The Seaforth News, 1932-02-11, Page 3•, THURSDAY, FEBRUARY 11,: 1932
THE SEAFORTH NEWS,
PAGE THREE:
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THE WORLD'S DRIFT'
FROM GOLD,
'Most of the world followed Great
,Britain on to the Gold S'tan'dard. I't
is following. Great Britain in aband-
oning it.
Already half Europe, the whole of
Asia, and all the continent of South
America, have been forced off the
'Gold Standard, because the world's
gold supply has been inadequate in
present conditions to meet the world's
requirements as a basis for' interna-
tional transactions under post-war
'conditions.
In Europe, the United Kingdom,
the Irish ]Free State, Norway, (Sweden,
D'en'mark, Finland, Hungary, Spain,..
Portugal, and Turkey. are ` off the
'GoldStandard. Russia, although nom-
inally on the Gold Standard, has no
free world market for exchange with
gold currencies.
These countries have an approxi-
mate aggregate population of 210 mil-
lions. This leaves 265 millions for
the European countries remaining on
the Gold Standard, and some of these,
• although their currencies are quoted
in the exchange market at about .par
with gold, could not maintain the
standard if they were put to the test
of free gold and exchange markets.
As to the rest of the world, the
United States and South Africa are
crx'A the only considerable contries that are
actually on the Gold Standard. The
United States has a population' of
1.37 millions out of 210 millions in the
whole df North and South America.
,The pdpu•lation of the Union of South
Africa is 18,000,000, out of an estimated
.14.3 millions for the whole of Africa.
• With J'apan's defection the whole
of Asia, with its estimated population
of over 1,000 millions is off gold;
while Australia and New Zealand ac-
count for a further 7,500,000 popula-
tion.
All told, out of an estimated world
population of, say, 1,$50' mullions, .only
410 millions are on the Gold. Stand-
aird,,Gold is still the basis for internal
icurrelncies in] Englan'd and many other
�. ,1 countries, although it is not in circu-
lation in the form ,of .coin. In 'the Unit-
ed Kingdon., for instance, the 'legal
tender currency in the forte of bank
notes is, su'bject to certain emergency
measures, dependent on the gold in
the 13'ank of ,England.
It is in the settlement of interna-
tional balances that gold has proved
inadequate as the universally accept-
ed medium. It anigltt still have been
adequate if it had been better dis-
tributed. About two-thirds o'f the
world's supply of monetary gild is in
• the hands of France and the United
States, where, instead of being used
as the basis of loans to the rest of
the world, it has •been hoarded use-
lessly.
At present most of the world's cur-
rencies, so far as international ex-
change is concerned, are adrift, inas-
much as they are not linked to any
internationally accepted standard such
they have all dragged their moorings
and ceased to be tied to gold,
1Westill 'think in terns of gold,
When we say that the pound sterling
is worth, say, 13's 4d, we mean'thrat it
is worth two-thirds of the .gold petite
based on th•e'respective -gold contents
of the American gold dollar and the
British soveige, although ,these are no
1b,egei• in circulation.
i1f the whole world, shoulcl'go off
gold—and the desirability of this steep
has already been 'mooted in the. Un
ited States—should we still think in
terms of gold; and the old parities bas-
ed on gold? It is far more likely that
a good many countries abroad would
then thick and quote in terns of
sterling.
IThe "sterling bill" was universal .be-
fore the war, even' in transaction's' be-
tween countries remote from London,
S'f there were no,gold countries, sterl-
ing might well regain all its former
predominance.
!It is noteworthy that already the
currencies Of the Scandinavian .coun-
tries, having been divorced from gold,
are practically on a parity with .sterl-
ing./
Even if the United States and
France still stick to gold, what are
we going to do about it ? Precipitate
action is obviously ,dangerous, the un-
merous complicated 'factors are still
uncertain -but the sootier, the various
courses Of action are considered the
better. _
First of all, are we to go back to
gold, even at a depreciated basis for
the pound sterling? Will the supply
of gold be adequate for world trade in
the future? I•t is certainly inadequate
now, with trade balances upset by re-
paration payments and other conse-
quences of the war, and with two-
thirds of the world's monetary gold
frozen. In. the United •States and
France.
Even if we could rely on these fac-
tors being removed, can we be assur-
ed of enohgh gold for the future?
With the world's population increas-
ing and with the natural expansion of
trade, we shall require more and more
gold. The experts tell us that, far
from more gold being produced, the
annual output will actually decrease,
and fn a few years' time will become
increasingly inadequate for t h e
world's requirements.
We have already economized in the
use of .gold..In this county (Eng-
land) we have. withdrawn gold from
circulation, as, indeed, have most
other countries, We have • greatly 'in-
creased our' fiduciary issue of 'bank
notes (that is, the .part of the • issue
not covered by gold), though it is to
be noted that this has been done only
as an emergency measure and not as
part of a settled policy.
Growing banking facilities have also
increased the use of the cheque. In-
dia, ntoveover, is parting with seine'
of her vast personal hoards. B'ut, even
So, 'ought we to be' bound to a metallic
standard that has served us so ill in
times of crisis?
Shall we have a metallic standard,at
all? Would'
silver or ,platinum serve
us any better?
I:f we abandon a metallic standard
what can .we substitute? Are the prin-
cipal trading dations of the world
ripe for an international paper stand-
ard regulated by an in'tern'ational body
or bank, suoh as the 'Bank of Inter-
national Settlements? Would even
that solve 'the problems created ley
divergent national policies.
Some 4001.000,000 people in this
would 'hold to the Buddhistic, faith,'
which includes the inspiriniig belief
that life is sorrow; the cause of, suf-
fering is desire; by •overcoming de-
sire and ,achieving "personal annihil-
ation"
ation" one may reach Nirvana, heaven
as gold, and it may not be long before of all. Buddhists.
igh Class Printin
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erate cost.
THE SEAFORTH DEWS
GOVERNOR ROOSEVELT OF
NEW YORK STATE.
It is conceded that the mean who
gets the Democratic presidential no-
mination this year leesmore than an
even chance of becoming president of
the ,United•''States on March 4, 1933.
The only person who has definitely
announced his candidature is Frank-
lin Delaney' Roosevelt, governor of
New York State, fifth cousin. of T. R.,
Sr., wartime assistant secretary of the
navy, a scion of vested wealth, yet
strong advocate of public ownership
of public .utilities. Already his gnali-
ficati'ons fqr the White House are be-
ing exeinioed,
eing.exatiiined, ,because he has' been
pledged, according to his campaign
managers, 673 out o'f 1,154 convention.
votes 07170 n'e'cessary to nominate).
,Franklin Roosevelt saw his first
president in 1387, when he• was five.
Sitting in the White' House was large,
grim, depression -ridden Grover Cleve-
land, and Roosevelt to'd'ay has a
chance of becoming president for the
same reasons . that. sent Clev'elan'd to
the White House, Cleveland, -sadden-
ed, disillusioned, put his hand on the
child's head and said: "I'm making a
strange wish fpr you, little man. I
wish for you ,that you may never be
president of the United States." Tf
Roosevelt should win, he will probab-
ly wish the,same thing shortly after-
wards.
Janes Roosevelt, his father, was a
man of means, owner of a large estate
at Hyde Park, overlooking the 1 -Ind -
son, 60 miles below Albany, where his
s'on still lives. There Franklin • was
bort. on January 30, 1832, and receiv-
ed his early educatidri from • private
tutors. Almost every year he travel-
ed in Europe. A well-ib'orn Episcop-
alian, he was sent to .exclusive Groton,
thence to Harvard, where he did not
distinguish ' himself. Towards the
close of his college career he 'fell in
love with his distant cousin, 'Anna
Roosevelt, T. R.'s favorite niece, and
Married her, .despite family opposition.
Young Mr. Roosevelt passed his New
York bar examination in 1907 and
three years later won .H'yde Park as
a Democratic State Senate candidate,
surprising himself as much as his Re-
publican opponents. He became an
insurgent antieTammany Democrat.
Woodrow 'Wilson's idealism appeal-
ed to 'Senator Roosevelt, and when
Wilson won in 1912 Roosevelt be-
came assistant secretary of the navy.
He teamed well with Secretary Jos-
ephus Daniels, and between then, they
effected necessary and excellent im-
provements in the navy, among other
things making every officer and rating
learn to swim. When war came, he
distinguished himself. In• 1920 the
Democratic party nominated him as
vice-president; he cam'paigne'd .stren-
uously, an'd with' Cox took his defeat
with good grace. He' went back to
private life.
Stn August, 191, he, and his family
embarked on Van Leer Blaek's yacht
for their summer hone at Camapo'bel-
lo Island, N.IB, Shortly after they ar-
rived Mr, Ro'osevel't caught a chill,
helping to stamp out a forest fire. A
cross-country run and a cold .plunge
in the Bay of Fundy seemed to help,
but when he got home he sat in his
wet -bathing suit to read his mail. He
took another chill an'd next morning
he was down with infantile paralysis.
Months later he arose to find his legs
quite dead. This sudden calamity he
met with supreme courage and Cheer.
What would have ruined the average
man's career he took in his stride. To
this day no one has ever heard him
admit that he could not walk. He
continued professional anti private
life as usual. He found that at Warm
Springs, Ga., there was healing
springs. He spent a large part of his
personal fortune developing the place
into a sanatorium, and now finds it
possible to wal'k,100 feet with the aid
of brae'es. He has ,ever given tip
hope of eventual recovery, and his in-
firmity has never prevented him from
doing anything, or getting anywhere,
that he wanted.
'In 1024 Franklin 'R'oosevelt came
out of political retirement to advance
the presidential candidacy of Alfred
Emmanuel Smith. Davis got the no-
mination, Ln 1028, whet Smith want-
ed More than a speech from Roose-
velt, he consented to rain for governor
of New York. He didn't expect vic-
tory, he feared the rigors of cam-
paigning would erase the partial .re-
covery of his limbs he had effected
in seven bitterly long years. 'If ever.
a pian was "drafted" for public of-
fice that man was ,Roosevelt in 192$.
But he wool, and again in 1,930 he was
victorious, ahen,by 725,001 votes. This
large rsa'jority convinced people of his
vote -getting abilities and started the
Roo'sevel't -for -,president boom.
During hisyears at Albany Roose-
pelt has shown :that he is no crusader,
no tribune of the people, bit 'a man
keenly interested in advancing the so-
cial welfare of the people. Elected
with the he'l'p of Tamaniany Demo-
crats, he has handled the New York
City scandals as well as he politically
could. He has 'sho'wn more courage
EMIMEIENNPIBIMIIIIIIIWIMIOMIIMINMWIMIIIMMIIIIIIIII th. , iiany an'oth.er man would 'have
shown. While vetoing inquirits by
tate Republican New York State 'Leg-
islature,
islature, he started, the Samuel Sea -
bury investigation which today is re-
vealing graft, crime and corruption in
New York's Tammany. 'He has de-
nouuced'no. one for crookedaress, re-
moved no one for patent criminality.
His sins are sins of omission, not
commission.:
Ontario and Canada are particularly
interested iii Mr. Roosevelt, because
he is a stdunc'h advocate of cheap el-
ectricity in New York, of astate-
owned, state -built, state -operated hy-
droelectric plan on the St. Lawrence
River. He`creat•ed a' Ne'w Yorls State
power authority to build a public dam
at,Jvtassena Point, but this was snagg-
ed by the .Federal Government be-
cause the problem if international and
a treaty with Canada is necessary.
Roosevelt is a champion ofthe prin-
ciple of joint development of the St,
Lawrence navigation and power
schemes, which are of such vital int-
erest to the Ontario, Quebec 'and .Ot-
tawa Government. •
Lacking profound wet convictions,
Roosevelt is straddling the prohibition
issue, an. attitude which, caused his
break 'with Smith. He has retreated
into the mists of re'ferend'a. As to
his executive. competency; his sup-
porters point with pride to the useful
legislation he has wangled from an
anti -pathetic Leg'isla'ture. He has put
through an old age pension's law, got
permission to raise $50,000,000 by
bonds to house the state's sick, crim-
inal and insane, reduced rural taxes,
put more occupational' diseases under
the Workmen's Compensation Act;
and improved the rent laws. He has
run the state Government without
scandal and without erruption, in the
calm, orderly manner of a good exe-
cutive of a big business institution:
AUSTRALTA5S FUTURE.
The 'forces allied to defeat the La-
bor Government of Australia, says the
Manchester Guardian, have met with
even more success than was predicted.
If they hold together in office as well
as they have doneinthe. campaign
they can be sure of a handsome ma-
jority. The ranks of official Labor are
reduced from thirty-five they number-
ed in the last Parliament to a nie:re
sixteen. The chief gain has been to
the Nationalists, who had twenty-
three members in the last House but
have thirty-seven in 'this, Their chief
allies, the 'Counitry Party, have also
slightly improved their position, as i
has the Labor left wing under Mr,
Lang. The nnew'Ministry should be
able to command for policies on
which common agreement can be
found a' vote of some ,fifty members in
a House numbering 'seventy»five, and
unless it is rent by internal dissens'i'on
will have every chance to give effect z
to the slogan which has so familiar
a sound in England of "a 'balanced
Budget on the basis- of equality of
sacrifice." It is dangerous to draw po
litical parallels atla distance of 10,
000 miles, but at certain points th
,Australian politcal crisis has had a
close resemblance to our own. There
as in 'England, the leader to'whoi� tlte
country has turned is a' former Labor
Minister, Mr, Lyons, who"has parted
company his pary and for whom
the ;Opposition have gladly made
room and promise of office. There, as
here, the forces combined against La-
bor or have' had little in their past his-
tory to make..them' blood 'brothers.
The INational'lsts, or the United Aus-
tralia party as, they itow call 'them-
selves, were born of the great cleav-
age in the rauks of Labor in. the war,
with Ole, W. 1.' Hughes' as their be-
get'ter. and leader. They have moved
far to the Right since then, but not
along. lines that identify- them with
their allies in the present victory, the
Country Party, whose ipurpese it is
to look alter the ''interests of the the pri-
mary prodv'cer.
- him down in this campaign.
Labor will corns to •office again itr
e Australia. The Commonwealth is
young enough yet to remember with.
, pride that in th lif i .
I e etnnc. of the ipres-
ent generation it gave' the world the
,stir t x
s example of Labor iii• pf�frce and
'raised legitimate hopes that ?roues
-
sive democracy might everywhere
turn with advantage to the example
Australia set in' sane social and in-
dustrial legislation. The conditions
that, gave Andrew Fisher and his Ca-
binet their chance twenty years ago
will return. But the national progress,
the solid achievement, must be based
on something more substantial. If
'the Country Party pulls its weight in
the new, combination that fact will' be
'forced' home. Mr. Latham, the .leader
!of the 'Nationalists, who has so grace-
, •fully given' way to Mr. Lyons:in the
!leadership of the Government, ,has
1 been no'ta'bly cautious in handling this
question in his election speeches, Both
]these leaders have kept a wary eye
upon the great Industrial interests`in
the big'cities, who have been accus-
tomed to believe' that :they have but
to nod. But even -the captains of in-
dustry are beginning to realize that
the economists are right, . and that
there is no solution tot Australia th'st
way. The Country Party has never
been deluded. It has seen Australia's
primary producers steadily penalized
to foster the life of the factories. 19
has seen that policy carried to ever
wilder excesses, It knows 'its mind'.
Its leader is safely returned. I'te
strength is increased. 'There is a rear
hope that Dr. Earl Page's fifteen may
play a decisive part in restoring 'fiscal
sanity to the Commonwealth..
The tariff must play a large part in
the history of the new Governmenit.
It is an -odd circumstance that while a
Nationalist victory in iBritain has led
to the imposition of barriers to 'trade,
Australia's hope lies in the chance
that a similar result there may lead
to a lowering of then. Mr. Scullin up
to the very moment of his defeat has
advocated the maintenance of high
Protection. .He urges that behind'
tariff walls the standard of living of
the Australian worker was raised to'a
higher point than anywhere in the
would, except perhaps the United'
States, and he has endeavored to a
larm the electors by the suggestion
that, if returned, Mr. Lyons will de-
stroy this shield against the impact of
of world conditions. His warning falls
on the ears of a country •surfeited with
high Protection. Towards the en'd of
his term of office he 'seized u'po'n the
pretext that the trade balance must
be restored by restricting ilmports to
make arbitrary changes in the tariffs'
which in many cases recoiled on the
industries he sought to foster. He has
gnored the advice ofthe Tariff Board
set up to advise on this question and'
persisted in his policy despite its
warning that the country suffered. He
had in support of this policy .the warns
allegiance of his Treasurer, Mr. Theo-
dore, whom he chose to sup'plan't the
I level-headed Mr. Lyons at a
I when the 'fornier's credit was
none too good either with the bank-
ers on whom the country had to lean
n" its 'financial crisis or 'with the rank
and file of the electorate. That act
of personal 'loyalty harmed him as
much las his persisten'ce'in a policy im-
possible ;in present world conditions.
From it dates the formation of the
network of new` organizations — the
All -for -/Australia League, the Citi -
ens' Movement; the Young Nation-
alists, an'd the rest—that have com-
bined with the Country Party to pull
MDOISTURE 1111 LUMBER
The weight of any given board or
piece of •wood will vary according to
the amount of Water it contains. The'
moisture in wood is usually expressed
as a percentage of .the oven -'dry
weight: Thus if the weight of a green.
block were exactly twice the weight
of the same 'block oven -dried to e
constant weight, 'then ' The .green
block would be said to have a moist-
ure content of 100 per cent, 'The mois-
ture content of lumber varies from
over '100 per cent, down to'about 30
per cent.
Due 'chiefly to 'the variation is mois-
ture co'nten't it is difffou19• to specify
exact ship'pitvg weight of ;lumber, es-
pecially for green lumber. 'Average
figures can, however, be used Where
enough lumber is being handled 'to
Compens'ate for variations in s'ingle
shipments.
Pardonable Pride.
"Where did you get all those med-
als you're wearing?"
"Didn't my pigs win first ',prize at
the •fair?"
The Thames River is 'London'•%•
chief source of water supply, furnish-
ing„the city with 166,000,000 gallons
a day.
"They're Off!"—In Old Quebec
The
Eleventh annual Eastern
1 International Dog Sled Derby
crowning event of the 1932
Winter Sport season—is scheduled
for February 22-24. For those
three days, all eyes turn to Quebec
City, where each day the fight
between. the best dog teams in
America over a course of 40 -odd
miles a day is staged. Emil St -
Godard, Leonhard Seppala, hero
of the rush with diphtheria serum
to Nome a few years back, are
among the contenders, of whom
, last year there were eleven and
this year there will likely be even
more. In all, the race covers a
distance of 123 miles and the finish
is in Quebec itself through crowds
of thousands of fans, lining the
streets and cheer on the victor.
Handsome. cash prizes are
awarded, but this year interest is
muchabove the usual. St -Godard
who has won the race four times
in the last five years, has two;legs.
on'the'Speed Cup and another win
this year will give it to him per-
manently. Seppala
has two legs on the
Gold Cup for the best
conditioned dog and
stands to win it per-
manently this year.
Prizes total $2,150'
with a first prize of
$800; second prize,
$600; third prize,
$300; then $200, $100,
$75, $50 and $25 in
that order. In addition there is the
Gold Cup for the best conditioned
dog and the Speed Cup awarded
to the team malting the fastest
time for a lap during the three
days of racing.
The event windsup with the
Dog Derby Costume Ball held
at the Chateau Frontenae, the
Canadian Pacific's great hotel,.
on Wednesday, February 24 at.
which prizes and cups are awarded
to the winners.
The picture shows Upper left,.
typical huskie, and right Chateau:
Frontenac, Quebec. Below, centre,.
last' lap of the race and. lower right
Emil St -Godard and his lead dog,
Toby.