The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-03-09
Phone-RIleY 555l
THURSDAY. MARCH Q. 1888
GIVE ROOSEVELT POWER

President Roosevelt desires extraordinary power
to fight the depression, especially on the banking
front Congress and the country ready to grant
that sweeping authority.
The public's attitude springs from under
standing Of the seriousness Of the situation and
confidence that President Roosevelt can be trusted
with such power.
The President probably will find it necessary
to increase the currency and extend the ban gold
payments. Some citizens who have worshped gold
as a mystic symbol of safety and national prosper
ity, and who have supposed that the ban on gold
decreed last Sunday night would be lifted within
few days, may be shocked. They should not be-
The same reasons-and good reasons-which
took us off the absolute gold standard operat-
ing to keep off for the duration of the emergency
and to expand the federal reserve currency.
Our banking system is dscredited. Wholesale
bank failures, followed by general state banking
moratora, undermined the public faith upon which
all financial operations must rest. The run gold
resulted-drained abroad and drained into hiding at
home.
Al ordinary run could have been stopped by the
government, in the past. But this run could not
be stopped by pouring in and paying out all the
gold in the world-because the public had lost con-
hdence in the banking system itself.
There only way to stop the run: Close
all the banks and stop the flow of gold That was
the situation created by the Presidents proclama-
ton
But the banks can not be allowed to remain
closed Communities not exist without me-
dunn Of exchange, and interdependent modern
nation can not exist without a national medium of
exchange. So the banks must be opened again. This
requires adequate but sound, currency,
What is to prevent and worse runs on gold
when the banks reopen? Restoration of confidence
in the banks. That be attempted only in two
general ways. One is to put government guaran-
tee behind all present banks and their deposits
good and bad That would break the government
The other way is to rebuild the banking system
In such way that it will operate with absolute safety
and thus merit and win public confidence.
Obviously, the after way is the only way out.
But Roosevelt can not rebuild the banking sys-
tenn in day week, and he not keep
the banks closed until he perfects new system
He is forced to reopen the banks soon, but at the
same time conserve the gold supply which is to con-
tinue the ban on gold payments until the banking
system be reformed.
That essential reform and unihcation of the
banking system is the test of the Roosevelt pro-
gram, not the gold policy The gold policy is pre-
csely that which any American government would
have been forced to under the circumstances
Once the banking system is reformed the gold pol
icy will almost take care of itself.
To build unified banking system and to protect
the publics money in the process it is necessary
for the federal government to retain control until
the job is done, until the safety of the regulated
banking method is its own automatic and adequate
guarantee
That is why President Roosevelt is asking for
extraordinary power That is why he will be
granted such power, gladly and hopefully.