Imperial Valley press., 1940-02-08


they want 10 buy from us. This
makes our dollar so mighty that
more "timid' gold is sent to us.
thus weakening other currencies
still further. THIS automatically
boosts our prices in world markets
in terms of foreign currencies and
hence cuts down our exports. IN
creases our unemployment. Under
normal conditions. the situation
would correct itself, but the dol
lar occupies its exalted position
not because 81 U. S. economic
strength but because of world
economic weakness While there is
coms,letc disagreement as to how
to solve this riddle, there Is uu-
AninouS agreement ON the eXis-
tence of this gold danger.
Readers will remember that We
cut the gold content of the dol
lar by 40 per cent in 1898. We
thereby hiked the price of gold
from $50 70 $33 per ounce. We
forbade any citizen 10 own or
transfer gold. We bought gold
from corners. This started the most
gigantic mass movement of the pre-
ciouS metal in the worlds history.
Since 1884. Sl0.50O 100000 worth of
bullion has been sucked into the
U. s.. Like tabled King Midas. we
were happy to have it come; but,
like King Midas, we now want to get
rid of II! Every day more millions
stream here from other nations
anxious to get dollars to spend on
war supplies. from busy miners,
from individuals who want Ameri-
can dollars rather than boarded
cold. And this has been going on
for years.
A Pan-AmerIcan Dollar
When the war came last Sep
tember America was holding ST.
900 100000 of the worlds $26,00O.-
100000 gold supply. The British
decided the odds we're too big,
abandoned the Pound Sterling,
sounded its death knell as the
worlds greatest currency; Immed-
lately the countries which had
formerly based their currencles on
the Pound shifted to the dollar.
Sweden's Krone, Canadas dollar,
and Argentinas Peso have all tied
up with the dollar. So has the
Japanese Yen. Moreover. new
Pam American dollar may we'll
emerge AS the official currency OF
the entire Western Hemisphere, It's
difficult to ovcremphaSize the i'm
portance Of this in terms OF our
trade relations with Latin America
In the meantime, the "Supre-
macy of the dollar" is a hindrance
not help to us. We do not want
the highest priced currency in the
world. We do not want the price
of our goods to be too high in
competitive markets. We do not
need all the worlds gold. What
We do need is a free exchange OF
tho surplus products of one ma
ton with another. Furthermore
If all other nations should suddenly
decide ~ monetize some other me.
| tal-coppPr. tin. mercury, platinum
one bagman. Then our Colds Onl,
toric place as the worlds number
one badman. Then our COLDS onl,
value would be for commercial pur'
poses and sl7O0O0OO,0OO wortl
OF bullion would elld a lot OF pic
ture frames. would fill a lot o
! teeth,
Suckers Again?
We may find just as in tn
twenties we exchanged our hard
earned cash for Europe'S worth
less I. o. US so now We may b,
exchanging our airplaneS. shoes
and cotton for Europe's useless
gold. Some day, after peace come
IN Europe. this gold could bc uset
both to slash our debts and t.
serve as the basis of come nep
| International currency. But IT. Il
! NOW too early To discuss what ls Il
! be done after the war. can say
/ however. that We must get out o
our present SNUG and selfish atti
tude. In the long run. America car
prosper only as the world pros
pcrs. This is both good religion ant
good economies.
Growth Of Gold Hoard