The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-05-06
Midas America

Midas America
One of the most discussed subjects
of the moment, and one always men,
<tioned with at least a touch of fear,
is the question of the gold standard.
l To many it is fetish. the symbol
/of sound finance. To others it rep
resents en- instrument whereby those
who have, get more, while those who
have not, get still less.
AS a matter of fact 1t is neither.
The gold standard is merely meas
uring stick of value adopted in re-
= cent years by much of the world. It
has been the one standard medium
! of exchange.
Senator Borah performed a service
for the country Thursday. however,
when he pointed to the fact that the
boarding of gold by the United States
and France has done much to ham
n string the commerce of the world.
Much as we may worship at the
shrine of gold, it does us no harm to
!. recognize the disadvantages under
which the world labors as the result
. of a standard which only two of the
. worlds nations can observe.
/ A hint of Borah's idea as to what
might be done to relieve the situa-
ton is contained in his reference to
silver when he said:
II venture this opinion, that
unless ornaments are reduced so
the burden is lifted, unless rep
arationS are settled so that Eur
ope can start on economic recov-
cry and unless silver is restored
to the place it occupied prior to
1925, to restore to some extent the
purchasing power of one-half the.
world, there will not, in my judg-
ment, be any ready return to
prosperity. ="
Il do not know how long the
people will be willing to carry the
burden they are now carrying, but
we must not be unmindful of the
fact that the masses everywhere,
becoming restless.
I'VE do not accomplish things
generally in this country by revo-
luton, but there can be no doubt
Of general feeling among the
peoples that the governments are
not meeting the task before
them"
Asserting that the United States
and France, with a population of
17o,000,000 owned about 70 per cent of
the worlds gold compared to the
1,400, 100000 who hold the other 30
per cent, he continued:
1T is significant that the abb
normal flow of gold into the
United States and France marked
the beginning of the fall Of COM
modify prices and the liquidation
OF securities. Deflation began
then, Is continuing and seems
fair to go on.
1T seems clear to me that the
fright which still obtains was en-.
gendered by this gold disturbance.
A fall in prices is like a glacier
once started, it sweeps all before
it.
II don't know how to pay the
gold Indebtedness Of the world so
long as the gold is held by two
nations. Debts must be paid
either In gold. In kind or in serv.
ices.
while I am a believer in the
protective tariff, it is obvious that i
our tariff will not permit pay
ment in kind. There is no oppor-
tunity to render payment by sery-
ices.
I'VE are up against an impossi-
BILE situation unless there can be
a large supply of money.
England was forced off the /,
gold standard last September.
Dire prophecies were heard be-
fore that occurred of what would
happen. It is the only bright
spot today on the horizon. That
great nation which was commit
ted to the gold standard since
1849 departed from it and it is the
only nation today that seems to
be on the road to recovery. /
"All of that seems proof Of the
1dSb W IIlC UI1dt tIlcIS mUSL 0c If
some relief from this gold men. {
tality."
No citizen With the good Of this !
nation at heart wants to see q con. &
dition where money has an uncertain J
value. That is the thought behind
objections to initiating the currency
b. speeding up the governments !
presses. But no citizen wants
to see the business Of the nation andi,i
The world handicapped by money |.
system which long has been OUT
Guun.
Bi-metalliGm, which Is what Bor-
abs reference to silver means. was |,
fought out in this country on . POI
litical basis in 1896 and was then re-
jected. He seems to suggest that 1t
i worth reconsidering, in view Of
the fact that China, India and many I
nations long have been on q
silver standard, and the obvious lack !
u gold to pay the worlds bills. I.
III suggestion Is worth serious ex. ID