The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1935-10-24
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pay little attention
1oid - to the fact that gold
Pouring In is pouring into the
United States in an
unprecedented volume. I can under
stand how the wheat farmer of the
plains country or the cotton farmer of
the South or any other type of farmer
can fail to become excited over the
influx Of gold in the last five or six
months. 1t appears to be far cry
from the grain fields or the cotton
fields or the quarries or the small town
to the heavy concentration of yellow
metal to which the United States has
been subjected. But the link never
theless exists. 1t exists as surely and
as definitely as night follows day and.
therefore. it becomes a subject in
which all of us are vitality interested
Since the beginning Of September a
widespread flight of capital from Eu-
rope has manifested itself in the shape
OF gold exports to the United States.
Three or four hundred millions Of dol
lars In gold have landed here in that
time. They bring the net inflow of
gold for the year well above $1,000
100000. And, going bit further, this
addition plus another $1,000,000, 600
places our gold stocks in excess of
$1,000, 100000. or roughly $2.OOO,OOO,O0O
more than was held here when the
dollar was devalued under President
Roosevelt's instructions.
1t seems impossible to attribute this
heavy and prolonged inflow to any sin
gle cause. Immediately after devalu-
alton of the dollar, there was steady
stream of yellow metal headed for the
United States which was due almost
entirely to desire Of American hold
ers of gold, temporarily stored abroad,
to repatriate. But even in that case.
there was a cOntributory factor to be
considered. Monetary manipulation by
the American government had a tenn
porary effect on our exports. increas-
ing them to some extent and 1t was
increasing the balance of payments due
to this country. So, we find our policies
that is, policies of the Roosevelt adj
ACKNOWLEDGEMENTS for the start
of the inflow.
Later, another influence developed.
Under the pressure of American none
tary policies, foreign powers found
their allegiance to the gold standard
severely strained. Silver purchases by
the treasury had an effect. The com
bination was primarily responsible for
the second rush of gold.
Subsequently, the Italian-Ethiopian
controversy began to take serious form
and new flood Of gold to America de-
veloped. This was different than that
which had Immediately preceded it be-
cause this movement was related to
international conditions of a political
nature whereas the previous movement
had resulted without relation to inter-
national strife in a military way but
centered wholly upon American none
tary policies and their effect upon
economic conditions abroad.
Now, let us consider what can hap
pen. Those acquainted with finance
recognize in the ex-
What istence of a gigantic
Can Happen stock of gold-the
largest in American
history and approximately As per cent
of the entire world stock-the exist
ence of a potential. If indeed it is not
a probable, base for imitation. There
is so much gold held by the American
government, which holds virtually all
of the gold stocks in this country. that
no end of paper money can be issued
against it. Those who believe in that
type of currency policies say that it
would be perfectly safe; that the gov
eminent could pay off dollar for dollar
or even more than a dollar for every
paper dollar outstanding from the gold
1t holds. This school of thought con-
tends that there is actually a shortage
of money in circulation and insists that
this is one reason why the country
has not recovered from the depression
more rapidly than conditions show. OF
course, a cold appraisal of that argu-
ment catalogues it as the same old de-
mand for imitation of the currency and
everyone knows what imitation will d.
in the way of wrecking the person who
works for wages or whose sole income
consists of compensation delivered
to him in the form of weekly, semi
monthly, or monthly pay checks. The
size of that check never has and never
will catch up with the increase n
;al, ho ind sx,;l
to live.
Then, there is another potential
danger in this tremendous horde Of
gold. 1t is in many ways similar to
that which have just related. 1t Is,
however, more of a psychological con-
dition than the first. l refer to the at
titude usually adopted by those who
pull for imitation when they see a
government possessed of vast stores of
precious metals.
In this instance, the tangent of infla-
ZIONIST sentiment is joined with the
sponsors of the sill
we Want yer buying program
More Money They see all of this
gold and silver and
they simply cannot resist the oppor-
tunity for continued bowling. Their
speeches and their conversations are
almost like college yell: "We want
more money" the more money which
they desire being nothing more nor less
than currency run off in the printing
presses of the great bureau of engrav-
ing and printing in Washington.
Whether it is the first or the second
fyna of imitation that il demanded