Evening star., 1940-07-07

| We read that in Paris the Germans
may have captured ss much as 81 $780,
100000 of gold. That figure may be en-
tirely erroneous, but 1t is known that
several hundred millions fell to the in
vader in the low countries, Poland,
Denmark, Norway, Czecho- -Slovakia and
Austria. The war indemnity is still to
be announced. And, If England is de-
feated, Germany may draw tribute from
British Empire gold mines. directly or
indirectly.
Question Is Raised.
This raises the question: Should Uncle
Sam continue indefinitely buying all gold
from all corners? Should he keep posted
the official notice which In effect tells
any conqueror that he Is free to bring
his gold and sell 1t for good dollars?
Or should he adopt new policy, tell
ing foreign countries: You no longer
have the right to sell us your gold. When
we give dollars for gold, hereafter, we
shall consider it favor to be recipro-
Gated by you in some different way"
Our buying of gold, it should be noted,
is equivalent to putting dollars into the
hands of the sellers. Since we now have
no need at all for the gold, and our
banks have billions of dollars of surplus
reserves, the excuse made for continu-
ing the buying policy is that it makes
jobs for Americans to produce the goods
and services foreigners buy here with the
proceeds of their gold.
The main difference between work
creation through bullion imports and
through the w. P. A. is that in the latter
instance We recognize the process for
what it is. If we add to our gold stocks,
issuing gold certificates, as much poten-
tial imitation is involved as there would
be If we financed the w. P. A. with
issues of greenbacks. At least in the
latter case the benefits would not be
scattered abroad. The gold problem here
has been in reality the problem of public
spending. Under the w. P. A. the spend
ing is planned. Under the uncontrolled
bullion program it is left to the wishes
and panic of foreigners.
Underlying the Nations grim adher-
ence to the gold-buying program since
Munich has been the desire to help Eng
land and France. To that end all gold
has been cheerfully received by the
Treasury, including gold from the ag-
gressor nations, even bars stamped with
the hammer and sickle of the U. S. S. r.
Discrimination Is Urged.
In view of the recent proposal to alb
sorb for joint marketing the commodity
surpluses of the Western Hemisphere,
and in the light of the administration
defense Of the foreign silver program
because 1t puts dollars into the hands
OF Mexico" one may expect the present
policy of buying gold to be continued in
sofar as it helps Latin America and
Canada. But. in view Of the likelihood OF
complete German dominance of Europe
and Europe's colonies, it may behoove
the Government to be discriminating in
its gold buying. No new legislation is
needed. No present law, but only a me-
chanical and lonely adherence to de-
funct gold-standard tradition, dictates
the continued purchase of gold from
countries whose political and trade
methods We oppose.
If Germany defeats England, contin-
uance of our present gold policy Is bound
to help the totalitarian powers very
materially. Only America seems to lack
understanding of the situation. Abroad
the gold problem" is better appreciated.
British financial observers frankly ad-
init that "the value of the gigantic gold
stock of the United State depends upon
the defeat Of NaA Germany A recent
Canadian article on gold sagely concludes
as follows:
Gold is wasting asset with an obvi-
ously dubious future and IL would be
only common sense to cash in on the
maximum possible quantity at the top
Of the market.
The German Viewpoint.
From Berlin an American newspaper
correspondent reports as the German
view that: &C." The United States is
beginning to approach the day when
they will have lost all its partners In
the game of gold and will be alone
with all the worlds gold in its vaults,
making it valueless"
The Treasury is now reported to be
studying ways of keeping war-booty gold
and silver out of the country. A bill to
effect that end (S 397D was introduced
by Senator Townsend, Republican, Of
Delawars on May H.
Drift in monetary matters is no longer
tolerable. A change in our gold buying
policy is long overdue.