The Republican. [volume] (Oakland, Md.) 1877-current, 1933-02-23
LAST PHASES OF DEPRES
SION

A number of students of economics
have recently pointed out the fact
that the closing phases of every de-
preston we have had in the past have
been accompanied by demanGs for in
flation. Recovery from the depres-
sion, they add, has come, in each in
stance, after the government and the
people had taken a firm stand for
sound money and had defeated inf1a
ton.
If growing demand for initiation
marke the final stages of depression
then we have undoubtedly arrived at
that time in cur present era of diff
Guilty. Imitation is one of the much
discussed topics of the hour and bids
fair to be one of the big issues of the
next administration.
Already there are around half
hundred bills in Congress providing
for some form of imitation. Some of
these contemplate cutting down the
gold content of the dollar, others the
free and unlimited coinage of silver
and still others initiation by speed
ing up the printing presses in the
turning out of currency.
If history is to repeat itself, there
fore, we will pull out of this depres-
sion only after all schemes for mon
etary imitation have been defeated.
Whether this can be brought about
remains to be seen. Enthusiastic in
fiationists some time ago expressed
the belief that some kind of initiation
would be written into law by the cold
Congress-" But there is little chance
of this for the reason that President
Hoover would veto any such meas
IRE.
1t is then up to the incoming adj
ministration. Just what it will do re-
mains to be seen. Both parties in
their platforms last year declared
for sound money, and there is no rea-
son as yet to believe that the incom-
ing President is not in line with the
majority of his party on the subject.
But his cabinet appointments and his
first message to the new Congress,
which is to be called into special
session, will be awaited with interest.
AS to the necessity for defeating
inf1ationary movements if we are to
get out of the depression, there can
be little doubt. Controlled initiation, if
imitation can be controlled, would be
of little avail. We already have
enough money for commercial pur-
poses. Controlled imitation would not
help. 1t has not helped Great Bri-
tain where it was predicted that
abandoning Of the gold standard
would raise prices and help industry,
And uncontrolled imitation means ruin
ruin first to the creditors and then
to those in debt. The example of Ger
many along this line ought to be elo-
quent and convincing proof of this
fact.
Mr.. Francis H. Sisson, president of
the American Bankers Association,
recently we'll summed up the sta
ton when in part he said:
Imitation is not the pathway to
business recovery in the United
States. The nation has an ample vol
ume of currency and resources for
sound credit expansion to finance the
restoration of business to normal pro-
portions and activities. The great
need of the hour is to set our exist
ing currency and credit powers in
motion-to give them velocity and
dynamic force which are in fact just
as effective in stopping deaation and
stimulating business activity as in
fation is thought by its opponents to
be, without its known baleful effects
and deceptive evils.
"And what is needed to give our
currency and credit resources velocity
is business confdence-confidence
dllOIlS lIluuSLIidI dllu DuSlIlSSo lSduSIo
for their undertakings, courage to ask
the banks for sound loans to finance
them and prudent courage among
bankers to grant them-courage, also,
among our people to resume normal
spending and replenishments, and
among our investors to resume nor
NAL investing.
81 believe that the government at
Washington has largely within its
grasp the possibilities of making bus
mess confidence a plain, everyday,
practical working reality. A program
of real economy in government ex-
penditures and sound plan of taxa
ton revision to produce adequate rev.