Show i I The DA Y I DOLLARD OM i iI I r Many of us are puzzled over the fears expressed by American bank bankers ban ers that European Europea countries may mayan on occasion send over and ad take te away the gold holdings of the United States We hear constantly a of the f financial ancial straits of the foreigners They cannot cannot can not redeem their own currency at its is par value in gold They cannot canot pay their public debts debt nor all al of their private debts to the United States and its citizens How then could they by any stretch of the Imagination the in vaults take lake away gold our What would they give us u for it What purports to be an explanation tion ton of how the thing could be done is given by the Alexander Hamilton Institute Sa Says s 's the institute a Some general observations can be made which make it possible to understand understand un why foreign countries were able to take gold from the United States in 1931 in the face of a mer merchandise mer-I mer chandise trade balance favorable to tc I America Ameria and a sharp curtailment of ol r American Amerian loans to foreign countries First foreign countries had large bank deposits and short term investments invest ments month totaling in ther the United States at the beginning of ol r 1931 1031 a sum far in i excess of require requirements require ments for settling selIg the merchandise trade balance Second foreign countries at the beginning of 1931 had long term in investments i. i vestments in the United States State amounting to the salof sale sal of only a part of which would have provided foreign countries with wih the means not only of settling their debits debis but also of taking Americas America's gold Third the moratorium on war wai debts debt eliminated the necessity for fox meeting an important credit the United States Fourth defaults on foreign bonds bond j held hel by AmericaS Americans s reduced the amount amunt of ot Interest paid by foreign countries to t the United States Slates State This has been the heaviest obligation which foreign countries have had to t meet rising from in i 1922 to in 1929 Fifth despite curtailment the United States Stales In 1931 paid large amounts to foreign countries in the form of American tourist expend expendI tures abroad Immigrant remittances interest on foreign Investments investment in the United States shipping charges and i other smaller miscellaneous items e o 40 It I will wl be seen that in i the te above compilation it is assumed the European Euro peon countries collect in gold ever every penny owed to them by the United I States and its it citizens and welch on or 1 their own debts to the States If I as asi asin a 5 in i ordinary business our b bills s receivable re were to t be charged against ret t our bills bis payable Europe's chances chance S of raiding Americas America's gold reserve ant antI and I forcing the United States off of the gold goic I standard would be as remote as th the 2 newest galaxy in the milky miky way Despite the concessions that have havi been made recently in congress t to I help the administration out of a hole V it seems reasonably clear that the th I cear average American voter is not disposed dis posed in i the least to sanction sancton a one V V. V sided bargain that would put our gold gok 1 supply at the mercy of ot Europe Except in i a few banking offices the thi I growing gowing sentiment sentient In favor of a modification modi L. L of the gold standard is no not I prompted by a desire to choke th the 2 European cat with wIh butter buller buter but is inspired in 1 by the wish to put American Amerian I industry and American labor on it its it S feet again The Te United States Stales docs does not seem seen V to lo need gold in its it business affairs affair S one one half as much as it i needs iron ii in 1 its it ts foreign policy |