tions than are we, who now aimlessly hold, as a pledge, the one accepted medium of communication.[1]
The domination of gold, both nationally and internationally, is due to tradition, political disorder and lack of faith, and results in sudden unforeseen economic disenfranchisement. It is a negative, a restrictive, power. In spite of repeated disasters we still permit measurement of value by arbitrary check instead of flow—and it is not always our own citizens who decide upon the periodic days of atonement for over-confidence.
The orthodox economists will turn and assert that they make no pretense that gold represents value, but is simply a focal point which is measurable, and is also where we can see it, namely with the United States Treasury or the Federal Reserve Banks. As a matter of record[2] the United States Treasury on Jan. 1, 1922, held as assets, gold amounting to $380,188,972. Of this amount $152,979,025 is definitely ear-marked as a fund to support the issue of Greenbacks, and the balance, $227,209,946, is held against other obligations, such as National Bank Notes, Federal Reserve Notes and Federal Reserve Bank Notes.[3] It does not belong to the Government:
- ↑ Mr. Mellon, Secretary of the Treasury, writes: “The market for gold is international, and in the present state of the exchange the United States draws gold from every quarter and receives practically the whole gold production of the world, with the exception of what goes to the arts. The effect has been an unprecedented gold movement to this country during the past year or more, which has resulted in net imports many times greater than this country's normal annual production of gold.”—Engineering and Mining Journal, New York, October 22, 1921, page 669. McGraw Hill Co., New York.
The Guaranty Survey states: “The United States, formerly a debtor nation, is now a creditor, the transition having been hastened by the World War; and our enormous accumulations of gold, and its scarcity abroad make it impracticable for other nations to meet their obligations to us in gold payments.”—The Guaranty Survey, March 27, 1922, page 1. Guaranty Trust Co. of New York.
- ↑ United States Treasury Department Circulation Statement, Jan. 1, 1922.
- ↑ “Includes the gold reserve fund held against issues of United States notes and Treasury notes of 1890 ($152,979,025.63 on Jan. 1, 1922), and the gold or lawful money redemption funds held against issues of national bank notes, Federal Reserve notes, and Federal Reserve bank notes ($244,746,905.30 on Jan. 1, 1922). Does not include deposits of public money in Federal Reserve banks, national banks, and special depositaries ($456,870,241.82 on Jan. 1, 1922), nor does it include funds held in trust in the Treasury for the redemption of outstanding gold and silver certificates and Treasury notes of 1890.”—United States Treasury Department Circulation Statement, Jan. 1, 1922.
