allow the gold to remain there. Since that
time France has been cashing American cred
its and removing the gold to that immense
treasure house Of the Bank of France, located
under the Seine River.
France pursued the same policy with regard
to England, cashing her commercial credits
and reparations and Withdrawing the gold to
her own shores, an action which was partly
responsible for forcing England OF the gold
standard
To-day France has far more gold in her
Golfers than her actual wealth warrants and
other world powers are feeling the effects Of
her boarding.
This policy of gold withdrawal has been
copied in small way by Holland, Switzerland
and Belgium. and has been further augmented
by wild rumors spread abroad that the United
States would soon 60 Oh the gold standard
So persistent were these malicious rumors that
the value Of American money In several coun-
tries fell temporarily below par, and any cred-
It's which these nations had in America were
cashed and the gold brought home sS@t
Although Americas gold supply Is at low
ebb as compared to several years ago, she still
has sufficient to insure her Continuance on the
gold standard, especially so since the mora
torium precludes the immediate necessity Of
Germanys borrowing more money to pay off
reparations and so dazzling American hnan-
ciers with offers Of abnormally high interest
rates for further loans which could be cashed
by France.
III you consider that angle of the mora
torium, you will see that 1t may prove to be
OF Is much benefit to the United States as to
Germany
"But why does the world place 50 much
value on gold?" he asked. why has man
made this metal his standard of value? Is It
of any particular worth other than as a SYM
Dol Of wealth."
Gold is about the most worthless of all the
more common metals except for its monetary
value" he answered. There is hardly a use
to which gold is put industrially for which
some other metal cannot be substituted to adj
vantage.
There was q time when silver was worth
more than gold, and as late as the discovery
OF America 1t was worth one-eighth as much.
Silver was the principal currency Of Europe
until the close Of the eighteenth century, and
even today 1t Is the metal SO used BY more
than half Of mankind principally In Asia,
where its use dates back to the time when the
caravans Of Europe carried silver to Asia In
payment for silk
Silver also formed the early English cur
rency. Before the Conquest, 1866, the unit
was one pound of silver-troy-which was d.
vided into 20 shillings of 10 pennies each
Gold was first used In 1887 when gold pennies
were coined In imitation of the currency Of
some Italian cities, but gold coins did not ap-
pear regularly in England until l34a. when
Edward III, amid great protest. ordered the
coinage OF horins at, the rate Of so to the
Tower poundEwhich seemed excessive 10 every
one at that time. The sovereign appeared In
1889. but gold remained subsidiary to silver
until 1916. from which time the present; Eng
lish coinage system dates 49,, a., sv~ass
IT SHOULD be sreWembered that prior to the
discovery Of gold In California the woxld's,
supply Of this metal was very limited. Ap-