Detroit evening times. (Detroit, Mich) 1921-1958, 1944-08-09

took perfunctory action do not need discussion But the
premises which they based need the most serious
consideration by the American people.
The hope of the New Dealers is that the plans and
not the premises will come before the public
CECRETARY MORGENTHAu, in his closing address,
- made to say that the plans would be opposed by
the international bankers for selfish
CussioS FRO THE let THING I'M ITSELF TO Person.
ALITIES
That is standard practice when trying to put some
thing ever which quite different from what it pretends
to be.
The apparent premise was that world prosperity
could be secured through widening world trade and that
the sterilization fund would aid in the process by find
ing money to trade in.
This is not the real premise. although it is worth
noting that when foreign delegates endorse freer world
trade they only breaking down the American tariff
and securing for their people the Jobs OF American
workmen
THE premise behind the sterilization fund is much
L more subtle than the one announced and for
reason although fully understood by foreign politicians
does not to be grasped by Americans
1t has to do with the new theory of money as
political tool. 1t partly developed during the last
war and more fully developed in Nazi Germany.
Lord Keynes took it up British plan and our New
Ra u FoS to THE SA Il INFO
sound money is which, regardless of its intrinsic
value may always and anywhere be exchanged for goods
A rubber check for instance is good money and may
pass from hand hand money until it is presented
at the bank and found to have no value
GOVERNMENTS discovered during the last war that
" if they controlled the bank they could pay the checks
they drew by issuing checks for them and could
make everything look regular by putting promissory
note in the bank and calling it a bond
That is the way the present war is being financed
and, since gives appearance of prosperity our
advanced thinkers want to give everybody job
in peace by the that they get jobs in
Only two difficulties stand in the way OF everybody
being put to work government money
The first is that the government soon gets out more
money than there are goods to buy with the money.
This would mean steadily rising prices and unrest
The Nazls met tins by regulating prices and ration
THAT Is OF COURSE A REPUTATION OF
ING WARTIME THE REPUTATION IS COVERED
BY FLAG WAVING.
The second great difficulty is that the paper money
which is given value by law at home, will be accepted
if used to buy goods in foreign country only at what
the foreigner believes it is worth.
The Germans and the Russians met that by having
the government take all foreign trade and prohibit
ing domestic money from getting into foreign circulation
THE sterilization fund proposed is designed to set
i up some kind of international body which give
to every countrys paper money international value
regardless of its worth
The real objective Of the scheme is not to get the
world back to work making goods but to provide
method of international rationing that the paper
GOVERNMENTS KEPT IN POWER ''''''
Under the scheme the international fatieHiHg beard
would be dominated by the United States, Russia and
BUT UNLESS WE CHOSE ALWAYS TO ADJUST
TNEp KINGDOM WE coup BE
THEN WE WOULD FIND OURSELVES AMONG
THE CONTROLLED
The world regulating phase of the scheme did not
greatly interest any of the foreign delegations other
than the British
THE United Kingdom, because Of the condition of its
i finances is desperately searching for method
by which paper sterling be given value in foreign
trade and the American plan is more or less derived from
Lord Keynes.
The other nations were interested solely in the loop
hole which the fund provided to get lot of dollars al
bargain
The plan provided that each nation should subscribe
to the fund certain quota partly in gold and partly in
paper money.
These quotas would have bearing the amount
of foreign exchange which each country would get in
return for its paper money
This meant that the fund, Immediately il was estab-
lished could be used a medium by which country
could trade its paper money for dollars which would buy
goods in the American market.
1t was therefore good business for these nations to
subscribe small amount of gold for their quotas if they
could get back a lot of American dollars.
They looked on the fund a bargain counter set up
by Uncle Sap and they willing to humor the old boy
long they could get something out of it.
Russia broke up the prospect of the party that the
foreign delegates had scheduled by demanding and recev
ing such large quota that the other nations perceived