“How can it be good?” he burst out. “What have we got to take the place of gold? Can we go back to the age of barter? Can we substitute cattle-pens and wheat-bins for the strong boxes of the Treasury? Can commerce exist with no common measure of exchange?”
“It does indeed look serious,” I assented.
“Serious! I tell you, it is the deluge!”
Thereat he clapped on his hat and hurried across the street to the office of another celebrated banker.
His premonitions of disaster turned out to be but too well grounded. The deposits of gold at the south pole were richer than the wildest reports had represented them. The shipments of the precious metal to America and Europe soon became enormous—so enormous that the metal was no longer precious. The price of gold dropped like a falling stone, with accelerated velocity, and within a year every money centre in the world had been swept by a panic. Gold was more common than iron. Every government was compelled to demonetize it, for when once gold had fallen into contempt it was less valuable in the eyes of the public than stamped paper. For once the world had thoroughly learned the lesson that too much of a good thing is worse than none of it.
Then somebody found a new use for gold by inventing a process by which it could be hardened and tempered, assuming a wonderful toughness and elasticity without losing its non-corrosive property, and in this form it rapidly took the place of steel.
In the mean time every effort was made to bolster up credit. Endless were the attempts to find a substitute for gold. The chemists sought it in their laboratories and the mineralogists in the mountains and deserts. Platinum might have served, but it, too, had become a drug in the market through the discovery of immense deposits. Out of the twenty odd elements which had been rarer and more valuable than gold, such as uranium, gallium, etc., not one was found to answer the purpose. In short, it was evident that since both gold and silver had become too abundant to serve any longer for a money standard, the planet held no metal suitable to take their place.
The entire monetary system of the world must be readjusted, but in the readjustment it was certain to fall to pieces. In fact, it had already fallen to pieces; the only recourse was to paper money, but whether this was based upon agriculture or mining or manufacture, it gave varying standards, not only among the different nations, but in successive years in the same country. Exports and imports practically ceased. Credit was discredited, commerce perished, and the world, at a bound, seemed to have gone back, financially and industrially, to the dark ages.
One final effort was made. A great financial congress was assembled at New York. Representatives of all the nations took part in it. The ablest financiers of Europe and America united the efforts of their genius and the results of their experience to solve the great problem. The various governments all solemnly stipulated to abide by the decision of the congress.
But, after spending months in hard but fruitless labor, that body was no nearer the end of its undertaking than when it first assembled. The entire world awaited its decision with bated breath, and yet the decision was not formed.