Evening star., 1952-05-06
Gold Standard Called
Only Workable Plan
To Check Initiation
By George Kennedy

will work will be to go back to
currency based on a fixed amount
of gold.
That is the message of speaker
after speaker at the first annual
convention of the Gold Standard
League, which is concluding a
tWo-day session in the Wafdman
Park Hotel. About 100 persons
are attending.
AS one of the speakers-Repre-
sentative Buffet, Republican. Of
Nebraska put it: Il am talking
about the real imitation ahead, not
the imitation we have experienced
$50 far-a mere halving of the
value of the dollar"
Mr.. Buffet said he had gone
along for a while with the idea
that there might be other ways
to combat imitation, such as credit
controls, budget-balancing taxes.
etc. But, he said, he ultimately
learned that:
1.-THE only genuine remedy is
currency redeemable in gold at
fixed rate
Lethargy Charged.
He challenged "the amazing
lethargy of the insurance COM
panies and the banks in this mat
ter" He said they take it to be
their only responsibility to pay out
dollars with utter disregard as to
what the dollars are worth"
The viviacious Vivien Kellems,
Connecticut manufacturer who
has conducted a continual battle
with the Government over con-
trolls and taxes, was to address
the convention this afternoon.
The Gold Standard League is
backed by Philip M. McKenna Of
Latrobe, Pa, who developed a
material for cutting steel in 1888
superior to imported materials and
proudly shows a Cancelled check
for $1,059,000 which he paid to
the Treasury as income taxes
without penalties-on the profits
of Is months.
One Of the speakers was Rep
resentative Reed, Republican, of
New York. Mr.. Reed is sponsor
of a bill before the House, calling
for the resumption of gold coin
age and gold payments. He called
attention to what the dollars loss
in value had done to life insurance
policies in force and to Govern
ment bonds outstanding.
Puts Losses at Billions.
He said there has been a loss
in purchasing power Of $50 billion
in the $50 billion in life insurance
in force and a similar loss Of $68
billion in Government bonds out
standing.
Walter E. Spahr, professor of
economics at New York University.
who has specialized for years in
the study Of money. undertook to
answer reporters questions at an
impromptu press conference.
Currency redeemable in gold
was the standard in his earlier
teaching days. In September,
1881. almost two years after the
world wide financial crisis brought
about the break on the New York
Stock Exchange, England went of
gold.
Two days after Franklin D.
Roosevelt's Inauguration on March
4, 1888. in the midst Of the bank
holiday" he took the United
States of gold. No nation is on
the gold standard today. The
price of gold in the United States
had been $20.67 an ounce-a fig
ure set in 1888. (This country had
not been continually on a gold
standard all that time. Gold pay
ments were suspended in the
greenback days of the Civil War
and not resumed until 1879
Gold Pours Into United States.
Persuaded that higher price
for gold would mean q higher
price for commodities (the less
gold a dollar could buy, the less
wheat it could buy) President
Roosevelt began buying gold at
increased prices in October, 1888.
But prices did not rise in COM
parison. He did not resume the
gold standard-gold payable on