The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-09-09


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Gold and Prosperity
Throughout the last two genera
lions Americans have chung to the
idea that gold is the one thing with
: fixed value in this country.
Tho reasons for this are clear
enough. Through more than half q
score Of national political campaigns
the story Of gold has been dinned in
to the ears OF the average citizen.
Until recently q majority Of our peo-
pie have held to the theory that to
60 off the gold standard would be q
national calamity. AS late as the
fall Of 1882 the nation was told in
hushed accents that such a tragedy
had only been narrowly averted. The
speaker was Former President Her
bert Hoover and the place was Des
Moines, Iowa.
Now, however, We have gone loft
gold" although the law which fixes
the value OF the metal still is unim-
paired. Actually our money Is not
On . gold basis. Technically 1t still
=, for congress has made no move
toward readjustment Of the gold con-
tent In the dollar and this fixes the
price In this country.
Because our thinking about It has
been clouded, we have been inclined
to view gold as Interchangeable in
value. The reason for this Is that
It u the one commodity which, all
through the years. has been the SUBJ
3ect Of government price-fixing.
For many years this system worked
well. Other nations fixed the price
Of gold at the same level Is our own.
It was standard in value throughout
the world.
Then came the general flight from
gold, led Immediately after the war
by Germany and later by England
and the great number OF nations
whose currencies were tied to the
English pound. Gold became a free
commodity with no fixed level In
those countries.
The effect was to increase It's price
above previous values. As commodity
prices declined and the purchasing
power Of gold increased. 1t became
more ana more In demand. The
world price for gold now is far above
the level fixed by congress for the
United States.
The result has been the bootlegging
Of gold from this country. Dealers
In gold report they are doing practi-
cally no business. Much Of the metal
Is being bootlegged across our Dor
ders. despite the restriction against
expectation ordered by the president
under authority granted by congress.
Gold scrap is being melted and sent
away. Our reserves Of the metal are
being depleted. for 1t is easier to
smuggle gold than any other valuable
item Of commerce with the exception
Of more precious metals, such as
platinum. and precious stones.
The time-honored argume nts
against devaluation Of gold still carry
some weight but We cannot ignore
the situation which We now are fac
ing. The world has revalued our
gold for us and the revaluation has
been upward.
This fact has definite repercussions
on our own money and on the prices
Of commodities here at home. Be-
cause 80 many still put their faith
in gold it has q tendency to unsettle
the present situation and retard re-
covery.
II we were to let gold find It's own
Level IS . commodity by organizing
IN American gold exchange. We would
give increased purchasins power to
= considerable number Of people. At
tho new world levels, workings which
formerly were Improbable can now
produce gold ct . profit. Thousands
arc banning gold from streams IA
our own west. These people would
- benefited and could then purchase
more food. clothes and other neces-
stiles. Action would b ! definite
step along the road toward prosper
ity. .
The situation u one which the ad-
mintstration should meet In the Light
q conditions - they exist. for. de-
spite our recent actions with regard
= sold, II still plays : major part in
our national economy and doubtless
Vim continas to Do . for years 70
1oGle. We would DO wen - make Il
wpgk Tor - rather than against u
An Agitation Dies
Atitation Tor fixed prices for farm