Evening star., 1933-01-23
Imitation.

Without producing any definite plan
of action Senator Borah has made his
contribution to the increasing CONVEX
sation about the need Of imitation" !"
Although the Idaho Senator did not
say that he believed the printing presses
should be speeded up and money turned
out with nothing back Of 1t except the
impress Of the Government of the United
States, his statement urging relation,
made public today. insists that some
thing must be done about the currency.
The Senator calls attention to the fact
that the other important nations Of the
world have gone of the gold stand
ard, except France; that with their
cheaper currency these nations are
threatening the industries of the United
States. The implication is that the
United States, too, must go of gold.
The alternative would be to prevail
upon the other nations to resume the
gold standard Much the wiser course.
What this country needs today is rot
more currency, but more currency in
circulation. The currency today in the
United States, including that in hoard
ing, is within striking distance as great
as the currency which was in use in
the boom prosperity days of 1928 and
early 1929. To place more money in
circulation there must be more busi-
ness. And to have more business, there
must be more courage and a greater
use OF the credit facilities which have
been provided SO generously through
the aid Of the Congress and the Chief
Executive in the last year or So There
great difficulty has been that they have
not been used as they should The
money powers have shut up shop to a
large extent, not realizing that such re-
duction of the circulation of money is
dangerous to the whole structure, in
Guiding themselves. Nothing could be
OF greater benefit today than The in
creased use Of sound money. Probably
nothing could be more harmful than
the issuance of fiat money-moncy with
nothing back of it.
Senator Borah states that the in
comes of the country have shrunk and
shrunk. 1t is true and it Is most un-
fortunate. But that is not because
there is lack of currency. but because
there Is a lack of employment of the
money and credit that exist. He is
exercised because the country is flooded
Wth cheap foreign products, which he
says are running the industries in
America. Senator Reed of Pennsylvania
has demanded again and again that
this situation be examined, particularly
wnen there has been a roar against the
Republican protective tariff on the
ground that it Is too high. The
Pennsylvania Senator, of course, be-
lieves that the tariffs should not be
reduced, but rather that they may need
increasing under such circumstances.
The Idaho Senator insists that prices
Of commodities must be increased; that
it Is idle to talk about balancing the
Governments budget until the budgets
of the individual Americans can be
balanced. One of the reasons that the
individuals budget cannot be balanced
now lies in the fact that the Govern
ment does not balance its own budget,
but continues to spend money which
it does not have until it takes it from
the pockets of the individual citizen
If Mr.. Borah proposes to increase COM
modify prices through issuance of more
and more currency he will find that
soon money is so cheap that many COM
modities-things of value-which now
have value will have none. He does
not appear to take into consideration
the millions of persons in this country
whose extremely moderate completeness
would be so reduced In value as
no longer to provide a livelihood
should there be great initiation
of the currency. That Is the other
side of the imitation picture. Other
nations, Germany in particular, have
tried initiating the currency In recent
years with the aid Of the print
ing presses. There is no record, how
ever, that there is less suffering in
those countries, that standards of liv-
ing approach those in America even