The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-04-22

reduce the gold backing behind
the dollar up to so per cent of
the present required rate, the
power to issue $4,000, 100000 Of paper
currency to be backed by silver which
the government is empowered to &C
cept in payment for war debts.
Under the provisions Of the Emer-
gency Bank Act which was recently
passed, the Roosevelt administration
has the complete machinery neces-
sary for an indefinite expansion Of
paper currency. The passage Of the
Thomas Amendment places In the
hands Of the Roosevelt Administra-
ton the most drastic powers for cur
rencv initiation which this country
has ever seen.
1t is an absolute certainty that the
Roosevelt government is going ahead
with full speed towards forced ex-
pansion of currency. The cheaper
ing Of the dollar and initiation meas
ures have already caused a rise in
the retail prices Of everyday necessi-
ties.
Cheapening the Dollar.
The declared purpose of the Roose-
welt government is to raise prices by
cheapening the purchasing power of
the dollar. The dollar is now off,
cially off the gold standard, and is
declining rapidly in terms OF other
currencies. The dollar has declined
to 81 cents in terms OF other curren-
cieS.
The purchase power will also be
lowered by the proposed plans to
pump into circulation new paper cur
rency equal to the amounts Of frozen
deposits in the thousands of closed
and restricted banks. This Is a dir
ect cheapening Of the dollar, since
the new currency will be backed By
nothing but assets for which there is
no market.
Credit Plan WIN Fail.
The plan of the Thomas amend
ment is that Roosevelt shall first at
tempt to force $3,o00,oo,ooo of lib
eral" credit into industry in order
to start production upward.
Wherever the government will sue
coed in making this credit available
to business, it will simply mean that
the government Is bailing out the
frozen assets which are in the hands
Of the creditor class. The govern
ment will assume the losses Of the
capitalist class.
1t is the purpose of the Thomas
Amendment that if these credit oper-
ations do not start production up
ward, then the government shall
make use OF the out and out infla-
tionary machinery which is at hand.
The government shall devaluate the
dollar by reducing the legal gold
content Of the dollar, silver will be
used as backing for currency, and
enormous quantities OF paper money
will be issued.
The proposal to start business by
the forced expansion Of credit is
doomed to failure. The Federal Re
serve under Hoover attempted 10
force credit into business last Sep
TENDER. Enormous reserves Of avail
abe credit were created in tHA mem
Der banks by the Federal Reserve
purchase Of securities in the open
market. The credit, however, VS. of
the slightest use in starting business,
since the use Of credit is dependent
upon the possibility Of making pro-
fit. With complete lack Of pur-
chasing power on the part of the
impoverished masses, the enormous
available credit was useless.
It is, therefore, a certainty that
Roosevelt's plan for credit expan-
sion through Federal Reserve oper-
ations will fail and that Roosevelt
will be forced to set in motion the
full machinery for initiation now pro-
vided by the Emergency Bank Act
and the Thomas Amendment.