Seward daily gateway., 1933-04-21
CAUSE OF ABANDONMENT
 OF THE GOLD STANDARD

CAUSE OF ABANDONMENT
 OF THE GOLD STANDARD
 The answer to the challenge of a European combination.
 That is the significance of the United States abandonment of the gold standard for controlled cur rency.
 The objects of this European combination, including more than half the world, was to prolOng and intensity American depression; to increase unemployment here and to decrease it in foreign countries; to leap our tariff walls and to force the United States to lower it's bars to flood of aliens, and to stimulate selling European merchandise in the United States.
 Leading this movement is Eng land, with a fund of more than three-quarterS of a billion dollars with which to manipulate inter- national exchange. This was ac- compliShed as follows:
 Before the British pound sterl- ing was debased, it's gold value was $486. When it left the gold standard the pound value fell one third. It was expected rise Tn prices in Great Britain equal to the fall in the price of the pound would ensue. But prices did not rise; they were controlled. Thus pound valued at tWo-thirdS its standard gold value would purchase as much as before. But in the United States it would purchase one-third less. Therefore the American dollar would purchase One-third more in England than it would in the United States.
 Thus, when England sold an ar ticle in the United States this art icle cost her, say $360 to manu- facture, and selling for $3.60 in dollar in the United States, actu- ally returned the exporter $4.20.
 That is why England set aside three quarters of a billion dollars with which to manipulate inter national exchange, in which many of our international bankers par ticipated. With this large fund 1t was possible to buy American dol lars and thus make them dear while at the same time forcing the pound sterling downward to make it cheap.
 AS pointed out by Garet Garret, eminent economist, it worked out something like this: England sells the manufactured article in the United States for $3.6O. But she does not buy the raw material en- tering into it's manufacture in the United States. She seeks some country linked with the pound sterling and having debased cur rency and buys there.
 By thus sending her cheap-made goods to the United States Eng land and her commercial allies not only undersell American man ufacturers by offering goods for less than the American manufac- turer can produce them, but she is paid in American dollars. These dollars are in the form of gold, hence we read of gold earmarked to ship abroad This gold never leaves the country, but passes from use in the United States.
 With B countries having for saken the gold standard one may understand the strength of the combination opposed to America.
 It has been noted that struct- ural steel used in concrete work beng carried on by the Federal government to afford unemploy- ment relief, is made in England: Cement made in England is sold in New York for less than it can be manufactured by American labor, while American cement works remain idle. Coal from Brit ain displaces American coal, tex tiles replace those of American mills, along with shoes, etc.
 As all raw materials entering into the manufacture of these ar ticles are purchased in countries with depreciated currency, the difference in exchange between England and the country from which she purchases these raw materials. is profit.
 Japan has been one of the prin- ciple benefciarieS of the Amer ican gold standard. She buys American cotton, uses it to make canvas-top rubber shoes which sell in 10-cent stores in the United States, or rubber boots which may be retailed in the United States at 60 cents per pair.
 One might go on indefinitely citing the effects of these foreign goods on American markets and American labor.
 ThllS to meet tha nnnditia., tLn