The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-03-08


Of Ill news dispatches credited to II
or MOI otherwise credited In this
newspaper and also tho local news Of
spontaneous origin published herein.
All rights Of republication Of all other
matter herein are also reserved.
/. Foreisn Representatives
/ SMALL SPENCER, BREWER
! (lncorporated)
CHICAGO NEW YORK BOSTON
Both On and Off
/ Despite the fact that all Of US work
for It and few pass up opportunities
to- acquire 1t, money Is an artificial
thing.
Proof Of this fact and many others
OF lasting Importance to the nation is
to be found in the current financial
situation.
When the banks closed many per-
sons were caught short Of money.
They are eating just the same and
going about their daily affairs with
out much handicap. Credit. or the
willingness Of q dispenser Of goods or
services to accept payment at some
future time. makes this possible. In
New York, department and other
stores have even made a feature Of
credit offers.
In the future, Of course, the debt
thus created probably will be settled
In money. but there are other means
Of settlement and we may be using
some d them soon. For example,
there are clearing house certificates,
which have been used at various times
In the past. They represent no par
ticular value but are evidences of in.
debtedness by someone who Is be.
lieved to have the ability to pay.
Hence the probability Is that these
will circulate at par and without dis
count. The value is represented by
public confidence.
Another phase Of the situation is
to emphasis anew that the United
States Is not and has not been on the
gold standard. from an internal
standpoint. for many years. No ma
ton Is more solidly on the gold stan
dard than we are, from q technical
standpoint and that Of international
settlement. And no nation has ever
been more blithely indifferent to the
fact than we have been in the past
and still are today.
The United States government is
sues and stands sponsor for several
different kinds of money. We have
been used to referring to good old
greenbaclks" in the assumption that
greenhacks were all alike, whereas
such Is not the case.
Top notcher among the various
forms Of currency Is the gold certifi-
cate. payable in gold on presentation
at the United States treasury. Then
there are federal reserve notes. sill
yer certificates and national bank
notes, none Of which are redeemable
IN gold on demand although all but
the silver certificates have some gold
backing. The silver notes are those
which are issued to give at least par
tial recognition to silver from a none
tary standpoint.
To prove to himself that this ma
tion Is off the gold standard insofar
as its internal affairs are concerned,
all the average citizen has to do Is
take that greenback from his pocket
and look at 1t. II 1t isn't q gold GER
tificate it isn't all it might be-and
the chances are 1t isn't. He has tax
en- It on trust.
But, and quite rightly, the question
arises: what difference does II
maker"
The correct answer is: mo more
today than it did last week, last
month or last year, even though the
government Is segregating gold GER
tificates."
In international finance, where mu-
tlal trust and confidence are not "a
well established as inside the borders
Of The United States, gold Is the me-
til that talks In the event foreign
err doubt our ability to pay what 4
Owed them. We must Be prepared Il
lay ~ bullion on the counter. Hence
the sovssumsut control Of gold.
Insofar - the United States y con.
cesued. this has been the only rea|
monetary ne for gold In recent years
In our internal dealings We haveur
ueeded II. Men who have managed
controlled and handled Thousands o.
dolloEs IN values haven't seen . gole
piece except - . eurio. Congressman
Patnan. the fellow who wants 70 pa
tho bonus n cash, asserted the othe!
day. tint ~ couldn't paas . soldpiec
at several Warrington business place
bseQan1s thsy thought IL Wa "phonsy.
IhG1 weren't used 70 It.
Any reasonabls hsw. therefore. I
that Amsrica has had Two kinds Q
money IA the past. Gold for use i
bstt1ing international balances IN
credit money for use At home. !
proves that America nsed not werT'