Evening star., 1932-10-13
FIGHT TO PROTECT
DOLLAR REVIEWED
Presidents Statement Justi'
fled in View of Credit
Statistics.
BY DIR. MAX WINKLER.

Special Dispatch to The Star.
NEW YORK, October 13.-While one
may question the diplomacy OF the
Presidents S remarks at Des Moines re-
lating to how dangerously near the
United States was to abandoning the
gold standard not SO very long ago, no
one familiar with the facts will regard
the statement as exaggerated
Statistics are unbiased and. while
they lend themselves TO various inter-
pretationS, no one, regardless OF party
affiliation can alter them. 1t is Tor
this reason that proof can be adduced
easily for the accuracy Of the reference
to the dollar in the course OF the Iowa
speech.
But there are many who think it
would have been better to let bygoneS
be bygones. Assuming the dollar to
have been saved permanently from the
attacks of Europeans and Americans,
why was it necessary to bring up again
something which was practically for-
gotten?
Public Confidence Was Low.
At the time the abandonment by
the United States of the geld standard
was seriously discussed washington, OIL
ficially and unof1cially. emphasized
the impregnable position of the dollar,
which no foreigner could impair. re-
gardless of the resources which might
have been available for such purpose.
The Federal Reserve Board was equally
outspoken in assuring the world OF the
inherently strong position OF the Amer
ican currency.
No one questions the sincerity at that
time either of Washington or the Re
serve Board. Sentiment was at low
ebb. The public could not have stood
the shock incident upon an abandon
ment of the gold standard. A veritable
panic would have resulted had 1t been
forced upon the United States.
A series Of measures was put through
promptly. No obstacles were put in the
way Of Europeans who wanted Americas
gold. They withdrew balances to their
hearts content. The economic war
waged between the United States and
the nations across the Atlantic, notably
France, was won. washington trl-
umphed.
All or most of the gold held in the
name of foreign nations or individuals
had been taken out. The remainder was
more than adequate to support the out
standing paper money in circulation.
The ratio of reserve to notes was larger
than that of many other nations. The
dollar was saved, and regardless OF the
political faith one processes he is COM
pelled to give credit for this achieve
ment to those men who, at the time,
we're charged with guiding the Nations
deStinies Of an economic and financial
character.
Situation Analysed.
What was the position in the United
States in the Spring of 1882. to warrant
at that time the belief or fear that the
gold standard was in danger?
The amount of so-called free gold
amounted to $1,000, 100000. Against
this figure the following items had to be
placed:
/. Holdings of the Bank of France
estimated at S370,000000.
2. Miscellaneous French holdings in
the United States, estimated at not less
than S50.000,000.
3. Holdings of various other foreign
interests. estimated at between $780,
COO, 600 and s15OOO0 900.
f. Value Of American securities held
b. foreigners and subject to sale and
Withdrawal of gold resulting therefrom,
estimated at between 81 900, 100000 and
S1.250,000, 900.
s. Amount subject to sale in connec-
tion with fixed investments of foreign
ers in the United States, estimated at
between Sl00, 100000 and $3.50 900 ,000
4ilc toedl VI tAIC aOoNS 4Ccllo l!Co pc
tween ST., $40, ,OO0,O 900 to s1,97o,ooO,0 900, at
any rate, substantially in excess of the
So-called free gold of about 81 100000
600 Of which the United States boasted
In other words. the free gold was not
only not free, but even the gold serving
as security for Americas monetary
stock was subject to a loss varying from
10000, 900 to as much as S670, 100000
With foreign dollar balances reduced
to merely nominal figures, no outside
influence can now be felt.
(Copyright, 1882 by North American News
paper Alliance, Inc)