Evening star., 1931-12-09
|BAN IN INDUSTRIAL
| PANACEAS SOUGHT
American Business Men Now
Seek a Cure for
Cure.AIIs. .r',
BY FRANK HI. MCCONNELL,
Associated Press Financial Writer.

NEW YORK, December 9.-Wanted-
A cure for cure-alls.
This briefly Is the goal of q section
of American business and finance as
expressed through several leading busi-
ness organizations and chambers Of
commerce, as well as by leading indus
trial and banking representatives who
believe that the country will be deluged
In the next year by every known va
riety Of past panaceas and some new
ones.
Spokesman for various interests say
the Nation is strongly insulated against
the wiles OF cendors OF patent medicine
economics. The horse doctor, as they
explain it, is finding it hard to sell his
remedies in the automobile age. Never
theless, they are alertly studying the
symptoms and will make determined
stand against schemes for cheapening
the dollar, tampering with the Federal
Reserve machinery and raiding the ma
tional Treasury to finance projects Of
doubtful economic value.
Cure for Panaceaa
"The only panacea which, we believe,
would have any practical value would
for panaceas." said one spokesman OF
the Benjamin Franklin school Of
thought. The Benjamin Franklin
school, he explained, is opposed to
greenbackism, free silver and setting up
OF any one commodity as peg on
which to base the whole scheme of
prices. 1t strongly adheres to Frank
Inns doctrine that the fashioned
remedy Of living within ones income,
whether an individual or a nation, is
the soundest way Of correcting present
subnormal business conditions
Sound credit expansion is advocated
by exponents Of this division OF the
American public, but any plan remotely
resembling scheme to infuse water
into American finance will draw con-
centrated opposition.
Several suggestions have been offered
by farm organizations having behind
them 100000 farmer members who,
with their families and their repre-
sentative In Congress, present a strong
front. Their suggestions are distinctly
counter to proposals of banking and
industrial leaders who have issued a call
on the sound money interests" to stand
firmly against radical governmental ex-
periments
Suggestions from four farm organi-
zations in particular have aroused COM
ment among financiers who feel that
the greenbackism campaign OF imitation
Of the last century may be revived.
A Middle Western organization, 1t was
pointed out, has recommended that the
National Government issue legal tender
currency to be used In public works and
improvements in an amount "suficient
to meet the needs Of agriculture and
industry" In this campaign, the COM
mittee states, I'VE demand dollar re-
stored and stabilized In debt-paying
power at what it was In 1920, when the
international bankers started denatton. 4"
Deny Denation Charge.
In rebuttal representative bankers
deny that they started defiation. They
hold 1t was an infallible consequence OF
earlier imitation. AS for restoring the
dollar to its former "debt-paying
power" they contend that 1t would be
accomplish this. Moreover, 1t Is their
claim that any tampering with FIAT
money schemes brings peril that might
lead to national bankruptcy.
Another group, 1t was saids Is urging
Congress to- raise and stabilize the
general price level to the point where
1t was at the beginning Of the defia-
tion," and asks that Congress REQUIRE
the Federal Reserve System to lower
the gold reserve requirements and to
expand the currency
Friends Of the Federal Reserve Sys-
tenn contend with almost militant ardor
that the systems policy Of keeping it.
self in sound liquid position has been
the one outstanding reason for pre-
venting general boarding of gold and
freezing OF bank assets. To invite the
freer use OF the money printing press
would be to invite collapse, they insist
"value Regulation"
Another association has recommended
that Congress take charge of the busi-
ness of coming and regulating the
value Of money" and to relieve the
present distressed condition of labor"
has championed the issuance Of
non-interest-bearing bonds, which in
turn be made legal tender and issued to
pay for public improvements.
Representative financiers hold that
this plan is merely another method Of
cheapening our present large total of
outstanding Government bonds, and in
addition would denoralize the value OF
the American dollar.