The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-11-26
(Official City, State and County
Newspaper)
Foreign Representatives
SMALL. SPENCER. BREWER
Uncorporated
CHICAGO NEW YORK BOSTON
The Rubber Dollar

The Rubber Dollar
Signs are multiplying that there
will be expansion of the currency this
winter.
There never has been time in
the history of this nation when pro-
ponentS of so-called printing press"
money were not plentiful, but there
are indications now that the demand
for some action to get prices back to
a higher level is finding support in
high places.
Before the recent election. a dis
tinguished commentator on national
affairs is said to have predicted that,
regardless OF who was elected, there
would be expansion of the currency
this winter. This idea was bolstered
by the announcement of Senator
Borah that he favored such scheme.
In the heat of the political cam
paign it was impossible to discuss
this matter in an bipartisan manner.
President Hoover exhorted the nation
to maintain its faith in sound
money and gave as one of his major
accomplishments the fact that this
nation weathered the world financial
tempest with the value of its money
unimpaired. President-elect Roose-
welt and the Democrats stood on the
sound money plank in their platform
without much elaboration or ex-
PLANTATION, though denial was made
that the party stood for fiat money
as it was accused of doing while the
campaign was at its height.
OF particular interest since the
election, however. is the declaration
of DR.. Benjamin F.. Anderson, Jr.,
economist for the Chase National
Bank of New York City, the worlds
largest financial institution, that the
position Of the American dollar is
now and has been at all times in
recent years "impregnably strong
He disagrees with the president S
campaign declarations by asserting
that, even at the low point reached
last August, there never was any
question about Americas ability to
maintain the gold standard.
DR.. Anderson and the bank he
serves are not protagonists of cur
rency expansion but his statement
contains more than hint of belief
that expansion could come without
undue harm to the financial struc-
ture. If the American dollar was
"impregnably strong" at the low
point in August, it could carry a few
billions in additional paper money
without serious embarrassment, one
infers from Mr.. Andersons speech.
The demand for initiation now is
beginning to come from business as
well as from the farms. North Da-
kota, through its apparent support of
the Frazier Farm Relief bill, appar-
emily has espoused the cause of
cheaper money. The same wave of
sentiment has engulfed other farm
areas, judging by current statements
of politicians who are pretty keen
at sensing the public demand.
Now business feels keenly the same
situation which has harassed the
farmer. This is inability to pay
mounting burdens of debt. The
farmers problem comes in the price
OF his products. In Iowa, corn which
has averaged so cents bushel in
the past, now sells for 10 cents. It
takes five times as many bushels OF
corn TO pay dollar in debt as it
used to.
! In North Dakota 35-cent wheat
makes it difficult to pay bills con-
tracted when wheat was lbs, nearly
four times as difficult, in fact.
This disparity has given rise to
new Technology in the farm belt.
Farmers are referring to the rubber"
dollar, laying emphasis thereby on
the contraction in the currency.
The word carries with it a picture
vastly different than that called up
by references to the sound" dollar.
! Yet the two words are intended to
mean the same thing.
. Whether we like 1t or not, and the
majority Of North Dakotans win like
It. there seems every reason to ne-
Aeve that the dollar viii be stretched
mflaef than further contracted. at
the session Of congress beginning
next month. The forces demanding
such action are too strong to be
denied.
Economists estimate that by late
December or carly January employ