Evening star., 1932-05-05
BORAH PROPOSES
2FOLD PROGRAM
TO RESTORE WORLD
Disarmament, Reparations
Settlement and Stabilized
Silver Necessary, He Says.
GOLD MENTALITY HIT
IN CROWDED SENATE
Senator Warns of Continued Dis
tress Threatened by Gloomy
Reports From Geneva.

A three-fold program for world
economic recovery, disarmament, settle
ment of reparations and restoration OF
silver was presented to the Senate today
by Senator Borah, Republican, of Idaho.
Addressing crowded Senate chamber,
Borah discussed world affairs, stressing
particularly the gold mentality" which,
he said, had been in force since 1925.
Il venture this opinion" he said,
that unless armaments are reduced so
that burden is lifted, unless reparations
are settled SO Europe can start on eco
nomic recovery and unless silver Is re-
stored to the place it occupied prior
to 1925. to restore to some extent the
purchasing power of one-half the world,
there will not, in my judgment, be any
ready return to prosperity"
Gloomy Geneva Reports.
He referred to what he described as
gloomy reports coming from the Geneva
Disarmament Conference and warned
that unless an agreement to cut arma-
ments is reached the effect will be felt
throughout the world, and investors
would be wary.
II do not know how long the people
will be willing to carry the burden
they are now carrying" Borah con-
tinued, ''but we must not be unmindful
of the fact that the masses everywhere,
including our own country, are be-
coming restless
I'VE do not accomplish things gen
orally in this country by revolution,
but there can be no doubt of general
feeling among the peoples that the
governments are not meeting the task
before them"
Serious European Conditions.
Asserting economic conditions in
Europe are serious, he said:
I'm some of those countries there Is
no circulating medium. Some are
practically in state Of barter.
Borah then declared:
1T has already been foreshadowed
that the Lausanne Conference can not
hope to succeed"
Turning to the gold problem, Borah
asserted there must be some relief from
this gold mentality"
He said the United States and France,
with a population of 170,000,o00, owned
about 10 per cent of the worlds gold,
compared to the l 400, 900 900 who hold
the other 80 per cent.
1T is significant that the abnormal
flow of gold into the United States and
France marked the beginning of the
fall of commodity prices and the
Liquidation of securities. Def1ation be-
gan then, is continuing and seems fair
to go on.
Cause of Fright.
"It seems clear to me that the fright
which still obtains was engendered by
this gold disturbance. A fall in prices
is like a glacier-once started it sweeps
all before it.
Il don't know how to pay the gold
indebtedness of the world SO long as
the gold is held by two nations. Debts
must be paid either in gold, in kind or
il services.
while I am a believer in the protec-
tive tariff, it is obvious that our tariff
will not permit payment in kind There
is no opportunity to render payment
by services.
I'VE are up against an impossible
situation unless there can be a large
supply Of money.
England was forced off the gold
standard last September. Dire prophe-
cies were heard before that occurred
of what would happen. 1t is the only
bright spot today on the horizon. That
great nation which was committed to
the gold standard since 1849 departed
from it and it is the only nation today
that seems to be on the road TO re-
covery.
Proof of Relief Need.
"All of that seems proof of the fact
to me that there must be some relief
from this gold mentality"
I'VE are always being reminded" !"
Borah said, that our national wealth
is S4OO 900 100000. The fact that we
have this national wealth is proof pos
tive that the policies under which the
national wealth is being administered
are unsound.
Il do not believe that We can re-
store better conditions in this country
by increasing taxes and providing
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