The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-04-25
BY ELMER THOMAS

WhDA tAS hCoi hlsS vi bHc d.
called bonus bill were opened, Con-
gressmen Patman and Rankin fixed
definitely the limitations to govern
in presentation Of arguments favor
ing the proposal.
The principle was laid down that
although the eterans want the GER
tihcates paid, and although they
need the money, yet unless it can
be shown that the full cash pay
ment will aid the unemployed, the
farmers. the merchants, the banks
and business generally, the claim
and demand of the veterans should
fail.
Supporters Of the measure claim
that we are suffering from short
age OF actual money in circulation;
that this bill will correct this short
age, and that, in proportion as cur
rency is placed in circulation, money
thereby will become more plentiful,
consequently cheaper, and as the
buying power of money comes down
commodity prices will go up.
New Money in Circulation
If the bill passes, veteran hold
ing a $500 certificate will receive
payment in new, crisp, federal re-
serve bank notes. and every time a
veteran is paid new money will be
placed in circulation.
The principle of more money
makes cheaper money" is admitted
by financial experts and economists,
and, because addition of new money
to circulation will reduce the value
of the dollar, the holders of notes
and bonds are opposing the
measure.
1t seems that all now admit that
the dollar is too high priced; in
other words, that it buys too much.
Such arguments are being made be-
fore the ways and means commit
tee and also in the senate.
Senator Walcott of Connecticut
recently made the statement: our
dollar today buys too much, be-
cause commodity prices are lower
than they should be-"
Would Boost Prices
Senator Pat Harrison has said,
$50 we have to initiate in some ra-
tionsl way to increase prices of
commodities in this country"
John A. Simpson, president of the
Farmers National Union, says.
This country needs a new crop of
money"
AS to the amount OF money ne
cessary to be placed in circulation,
we have an Interpretation from
Senator Glass of Virginia. In a re-
cent senate debate, he said, who
will say that If we might expand
today to the extent of $4,000 900 900
the situation would not be curedP"
Public sentiment is crystallizing
back Of demand for more money
and a cheaper dollar. If the prin-
ciples set forth are sound, then the
passage Of the bill will have the
following effects: IF the dollar is
cheapened, instead of buying two
bushels Of wheat it perhaps will
buy only one, and instead of buy
ing twenty pounds Of cotton it per-
haps will buy only ten.
The bill will aid and benefit di-
rectly the father or brother even
more than the veteran himself. For
illustration, the veterans father
may have stored in his barn ten
bales of cotton and may have in
his granary 1000 bushels of wheat.
Help for Farmer
Today his cotton is worth some
6 cents a pound hence a 500-pound
bale is worth $50 and the ten bales
are worth $500. Today wheat to the
farmer is worth some 40 cents
buShel, hence his thousand bushels
are worth $500.
If through an increase of cur
rency in cirmculation commodity
prices are increased so that wheat
on the farm will sell for so cents
bushel and cotton will sell for u
cents a pound, then value of the
ten bales of cotton will be increased
to $500 and value of the wheat will
be increased to $500.
In such case the veteran will get
his $500 certificate cashed and his
father and brother-which means
all farmers-will have the value of
their commodities doubled.
II prices are increased, industries
such as mining, numbering, live
stock and oil production will be ben
efited directly and such increased
prices will reinvest the masses with
new buying power, which, in turn,
will be reflected in business activity
Immediately.