Evening star., 1937-04-25

common stocks were free to respond,
and they did
Be that as it might, We adopted
these policies. We proceeded to
cheaper the dollar, so as to raise
prices and increase exports. At home
We cheapened our money by increas-
ing its supply; that is. by huge Gov
eminent deficit expenditures And to
stimulate exports, as well as to obtain
seignorage and other profits for the
budget, We cheapened it abroad, by
raising the price of gold from $2067
per ounce to $35 and by buying silver
at fancy prices. We more than
cred the gold content of our unit and
then plated it with silver. 1t was a
case Of new lamps for old"
In effect, we said to the world:
Notice, every one: We hereby es-
tablish an unlimited market for gold
at handsome new price, some SO
per cent above the former level All
foreign gold hoarders, all spectators
who bought gold from us at s2o67, or
who withdrew their money from the
United States, return 1t now and re-
ceive $35. All mine owners whose gold
has heretofore been worth only s2O.67
per ounce get busy and dig, because
we will now pay s35. Open up your
marginal properties, from Juneau to
Jo'burg. All you British Indians
who have gold boarded for genera
ttons sell it to us at fine profit.
In exchange for it We'll give you dol
lars with high purchasing power, to
buy our goods and q share in our
industries"
Buy Silver Till 1t Hurts.
To the long list Of silver spectators,
hoarders and mine owners everywhere
We similarly said: 1--WE are going to
build up our already excessive silver
stocks to the largest amount the world
has ever seen or dreamed of. We are
going to buy until it hurts All silver
which our mining companies sold to
China and India and to spectators
at home and abroad at prices as low
as IS cents an ounce, all demonetized
coin you can get hold of bring it here
and we will pay you well for it, so and
so cents, maybe $1.29 per ounce, so
that we may bury it at West Point on
the Hudson"
And 50 the incredulous world has
been sending us millions OF ounces of
gold and silver, which it is glad to
get rid Of at the handsome subsidy
prices we have been paying Gold is
produced on the Rand today at from
SIS to $18 per ounce, yet we pay $35
for 1t. Silver is produced by the SUM-
shine Mine, our largest producer, at
under Is cents per ounce, yet We pay
Sunshine over II cents for it. The
1885 report Of the Sunshine Mining
Co. gave operating costs of its silver
production as 1894 cents per ounce,
yet that year the average price paid by
the Treasury for newly-mined silver
was between II and II cents.
1t is not surprising that the yield of
the South African gold mines, whose
decline was so discouraging to the
League delegation, in 1886 stood at
1885, 900 ounces, or 3,279,00 ounces
above the Leagues prediction for
1896. It is not surprising that Russia
is digging gold in the Artic It is not
surprising that our mine production
of silver increased from $4,000, 900
ounces in 1888 to over 10000, 900
ounces in 1886, or that China took oc-
casion to abandon the silver standard
for good, selling us the discredited
precious" metal by the ton.
The silver flasco is SO patent that
even in dbinterested sections Of the
country it is at last coming to be ap-
preciated. But the gold situation de-
veloping today is appreciated by few.
Gold, too, is becoming discredited; 1t
is becoming passe. The era Of man
aged currencies which came into being
in 1881 has been teaching the world
that internal currency stability Is not
nearly 50 dependent upon an ample
gold base as used to be thought. Mon
etary autarchy developed out Of emer-
gency conditions. But, despite i'm
portant objections, it seems likely to
remain when the emergency Is over.
The gold imports OF the United
States during the last three years have
been approximately one-third greater
CONTINUED on Third Pags.)