Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-11-21
BARUCH SCORES
INITIATION PLAN
Chance of Success Thin and
Desperate, Writes Noted
Banker.

Bernard M. Baruch, in an article in
this weeks Saturday Evening Post, says
that he believes Imitation is an enemy
of mankind"
TN New York, Mr.. Baruch described
the article as digest of his testimony
before the Senate Banking Committee
in February. and made it clear the ar
ticle itself was prepared in June, before
the administration announced phases
of its present monetary program. ANY,
way he added. $50 far there has been
no real infiationsD
The New York hnancier said:
Il believe that its employment is an
act of desperation, working untold hard
ship into our economic and social sys-
10 spread through human Teiations sni
as does any act Of exploitation, oppres-
sion and Of unreaS0ned and unlntelli-
gent use OF political powers. -
We are told that IL will instantly
increase all prices, expand export trade,
improve the condition of agriculture and
start buying everywhere" he said.
There is an attempt to lead the coun-
try to believe that it will help all
uCUtOt CiuccCos % oDItC ltilRSAt otb w Gil
Street influences want It. Leaders in
some Of the powerful Federal Reserve
Banks have been known to propose, in
a subtle form, about the same idea as
the most radical members of Congress
Goldsborough bill.
Success Doubtful
THE turn to imitation Is not Just a.
slight change of policy which can be
promptly called back If it turns out
wrong.
1T is like surgical operation on the
human heart. The chance of success
is thin and desperate. The surgeon
has a leeway of only one mistake and.
il he makes it. the only other help
needed will be the undertaken.
Speaking generally of imitation in
the sense OF issuing food of ire
deemable currency, let us suppose that
It would increase all prices-double
them-and suppose. too, that it would
also double all wages, salaries, rates
and other incomes.
Would anybody in this country be
better on In his day-to-day relations
with the world? Certainly not.
Every man would take In twice az
much. But he would have to pay out
twice rs much. We would be just where
we are today and nobody would be
helped.
Warns Of Limited Good.
But that Is not the way imitation
works. That Is not the way it is in
tended to work. The plan is DELHI
erately designed to double some prices,
but not others. OF course, that means
that some class is going to benefit at
the expense of some other class, and
before we rush blindly into this we
should find out who is hurt and
whether all this is truly for the great
est good of the greatest number
Barlch said:
AT a time like this, when millions
are on starvation wages and millions
more on no wages at all, sudden
doubling Of prices without an inme-
date increase in wages would be the
worst blow Of the depression.
@Of 4S 1000 900 bread winning workers
counted In the 1880 census, not more
than 5000 900 could. by any stretch of
the imagination, be classed as producers
and also sellers OF things farmers, for
example.
Even II we were to suppose, there
fore, that imitation would fulfill the ut
most hopes of all the 5000 900 pro-
ducers OF things, it would by just SO
much impair the fortunes OF the 40
100000 who are. not producers of
things.
M[ust Dissipate Cloud.
In other words, for every one citi-
zen that it helped. it would harm five
citizens by exactly as much as it helped
the one Surely. no fair-ninded man
could even consider such q course. For
example. this plan may. for q time, be
good for n few million farmers who
raise export products 1T would not
help all farmers few gold and silver
miners ard q few owners Of great COM
modify stocks But what about the
many more millions now dependent on
starvation wages and salaries?"
Answering his own question, What
are We TO do?" Baruch says:
What We want Is q resumption Of
normal American business, with wages,
prices and business activity all going
up together. The single missing ele-
ment Is complete confidence. The sure
way to sgve the giant Iabors Of Frank
LIN 2. Roosevelt is to dissipate this
cloud"
This Government is again at a
crisis he asserts 1T was half saved
because the President went SO rapidly
TO work to build up the wreck. If there
Is . new wreck, 1t will be our wreck"