The Waterbury Democrat., 1933-01-31

You feel sure or this because the Rovernment has definitely set down the terms on which 1t is to be used ih paying debts, and on which 1t Will he exchanged for gold, . thing Everybody agreed Is valuable.
 Most kinds of U. $. money you con take to the mint and, on your demand, Uncle sam will give you gold coin for them containing xt.S grains of fine gold to tho doi- lar.
 That is tho nucleus of the pres ent system. But the whole system of paper money Is m artificial. q created system, What the govorh- fnent creates, it can change. In. fI0tion means change in this syS. tom by law to achieve certain re- suits.
 How Currency Is Inflated
 Many ways of getting thoso re- suits have been proposed. Hero are the chief ways;
 l. Printing moro paper money and putting it in circulation With out putting any moro gold In tho troesury vaults to redeem it on de- nannd. No government has eVor hfid enough gold in It's vaults to NAdeem instantly every paper dol- Mr in gold. Long experience has Flowed it Isn't necessary, because Mpyernmcnts arc suro everybody in the country won't be wanting their Epld at tho same time. Tho U, S' kbvornment usually had from 90 10 N per cent of all It's money in EpId. Tho whole question here Is: how much paper money ean you is- nAlo for your gold without under.
 AraNa lai n it Hnd causing them 10 refuse to ne. tept the paper at It's fnee value M is here that opinions on thls 1nflation plan differ widely,
 2. Lowering tho gold content of {he dollar. The government now Ehys that there shall be 25.S grains ,pf gold in gold dollar. 1t could any go grains, or 10, and issue XaoyO dollars against tho present Hook of gold coin or bullion. The Huaatlon here is tied up with the World prleo for gold bullion and Ather complicated factors. Tho nrobable effect of such C reduction .on tho value of the dollar is what tnuses the difference of opinion Here.
 a. Romonetizing silver. the plan 8uss ahelved in tho senate. Under fhe present law, tho government .Xuarantees to give to anyone who Brings gold bullion to tho mint gold sNoins corresponding to tho weight of gold tendered, regardless Of the prioe for froe gold used for other 'nQurposes. The gold eoinlng value ,HnA tho commercial eoining value hre about tho same, however. The &ilver advocate believes advantages .IH Fall sin ttfpan anh l.. AImited coinage of silver" at q fixed Xhtio to gold, usually iG-1, and re. .XardlesB of the commercial mar. Net price of silver. it is assume s<hat such coinage and "pegging of .fhe prieo" of silver by the govern. {hent for coinage purposes on Il F<lefinlte ratio to gold would raise Its price. lt would also, obviously, .Abnable tho government 10 Issue q Xreat deal more papor money Against deposits of silver, just as it l'Aow does against gold.
 >Aims Of Imitation ~ These arc tho three principal 55lans for imitation. Hut all the in. ' Nation plans have ono aim; to Naise commodity prieos, enable { s<lebtors to pay of with cheaper 1ztloilarg debts that were piled up len dollars were cheaper. en' { Able tho farmer to mako a living &f'em what no produces by boost . Ing It's price, increase tho wholo ssrountry's purchasing power, and Xhus revive business and industry ' As well as agriculture, i'sa Now there is no doubt at all what if enough paper dollars are 4 Bumped Into circulation, prices NH rise. Tho whole question K, How much will they rlso, and how l,snany paper dollars must you is- Nue to make them riso to q proper