The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-06-15
IN.

g ECRETARY OF THE TREASURY WILLIAM
~ WOODIN has turned over to Attorney Gen
eral Homer Cummings some 10000 names OF
alleged gold hoarders. OF this number, 1180 had
been investigated up to June 8. Of the 1,180 24e
were found to be fictitious, or not at the adj
dresses given; 444 furnished satisfactory evidence
that they had surrendered their gold or were
| accused wrongly; 408 had turned in total OF
more than 100000 before agents of the justice
department called on them; and forty-two sur
rendered a total Of $43 400 after being inter-
viewed.
That leaves thirty seven individuals or organ
izations charged with holding an aggregate of
$280,000 and the government has no choice but to
prosecute them. The amount Of gold involved is
not consequential but the principle represents an
entirely new conception of constituted authority
Also it strikes at that sacred code of modern CIV
ilization-the gold standard
For 1000 years gold has been accepted as the
basis of value among nations, and as the basis of
currency within nations, under normal circum-
stances. The amount of gold government is
able to keep on hand has come to be regarded
as determining its Solvency, as well as the Stab-
izng force back of its domestic money
CUSTOM, rather than law, has created the
~ idea that governments must maintain ade-
quate gold reserves. At the same time, people
have insisted on the right to exchange money
for gold.
There being only II or IL billion dollars
worth Of gold in the whole world while the
paper currency issued by various governments
runs to three or four times that amount, it fol-
lows that if people we're permitted to exchange
other forms Of money for gold and if a season
of stress should inspire them to do so, the gold
reserves would be wiped out.
AS matter of record, that is precisely what
was threatened by this depression and what
would have happened if governments had not
adopted drastic measures.
few governments have been able to retain
he gold standard, but only because of peculiar
circumstances, or through such depreciation of
their currency as made the gold standard mean
ingleSS
To call spade spade, the gold standard no
longer exists. Gold does. however, and that
serves only to complicate the problem.
DEoPLE throughout the civilized world still
l. believe in gold not only because Of its in
trinsic value, but as the basis of a sound cur
rency. They want their respective governments
to be in possession Of an adequate reserve. At
the same time, they want the privilege of ex-
changing their silver or greenbacks for it.
These two ideas are irreconcilable You sim
ply can not hold a commodity in reserve and
guarantee its circulation in case of a panic. The
supply of gold is too small in comparison to the
volume OF money required.
AS long rs people associate gold reserves with
governmental stability they must concede the
right of governments TO protect the reserve
against hoarderS.
Regardless of law, custom or tradition it is
absurd to demand that the United States keep a
certain amount of gold in its vaults, and at the
same time assume that no restrictions on the
circulation Of gold are necessary