The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1932-05-14

| washington --~ Once mora we
must caper about, clasp hands and
oxclain,, "oh, g0ody!"
The nation Is agnin 70 be RES
cued from the trough OF depres'
lis the same depression from,
which We were rescued at the out.
set by O 00.000,000 tex reduce
ton. by the White House confer.
ence Of industrial lists who promised
not to cut wages but to do busI-
mes as usual. and by repeated
official assurances that the corner
had been turned. And, more re.
Gently, by the debt ratoriuni.
| the bankers pool, the Heconstruc-
ton Finance Corporation, the
GLASS; steaeaii bill and q variety
Of minor measures whose curr,u-
iAtive effect was guaranteed 10
melt frosen credits and whlrr the
wheels Of industry.
Democrats ofycr This Ono
The latest sure.fire recipe for re-.
storation Of prosperity Id the
Ooidsborough price stabiilsation
bill. passed overwhelmingly by the
house. It diners from nearly all
the others because II was instigated
and sponsored by democratic rather
than by the administrator.
The bill 10 based on the theory
that the government can raise,
lower and maintain prices by con.
| trolling the amount Of credit
available. 1t instruots the TED.
erai reserve 10 restore prices 70
the average Of the 1e2i.g9 period
and kepe them there. The reserve
10 supposed to keep on buying up
government securities. thus maxi
ing money ana credit available to
the hanks In Increasing quantity.
The bill's most enthusiastic
friends say the prospect OF pre-.
depression prices ana the exptnd-
cd credit will revive ccnhdence,
ret banks TO lending and bust.
meas mon borrowing. retailers.
wholesalers and manufacturer
buying and everybody back at
work.
rsylcc Decline Bcnsoancd
IT'S a credit innntien--er IRE.
Nation" mensufe--And seems 10
have been rushed through part.
~ 10 stall on such demands ~
those Tor inflated soldier bonus
currency and birnetalllsin. The
house banking and currency
committee, reporting 1t. said the
debts OF the country couldn't ~
paid unless the price level was
raised and that unless II was
raised "tkc business OF the coun'
y. q; ~, y Aeadsa for inevitable sa"f'
''fF rcd ucers and debtors struggled
under an ever.ihcveasinK burden
a. prices declined. the committee
said. asserting that the rsserve
banks by open market operations
and use Of the Glass. steakAll pro.
visions 10 release. eeId BY using
sovernment securities 10 cover
bart II their currency. could pvt
nearly nine billion dollars into
the market.
bat WIN u work?
There dees. however, seem 70
be a sadly large doubt whether
prices cdr be raised BY this piece
81 legislation. senator Carter
GLASS 81 Virginia, father cf the re-
serve act, doesn't think they can.
The reserve board tried the
same thing last summer. with NO
results. since january y mas
Bought up about ss0o.ooQ,ooo
worth Of government securities N
the ot,eB market with the idea. Of
expanding credit and raising
rrIcss---0niy 20 find that loans
and Investments continue 70
shrink. Also prices.
The trouble seems to be that
not emily do bankers fear TO lena,
but that buAines men don't dare
borrow. Obviously there's q neeu
Of confidence, but confidence n
these days seems TO demand
something on which to rest. The
doldshoroush bill. consequently.
may net rescue VI for seine time
4 reserve s Heads Opposed
II IL not altogether clear. fur.
thsrm0re. why congress must pasl
q law instructing the reserve 70 de
Aoiusthihg Il ie'already tryinK. e
az. One thought behind Il u that
BY declaring the t9el.2e price
| neiicy, C6bkrsss will make the r.
sxfve keep fitht on buying .up TED
erai bonds Instead OF stoppihk,
Whereae the reserve heads oppose
the biil bttause they wan. 70 b
allowed 70 use their own .diecrettQn.