Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-08-29
Gold Manipulation Deplored

To the Editor Of The STAR
The rumor (Which has been denied) that
the American Government Cmeaning of course
those intrusted with the power is consider
ing pushing the price of gold from $35 to $50"
and thus "debauching its own currency" as
an article in the Baltimore Sun by c. P. Ives
put it recently, presents an opportunity to
suggest that now is the time to repeal the
New Deal legislation which substituted for
fixed standard unit of value" such an uncer-
tainty that no man knoweth what a dollar is
or may become. comparison of Sec 314
of Title 81 of the United States Code Ammo
tated as it was prior to May IL, 1888, with
what 1t has become since that time tells
the story. 1t is true that the substituted Ian
guage styles q monetary unit OF variable
weight standard unit of value" Such Ian
guage however, is contradiction in terms.
If it is true, as reported, that it does in fact
require so or more United States inconVertible
paper dollars to purchase an ounce of gold
in those places where it's possession cannot
be prevented by American statutes, it would
seem to follow that in spite of a proclamation
to other effect, the alleged parity does not
exist. 1t does not follow that to change the
parity will do away with the discount on paper
money in a free gold market. On the con-
trary the effect will be to depress still further
not only for gold in free market, but for
commodities generally wherever the weakened
standard unit of value" is used as medium
of exchange.
The cure, and the only cure, for the disorder
is the resumption of the free coinage OF the
monetary metal and the resumption OF the
redemption of paper money on demand.
AS between a dollar of 25.8 grains of gold
nine -tenths fine, and the Standard Of lesser
gold content which was substituted for 1t, the
damage appears to have been done, and an
attempt to reverse the process fraught with
as much potential damage to the welfare OF
the American people as already has fallen
to their lot through the general upset result
ing from the substitution in the first instance
Stability and not f1uctuation in the STANDARD"
and the supply of money is the only basis
upon which business can be conducted soundy
and with confidence, and wage turmoil pre-
vented.
Closely related to the fallacy that reduc-
ton in the gold content of the standard OF
value can result otherwise than in damage
to the holder of every bond, life insurance
policy or balance IN bank, is the fallacy that
a hoard of gold buried underground and not
available on demand to holders OF the cur
rency is performing some economic function
In fact, it constitutes present waste as well
as deluson.
For a government already holding such
hoard to add to it by purchasing additions at
prices which it itself needlessly increases, is
q sure means for lowering the standard OF
living of its own people and for transferring
their wealth to other countries.
An amendment to the Constitution OF the
United States was once thought to be neces-
sary to make unlawful the manufacture, sale,
or transportation of Intoxicating liquors Why
was such an amendment not necessary to
make the possession of gold unlawful, or
we still intoxicated by the same influence
which repealed the Eighteenth Amendment
and ignored constitutional limitations?
Esston, Md HARRISON TTLGHMAN.