Evening Star Newspaper, October 11, 1931, Page 33

International Confe rence on Silver Urged by Senator King in Radio Forum (Continued From Third Page) come a policy leading to its re- habilitation Notwithstanding the vociferous cries of some that the United States must havgno commercial contacts with other | countries, but must be self-contained, the lesson is now being driven home that we are a part of the world and must find markets beyond our bound- aries if industries are to revive and prosperity ba enfoyed. If the gold standard nations persist in their policy of destroying silver and irrevocably £estening the gold standard upon the world, other nations may follow the example of Mexico and demonetize gold, and still others will pursue the course_adopted by Great Britain and other European countrics and abandon the gold standard. Indeed, a statement appearing in a recent issue of the a London financial paper of in- fluence, is little less than a threat that the demonetization of gold may prove epidemic. The Statis s “ requires no ve tion to foresee the time in the near fu- ture when an exasperated Europe will demonetize gold and throw upon the United States its gold stocks to add to the redundant gold s eral Reserve System.” Adequate Supply. That there is an inadequate supply of gold in the world to sustain cur and credits must be obv STEAMSHIPS, " SOUTH 6y SEA ewest, largest £xd most mag- rificent steamers between the North ard South. Sailings from New York To MIAMI-Every Batu: JACKSONVILLI Thursday and St in Florids. To CHARLESTON, 8. C.—Every Tuesdar, Thursday and Saturday, very Tuetday, €57 all points Pacific Coast. TAKE YOUR CAR Tow rates when accompanied Mills Blds. hington. D. € ~ Authorized Yours Agent | devastation and ruin in our own coun- | try are in part due to a policy which has deprived the world of half of its metallic base. Callleux, former French premier, within the past few days has declared that the gold standard will not work; that the gold supply of the ! upon which rests the currencies and credits of the world. Financiers and political economists of our own country are aroused over the | evils wrought by the gold standard and | the dangers which menace our social | and economic structure. Officials of the | Government and representatives of the | banking interests have had many con- ferences. with a view to alleviating the serious situation and averting still more | catastiophic cons-quences. Commodi- ties are still declining, labor is still un- emploved, banks are still failing and our | crezit” structur~ is greatly impaired. | The relief s d by the gold or not contemplate | 86 mettal'sis doe: g the gold base by adding eto or by giving to silver a atus. Many of them, who are unwillng to emnloy silver to relieve the stiain and tension upon gold, or to give to it any monetary status, sce no impropriety in issuing still more credit paper money, ostensibly resting upon the gold base. though because of the scarcity of gold no such base can be sald to exist. They adhere to the fal- lacious view that gold is stable in value and is subject to no fluctuations, re- gardless of the fact that many econ- |omists declare that it has increesed in | value, measured by human toil and | commodities, more than 100 per cent during the past few years and that a continuation of the gold standard wn- | modified will drive all commodities to =1l lower levels and force bankruptcy. not only upon individuals. but upon n . Thoy have before thom tragic evidences of the disasters accompany- ing an increase in the purchasing | power of gold, they ignore the fact that | th> function ‘and” not the material is | what creates the value of the dollar. 1t there is an awakening among bank- and business men in Great Britain: they see the power and prestige of their | country waning and an inevitable catas- trophe if different financlal and gov- “rnmental po'leles are not adopted; they vercetve that there is no advantage in balancing England’s budget if commod- ity prices continue to fal! | Conference Urged. Hugo Cuneliffe, an outstanding industrial and political figure in Eng- land. urges an international ccnference in order to restore the buying powsr of silver. | Lerd Inchcope, who has important in- |t ts in the Orient. is challenging at+ | tention to the diminishing exports cf | Great Britain and her lost markets in the Ori*nt by reason of her gold s d_policy, and he demands that | the purchasing pewer of not only the | Orlent, but of the world, be increased | by_giving t silver a_monetary status. SPECIAL- FOR OCTOBER at greatly reduced fares Of special interest to Gov- ernment employees taking late vacations. Enjoy the October sun and bracing salt air on the deck of a Merchants & Miners ship. Fares from Baltimore: BOSTON and return; a cruise of 1400 miles. Round trip JACKSONVILLE d ! ; 1550 indretun 10D 70 MIAMI All-Expense tours at correspond- and return; 2100 miles. Round trip ingly low rates: St. Augustine, 9 days, only $63; Miami, 10 days, only $83; Boston, 7 days for $45. REMINDER Nov. 24, Personally Conducted Tour Party from Baltimore to Havana and Miami, 16 days $169 including all necessary expenses. Send for special Autumn folder, Travel Pureau,1338 H St.,N.W.,Washington. MERCHANTS & MINERS TRANS. €O, 74, BERMUDA fora Rall vacation Tm:"x ewimming days are over for this year? Not in Bermuda! Two days of Transatlantic voyag- ing each way on the queenly “Franconia”or the jolly Dutch *Veendam”, with reputations for Continental luxury and style. Luxury LINERS , S. S “CARINTHIA® 20,500 ‘tons dpiate ment Bails every rday comm. oet. 33 EENDAM s displacement s every Wednesday 8. 8. “FRANCONIA" tons displicement Sails every Saturday. RATES TO SUIT ANY POCKETBOOK 2. ) ORI RECORD SIZE! 2 BERRM U STEAMSHIPS. AUSTRALIA HONOLULU. NEW 2EALAND THE LUXURY**** RRANEAN ,‘* o PALESTINE —EGYPT In the entirely modernized Cruising Steamer ROTTERDAM Le: s New York FEB. 69 days of delight Her itinerary for 1932 is Unsurpassed — Madeira, Spain, Gibraltar, Algeria, Tunisia, Naples, Malta, Greece, Turkey, Rhodes, Cyprus, Palestine, The Holy Land, Fgypt, Jugos Venice, Sidly, Monte Carlo, Southampton, Boulogne-su Mer, Rotterdam—EASTER IN ROME. AMERICAN EXPRESS CO. in eharge of shore For choice ace make reservations now. NEW LOW RATES FROM s'nno. Holland-America Line —————— nd Agents principal Citins Please send me illustrated booklet Nawe AbDRESS .. adventure For reservations, apply any authors ind.gtntcrhnnnl Bermuda Line, 34 Whitehall St. (where Broadw. bogins): 565 Fifth Ave., New York. U !M\;EE SS UDA ENT RECORD SPEED!? @ The Empress of Japan, largest, fastest liner on the Pacific has hung uj between Yokohama an Direct Express: 7 two new speed records Victori 8, 20 hr., 16 min. world is but a pin-point of a pyramid | be THE SUNDAY |, Goschen. chancellor of the exchequer in Great Britain in 1878, referring to {the propaganda for the gold standard {and “the destruction of silver, stated ithat if it continued a financial crisis {would be provoked. | { _One of the leading bankers of Great | Bhrl(nln, in a recent letter to me, states al 'The momentous question that con- fronts the world today, following the catastrophic appreciation in the value of gold, is the maladjustment between prices, wages and debts. Are wages to adjusted to prices, or prices to wages? Are debts to be adjusted to prices, or prices to debts? It is diffi- cult to see how chaos is to be avoided unless there is a material adjustment on the side of prices, so that business can once again become profitable. By the rehabilitation of silver to its time- honored position as a money metal a new factor, operating simultaneously at varions points throughout the world, would be introduced into the present critical economic situation, and this STAR, WASHINGTON, course dear money and cheap commod-l ities, and a diminishing volume of gold will result in declines in property values and increases in the values of securities and all forms of obligations, national, corporate or individual. It is to the advantage of the creditor to maintain | the gold standard, because his rewards | will be greater, each day adds to the value of his security by diminishin; the value of all commodities, and of course labor and service from which the obligation is to be liquidated. A great chancellor of the exchequer of Great Britain a number of years ago said, “That the world requiring British gold must pay for it and pay for it in cheaper commodities.” But what value will there be to securities if repudiation comes, or in- dustry is destroyed and property values are lost. Lord Bradbourne, chairman of the South American Consolidated Goldflelds Co., states that the “‘sup- ply of gold is even now insufficient to meet the world's eredit requirements,” should prove effective in raising the general leved of commodity prices Premier MacDonald recently asked. |“Is finance to be based upon cne cer- tain metal? Is credit to be controlled by the gupply. demand and distribution of that particular metal? Is the policy. theory end practice which we accept | and express in our coinage to thwart | our_commercial welfare?” These questions clearly indicate that this distinguished statesman recognizes the need of utilizing silver as a part| of the metallic base of Great Britain. Rely on Borrowing. Aside from France and the United | States, most countries of the world that | have “established and are trying to maintain the gold standard have been compelled to rely upon borrowed ¢apital and it is well known that when the fountains of credit cease to vie'd, there | was the greatest difficulty in averting | disastrous consequences. Great Britain. | as I have indicated, was unable with all her resources to maintain the gold standard, and it is obvious that if there shall not be an increase in commodity prices and the development of markets for Britain's products, her economic and financial condition will grow progres- sively worse. The gold standard is like the mythical vampire which sucked the blood of its victims and when there were none others to destroy, it destroyed | itself. But a few days ago an association was formed in Great Britain having for its| object the restoration of silver to a place in the world's monetary system. | Among the infiuential members of the | organization are Sir Robert Horne, | former chancellor of the exchequer, | now prominent in the banking world. and Mr. Leopold Amery, former colonial secretary. Sir Roberi Horne declared that the use of silver would “bring many benefits to the trade of the world, both by mitigating the harsh decline of gold prices, which the MacMillan committee declared to be the source of most of Britain's troubles, and by increasing the purchasing power ot nearly half the people in the world, whose stores of value are in silver.” He referred to the report of the In- ian Currency Commission to the effect that the fall in the price of silver in- flicted “heavy losses on the poorer classes, who have put their savings in silver ornaments and who would find their stores of value depreciated by per- { haps 50 per cent by the action of the Indian government.” He also stated that “China, where gilver has been used as the store of value for 4.000 years, has lost 50 per cent of the stored wealth which it had a few years ago,” and he | further added that the consequences of | the fall in silver prices had resulted in a decline in trade with the manufactur- ing establishments of both Great Britain and the United States. Will Force Prices Down. The advocates of the gold standard cannot be unaware of the fact that | its _continuance will mean a further decline in commodity prices and dis- aster in the economic field. If for | no other reason, this result is inevitable | because the production of gold, accord- | ing to accepted authorities. will diminish. { All economists concede that with the | normal increase in population and busi- | ness there must be an addition to the gold base of from 3 to 4 per cent an- nually in order to maintain fairly stable prices. It is obvious that as gold diminishes in quantity it appreciates in price or_value measured by commod- ities. The gold standard means of | | RESORTS, VIRGINL Special Rates September and October PANORAMA HOTEL—COTTAGES 3,000-ft. Altitude On Top "c"" Blue Ridso to the 3 SHENANDOAH NAT! On the Lee Highway (U.'S. 2i1) Virginia's most scenic and accessl- ble mountain resort; quiet, cool and resttul. A. headquarters. May be reached by auto or bus in 2!, hours. Three Washington-Luray busses pass’ entrance daily. sghedule call Nat. 9711 Round trip. (ndividual cottages, rustic ~ and distance_phone For Literature [*as all monopolies are certain to kill and that “in 10 years' time the pres- ent gold production will have fallen from $400.000,000 to $275,000,000, and !in 15 years the South African produc- tion will not exceed $50,000,000." | the certainty of diminishing gold pro- | duction it follows as the night the day that gold will appreciate in value and bring increasing economic and. ine deed politicel disasters to the world, Sir Henrl Detering, one of the great financial figures of the world, has re- cently declared that the destruction of silver value will defeat trade revival, He criticizes those who declare that gold should be the only standard for fixing relative values for everytning, and asks whether gold in itself has any practical use. He states that just With themselves “if the idea of ‘monopoly’ is too rigorously inforced, so it is with gold. It has become an unbearable ruler who neglects all dutles and even common sense. Under its rigorous rule it has trfed and almost succeeded in ousting the competitor with whose assistance and from whose existence gold could hope to maintain its ruling position, namely, the other compara- tively rare metal—silver.” 5 Can’t Meet Payments. He states thav so long as gold and silver were in co-operation things went well. but that governments, governed by theorists and sheltering themselves behind so-called money experts, adopt- ed gold as their sole standard of value and have ousted silver by paper. Whether paper is represented by bank- ers’ bills or by bank notes, the only reason for its value is cygdit, and credit is the same as every other commodity or faculty in that the more there is of it the less valuable it becomes. ¥ The accuracy of this statement is exemplified by the credit situation in the United States. Upon the narrow base of gold, credits have been extended amounting to tens of billions of dol- lars. These credits, payable in gold, cannot be met, and the creditor, through forced sales and bankruptey proceedings is becoming the possessor of real and personal property the value of which has shrunk to the vanishing point. I commend to those who are opposing the restoration of silver the | words of a British statesman. Rarl | Ba'four, who, in a speech in Parlia- ment in 1892, said “* * * Of all acceptable systems of currency that system is assuredly the wor hich gives you a standare, stead! continuously and definitely appre-iating and which by that very fact throws the burden upon every man of entcrprise: upon every man who desires to promote the agricultural or the industrial resources of the coun- try and benefits no human being what- over.” I have referred to the effects upon | ternational trade with China if the gold standard policy is pursued. lver occupied its proper place in mcney systems of the world the Orient would purchase from the United States and other nations commodities of the value of billlons of doligrs ap- the standard of living of ({:9 Orferitals would be materially improved and their demands for commodities from Occldental nations would reach enormous proportions. The Oriental nations, if the gold standard is persisted in, will be driven to set up their own industrial and economic life; forced to the low level of living brought about by the destruction cf silver they will ac- commodate themselves to the situation, and will erect factories and modern plants and enter into competition with the Occidental nations. They will de- velop scientific and technological skill and produce commodities with their cheap labor, far below the prices of production in gold standard countries; |and sooner or later will manufacture commodities which Occidental nations produce, and under-sell them in the markets of the world. The gold stand- ard policy will drive the Orient into an econcmic and industrial system of its own, whieh will be a menace to the economic and industrial systems of Oc- cidental natfons. This will result in © real “Yellow Peril,” not political, as indicated by many chauvinistic writers, but one which will seriously menace the industrial system of this and other nations. The people of the Orient de- sire contacts with the United States | and cther nations; they would like to | buy our surplus products and find | markets for commodities which this and | other countries desire, but the destruc- | tion of the monetary qualities and | functions of silver will create tangible |and effective embargoes. ~ I have spoken of th RESORTS. | 1 inadequacy of Ameri gen. Independence really Special features includet Insplring pageantry of early Amer- iean history. General Pershing and Mar: Petain, of France, reviewing tro Colonial and pancramas, early American and French Battleships in James River. Special cholrs of many volces. Pro- grams by Military and N AKE this a memorable adven- ture back to colorful Colonial days at ancignt Yorktown, where Southern OCTOBER 16-19 -1931 be- ‘shal ops. ROUND TRIP To Yorktown aval D. C, OCTOBER 11, the present gold supply. It would re- quire several billion dollars’ worth of new gold in order to furnish a 33 1-3 per cent of metalic gold support to the billions of dollars in currency inflation which now exists. Assuming that the confidence factor requires a gold stock of 33 1-3 per cent back of currency is- sued by central banks, it is clear that in European banks of issue in 1929 there Was an overissue of currency based on gold of nearly nine billion dollars. Since that time there has been a fur- ther overissue of currency with dimin- llhlns gold reserve. My information is that indulging in the same assumption of 33 1-3 per cent gold reserve, South American and Central banks have over- issued to the extent of more than $230,- 000.000. It is pertinent also to remark that the overissue of currency, if ap- glled as cash reserve of 20 per cent ack of loans or credits advanced by the private banks, would result in credit inflation in the banking systems of Europe and South America of many billions of dollars. ,The African Cen- tral banks also, on the basis above assumed, overissued gold currency to the extent of more than $445,000,000, forming the basis for credit inflation through their private banks of more than $2,000,000,000. With the vast mountain of paper cur- rency and credits inadequately secured it is to be expected that there would be dublety and indeed lack of confi- dence in fnancial systems and that there would arise a demand for refor- mation in the cwrency and financial systems of the world. Gold is being used to shackle the world economically and politically. The important nations of the would should take the lead in effecting such refor- mation. An international conference should be called for the purpose of cor- recting glaring defects in the fiscal sys- tems of the world. Certainly such a conference undoubtedly ~ would strengthen the gold metallic base by adding silver to the same. Mr. Wagel in his recent interesting work called “World Economic Depres- sion” states that “if silver is used for currency reserve, and relieves gold of part of its burden, prices will rise and there will be increased prosperity. The other alternative is collapse of prices, curtailment of commerce and possibly reversion to barter.” Should Call Conference. Even Mr. Keynes states that “gold as the sole standard of purchasing power is almost & parvenu,” and that of later years an attempt has been made to have gold “envelop itself in a gar- ment of respectability as densely re- spectable as was ever met with, even in the realms of sex or religion.” He also adds that except during brief in- tervals, gold has been “too scarce to serve the need of the world's principal medium of currency.” Because of the present poverty employment and economic depression in the United States and because of the important position which this republic holds materlally and morally . . . among the nations, it should call ‘an international conference for the pur- pose of considering the silver question. The Senate of the United States unani- mously adopted a resolution asking the President of the United States to call such conference. The International Chamber of Commerce, in May of this year, declared that “in view of the serious eonsequences of the present situation, and the economic condition of the world. it is eminently desirable that a conference should be called dur- ing this year at which all interested bodies may be heard for the purpose of lem.” Eleven States have asked the Presi- dent to call such a conference. The American Federation of Labor and various other organizations throughor the United States have adopted resol tions favoring an _international con ference for the purpose of devising a proper policy in relation to silver. I can conceive of no valid reasons why such conference should not be called. There are many reasons which demand that it be called. Many nations are looking to the United Staies, because of its_important position in the world, to catry the banner of monetary reform In the United States there is a grow- ing feeling that administretion has oo long delayed action in this vital matter. \CITY OF PHILADELPHIA LACKS CASH FOR BILLS Controller Reported as Saying New Loan of $750,000 Will Be Sought. By the Associated Press. PHILADELPHIA, October 10.—The Phiiadelphia Record says the municipal | government of Phi funds to meet its current bills. Grocers who presented bills for food for the poor yesterdey were unable to receive payment, the daily savs Controller Will B. Hadley is quoted &s saying the city borrowed $750.000 to meet October 1 pay rolls and would have to borrow a like amount for October 15. Bills for the remainder of the year are expected to be met by floating of a long-term loan October 26. Mayor Mackey proposed a 1932 bud- get containing drastic eccromic reduc- tions in city management last .week. It has met with considerable opposi- tion. elphia is without . ‘The United States contains more or- ganizations and more people belonging to organizations than any other coun- try in the world. RESORTS. ATLANTIC CITY, N. J front FHotel .. s o - st oF the CT COMBINATION LY At THE LUDY highest standard of « iations and service . ible throug It water baths. Three glass solariom. Spe- cinl family rates. Write or wire for reservacions. R.B.LUDY, M.D. Bracing Fall Days Await You at olten Manor S s ey PENNSYL AN A AT Hofels Y, un- | king a solution of the silver prob- | 1931—PART 'LEGION POLICE POST | HAS NEW MAGAZINE Publication Devoted to Interests of Force and Firemen Makes Debut in Capital. TWO. \ A new semi-monthly publication, the ‘Washington Police Post, sponsored by Police Post, No. 29, of the American Legion and devoted to the interests of that organization and the Police and Fire Departments, made its ap- pearance in the Capital yesterday. It stated that while its editorial policy broadly is to be consistent with the aims of the Legion, the magazine more specifically is interested in members of the Police and Fire Departments. One of the principal things for which the Washington Police Post will cam- paign, it announced, is an ‘“equitable situation” with respect to annual and sick leave for policemen and firemen, who now receive only 20 days' vaca- tion and no sick leave, as compared with 30 days of each allotted Govern- ment _employes. Concerning the grand jury's third degree inquiry, the magazine, “cont vinced that the Metropolitan Police Force is much less black than it is painted, will attempt no apology for a few unfaithful policemen, nor will it try to defend the police in general— because we know that no defense is necessary.” UTILITIES TO ADVANCE WEST VIRGINIA TAXES | By the Associated Press. CHARLESTON, W. Va., October 10— | State Auditor Edgar C. Lawson, who has asked public utilities of the State to | make advance payment of from $5,000,- 000 to $7.000.000 in taxes due next | January, made known last night that a | number of corporations had assured him | of immediate payment. | Lawson sald he had decided on the | plan “in order to-aid general business ! is off Opti get a new eyeglass fram | styles and makes speci | | PN | Have , Your EN you glide a G-E ann) Pann. AraeBigh and G 5 conditions in every county in the suu.l During the last session of the Legis. and to provide for the prompt payment | lature Lawson failed in an attempt to of obligations” of the State and its| have a bill passed which provided for subdivisions. funds were at & low ebb. He also said all public| payment of all taxes i two equal in. stallments. —because it is so easy to use no- body can help making a good job with i Flat Finish —for wooawork, ings and walls. Gallon .$3.00 1 Gal...$1.95 1 Gal...$1.65 Quart ..$1.05 Quart. ...90c Sapolin Gold and Aluminum Radiator Finishes at 25¢ to $1.25 Paint Dept. Pown AvtmEighih and O b Interior Gloss —for walls, ceilings and woodwork. Gallon .$3.75 ceil- AnniverSary ering these— cal Specials —Auvail yourself of this wonderful opportunity to e or mounting. All popular ally priced. —"“The Royal,” a light- weight shell frame with reinforced temples. Usually priced at $5.00. Now— $2.95 —*“The Pink Glow,” a beau- tifully engraved coral gold- filled frame with new-type nose rest. $10.00 value for $6.50 —“The Arlington,” a light- weight shell-type frame with solid-gold nose rest. Will not slip. $7.50 value for— $3.75 he Plymouth,” a white gold-filled frame with straight or curved temples, and imitation pearl nose rests. $7.50 value for— $3.95 Examined—Dr. Street Floor Eyes De Shazo in Attendance So Light... yet so Powerful T/n’; General Electric Cleaner belongs in -every small home Junior i ‘ Cleaner over a rug for the first time you’ll marvel at the ease of it. But you’ll hear the soft purr of a powerful suction fan drawing in tion. The Junior is a cleaner. | Itis admirable for small ho: operating most economically. dust, dirt and litter with determina- vice, taking up little storage space, JUNIOR MODEL me ser- Models Via Honolulu: 10 days, 18 hr., 27 min. ® Empress of Japan and Empress of Canada via Honolulu, connecting there with Los An* les and San Francisco sailings. Faster crossing? Take the Direct Express route, by Empress of Asia and Empress of Russia. ® First Class designed for the most fastidions vellers. Lower rates? Empress Tourist Cebin, with Empress spaciousness and comfort. Also ar unusually fine Third Cabin. @ All Empresses sail from Vancouver (trains di- reet to ship’s side) and Victoria. @ Independent travel touring round-the-world Information and reservations from your own agent, o 1 [ ] [ ] o Canadian Pacifie eral Agent, C. E. Phelps, 14th and New York)' Ave, N.W., Washington, D. C. National 0756. B s Bacyrten e Bacnes ~luxurious surroundings. European Plan if desired. SVERLOOKING THE OCEAN Bands. Thrilling exhibitions by Army and Navy Alrcraft. $14.50 $35.00 $42.50 N It is handsomely made . . . simple and rugged for years and years of service. i i { Side trips can also be arranged to ancieat Williamsburg, Colonial Capital, now being re- stored by the Rockefeller Fund; Jamestown and many other historical American Shrines. DAILY SERVICE 6:30 P. 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