Evening star., 1933-09-21
PRESIDENT MARKS
!. TIME ON INITIATION
Opponents and Proponents
g.
: : Seen Dissatisfied With
I Present Outlook.
BY MARK SULLIVAN.

~ The dependable impression OF those
: best informed is that President Roose-
welt does not intend to initiate currency
in the near future if he can avoid II
and that he deplores the present pres
sure of the inflationists in Congress
upon him to act now. Some impress
-sions go further and say President
Roosevelt, as respects his present state
of mind. subject, Of course. to future
change. would be glad If he could get
e. by" without initiating at all.
The position thus attributed to the
President about imitation OF currency
should be accompanied by statement
of his position about imitation Of credit,
which is a different thing. not seriously
criticized by conservatives. AS to in
fiation of credit, the position OF the
administration is one OF energetic ac-
tivity. Credit is being inflated by about
all the means that can be found or In
vented. Some new ways may be put IN
effect shortly. Imitation OF credit IS IN
part the administrator attempted
method of escape from imitation OF cur
rency.
Neither Side Satisfied.
That Mr.. Roosevelt's reluctance to
initiate currency does not satisfy the in
flationists goes without saying Because
of a condition that has arisen. it does
Probably it is fair to say broadly that
Mr. Roosevelt's position. mere absti-
nence from present act OF imitation,
does not meet the situation as whole.
It does not cure, but on the other hand
prolongs the condition. unfortunately
from every point of view. which has
arisen about this subject.
The root of the present situation goes
back to the fact that Mr.. Roosevelt
iAl roPftNAviV
said he might initiate. Merely to say
now that he does not intend to initiate
at the present moment does not change
ANYTHING. Mr. Roosevelt in the past
has by action and even more strongly
In words implied he might initiate. He
eAamplled it by the act of going of the
6 sEold basis in March and April. He
Implied it again more definitely in
April by arranging with the lnf1atlon-
- lists in Congress to confer on him the
: power to initiate the currency at his
discretion by any or all of the familiar
methods Finally. Mr.. Roosevelt has
!. .jmplied it very definitely in words.
- - In his radio address May the Presi-
dent said of himself. The administra-
lion has the definite objective OF raising
- commodity prices" to level commonly
understood to be roughly the 1925 level.
Then MIR. Roosevelt added a rather
equivocal sentence. He spoke Of the
powers given him by Congress as
s'powers for an enlargement Of credit"
Actually the powers also provided FOR
imitation of currency. and it was infla-
tion of currency that was most in the
minds of Congress. Then Mr.. Roose-
welt said. These powers will be used
when, as and if necessary"
ve While microscopic examination of Mr..
Roosevelt's words might reveal that
technically he avoided promise tC
initiate the currency when as and if
necessary" everybody, especially infla
tionists. understood him to make such
q promise.
b.. Specific Statement Needed.
In this condition the only act Of Mr..
Roosevelt that would now create as
surance and would now end the uncer-
tainty arising out of anticipation of in
fiation would be a specific announce
ment. Specific announcement that he
will never initiate at all would please the
anti-inf1ationists But all persons would
be most assured by Mr.. Roosevelt taking
the step of initiation now, and at the
same time stating positively he would
never initiate further Announcement
now that the gold dollar will be per-
manently valued at. for example, 55
per cent Of its old value would create
~SCltalAlIy lOl llIS
the proviso is very important-it were
accompanied by firm statement that
no further imitation will ever be made.
For several reasons Mr. Roosevelt is
unlikely to take this step. Whatever
: question there may be about his having
promised to initiate currency. there is
sno question whatever about his promise
.ssto raise commodity prices. In addition
Ito that general promise to raise
eall commodity prices. he has, through
> signing the farm bill and through
Secretary of Agriculture Wallace
promised to. raise prices of farm
sscrops to a point where they have the
purchasing power of 1909-l4 The ad-
sministration is trying hard to achieve
4&this rise in prices. but is not success
sful. In this condition Mr. Roosevelt
must hold on to imitation as his ACE
s.in the hole as the means to use for
sraising prices if all others fail
. Meanwhile. inf1ationists everywhere
I sconsider that Mr.. Roosevelt has made
"a promise to initiate when as and if
necessary" They are increasingly dis
posed to hold him to that When Con-
Agress meets. if Mr.. Roosevelt has not
inflated. the inflationists in Congress
.zsare likely to take the step themselves.
.Unle4s Mr.. Roosevelt has already in
sfated or unless prices have gone up
other wise to the definitely promised
levels. Mr.. Roosevelt will hardly be in
a position to resist.