The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1939-1949, 1939-04-20
ECONOMIC HIGHLIGHTs

ECONOMIC HIGHLIGHTS
Gold, as anyone will agree, is a
pleasant commodity to have. But
economists have been wondering
for some time If it isn't possible to
have too much of it-So much, in
deed, that there is danger of it
becoming economically valueless.
The case in point is the U. S.
government. Five years ago we had
little more than 195, 000,0 900 ounces
of monetary gold. Today we have
over double that amount-31, 200,-
600 ounces. And the yellow metal
is still coming into this country
from abroad at an accelerating
rather than a diminishing rate.
Hardly a week goes by without a
gold shipment.
If this gold were melted down
into a single igot, it wouldn't be
as imposing as spectacle as you
might imagine. It would make a
bar measuring 81 by 20 by 20 feet.
But that bar would have the in
credible value-at our artificially
established gold price of $35 per
ounce-of over SIS, 000, 000. 900.
More important than the mere
money value of our gold is the fact
that it represents pretty close to
60 percent Of all the monetary gold
in the world. Almost equally Inn
portant, as the u. s. News points
out, Is the fact that the remaining
forty-odd percent is extremely bad
ly divided. England and France
have the bulk of 1t. A number of
small powers have some. And three
OF the great powers Germany Italy
and Japan have practically none
not more than percent Of the to-
tai.
Gold is flowing into this country
Tor q variety Of reasons. One is
that under our law, the Treasury
must accept every ounce offered
and pay $35 for it In our currency,
whether it can be used or not land
today, our gold reserve is almost in
finitely greater than our REQUIRE
ments. figuring on the most con-
sentative basis.) Another, increas-
dn8ly potent reason is that Euro
pean capital Is frightened over the
possibility of war, and wants to get |
Its money as far away from the
scene Of pending hostilities as pos
slble. The outlook then, is for our
gold imports to continue to soar.
Even today, It Is coming in at the
rate Of 500, 100000 a week-and If
that rate were to be continued, in
three years we would have every
ounce OF monetary gold In the
world.
And that's what the economists
puzzled. It is obviously possible, es-
pecially In the case Of war, that we
may find ourselves with practically
q complete corner on gold. No 9TH
er country would have enough to
be worth mentioning. And, in that
event, they would have to tie their
monetary systems to some other
standard Of value. Already that is
being done in the fascist countries
with their infinitesimal gold re-
serves. Germany. for example, has
virtually announced to the world
that 1t can and will get along with
out gold. And by the use Of the
bartar system. blocked marks"
etc, 1t has gotten along so far.
Whether 1t can keep going in the
future without further imperiline
Its more or less lottery economic
structure Is matter for conjecture.
It IS hardly matter for conjec-
ture however that II all the other
powers finding themselves without
gold. got together and decided to
revise their monies and trade to tit
some other standard, it could event.
ually be done. And then we would
find ourselves with about $2s, 00o,-
100000 worth Of gold which was
useful for ornament, and for almost
nothing else. But that, Of course, is
not an imminent possibility
France and England, which still
are the great financial powers of
Europe. have shown no inclination
TO throw gold overheard. And the
TACT that gold has been the sym
Dol OF sound value and security to
the human race for tens Of CEN