Mighty Marbles

"Just now the situation of the world gold supply reminds me of the little boy who was such a humdinger at marbles that in a short time he had no one to play with!"

Thus, cheerfully, spoke Board Chairman Albert Henry Wiggin of Chase National Bank, landing in Manhattan last week, home from chairmanning the committee which mapped Europe's immediate fiscal future (TIME, Aug. 31). Told that European countries (chiefly France) were withdrawing gold from Manhattan at a rate which reached $52,000,000 one day last week and has totaled $275,000,000 since the British pound went off gold, Mr. Wiggin said with emphasis:

"The larger the shipments of gold leaving this country today the better for domestic as well as world finance."

From Basle, Switzerland, sagacious Banker Wiggin, whom all Wall Street respectfully calls "Al," had issued a report that was very embarrassing to President Hoover. Mr. Wiggin and his European colleagues had decided not only that the Hoover one-year moratorium is insufficient but also that high (i. e. Republican) tariffs in the U. S. should come down.

Somehow or other the little boy who is such a humdinger at marbles must let the other little boys have marbles wherewith to play, thinks Banker Wiggin. On the defensive last week he snapped: "Normal business conditions will not prevail in the United States until there is purchasing power in Europe." He urged immediate U. S. extension of more credit to European nations, as recommended by his committee.

Intrinsic Sterling. On international exchange the British pound hovered between $3.85 and $3.95 last week, ceased its wild gyrations of last fortnight. In the House of Commons tight-lipped Chancellor of the Exchequer Philip Snowden was asked at question hour: "What steps does His Majesty's Government propose to take to prevent foreigners from speculating in sterling exchange?"

Answered Philip the Bold: "It is not desirable to prevent the realization of sterling assets by foreign holders if they decide to do so. Regarding speculation, persons selling sterling well below its intrinsic value would incur serious risks. The remedy will come quickly when they begin to make losses."

Mere talk if another had uttered them, these Snowden words spread confidence. It was known that the Bank of France, holder of some $125,000,000 in London, was leaving this asset "frozen" and attempting no withdrawals. This policy, French bankers said, had in turn caused the Bank of France to draw gold from Manhattan until the London situation should clear up.

Britons with their pound off gold and on a paper basis, thrilled by the million at Philip Snowden's solemn assurance that sterling still has an intrinsic value. Mr.

Snowden, prowling last week in search of an economy that would not touch the poor, found what he wanted in Britain's diplomatic service, pruned the pay of Ambassadors and Ministers 10%.

Germany Too? Absurd! Rumors were plentiful that Germany might decide to go off gold; but Chancellor Heinrich

Bruening set his pointed jaw, denied the rumors to correspondents, denied them to the German people by radio. "No nation which like ourselves has endured the terrible experience of inflation," said the Chancellor to his microphone, "can endure that in this time of uncertainty and apprehension confidence in the stability of its deposits should be shattered. . . . Rumors that Germany will follow England in this matter are absurd, ABSURD !" Phenomena. In Hungary typical troubles resulted last week from a stern Government decree barring all exports of gold, barring even the export of Hungarian paper pengoes. Stirred to uncommon zeal by orders from Budapest, customs inspectors at the Hungarian frontier "almost dismantled the Budapest-Vienna Express" according to indignant passengers. Male travelers were stripped, females prodded and squeezed (the Hungarian Government officially denied that female express passengers were denuded), baggage was minutely ransacked and finally Hungary's vigilant inspectors advanced upon the train itself. Cushions, bedding, even carpets were seized and shaken, mattresses unstitched, lavatories probed. No smuggling whatever was detected. Swedes amused themselves last week by computing that, unless Sweden returns to the Gold Standard before Nobel Prizes are awarded next December, each prizewinner will find his award reduced in gold value by some $7,000. Brokers on the Dole, Central European capitals which kept their stock ex changes closed last week were headed by Berlin. In Berlin the Governments of Germany and Prussia forbade brokers to meet even informally. Thus left with literally nothing to do and with no idea whatever when the Berlin Bourse will reopen, numerous brokers declared themselves legally "unemployed," applied for dole payments from the Federal and Prussian Governments, received them.

90-c- Dollars, Stubborn British fisherfolk on the west coast of Vancouver Island refused to believe last week that the pound had fallen, the dollar risen. When U. S. fish-buyers confidently offered less for British fish, the fishermen conferred. After arguing the matter they decided that, since something was evidently wrong somewhere, the only safe course would be to discount the dollar.

Expostulating U. S. buyers were told that their dollars would be accepted as worth 90-c- each. Wrangling only fixed the British fishermen in their decision. Some U. S. buyers, badly needing fish, bought at the fishermen's fantastic rate of exchange, departed muttering.

No less British, no less significant was a leading article in London's Week End Review, an orthodox, Conservative paper. Calling on British statesmen to lead the world onto some new standard other than gold, the Review declared:

"This would in effect be a new alchemy, changing gold into base metal and leaving it hanging like lead around the necks of the gold-hoarding nations."

This file is automatically generated by a robot program, so reader's discretion is required.