“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.”