Evening star., 1952-07-28
Talk Of Gold Standard
Stirred by Pledges in
Both Party Platforms
BY the Assoeioted Press

BY the Associated Press
NEW YORK, July 28.-Gold-
and the long controversy over its
role as moneys back in the news
again on two counts:
l. Republican and Democratic
platform discussion Of the moile.
tary and fiscal policies Of our
Government.
2. The gold-clause bonds BY
which the Paris government lured
"a tons Of gold from the hidden
stores of Frenchmen-they still
have at least 1000 tons of it
squirrelled away.
Gold convertibility went out the
window with the great depression.
Convertibility means that before
1884 you could take a S. paper
bill to the Treasury and get S.
gold piece for it.
Congress can restore converti-
bility anytime with law ordering
the Treasury to both buy and sell
gold at a fixed price on demand.
This would mean coinage OF gold.
United States gold stocks are so
high that this is entirely feasible.
many argue.
$35 An Ounce.
Under the present law the
Treasury buys at the fixed price
lof $35 an ounce. But 1t doesn't
redeem bills in gold, nor sell gold
Ito American citizens except for
commercial use-to fill teeth or
make jewelry.
This year the Republican plat
form pledges the party ito restore
IA domestic economy and to use our
influence for a world economy OF
such stability as will permit the
retaliation of our aim Of a dollar
on a fully convertible gold basis"
That would seem to mean: I'VE
can't go back on the gold stand
ard the way things are here and
abroad, but we should as soon as
we can"
The Democratic platform doesn't
mention gold. Instead, in general
terms, it pledges "the preservation
|of the financial strength Of the
Government" and a fiscal policy
that will contribute in a positive
way to economic growth of the
maintenance Of high-level employ
ment."
Advocates Of immediate return
to the gold standard aren't pleased
with the Democrats and far from
entirely happy with the Republi-
cans, although their platform Is
the first to mention the gold
standard in many years.
DR.. Walter E. Spahr. executive
vice president of the Economists
National Committee on Monetary
Policy, says. "the way to resume
is to resume" He says the Re.
publican pledge should have read:
1--WE commit ourselves to pro-
vide promptly for the redemption
of our currency in gold at the
statutory rate of $35 per fine
ounce" E 81
Return Held Unfeasible.
Others, however, argue that .
return to the gold standard isn't
feasible until the budget is ball
anced and the Federal Reserve
System made entirely free of pres
sure from the Treasury. They
say it would also require sweep
ing away of exchange controls now
so widespread in the world, and
the end of import and export
quotas.
Before the depression the gold
standard was the great interna-
tional trade regulator. It meant
cooperation among the worlds
treasures and banking systems.
This broke down completely in
the early thirties. Since then eco
nomic warfare among the nations
has tended to be bitter. And many
contend that gold has little place
in a modern economy.
But many people still regard
GOLD as the only safe money. The
French loan featuring a gold
clause tieing the redemption value
|of the bonds to the free market
price Of gold coin is evidence OF
that.
The French were boarding gold.
have perhaps 50 billion worth OF
1t hidden. The value of their
paper money has been cheapened
several times since the war and
the French people fear further de.
valuation.
The French loan brought out
$42 million worth Of gold. The
majority still apparently prefer
their hidden cache of gold.