The Wilmington morning star., 1943-12-05

BABSON PAA, Mass, Dec. 4.
Currency stability will be most
essential to maintenance of trade
and revival Ct business activity in
the postwar period. Capital nat
urally gravitates to the countries
which give it the best reception
and which mold out the most re-
turn for it's use. If the United
States, Britain, Russia and China
are to function as vel! together
in peace as they have in war, they
must all be anchored to a stable
currency. This would enable these
countries to encourage, a t h
than to discourage, the employ
ment of capital.
Gold the Only Answer
Changing values in money bring
great personal hardships. They
also disorgallize and retard all eco
nomic progress. In the hesitancy
of the investor, in the uncertain
moves of business, in the fear of
labor and in the ineffectiveness of
legislation, we see continually
growing signs of distrust in the
value of our dollar. In terms of
prewar values, today;s dollar is
now worth seventy-five cents. AS
initiation increases and under our
present system of managed cur
rency, l can visualize in the next
five or six years a dollar worth
perhaps only thirty-five cents.
After the last wal, during the
20's and the 3O's, the business in
terests in Germany, France and
Central Europe were paraIyzed be-
cause of the rapid changes in the
value of their currencies. Goo d
money and sound trade are boom
companions. Pooc money and even
fear that money will become less
valuable causes waste and panic.
The most prosperous times d
the period in winch trade and in
dustry advanced the most b h
here and abroad were when the
British pound and the American
dollar were tied to { gold stand
ard. Then they were eychangeable
for a definite amount of gold of
a definite weight and fineness.
World Bank Coming
I doubt ii gold soon circulates
again as money. 7 believe, how
ever, that worldwide bank or
gold corporation may be organized
with actual gold in the form of
coin or bullion as it's capital. Pri-
vate capital will then be encour-
aged to finance postwar trade and
business. If suca capital became
frightened, this International
Bank could guarantee any loans.
It could also make loans on its
own account to private business
to cover goods Ill transit. Like our
Federal Reserve System it might
prove highly profitable and use
full enterprise.
DR.. Harry D. White of our Treas
ury Department and John May
nard Keynes, the British money
authority, have both proposed plans
for the sterilization OF information
al currencies. The White plan IA
vors an actual gold fund. T h e
Keynes plan favors large credits
over long period of time without
requiring member countries of the
World Bank to put Up any gold.
This Keynes idea is highly infla-
tionary. At the, moment the White
proposal locks the best. Unques-
tionably, a bank plan will be work
ed out with most of the 25 United
Nations governments.
People Want Gold
In World War I it was gold, not
currency, which Colonel Lawrence
used in order to win the support
of Arab tribesmen. History repeat
ed itself when our own General
Mark Clark landed in Africa with
a bag of gold. Gold will always
talk when no other form of money
is effective. That natural de-
mand for gold exists t % day is
shown by the price o. gold in the
Bombay ana Cairo markets where