Detroit evening times. (Detroit, Mich) 1921-1958, 1943-10-24

can De WlutIy duOplcO utCIIld-
tionally and maintained for any
considerable time. is that IL shall
have the confidence Of the people.
II should be free from interna-
tional jealousies.
KEEP IT SIMPLE
To be kept simple and 10 func-
ton efficiently and not at cross
purpose the monetary system
should be kept free from extran-
eous matters either Of fiscal or
social reform nature.
The instinct for gold is uni
versal one. II is found among all
people, savage and civilized,
throughout history. Gold is today,
as Il has been for centuries, the
most widely treasured and the
most highly marketable cor1nod-
ity In the world. This high pub
lie esteem for gold is not likely
10 disappear quickly.
No other kind OF a currency
system in a distracted postwar
world will so quickly restore the
confidence OF the public as true
gold standard. No other kind can
be made 30 simple. so easily UNI
derstood. That means much for
the monetary system of a
democracy.
The monetary standard OF the
future should be highly automatic
In lis functioning. This does not
mean that il should be subject 10
no management. All currencies
are more or less managed. II is
a question of degree. Such forms
OF management. as varying dis
count rates. open market opera
tons and changing reserve
requirements have doubtless come
10 stay: although resort 20 them
has often done more harm than
good.
LARGELY AUTOMATIC
At any rate. whatever manage
ment we have should be super
imposed upon a monetary system
that is fundamentally automatic
in its operation. Such manage
ment as does occur. moreover, in
each country Except possibly in
time OF war; should be in the
hands OF the central bank where
il can best be kept free from the
blighting hand OF politics.
The monetary standard OF the
future should be broadly inter-
national standard, and gold Is the
only standard at present that
offers any reasonable prospect
OF becoming an international
standard on a large scale.
To this end all the leading coun-
tries. and as many as possible OF
the minor ones. should have the
same monetary standard. as more
than two scores OF them did have,
In gold, prior TO the crisis OF 1929.
GOLD Is STRONGEST
Gold makes the strongest case
10 be the international standard
OF the future. There Is no other
metal in the running. The last
remnants Of the silver standard
have practically passed from the
stage since World War and there
has been no bimetallism in the
world for 10 years. Governmental
managed paper money standards,
often tried. have been proven to
be in practice eminently nation
alistic standards and very sus-
ceptible 10 depreciation under the
fiscal pressure Of governments.
The international standard OF
the future should provide the ma
lions OF the world with monetary
units that have a high degree OF
stability in value.
IL the verdict Is In favor OF
gold for the international none
tary standard of the future, the
next question is: what kind OF a
gold standard should we have7
To this question my answer must
be summarized very briefly.
I
All three Of the principal types
of the gold standard i. e., gold
coin. gold-bullion and gold-ex-
change standard should be used;
every country selecting the type
Il considers best suited for its
own particular purpose.
III
Each country should choose its
own gold unit, a unit that will
presumably be approximately the
gold equivalent Of the paper
money unit prevailing when the
gold standard Is adopted Tor an
integral multiple Of that unit,
so as TO hold to a minimum the
disturbances resulting from price,
wage and fiscal readjustment.
While there should be a high
degree Of voluntary monetary CO.
operation among the nations, no
attempt should be made to force
upon any nation either the adop-
tion or the continual maintenance
Of any particular monetary unit.
There should be convertibility
on demand OF all kinds of non
gold money into gold coin. gold
bars. or gold drafts.