Thursday, May 3, 2012

Benjamin Roth quotes (gold standard)

From The Great Depression: A Diary. These quotes are from November/December of 1931:

“During past week wheat went up from 40¢ to 80¢ per bushel. Stocks also push up and claim is made that in 1873 and in 1893 the turn for better came with the rise in wheat and the removal of fear that U.S. would go off gold standard. There seems to be little danger of this.”

“Japan is practically at war with China and Russia and ignores League of Nations warning. In past month Japan sent 75 million gold to U.S. presumably in preparation for purchase of war munitions.”

“Russia-China-Japan seem to be actually at war with over 1000 killed to date and the League of Nations seems helpless. Because of this war scare the price of wheat and of silver has trebled in the past week. All of these countries are on a silver basis.”

“The bi-metalism argument rages hot. Bryan advocated a ratio of 16 to 1 but at present the ratio of 22 to 1 is being advocated. At present prices silver is about 70 times cheaper than gold but its price is rising due to buying of Japan and China.”

“According to this morning’s paper the new Japanese government abandons the gold standard. This makes a total of 15 countries that have gone off the gold standard. France and U.S. are the only 2 large countries remaining on the gold standard.”