Evening Star Newspaper, October 11, 1931, Page 31

U. S. CAN AFFORD HOOVER’S NAVY EXPENSE CUT DICTUM Security Is Not Threatened by Japan or England—Economies by Waiting British Move BY FRANK H. SIMONDS. ESPITE nattral protests from Navy, the action of the Presi- | dent in imposing a very con- | siderable — reduction in the | Tent year not only is sound in itself, | but is a ‘useful contribution to the gen- eral world situation, tribution the United States can make | to world disarmament as long as Amer- | ican publie cpinion remains fixed | champions of the American | naval construction program for the cur- It is, in fact, the single useful con- | against all sorts of political engage on the om the cle sident’s cour: part of the Navy r perception that > will postpone at- | tainment of parity with Great Britaint and the 10-7 ratio with Japan .in cruisers to such an extent that we shall | 80 to the 1935 conference still having | only nominal parity. This would be a serious matter if | American security were threatened to- | day either by British or Japanese pol- icy. But such obviously is not the case. The British situation is_such that a_quarrel with the United States would be frank suicide. In the case of - se, despite postponement of g strength remains decisive own waters Betwzen now and neither Britnin Javen could even conceivablv adent a policy dan- ger-us for Ameri~an recurity. And. of course, neither ccuntry even dreams of such a course. Parity Question Sentimental. The question of parity at the moment {5 a sentimental rather than a prac-| tical question. Between the close of | the World War and the meeting of | Hoover and MacDonald at Rapidan a| great battle was fought diplomatically | between London and Washington over the question of the right of the United | States to possess a fleet equal to that | of Britain. American policy in this debate was sound, being based upon obvious national need. The war had disclosed. while we were still neutral, the unmistakable fact that our mari- time rights were at the mercy of bel- ligerents, who were encouraged to ignore them by reason of our impotence. That sitvation was intolerable and in the end led to our being dragged into the war. The great naval construction program of 1916 represented the in- stinct of the country to possess the means of maintaining its rights. Not until the failure of the Coolidge Con- ferance did the British public at It appreciate that they were faced with the alternative of a competition in con- struction which they could not hope to win and a definitive recognition of the American right to parity. The British ‘Tories having fought parity, the British public in 1929 turned them out and be- stowed upon MacDonald the clear man- date to settle the American dispute on the best nossible terms. That settle- ment took place at the Rapidan and was_witnessed later by the contracts of the London Naval Conference. The right of parity could no longer be dis- puted, and the naval quarrel between London and Washington was over. Possessing_the right to parity, how- ever, the United States either must build up to the existing British level or persuade the British to come down, In 1930 the latter course seemed out of | the question, because of British vigws | of their own needs. We therefore Set | out to overtake the British. Now our | pursuit construction program is visibly | slowed down by the President's present | course. | On the other hand, much has hap- | pened to the British since the London | t must abandon. For, after all, whether Are QObvious. Conference. They have entered a stage of acute financial and economic difi- | culties, of which one future conse- quence may be the inability of the British to maintain a two-power naval standard in Europe in the face of & far more prosperous France. In a word, in the next year or two the British may face the necessity of abandoning their traditional naval policy. In such case, it will be possi- ble then for the United States to reach | actual parily much move cheaply. | We can afford to wait and sce what is going to be the outcome of the pres- | ent British crisis as it affects naval construction In the world. We can better afford to do it because there is not the smallest risk. At this moment | ere are possible three wars in Europe. | The first and most likely might be pro- voked by the arrival of German Na- tionalism to power and the last desper- | ate effort to justify themselves by a | forelgn adventure. The second possi- | bility lies in the situation of Fascism | faced with a domestic crisis. In its | turn it might seek to save itself by an | attack upon Jugoslavia. Finally, there | is a similar possibility in the case of | the Soviets. i Can Afford to Wait, none of these dangers is ve not one of them could h: st direct menace for the With absolute serenity we can forget the construction of ships for which we shall have no immediate | need and wait to sce whether changes in Britain will not make possible a very | great reduction in the terms of parity in the next conference. { Meantime, the action of the Presi-| dent can have a useful influence in the world; not a great influence, but, as far | as it goes, a good one. Nothing can be accomplished at the forthcoming Dis- armament _ Conference because the French will not agree to permanent reduction of their armies without the creation of some new form of guaran- tee. On the other hand, in view of the present world-wide depression, all na- tions may find it necessary to reduce armaments temporarily. ~ And Mr. Hoover has set a significant example. We shall save money without risking our security or imperiling the sacred principle of parity. Unless every pres- ent sign fails, Britain will have to come off the two-power naval standard as | she has off the gold standard. If that takes place. we shall simply have wasted money in building up to a level she But acute, an at 1,000,000 tons or half that total which our policy of parity demands, the size of the fleets always has been predicated upon British, not American, considerations. At this moment no nation, half as well as the United States, can afford to ot an example of reducing armament xpenditures. Our “billion dollar parity” program has been the bulwark of all big navy and big army advocates the world over and has pretty nearly put our delegates out of action in all disarmament ~ discussions. Hitherto we have scemed in European eves at one time preaching disarmament abroad and practicing colossal armament at home. President Hoover’s moratorium in parity is at once sound naval polic and good business. His war debt an reparations morztorium has already produced a very far-reaching deflation <f reparations and tho practical can- cellation of debts. His moratorium in parity is almost sure to produce a similar deflation in the tonnage figures of parity. (Copyright, 19317) “Creative Education Of Old Diagrams and Dates BY JOHN WALKER HARRINGTON. Creativa education pervades the com- mon schools of this country as well as those “uncommon” ones some of which are prone to regard it as their | special product. This condition comes | to the fore in the vacation season | when courses of study in the public eclementary schocls are being revised. It becomes apparent especially in New | r. where so many influences | modifying curricula to meet nges in economic and social life. Numerous_experimental schools, pri- vately financed and managed, are suc- ful in their efforts to stimulate | the originality and initiative of their pupils. They encourage individuality, independence of thought and spirit and build character. Their classes are small and their teaching faculties relatively large. “Creative education,” to quote J Howard Whitehouse of Bembridge School, England, “is that form of edu- cation which is attempting to enable a child to develop his own personality, to find out, through activities, the things he can do, and then interest | him and are going to give him a fuller and richer life.” Trend of Modern School. Nowadays pupils gre not required to grow static when the gong sound: They walk back to their classes groups in an easy, offhand manner. The only trace of the old way is the necessary fire drill, which has proved | 80 valuable in the speedy and yet calm emptying of a building. The fire dxfll is just as effective as it wopld | be if the pupils were always held down | to the severer discipline of the past. | Self-control, rather than enforced obedience to ru is becoming more and more the rule of conduct for the public school. If a matter of ethics arises, it is considersd not as an ab- stract principle, but as the right and wrong of an actual incident or hap- | pening. The growth of the self-governing idea is typical of present-day admin- | istration. The modern educator seeks to build the character of his pupils by getting them to_discipline and con- trol themselves. The new syllabus on character_building now in preparation by the Department of Education for use next year is said to be an unusual | advance on this line. | Teachers are also no longer prim | pedagogues on pedestals, but are more inclined to ®asy conversational meth- cds in their intercourss with pupils. The class room is regarded as a world in the little; the teacher seeks to pro- | mote in tae lessons the social ameni- | ties: the self-expression in correct English, and to have the pupil at ease. If he questions an individual ha does not try to cross-examine him, but rather to draw him out, so that it may be known whether the lesson is under- | | | | every-day life—his observations, experi- | play, from what vocations may begin to ap- ” Takes Place time and energy are likel from the use of this device. When grammar was taught as though English were a dead language, pupils were required, all the same, to make pens and stockades for subjects and predicates and long corrals for modi- tying_clauses. “When the child enters school” to! quote from this grammar syllabus, “he has a ctock of language forms acquired | through imitation of the language of parents, brothers, sisters, playmates and books. 'This equipment is the product | of the language life of the social group to which he belongs.” Necessity of Grammar. The necessity for teaching grammar increases, especially in a city like New York. as the language is corrupted by foreign idioms and expressions. The modern teacher is not content with| merely forcing the pupil to memorize | rules. He first arouses in him the id that it is necessary to enlarge his stock | of language and to sce that it s in correct’ form. He tries to give the| pupil a “sentence sense’—the ability to use sentences which begin and end, | which really have subjects and verbs and correct tenses and connectives. | Rules of syntax are taught so that the pupil will not imitate mere forms, but will determine the right form when he has any doubt.. In this way he builds up an automatic language conscience. Those who have toed the mark in the | spelling bees of “the little red school house” learned difficult and little used words, now chiefly employed for cross- word puzzles. The words which engage | the attention of children today are | taken from the surroundings of his, y to result | ences, duties, privileges, his sports and | his outings and excursions and | peal to him. There can be no orig- inality in spelling until one can afford | such ‘a luxury, so the ultimate aim of | teaching speliing is defined as the abili- ty “to make automatic the accepted se- quence of letters in words most com- monly needed for expression of thought in writing.” Trained in “Silent” Reading. More latitude in reading appears, however, than in grammar and spelling. For many of the older generation read- ing aloud was a dismal function. In real life, not many of us read aloud.! More stress is put now on “silent read- | ing” than on orel—the first being th~ one more employed in dealing with books and newspapers The primary purpose of reading,” says the syllabus on the subject, “is to get the thought as auickly as possible from the print»d page. The funda- | mental aim in the tea~hing of reading. therefore, is not to get the child to| see and say, but to sce and think.” Silent reading is much harder to| | teach than the speeking of the printed | | |4s success, a Democrat in the THE SUNDAY STAR, WASHINGTON. D. C., OCTOBER 11, 1931—PART TWO. Old Potlikker Prosperity South Has Undergone Great Change for Good Own;g to the Trials of Recent Years. 4 —Drawn for The Sunday Star by J. Scott Williams. THERE 1S LITTLE MONEY IN THE SOUTH, BUT THE PEOPLE WILL NOT GO HUNGRY BY FRANK HARREL. | gathered to give a rousing send-off to : a truck caravan of foodstuffs, products HERE was a celebration down In | o'y onoke County farms, being sent to England, a small town in Lonoke | gearving miners at Henryetta, Okla. County, Arkansas, the other day. e A horde of blue-denimed farm- | Tre celebration wasn't much, as cele- ers from the Arkansas river | brations go. There had been news of “bottoms.” all the town's merchants, | distress in the Oklahoma mining town o : i " | —news of working people without jobs. and—to lend dignity to the occasion—a | And here was Lonoke County with a scattering of State officials from Little | good harvest of fruit and garden vege- | Rock and a few bankers from Memphis, ' tables and plenty of well fed live stock. ' So a committee was formed, and pres- | ently a caravan of trucks loaded to the | rails with good solid food disappeared in the dust of the highway in the gen- cral direction of Oklahoma. Lonoke County people celebrated because they were glad they could give aid, and per- haps there was a more selfish reason. They were glad to advertise to a na- tion which had fed them a few months before that they were abundantly sup- ' THIS WINTER. plied with food, even though they were short on cash. Eight months ago Lonoke County people were in just as bad shape as the Oklahomans to whom they have sent fooi. During the early part of the Winter, following the drought which destroved all food crops, they bore | their hunger with fortitude. But finally the suffering became too intense even (Continued on Fourth Page.) ROOSEVELT YET TO CRUSH }FRANCO-BRITISH TALKS MANY “FAVORITE SONS”‘ ARE HELD GOOD AUGURY New Yorker’s Momentum Continues, But Lord Reading and Laval Discuss Possi- bility of Healing Semi-Split and United States Trip. With Obstacles; Wet or Dry Platform Presents Difficulty. BY MARK SULLIVAN. | complete control of leaders able to give ' or to deny the delegates to ooseve] OV. FRANKLIN ROOSEVELT | g5 seems best for the party at the time. | of New York continues in a|The Oklahava delegation will come class by himself as respects yith some kind of commitment to Gov the Democratic _presidential | \'ajfaita Bill" Murray. ! nomination. He is in a class | Btk | v himself in the sense that he is very | Maryland for Ritchie. | much in the lead, and that he is the | The Marvland delegation, of course, only one who is funning or in whose | will come whole-heartedly committe oehalf there is organized activity iIn|to Gov. Ritchio, and with a genu- States additional to his own. ~All the | ine hope and intention of nominating | others mentioned are, so far, candis|him. The Arkansas delegation will | dates in their ?w: Sta':cs o_nly;.h In be- | come committed to Senator Joseph | half of none of the others is there any | ——sc—si i Fourth Page) — general effort by friends and supporters (Continued on Fourth Page.) in a national way. Roosevelt. in short, is the only one whose candidacy is on a nation-wide_basis. | If this condition goes on to the end there can be only one outcome to it. The axiom that “You can't beat some- | body with nobody” includes, among its meanings, the fact that one strong candidate running in practically every State cannot be beaten by a field of | candidates cach of whom confines his efforts, or whose friends confine their | efforts, to the candidate’s own State. } Some of the Democratic leaders, some | of the best and ablest minds in the| party, believe that Roosevelt will be held. By “held” they do not neces- sarily mean that he will be beaten or that it is their wish to beat him. They are rather passive toward him as a candidate. If he continues to develop | popular _support all over the country, they will be quite willing to let him have the nomination. What they want White | House, and if Rcosevelt gives better promise of success in the ultimate fight against the Republicans, they will be as pleased with the New Yark Governor as with any one else. Premature Choice Undesired. Granting this mental attitude to some of the important Democratic leaders, granting them an attitude essentially nct hostile to Roosevelt, an attitude, indeed, quite tolerant of Roosevelt— granting all that, the Democratic lead- ers are firm on one point. They think too much risk is involved in letting Roosevelt or any one else get into a position where he has the nomination foreclosed—“in the beg,” or ‘“sewed up,” to use the political slang for such situations—a year a2head of the election. They think there is danger in that, danger to the party and danger to| Roosevelt himself. To prevent the nomination from be- ing foreclosed nine months ahead of the convention®and a year ahead of the election, these Democratic leaders are readv to make some effort, and are meking some. The effort is not very YOUNG mother who is a friend of our family entered her daughter in a girl’s school. She said to the head mistress: “Mary is not much of a stu- dent. She likes history and does farily well in French, but in arithmetic I think she is almost a total loss.” Amazement appeared on the face of the head mistress. “Do you mean to tell me,” she exclaimed, “that you have brought us a child who has faults! After sitting here for years and listening to mothers whose daughters were para- gons of virtue and intelli- gence, this is, indeed, a novel experience!” Most of us are constitution- ally unable to see any defect WHEN TO BE BLIND BY BRUCE BARTON stood fully or simply memorized. | teset 3 e ¢ . | word, as the teacher must check up on TERPEORIRY SOIIEMED s | the pupil's comprehension. Were. the Education tends to drop back in the | pupil reading aloud, his lack of under- rut of convention and has to bz con- |standing the sense might be detached tinuously jogged out of it. That a|by his stumbling over unfamiliar words. strong effort is being made in the | So after a child has been assigned to schools of this city on the side of |fead something to himself, he is acked “creative education” appears from the certain questions based on the text. courses of study extant and the fre- | He may be required to act the part of quency whith which changes are made. |a character in a story, or to make a Under the direction of Dr. William J. |picture or a model of some obje-t men- | O'Shea, these innovations are prepared | tiored, or to white the sense of what by the General Committee on Re- | ke has had in his own words. Reading vision of Study, with the aid of prin-|in this way is not pronouncing or seing cipals and teachers who specialize in |2 string of syllables: it is something the various subjects covered. Some of verging cn creative thought. the S“Ef“ "ld':patx}’tuées‘" &kk‘mwn from PUSTASEAS 4 the traditional methods in these courses A will be presented here. Ear Plugs May Help. What a shock to the dry-as-dust, From the New York Sun. parsers .of the yesteryear, for instance, Colgate University is seeking a diet is this sentence in the grammar syl- | to fortify the human systetn against the labus: debilitating effect of noise.* Persons who “It is recommended that there be no | patronize airplane tra on lines amming. Confusion and waste of use ear plugs. active but rather passive. It consists in no more than allowing, or, in a few in those we love. It might be better sometimes if we could. cases, arranging, that enough other candidates shall come to the conven- tion with the delegation from their respective States to make in the aggre- gate sufficient to veto Roosevelt’s nom- ination, if veto of it should seem in the best interests of the party at the time the convention meets. Pernaps if we could analyze our children cold-bloodedly we might be able to bolster them with added strength. On the other hand, what a blessing it is that we do not always sce too well. In cleaning out my desk one day I ran across a photo- graph of our first baby, taken when_he was about six weeks old. I remember how proudly we sent it to all of our rela- tives ‘at Christmas time; how sitive we were that there ad never been in all human history so beautiful a child. Today the picture gives me a fit. It m?st be my young- There are enough favorite sons from encugh States, large and small, to “hold” Roosevelt, if th2t coursz should seem desirable when the convention me>! ‘The Missouri delegation will come with ex-S-nator James A. Reed as their candiZate. The Virginia dele- gation will come with ex-Gov. Harry Byrd (brother of the admiral) as their candidate. The Ohio delegation will come with some eminent son of that State as their candidate, either Newton D. Baker or Gov. George White. New Jersey delegation will with a candidate-of- their BY PAUL SCOTT MOWRER. PARIS, October 10. E Pranco-British talks. which ended Thursaay night when Lord Reading, British foreign min- | ister, and his suite of officials took’ the train for home, “are considered in American as well as Franco-Britich circles as a good augury for the future and the world. | In a way, these talks were & postlude to the recent French visit to Berlin and a prelude to the forthcoming French visit to Washington. With elections in ster, for my wife is holding it. But instead of the beau- tiful cherub I remembered, what is she holding? Some- thing that looks exactly like a Summer squash. Without the blessed blind- ness of women it is difficult to see how any-marriage could be a sustained success. We men khow each other—that no one of us-is very good. Yet our wives have the silly no- tion that we are great stuff. And by their fdith they keep us going. Centuries ago a city was at- tacked by the armies of Syria A prophet lived in that city. A messenger rushed to him in great alarm: ‘“Alas, my mas- ter! How shall we do?” To which the prophet re- plied calmly: “Fear not; for mei\fl that be with us are more than they that be with them.” * * * “And the eyes of the young man were opened, and behold the mountain was full of horses _and chariots round about Elisha,” There are forces of good- ness in people that are visible only to the eyes of love. There are forces of power that can be estimated only by the eyes of faith. The important thing is to be intelligently blind to the surface defects, and be able to see and appreciate the things that cannot be seen. | forts to isolate France by more or less | ain, Germany, Italy and the United | eration by friendly persuasions rather than by diplomatic pressure. | British wished to know if it was rue Great Britain now imminent, naturally Lord Reading was unable to make defi- nite proposals of any sort. What both he and Premier Pierre Laval sought primarily was information from one an- other. May Heal Paris-London Split. But_the Chicago Daily News learns that Lord Reading expressed to the French great personal confidence that a new national government, rather than a Socialist government, would result from the elections. He seems also to have felt able to give the French as- surances that, in this case, the semi- rupture between Prance and Great Britain, which began when the Labor government took office two and a_half years ago, would be ended and there- after France and Great Britain again would consult frequently together in all matters affecting their interests This, if it comes about, would ap- parently mean the end of recent ef- fortuitous combinations of Great Brit- States, as in the Hoover plan, and in the more recent Italian arms holiday proposal. It would mean that hence- forth diplomatic consultations preceding public announcements of such impor- | tant ideas would include France and | would attempt to obtain French co-op- | Customs Union Rumor Aired. ‘The subjects discussed by Lord Read- ing and M. Laval seem to have been roughly, as follows: 1—Franco-German negotiations. The that France and Germany were think- ing of making a customs union and in- timated that, while Great Britain sin- cerely desires a Franco-German recon- | ciliation, such a customs union might be interpreted as directed against Great Britain. ‘The French seem to have replied that they have consented to let Germany submit to the new Franco-German Eco- nomic Committee its ideas on this sub- ject, but that so far no such ideas have been presented and, as far as it is now known, France has no intention of making a Franco-German customs nn- ion and that, in any case, if made, it would not be directed against Great Britain. French Oppose Debt Canceling. 2—Franco-American talks. The Brit- ish asked what M. Laval intends to dis- cuss with President Hoover. M. Laval replied that he does not know. He has been invited to Washington and has accepted and supposes that many subjects will be touched on, but doubts if any final decisions will be taken. He said certainly that neither the United States nor France dreams of trying tc do anything affecting British interests without first fully consulting Great Rritain. 3. War debts and reparations. The British suggested that a conference on this subject be held early in December, possibly in Lcndon. The French said they preferred no conference. The British intimated thet the best solu- tion would be a cancellation of all war, [W URGED BY S ORLD SILVER PARLEY ENATOR KING Radio Forum Speaker Declares United States Should Act Because of Nation’s Standing. HE text of the address of Sena- tor Willlam H. King on “The Question,of Silver,” in the Na- tional Radio Forum arranged by The Washington Star and broadcast last night over a Nation- wide network of the Columbia Broad- casting System, follows: For a number of years the American people have been living in a fool’s para- | dise. They are intoxicated with the thought that they were enjoying un- | exampled prosperity. They have been rudely awakened and now perceive that their fancied prosperity was wholly illusory. | Fortunes have been wiped out and homes and all forms of property have | been lost. To meet the demands of | creditors, millions of stalwart American citizens are searching for work, and want is found in every part of the land. Public and private debts remorsely press upon the people, and no avenue of escape seems possible. The National Government_owes more than 17 bil- lions of dollars; corporations of the Tinited States have bonded and other indebtedness aggregating more than 55 billions of dollars, and mortgages and trust deeds encum=er real estate to the extent of more t':zn 35 billions of dol-% lars. ‘There ai: other outstanding obligations, public and private, totaling more than 30 billions of dollars. All| these obligations are payable in gold. | ‘Taxes, Federal, State and municipal, | wrung from the people, have been in- creased several hundred pér cent during the past 10 years, until they now amount to approximately 15 per cent of the total earnings of all the people of the United States. Gold Has Become Tyrant. During this period of so-called pros- perity the people have lived upon bor- rowings, and they now encounter sheriffs and creditors and the inexor- able demands to meet the day of reckoning. In all the world there are less than | 11 billions of dollars of monetary gold, to met the obligations of more than 400 billions of dollars, which press so | heavily upon the people of the world. There has been a lack of statesmanship in this and other countries, which has materially contributed to the serious and deplorable conditions existing in this and other lands. The devotees of the gold standard are discovering that gold, which should be | only a symbol, has become a tryant: a cruel and ruthless master. People everywhere are beginning to inquire why' silver was robbed of its monetary status in the world, and gold enthroned as the supreme monetary power. The ®old standard as the sole measure and standard of value is being challenged and demands are heard in every quarter that silver be rehabilitated and | accorded a monetary status. | Prof. Cassel, one of the outstanding financial and political economists of the world, stated that the relentless struggle for gold has brought a fall in prices the extent of which is unique and that the crisis has resulted in a general depression resulting in heavy losses on the stock exchanges, and in economic_difficulties and has produced | industrial unemployment which has as- { l | jot the make a ratio. Therefore value simply means value in exchange. Human esti- mation placed on desirable objects whose quality is limited, determines value. As stated, for thousands of years gold and silver circulated as money possessing purchasing power in sub- stantially the ratio of 12 or 14 to 1. Credits and paper currencies, whether issued by governments or banks, rested up-n a metallic base consisting of gold and silver. It is apparent that such a base had greater ctrength than if it consisted of but one of theze metals. Senator Jones of N a, who an outstanding upon money, frequently com- pared the use of gold and silver to two reservoirs ccnnected by a pipe from which water could be drawn for the irrigation of the thirsty soil. Obvious- he stated, the farmer would be advantaged by having one instead of two reservoirs. If water were drawn | from only one, the same level would be preserved in each. Gold Made Standard. The use of gold and silver furnishes to the world more units of purchasing power, more 3 | trade and supplied by el Until 1916 th side, carryin, i er alone. e metals walked side by g the trade and commerce In r Great Britain, large nce of her creditors and bankers, denied silver ac- cess to the mints and made gold the sole standard and measure of value. The eflect in Great Britain was disa trous. Sir Archibald Alison “History of Europe,” describe palling " consequences upon tr: commerce and the entire so economic structure. He state capital which had been ac ing the Napoleonic wars had been so great, “the interest of the money classes 5o powerful, that Parliament became affected by the desire of i possessors.” He further adds th: demonetization of silver few years thereafter adde to the value of mor debt and taxes S) tors were ruined prices, and th in increased lu: values of their universal, and branches of in; was passed t. 160.000 perso Britain, but the ruinous ecr of the fall in prices reduced t. n- ber in seven vears to 30,000, and 15 per cent of the population became the objects of suppert by organiz: That picture is para ation in the United St Thomas Gresha magnates st er from the evenues seriousl y.” Whe ere were more land owners in enhanc profits, the landlor facturer no custor no employme: sumed_disouieting proportions. E Sir Henry Strakosch states that the deficiencies of monetary gold is well over one hundred per cent, and this has caused a sharp fall in prices. | Sir George Paish declares that the financial situation is one of unprece- dented difficulty and that the world since 1914, particularly has, “lived upon credit and is indebted, both nationally ‘and internationallyy ffor fabulous sums | of money.” Britain Paying Penalty. A recognized financial authority, Sir Josiah Stamp, states that the industrial depression is largely due to the in- stability of money values and from “the relative _insufficiency of the world's stock of gold and its converse—the | weakness of the commodity markets.” | Great Britain, which more than any | other country, is responsible for the| demonetization of silver, is now paying | the penalty for its unwise and indeed | destructive policy. As humanity advanced from primitive | conditions 1t was perceived that a| medium of exchange was a necessity; that when there was a division of labor, the need of money became imperative; | and that gold and silver were, of all metals, best adapted for that purpose. | It was discovered that in their produc- tion there was a uniform relation or ratio. For thousands of years the ratio of production was approximately 14 to 1—that is, 14 ounces of silver were pro- duced to 1 ounce of gold. Naturally | the ratio of production determined the | relation of value to be ascribed for| monetary purposes to each of the metals. Aristotle declared that “money ex- ists not by nature but by law; the use | of money was by necessity devised.” Money is the medium of exchange, and whatever performs this function and does the work, is money, no matter what its nature. Ardent gold mono- metalists claim for gold, that it pos- sesses intrinsic value which silver does not have. This is a fallacy which in part accounts for the Sacrosanct char- acter attributed to gold. The fact is that gold is a commodity subject to| changing values in relation to other commodities. Mr. Keynes, the emi- nent English financial expert, in his treatise on “Money,” states that *“gold as the sole standard of purchasing | power is almost a parvenu,” referring to the fact that for thousands of years the two metals had been standards of value and purchasing power, at an ac- cepted ratio of value. He frther adds that of late years an attempt has been | made to have gold “envelop itself in a | garment of respectability, as densely | | respectable as was ever met with, even | [ in the realms of sex or religion.” He further states that whether this gar- | ment of respectability “was put on as a necessary armor to win the hard-won fight against bimetallism (and is still worn as the gold advocates allege be- cause gold is the sole prophylactic against the plague of flat moneys), or whether it is a furtive Freudian cloak, we need not be curious to inquire.” He also states that, except during brief intervals, gold has been “too scarce to serve the need of the world's principal medium of currency.” Gold fluctuates when measured by labor and commodi- ties. If gold were to be demonetized as | silver was, its value measured by com- modities would have only that value which it might possess for use in the arts. Certainly measured by any stand, ard of value or by commodities it would possess less merit or value than | siiver would possess. Value simply | means value in exchange, and it arises out of relations which exist between things. Money intrinsically has no value. Purchasing power is of value in economics. Paper money with no in- | policy. Germany. after the Franco-Prussian War, exacted $1.000,000,000 of gold from France nd _then adopted the gold standard. The Latin Union followed its evil example, and the United States in 1873 reversed th of Wash- ‘lr‘,‘!mn, Jefferson and Hamilton and | followed obsequiously the gold mono- metallic policy of Great Germany. Britain and Demonetization of Silver. The first financial measure enacted by this Republic declared that 37114 grains of pure silver should be the dol- lar and “unit of value” and that 23.3 grains of pure gold should be of equal value. Thus our fathers gave to us gold and silver as the units of pur- chasing power, end provided a metallic base of gold and silver upon which to rest our currencies and credits. ‘The demonetization of silver in 1873 was surreptitiously accomplished. It was_denounced as a crime in the interest of bond hol gold standard. It stroy substantially of money of the people and to make m valuable the units of geld. the value of govern obligations and to commodity prices, as expressed in gold. The demonetization produced dis-strcus result: were more than 50,000 failur ness during a peri~d of five or ears with losses aggregating $1.500,000.000. Banks failed. commodity prices sank to a low level, and ruin overto ers and the t Congress years the B h it was hope indefensible measu; acted within a few and Sherman acts whi might relieve the sit the catastrophic de prices. In the me:ntin | metalists in the United States and e where waged an u nting and fierce warfare against silver with tie avowed purpose of destroying it as prim: money and of enthroning guld as t- scle standard and measureé of value throughout the world. Great Britain, pursuant to this pur- pose, made war upon the financial structure of India for the purpose of forcing her to accept a gold exchange Befcre 1816, when bimetalism prevailed throughout the world, the people of the Orient almost exclusively used silver for monetary purposes and it had substantially the same value measured by gold and commodities as that possessed by gold. The savings of a billion people in the Orient consisted of silver accumulated during hundreds, if not thousands of years. When the Occidental nations demone- ized silver they not only rcbbed their own nationa’s of savings and property, but they robbed the people of India and China of billions of dollars. It is estimeted by competent autherities that the silver holdings of China and India amount to approximately 7,000,- 000,000 ounces. Forced Price Down. Before the demonetization of silver, the silver of the Orient as well as the silver of the Occident constituted a part |5f the foundatiofi upon which rested world currencies and credits. Silver had a value expressed in gold of ap- proximately $1.20 an cunce. The gold standard po'icy and Great Britain's as- saults upon India’s finaneial system re- duced the price of silver, measured by gold, not only in the Orient but in the | Occident to the low level of less than |27 cents an ounce. It is obvious that the purchasing power of the Orient trinsic value may possess value equal|has been reduced almost to the vanish- to gold money if there be no ovgr-issue. ‘There are many evidences that €ven ir- redeemable money may be kept at par with metallic money. Value Means Exchange Students of the money question con- cede the validity of the quantitative theory. ‘The level of prices of commcdities is determined by the number of units of purchasing power, hence if the number of units of purchasing power are re- debts and reparations. M. Laval said u:: French opinion never could accept that. France is willing to see the war debts end reparations canceled in equal amcunts, but insists that there must be a fesidue of reparations to compensate ance for at least a part of the sums already advanced by France in rflw{a; (Copyright, 1831.) tion of its devastated areas. Both " (Continued on Fourth Page.), duced each unit immediately possesses greater value, expressed in commodity prices, and the prices of commodities, measured by the mrnetary unit, fall. It has been said that value, like utility, has no intrinsic value of a thing but expresses in exchange nothing but ratio. . To speak of the value of .an ounce of gold is as absurd 3s to speak |ing point. With silver reduced from | more than a dollar an ounce to less than 27 cents an ounce, neither the United States nor other gold standard nations may expect to find markets in the Orient for their surplus products. I might add at this point that exports from the United States to China for the last fiscal year were 30 per cent less than during the preceding year, and it is well known that Great Britain has lost most of her Indian markets, which has contributed in no small de- gree to her present precarious condi- | tion ecoromically and financially. There are some who believe that the | future export trade of the United States must be largely to the Orient and in Latin America. Latin American coun- tries, like the Orient, have been largely users of silver. In their monetary trans- actions they have been the victims of of the ratio of a given number. There must be another number in order to the destruction of silver and would wel- Wmmfimi