Evening star., 1933-08-29

Reluctance to give approval is indi-
Gated IN q general discussion OF pro-
posas from some members Of Congress
that currency imitation be adopted. 1t
is held that benefits would be lacking
under any system that raised all prices
at the same time. 1t is believed that a
definite inflationary move would afect
confidence. and the advance is given
that extension OF credit would of1er
more useful effects on business.
Notwithstanding the wide disapproval
of the imitation theory. the Chicago
Daily News argues In favor OF con
trolled imitation" That paper suggests
that knowledge that cotton processing
taxes and the higher costs necessitated
by the N. r. A. codes meant higher
prices for finished goods proved an ao-
normal stimulant to trade and indus
try during the last four months. Inc
Daily News adds that recent develop
ments indicate that the stimulant Is
losing power" and that obstacles 70
continuation of the Summer activity
are growing and call for the employ
ment of the new weapon to overcome
the lag in buying That papers con
clusion is that the weapon very prop
erIv could be controlled imitation" The
Daily News continues: If Government
bonds were issued and used as. security
for Reserve Bank notes with which 10
nav the cost of the $500 900 600 pubic
works program. vast amount OF new
money would pass speedily into direct
Arguing for the opposition to this
view the Sioux Falls Daily Argus
Leader advises that. fundamentally.
supply and demand regulate prices, ana
offers the argument for its point OF
view: In our opinion, arti1cial cur
rency imitation will not produce higher
price levels unless confidence In the
money is cracked. Then prices Will snoot
up beyond all reason, just as they oi9
IN Germany. DevaluatioQ Of the golo
dollar. however. is somewhat different.
II controls our prices in relation to
those abroad and a shift In the gold
content of the dollar can have some
bearing without the tragic results that
follow printing press money. 1t IS,
Though. buS a makeshift and does not
solve our basic problem-that centering
about the disparity between farm ana
industrial prices Gold dollar devalua-
tion will advance industrial prices Just
as rapidly as farm prices and the rela-
tive position of the two classes WILL not
be changed"
Secretary Wallace of the Department
of Agriculture is quoted by the Column
bia IS c. Record as warning that in
fiation alone would not solve the farm
problem" and that paper Is convinced
that the national program involves
more than the juggling OF the cur
rency"; that "if the farmer Is to bene-
AT from increased prices they must be
raised in full relation to other COM
modities and services that the farmers
must buy" The Lowell Evening Leader
finds significance in the fact that Sec.
retary Wallace, who has been regarded
as a mild inf1ationist. now inclines to-
ward the more conservative view" The
Rutland Herald points out that recent
experience corrobrates previous warn-
ings that "one dose of this method OF
raising prices would not be enough"
The indianapolis News declares that
"in swerving away from imitation at
this time the administration has gained
support for national industrial recovery,
and offered a timely concession to the
innate conservatism OF American busl-
ness and finance"
The Hartford Times directs attention
to the fact that "the President is rep
resented as being satisfied with the
manner in which prices are increasing:
those which went up too fast. as OF
stocks, have been jolted down by cor
rective reactions; wage levels are some
what nearer price levels than few
months ago, an adjustment which the
President greatly DESIRES
x x
"Give industry the chance to regulate
productions power it has under the
codes-and prices will rise without arti-
ficial action" argues the Oakland Trib-
une, while the Springfield Union com