World Metal

Almost alone in preferring gold to paper as pocket currency for everyday use are Dutchmen. They like to jingle heavy guilders on each of which is stamped the motto & promise of Queen Wilhelmina's Royal House: "I will maintain!" In The Hague last week pompous Mynheer Doktor Leonardus Jacobus Anthonius Trip, President of the Netherlands Bank, mentioned an obvious fact: no "run" to exchange Dutch paper money for gold can possibly perturb the Netherlands Bank. Reason: the entire paper currency of the Netherlands is backed by a gold cover of 102%.

"Whatever happens." said Dr. Trip, "the Kingdom of the Netherlands will remain on the gold standard." Like most prominent Dutchmen with long names, President Leonardus Jacobus Anthonius Trip signs only his last, "Trip," to his letters.

More heavily gold-backed than Dutch banknotes are Swiss, which had last week a gold cover of 175%. Unlike Dutchmen, Swiss are indifferent to gold coins, prefer banknotes. Next in rank among European countries on the gold standard last week were France which last reported a gold cover of 77.65%, Belgium 57%, Poland 46%.

According to Benito Mussolini his country is on the gold standard but Italian citizens are barred by their Dictator from having, circulating or exporting gold.

Even on March 8 (before gold-heavy U. S. citizens, corporations and banks began their spectacular rush to redeposit the metal with the Federal Reserve last week) every U. S. Federal Reserve note still more than had its legal gold cover of 40%. With gold flooding in. U. S. citizens could still read with pride (though not for the moment with purpose) the words engraved on each Federal Reserve note: "Redeemable In Gold On Demand At The United States Treasury, Or In Gold Or Lawful Money At Any Federal Reserve Bank."*

In China piety enters into the promise on many a banknote. Common is the form: "This Money Is Good For Everyone, Especially for the Gods."

The British Royal Mint not only does not stamp a promise of any kind on gold coins but even omits to stamp what the thing is. Thus the latest English gold sovereigns (not issued since 1917) are not stamped "One Sovereign" and have nothing on them to indicate what they may be worth. On one side St. George, mounted, slays a dragon with his knightly sword. On the other side the head of George V. uncrowned, is surmounted not by an English promise but by a Latin abbreviation: Georgiuns V D. G. Britt: Omn: Rex D. F. Inde: Imp:*

France since 1928 has been, strictly speaking, on "the gold-bullion standard," possibly soon to be adopted by the U. S. Gold lover though he is, the French peasant and petit bourgeois cannot (as Dutchmen can) go to the nearest bank and cash paper francs into gold coins. To get gold from the Bank of France he must present 200,000 paper francs (or multiples thereof) and will then receive one or more gold ingots weighing 26.5 lb., worth roughly $8,000 each. To have no gold is in rural France the badge of a wastrel, a blockhead or a lunatic. Normal French peasants keep a number of gold coins (often several hundred years old) in socks, mattresses, crocks or buried. In Paris any Stock Exchange dealer is glad to sell (for a commission) unlimited quantities of gold pieces, just now mostly U. S. gold coins which have been in flight to France for years. Stanch Republicans, the French still call a French goldpiece a "Louis" in memory of their Kings. In Monte Carlo before the War chips were the exception and roulette tables blazed with gold stakes, mostly Imperial Russian gold rubles.

To sum up, Queen Wilhelmina's President Trip said: "The new American Government is acting resolutely but provisionally regarding gold. Complete international restoration of the gold standard is imperative."

* Today the U. S. Government and banks hold one-third more gold than they did at the close of the War and $100,000,000 more gold than at any time in the boom winter of 1928-29. Because of these facts U. S. paper money was exchanged into local currency throughout 'the world last week (even while every U. S. bank was closed) at rates proving marked foreign confidence. In Paris, where $1 has regularly brought 25 and a half francs since the franc was stabilized it brought by the end of the week 25 francs flat.

* Georgius V, Dei Gratia, Britanniarum Omnium Rex, Fidei Defensor, Indiae Imperator: George the Fifth, by God's Grace, of all the Britains King, of the Faith Defender, of India Emperor.

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