Kankakee Valley Post, Volume 1, Number 10, DeMotte, Jasper County, 29 September 1932 — Restored Gold Reserve Reveals Success of Hoover in His Battle for Security [ARTICLE]

Restored Gold Reserve Reveals Success of Hoover in His Battle for Security

Nation’s Stock of Precious Metal Now Back at 1928-1929 Level--Provides Basis From Which to Build New Structure of Prosperity.

Uncle Sam’s progress in leading the way out of the world depression is strikingly emphasized by the report of the federal reserve board on September 20, that the United States gold stock has increased to a total on that date of $4,086,000,000. This is about the same level as of the second half of 1928 and the first half of 1929 before either the recent financial crisis or the subsequent depression had begun to show itself. This perhaps means little to the average citizen, other than an apparent assurance that the nation’s monetary structure is on a more stable basis than a few months or a year ago. The added security to the country and the insurance of a firm basis on which to build back to prosperity, is not, perhaps, commonly recognized or appreciated. Hoover Tells of Battle. Back of this achievement, however, at a time when other nations were slipping off the gold standard or facing revolution and disaster, is the story of a determined battle by President Hoover, against seemingly insurmountable odds. In grim drama and in the complexity of forces involved, this battle was not surpassed by any of those of war time. Something of the threat that faced the country, however, and the manner in which it was met, may be sensed from what President Hoover himself has said of this situation. “If we look back over the disasters of the past three years,” he said, "we find that three-quarters of the population of the globe has suffered from the flames of revolution. Many nations have been subject to constant change and vacillation of government. Others have resorted to dictatorship or tyranny in desperate efforts to preserve some sort of social order. How Credit Shrinkage Began. “One illustration of the character of one single destructive force arising from these causes was its effect on our financial structure. Foreign countries, in the face of their own failures, not believing that we had the courage or ability to meet this crisis, withdrew from the United States over $2,400,000,000, including a billion in gold. Our own alarmed citizens withdrew over $1,600,000,000 of currency from our banks into hoarding. “These actions, combined with the fears they generated, caused a shrinkage of credit available for the conduct of industry and commerce by several times even these vast sums. Its visible expression was bank and business failures, demoralization of security and real property values, commodity prices and employment. This was but one of the invading forces of destruction. Counter-Attack Launched. “Two courses were open. We might have done nothing. That would have been utter ruin. “Instead we met the situation with proposals to private business and the congress of the most gigantic program of economic defense and counter-attack ever evolved in the history of the Republic and we put it into action.

“Our measures have repelled thbse attacks of fear and panic. We have maintained the financial integrity of our government. We have co-operated to restore and stabilise the situation abroad. As a nation, we have paid every dollar demanded of us. ‘‘We have used the credit of the government to aid and protect our in stitutions, public and private. We have provided methods and assur ances that there shall be none to suffer from hunger and cold. We have instituted measures to assist farmers and home owners. We have created vast agencies for employment. "Above all, we have maintained the sanctity of the principles upon which this Republic has grown great. New Confidence for Future. “In a large sense, the test of the success of our program is simple. Our people, while suffering great hard ships, have been and will be cared for. In the long view, our institutions have been sustained intact and are now functioning with increased confi dence of the future. As a nation we are undefeated and unafraid. Govern ment by the people has not been defiled. “With the humility of one who by necessity has stood in the midst of this storm, I can say with pride that the distinction for these accomplish ments belongs not to the government or to any individual. It is due to the intrepid soul of our people. It is to their character, their fortitude, their initiative and their courage that we owe these great results. “We of this generation did not hulld the great ship of state. But the poli cies I have inaugurated have protected and aided its navigation in this storm. Must Now Look Ahead. “These policies and programs have not been partisan. I gladly give trib ute to those members of the Demo cratlc party in congress whose patri otic co-operation, against factional and demagogic opposition has assisted in a score of great undertakings. I likewise give credit to Democratic as well as Republican leaders amongst our co-operation and help. “Our interest now is the future. As a government and as a people we still have much to do. We must continue the building of our measures of restoration. And in doing so we must profit by the lessons of this experience.”