Evening star., 1933-04-24
The Political Mill
By C. Could Lincoln.

Currency imitation has become over
night political as well as an economic
issue In this country. Republican
leaders In Congress and out have bro
ken flatly with the Roosevelt admins
tration over the Thomas amendment
to the farm relief bill, which is the
Presidents imitation program, q pro-
gram which the Chief Executive has
demanded be approved by Congress
without delay. The lines are being
drawn. and the light in Congress BY
the Republicans, under the leadership
Of Senator David I. Reed Of Pennsyi-
vania In the Senate and Representa-
tive Smell Of New York. the minority
leader in that body, has already been
launched. There seems little chance, If
any, that the small Republican minority
in the Senate will be able to prevent
favorable action on the Thomas amend
ment, which the Democrats aim to at
tach as a rider to the farm relief bill.
Only a bareback from the country of
serious proportions would be able to
shake the determination Of the Demo-
Gratis to 60 through with this legisla-
tion. None at present Is in sight.
So far there has been no currency
imitation under this proposed legisla-
ton Such imitation as there has been
Roosevelt's order to clamp down an
embargo on gold shipments from this
country, taking us of the gold stand
ard at least for the time being. That
measure of imitation has not yet been
widespread. But should there be q
sudden increase in the prices Of food
and clothing and other necessities in
the great populous centers Of the coun-
try, q roar which might easily raise
some Of the Democratic leaders clear
out Of their chairs would probably be
heard. The Republicans, who have
been going along with the administra-
well up to the present time, believe
that sooner or later, If the administra-
ton persists in going through with this
program Of currency imitation, the roar
Is going to come. They are going to
take advantage Of 1t, If 1t does come.
At the same time, many Of the Re-
publicans conscientiously believe that
such currency imitation can only lead
to disaster-just as it did, for example,
in Germany when the printing presses
turned out money BY the bale that
with.
President Roosevelt is given tremen-
dous powers over the Nations currency
in the Thomas amendment. He may
bring about imitation through action Of
the Federal Reserve banks, directing
them to purchase in the open market
Government securities against which
notes may be issued, up to total OF
$1,000, 900 900. He may start the Bu-
reau OF Engraving and Printing to
turning out "greenbacks, which would
be legal tender and could be used to
pay Government obligations. but which
would be backed by the Government
credit alone-also to the tune Of S.
000,000,O00. He may also cut the gold
in the gold dollar at one-hah what
1t now is. And finally, he may accept
up to $l00, 100000 In silver from the
foreign debtor nations in payment OF
their debts to the United States.
There Is nothing in the amendment
mandatory. 1t is merely permissive and
leaves the whole matter Of imitation
to the discretion Of the President. He
may never use it. But If he doesn't,
there will certainly be a howl of large
proportions frcm the Thomases, the
Rankins, the Longs and many others in
the Congress who today are taking the
lead in the demand for currency In
f1ation. It has been suggested that the
President Is seeking this wide authority
so as to head of mandatory imitation
legislation by the Congress. Apparent
ly, however, the men who are strongly
for imitation Of the currency are con-
vinced that. given these powers, the
President intends to use them.
Now the Republicans. or some Of
them at least, are not firing at the
President because he took the country
of the gold standard in an effort to
prevent the rifing of the gold supplies
Of the Nation by foreign nations .
not object to the President reaching
an agreement with the foreign nations
for stabilization Of currencies and in
ternational exchange. But they do
most seriously ooject to his tanpering
with the American currency. And 1t
may be said that some Of the Democrats
also have grave misgivings and are
relying on the Presidents doing nothing
OF the kind, after the legislation shall
been passed. The New York Times,
commenting editorially on the in
f1ation BILL" the Thomas amend
ment. says: whoever drafted the con-
IIOlAcO uAAaIlOu I'LL Cdu AdVC 4ldO
little acquaintance with economic
mentary.
It is quite true that the Presidents
negotiations with the foreign powers to
bring about economic recovery, not only
here but in the rest Of the world, may
completely overshadow the row between
the Republicans and the Democrats
over currency imitation in this country.
Upon the success of these negotiations
will in all probability depend real i'm
provc ment. 1t is devoutly to be hoped
that the President will be successful
in these negotiations, not only by
Democrats, but also by Republicans.
America must continue to try to lift
itself out Of the economic bog. Then
the matter Of domestic currency infia-
ton will have had tremendous signifi-
cance It may never be tried, and many
Americans will heave q sigh Of relief If
1t Is not.
The thought back Of currency In
flation Is to increase commodity prices,
thereby causing the producers to pro-
duce more and thereby give more en-
ployment and wages to the workers,
which in turn will create more and
more buying power. 1t all depends upon
whether there must be increased buy
ing power in the first instance. OBJ
viously there will be no increased buy
ing power until there has been greater
production and employment and greater
distribution of wages. Which came
first, the chicken or the egg? That
is the kind Of question which the Amer
lean people must ponder over today.
Generally speaking, the great majority
Of the people have never given any
thought to such q problem, to the prob
lem Of currency imitation. They don't
know what it is all about They hope
that it will work. They don't know.
Perhaps that Is the reason that up to
date there has been no very great popu-
lar debate over the matter The people
have had hard times. They are will
ing to try ANYTHING to get out If the