In this war Russia is poor in railroads, and the advantage that Germany
has held over her in Poland is more by reason of the German railways
than the German armies. Railways are products of wealth and individual
capital, and the sooner the United States learns this lesson, the
better.

A fourth lesson for the United States from this war is the value of
gold in bank reserves, and the value of ability to mobilize quickly
such reserves. No nation in the world to-day is more closely tied to
every other nation than by the invisible strings of gold. Every nation
in the world has an interest in the gold supply and the gold reserve in
bank throughout the world.

There are those in England who still believe that this war will be the
supreme test of the gold monometallic base for money and banking.
There is no thought as yet that Germany, if driven off the gold base,
will seek a silver base. It has always been declared by the
bimetallists that the successor of gold monometallism will be paper,
and Germany is expected to go upon a paper rather than a silver basis.

In exchange operations German paper is about 8 per cent discount, but
exporting gold or buying or selling gold at a premium is by law
forbidden. All are penal offenses.

England can stand upon a gold basis because she commands the gold
promises to pay, but in war time she can threaten the stability of the
monetary systems of many countries. The United States saved its gold
base by closing the Stock Exchange, but the South American countries
were quickly in distress for gold.