Historical Newspapers of South Carolina

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vn McCORMICK MESSENGER, McCORMICK, S. C., THURSDAY, OCTOBER 29, 1936 FRANCE GOES OFF GOLD STANDARD American-Anglo-French Agreement Attempts Stabilization; See Freer Trade Prospects; Dictatorships Still Are Holding Out. By WILLIAM C. UTLEY F OR three years the bugaboo of an inevitable jump off the gold standard kept successive administrations of the French govern ment in various states of chronic jitters. But economic forces were no fonger to be denied, and at last the jump has been made, the franc devalued and the responsibility laid in the lap of Premier Blum and his “Popular Front” government. France is the last nation to leave the gold standard. Traditions that have been built up over a century or'more have been contradicted within a few years. There is now no country on earth which will ex change gold for paper money for the asking. When the movement first started^ it was an almost universal feeling that the gold standard symbolized safety and security, that it was necessary to stabilize world trade. World-wide were the tremors of fear five years ago when Great Britain left gold. In the following crisis our own banking structure experienced the famous “holiday” and more that 40 cents ifras taken out of our dollar. When Britain went off the gold standard in 1931 our stock market became panicky. Now in 1936 as France—and with her Holland and Switzerland—goes off it, the news is actually a stimulant to prices on the Exchange. Origination of Gold Standard. The gold standard, which disap peared in so short a time, was fostered and promoted in Great <*- M. Vincent Auriol, French Min ister of Finance, Announced France is Deserting the Gold Standard. Britain since the end of the Napole onic wars. During the period from that time until the beginning of the World war, England became the world’s leading figure in commerce and finance, and her prosperity was a standard for comparison. It be came the popular belief this pros perity was due in large measure to England’s steady retention of the gold standard. By the early part of the present century nearly every important nation in the world had followed England’s lead by setting up a currency which was at any time convertible into the precious metal. It gave a man a sense of security, of course, to know that at any time he could walk into a bank with paper money and exchange it for shiny gold. The importance of this tradition by the time of the World war had been multiplied with the passing decades. Today, it is hard to convince millions of French farm ers and workers and their families that shattering the tradition will not bring panic. That is why the Blum government needed plenty of cour age to forsake gold at a time like the present when the nation flutters on the verge of communism. When the World war started, Eu ropean nations soon found it neces sary to use their gold reserves for the purchase of munitions and other war materials. They began borrow ing large amounts and increasing the volume of their currencies and credit. Their gold reserves could not sustain such measures and the gold standard disappeared. In the inflation which followed the war the franc dropped to one-fifth its former value, the German mark became without any value what ever, and Belgium and Italian cur rencies suffered similarly. Even the almighty pound sterling wav ered in value. Japan Last to Stabilize. The popular opinion in political and economic circles after the war was that chaotic conditions could be cured if the gold standard could once more be restored. Great Britain was the first to re turn, after a long, hard pull; in 1925 she set the pound sterling once more at its old gold parity of $4.86. Inflation had periled France, but she succeeded in returning to the gold standard with her franc worth twenty per cent, of its former value of 19.3 cents, in 1928. Japan, the following year, was the last of the big natiops which had been in the war to stabilize. The gold standard which followed the war, however, was short-lived. By the time Japan had accepted it, the depression had already begun. And it soon became apparent that the new gold standard was no pan acea for the world’s ills. The storm clouds broke over Eu rope in May of 1931. The Kredit- Anstalt, Austria’s largest private bank, failed. All Europe began scurrying for economic cover, with disastrous results. Immediately Germany was besieged by Ameri can and other foreign creditors. In a few short months her reserves dwindled to a state which compelled her to suspend payments upon her foreign short-term debt. U. S. Leaves GoM. In Great Britain, the banks had taken most of the world’s short term deposits. It had lent a large share of them out in long term to Germany. In the crisis, Britain found an international bank run sud denly on her hands. In September of 1931 the Bank of England was forced to suspend payment in gold. Other nations had little choice in the matter, but were compelled to follow Britain off the gold standard, suspending their own gold pay ments. Thus over the world there was set up a chain of nations bound to Great Britain by links of currency and- credit. Countries which re mained on the gold standard im mediately found themselves at a disadvantage with the group led by Britain. Prices went down in the gold countries. France and other nations with short-term balances in the United States began taking their gold out of this country. Withdraw als of gold worried American banks, which were also hurt by the falling prices of commodities and securi ties. Public confidence in the banks was at the lowest point in many years. The bank “holiday” followed. Then this nation decided to leave the gold standard, as about three dozen other nations had before it. The only nations remaining on the gold standard at that time were France, Belgium, the Netherlands and Switzerland. Belgium was the next to give in. She came into too much competition with Great Brit ain in the world’s commerce. On April 1, 1935, she devalued her cur rency. ^ Germany, Italy Hold Out. Gold was now leaving the Bank of France daily in wholesale quanti ties. Although it \fras apparent that devaluation of the franc could al leviate France’s plight, the act was abhorrent to the people. Cabinets were elected on the strength of their vows to defend the franc. Devalua tion was finally accomplished over a large dissenting vote in the senate as well as in the chamber of depu- mean the repudiation of the policy of economic independence he has fostered. The agreement between the United States, Great Britain and France, although it does not quite come up to actual stabilization, is seen abroad as something of a bright spot in the dark sky which overcasts fear-ridden Europe today. It is thought that the agreement will preclude any competitive cur rency debasement, and will lead to a more co-operative spirit in inter national trade, with improved con* dition with respect to tariffs. Gold Production Up. British and American experts are still without agreement on the exact values of their currencies expressed in terms of each other. The agree ment does not put Great Britain back on the gold standard or fix rates of exchange. What is attempt ed is a stabilization of the pound and the dollar. This would have the same effect as the return of Britain to gold, for the value of the dollar is fixed in terms of gold, and that of the pound is fixed in. relation to the dollar. It is only a year ago that Neville Chamberlain, Great Britain’s chan cellor of the exchequer, declared that stabilization was “un thinkable.” He said there had to be a rise in commodity prices, a lifting of many restrictions on trade and a prevention of the fluctuations in the price of gold. Not all of his provisions have been met. Commodity prices have gone up, but there are more restrictions on trade today than there were then. There is still no indication of a regulation of the price of gold; as a matter of fact, production of the metal has been on the increase and its price seems due for a drop, un less some means of artificial fixa tion is devised. Europe, generally, regards the stabilization move as a good thing. The situation on the continent has been tense for some time now, and the new move seems to be some thing of a ray of hope. It may succeed in prying open some of the barriers created by extreme eco nomic nationalism. Some countries, especially those whose governments are directed by dictators, might find their over-pat riotic nationalism melting somewhat under the stimulus of a freer trade and international lending. Nationalistic Barriers Fall. Of course it cannot be said at the present time that certain countries of Europe are destined to a return of economic good - neighborliness that compares with the American- Anglo-French agreement. Rearma ment has been going on steadily until many of the other nations seem bent on complete national self-suf ficiency at all costs. The aim, of mm This Portal Leads to the Nearly Completed U. S. Gold Fortress at Fort Knox, Ky. This Will Contain More Than $6,000,000,000 in Gold. ties. The fact that it was put over by the “People’s Front” may cause a split between the socialists and the communists in the Blum party. Labor is a little disgruntled, any way, because Blum has not, in a few months, been able to bring the country the prosperity which, it is now evident, was expected to come virtually overnight when the Laval government was turned out. Germany and Italy alone among the major powers have not formally announced devaluation; neverthe less, they have, in reality, curren cies which are largely artificial. Italy, if she would join the pound- dollar-franc bloc, will have to as sume obligations of striving for greater liberality in world trade and the alleviation of monetary limita tions that hamper world trade. This brings Benito Mussolini face to face with a difficult decision, for it would course, is for a country, such as Germany, for instance, to make it self capable of producing everything its people need, including raw ma terials. Where, then, is the need for freer trade? Militarism and eco nomic freedom simply do not go hand in hand. It is the democratic powers who lead the way to stabilization, and the dictatorships who form the chief obstacles. With economic stability in Europe, the expansion which some dictatorships eye would not be possible. This does not mean that the dic tatorships have banded together in a group against z. group composed of democratic nations. Mussolini and Hitler would indeed be strange bedfellows. And the three great democracies are far from united ia a political bloc. © Western Newspaper Unlea. Satin--Clad Brides Go Victorian By CHERIE NICHOLAS HpHE importance of period fash- -*■ ions for evening this year means that they will be reflected in the gowns worn at many smart autumn and winter weddings. There is a quaintness about the early Victorian fashions that especially offers al luring possibilities to brides who would have a “picture” wedding scene. Young brides with slender figures can wear becomingly these demure gowns of Victorian inspiration in silk taffeta or heavy slipper satin. The lovely gown pictured creates romance and poetry for the modern wedding scene. This 1936 version of a Victorian wedding gown is in terpreted in traditional ermine-white pure silk satin. The basque buttons quaintly down the back. The full sleeves give the broad shoulder ef fect that accents, by way of con trast, the slender girlish waistline. The bride carries a prayer book with gardenias. Of course one’s bridal party must carry out the idea so the flower girl has a period look in a Victorian cream silk taffeta princess dress that is gored to fit at the waistline with a widely spreading skirt which, by the way, stresses the new length for little girls party dresses this season. This wee maiden ties a lavender silk ribbon in her hair and carries a bouquet of purple asters and cream colored gladioli with a silk tulle frill. The bridesmaid befittingly wears a cream silk satin Victorian gown. The full sleeve, slender line and back fullness are important style de tails that present-day designers are definitely introducing in their new est creations. A demure little brown silk net bonnet adds to the quaint ness of the costume. The flowers she carries are purple and cream asters. If one prefer that the attendants dress colorfully rather than keep strictly to cream satin, they may wear pert gowns in autumn hues of peau de soie or silk taffeta with puff sleeves and full skirts. As quaint and as “period” looking as if she had stepped from the fashion pages of a Godey appears a brides maid who is gowned in a frock of lavender silk taffeta with a tiny wine-colored silk velvet hat sur mounted with three hyacinth blue ostrich tips. An armful of purple, rich red and cream asters adds to the color glory of $he picture. One thing is certain, whether she is a classic bride in traditional satin or in soft clinging fabrics, or a bride in quaint frock of Victorian or directoire inspiration, she will be dressed in silk of one type or an other. This year it is good style to have one’s attendants wear the same style and the same fabric as one’s own gown, only in different colors. If desired, the bridesmaids may all wear the same color, or that which is novel and new, different shades of a basic color, giving some what of an ombre effect to the group as a whole. For the important evening en semble, smart trousseaux will in clude a black velvet evening gown which will make the bride look like a re-incarnation of Sargent’s famous “Madame X.” Top it off with a matching hip - length silk velvet jacket and it can be worn on the honeymoon for dinner and formal wear. © Western Newspaper Union. SILVER LAME GOWN By CHERIE NICHOLAS Never have gleaming metal weaves been more fashionable than they are at this very moment. The interesting note about these glamor ous fabrics is the fact of their im portance for dressy daytime wear as well as for formal evening. Of course their styling tunes them to afternoon as does that of the charm ing dress pictured. Fine allover pleating distinguishes this silver silk lame cocktail gown. This very beau tiful silk silver lame comes in be guiling color tones, which makes it particularly adaptable for the mak ing of the costume blouse or the tunic that completes color harmony for the ensembled costume. SILHOUETTES BACK TO FORMER TREND! Just when we’re getting used to high, broad shoulders, flares, perky short tunics and important long ones, along come Paris dispatches with the news that styles which im mediately followed the war are be ginning to make their influence felt. That means a neat, plain, slim sil houette. It isn’t only news from Paris that indicates the trend. A London de signer sends over street frocks in the newest of woolens made on straight lines with only discreet, ex pertly tailored encrustations of the fabric as trimming, at belt, sleeves and occasionally on the skirt above a short, V-shaped slit in the center front to making walking easy. Even tunics are sometimes made on straight lines. Rich Fabrics Mark Styles for Autumn and Winter Weai Rich fabrics always signalize the advent of the fashions of autumn and winter. Rich lames and fur for evening things will be used, and hats will be correspondingly re splendent. Bright flowers and feath ers on velvet comprise the theme of the new millinery. Flowers on black velvet are especially good for a hat that is good to perk up a late sum mer costume or point a new autumn dress. There is a shallow, little black velvet pillbox with dangling, stemmed pink geraniums that is our favorite, but we would settle for a tall witch’s crown hat of black vel vet, topped by perky red and white cellophane flowers. Shining Furs Fur capes of shining black cara cul, nutria and Persian, from waist to three-quarter length, with squared shoulders will be a favor ite choice of well-dressed women. Fur stole collars trim the coats of many three-piece ensembles, gray wolf on green wool, brown lapin on plaid and leopard with rust. Household Ques/ioni' A little hot milk added a littla at a time while mashing potatoes will make them light and fluffy} Heat but do not boil the milk. * • * A few bread crumbs added to scrambled eggs improves flavozi and makes an extra serving pos sible. • • • A tablespoon of lemon juice added to the egg in which fish is dipped before frying gives it * delicious flavor. • • • Knit and crochetted frocks should never be hung from closet hooks or hangers if they are to keep their shape. Even eyelet cotton frocks will stretch less if folded and laid flat, or hung doubled across a wooden hanger. • • • Before laundering lace curtains soak them for an hour in cold water to which a little borax has been added. Then wash in warm soap suds. • • * Doeskin arid chamois gloves be come stiff and harsh unless washed in tepid suds and rinsed in slightly soapy water. * * * To protect paper when cleaning paint use a piece of heavy card board about 12 inches square, moving it along as you wash paint, © Bell Syndicate.—WNU Service. Seems Pat’s Front Had Retreated to the Rear Pat, being a sound sleeper, had slept through the racket set up by his alarm clock, and, conse quently, when he did awakery found himself late for work. Hi hurriedly dressed and rushed off. In his great haste he did not know that he had put his trousers back to front. Alighting from the bus outside the factory, he slipped and fell into the gutter. The conductor went to his assistance. “Are you hurt?” he asked. Pat looked down at himself and noticed his trousers. k “I don’t know about being hurt,** he grumbled, “but I must hav© given myself a bad twist.” You, Have a GkilcL ASK YOUR DOCTOR THIS ■ Ask Him Before Giving Your Child on Unknown Remedy Practically any doctor you ask will warn: “Don't give your child unknown remedies without asking your doctor firsts When it comes to the widely used children’s remedy — “milk of mag nesia.” the standard of the world u established. For over half a century many doctors have said “PHILLIPS' Milk of Magnesia.” Safe for children. No other is “quite like it.” Keep this in mind, and say “PHIL LIPS’ MILK OF MAGNESIA” when you buy. Now also in tablet form. Get the form you prefer. But see that what you get is labeled “Genuine Phillips’ MUk of Magnesia.’' ALSO IN TABLET FORM! Each tiny tablet is the equivalent of a teaspoon ful of genuine Phillipe’ Milk of M*g n "‘ l fo :WiuiPS'=i Phillips’ MILK OP MAGNESIA WNU—7 44—33 WEEKS of thrilling entertainment for Every Member of Yo«* Family Wilt Be Fouflrf !■ Gone With The Wind The novel which telle the real etory of tho Civil War and Reconstruction as never before described. 1037 pages —equal to FIVE ordinary fiovofs. $3.00 SEND COUPON TODAY THE MACMILLAN COMPANY 60 Fifth Avenue, N.Y. C. Send copy(les) of GONE WITH 4 THE WIND To Kome Addrfcix, RfO .State. Cheek d M. O. □ c. o. e. d