Jasper County Democrat, Volume 19, Number 3, Rensselaer, Jasper County, 8 April 1916 — United States Must Increase Degree of Its Control of Gold Supply [ARTICLE+ILLUSTRATION]

United States Must Increase Degree of Its Control of Gold Supply

By PAUL M. WARBURG of the Federal Reserve Board

WHILE abnormal conditions have for the present destroyed. the power of interest rates to direct the flow of gold, sooner or later normal laws of economics will again assert themselves.

and we must then exp ec t that, owing to the inflation of currency . created in almost every country involved in the war. the demand for our gold will be very keen and determined. We may then have to part wi t h very large sums of gold, hut we

must so direct our course as to be ah}e to control this outflow and let this take place without creating disturbances in nur own economic life. The United States must “keep its j'.u.vder try” by holding in reserve tli ■ ssential strength of the federal reserve banks, NOT ONLY TO MEET ANY POSSIBLE DRAIN OH EMERGENCY, HUT ALSO, SO FAR AS POSSIBLE, TO OFFER A CHECK TO INFLATION. This country must greatly in«*re;i •<> the degree of its control Over its f ii rren t gold supply, assembling as far as possible even the gold carried in the pockets of the public. ALL FOREIGN LOANS DURING THE WAR SHOULD BE OF REASONABLY SHORT DURATION SO THAT CONTROL OF THIS COUNTRY’S GOLD MIGHT BE KEPT IN CASE THERE SHOULD LATER BE NEED TO USE IT.