Evening star., 1933-07-25

u hisher the S ratio ratio. tie sreatsr ths pureSasins
price Of silver which 1t buys.
paid OF In 1922 with . 5S-cent dollar;
those who borrowed in 1917 with . To-
cent dollar paid on in 1923 or secured
a new lean with q 57-cent dollar; those
who borrowed In 1920 with . Accent
dollar paid of in 1926 or secured . new
loan with q 57-cent dollar. Now that
the cost of living dollar Is around IS
cents how much would the standard
of value have to be reduced to bring
Justice" to the greac.t number OF
farm debtors? In what year would
there be found the greatest number Of
farm debtors?
Farm debts, according to estimates
for the year 1929 by the National In
dustrial Conference Board. amount to
about Sl2,224, 900 900, which Is about
half Of the individual. non-farm In
debtedness Of the Nation, estimated at
$24, ,e7l 900 900. In what year was most
of this private indebtedness assumed?
The indebtedness of corporations IS es-
timated at 1851 900 000-which Is
more than twice the amount Of indi-
vidual and farm debt combined. When
was most Of this corporation indebted
ness assumed? To what level would the
value of the dollar arbitrarily be reduced
to enable corporations to pay their debts
in the same sort Of dollars that they
borrowed?
No General Average Debt.
There Is no figure to express the
average term Of indebtedness in the
United States. A great amount of in
debtedness, represented in commercial
bank loans is payable within the year.
But some corporation bonds are written
in terms OF rs years. 1t Is impossible
to settle on the class of debtors who
are most in need of obtaining . cheaper
dollar. and no such settlement, II 1t
were attempted, would be possible with
out injustice not only to creditors, but
to large numbers of other debtors. In
selecting one group of debtors to be
blessed with cheap dollar" another
group Of debtors would be Disseminated
against being those who have
borrowed an even cheaper dollar.
It Is to be remembered that those
who would change the standard Of
value In order to give debtors the same
sort of dollar that they borrowed are
not faced with the single task Of
making an arbitrary reduction that
would result in establishing q new level
Of prices. For, once this new level IS
established. It must be maintained. And
maintaining 1t Is. all experience teaches.
an almost impossible undertaking. Once
there is imitation Of the currency (by re-
ducing the gold content Of the dollar or
hSx{ . Ah al &v.
petition with the gold dollar or by print
an artificial, new level Of prices has by
such means been established, the only
resort In the hands Of the authorities
when this level begins to sink again Is
more imitation.
Dangers q Imitation.
The difficulties and distress accom-
panying An unstable relationship be-
tween the money standard and COM
modities are obvious. These difficulties
and this distress result, In the opinion
Of some men. from the various complex
factors affecting the commodity element
Of the price ratio, although there are
earnest students who would place part
Of the blame on the metaEgold-by
which values are determined. But,
without precise apportionment Of blame
IN the matter, Will not the rises and
falls of the prices Of commodities meas
ured by . fixed standard be complicated
still further If the standard Of meas
urement Il also to be changed? For
q fixed standard there would be sub
stituted one that is changing from day
to day, until there Is no longer any
standard Of measuring value and no
man knows ON one day what the value
Of his money will be the next. The
ones most to benefit would be those who
ceased speculating successfully in COM
modities and began speculating with
money.
The President promises to use his
powers over the currency only when,
as, and IT, 1t may be necessary. In
alike are obtaining much-needed relief
from some distressing conditions Of the
emergency by legblation designed to
lower interest and arrange new and less
burdensome terms for the payment Of
debt; to avoid unnecessary and harm
full bankruptcies and forced sales; to
stimulate commodity prices by restoring
purchasing power through creating work
for the vast army Of the unemployed; to
control production ut home and to per-
NIT the development Of markets abroad;
to increase the safety Of money ON
deposit In the Nations banks, and, with
all these things, to stimulate confidence
In the promise Of new deal"
All good Americans viii hope that
these bold plans Of the President will
be successful and win render unneces-
sary resort to the dangerous alterna-
tive Of contract reputation and dollar
dehasement
Uncse Sam viii, u eearse, strive
earnestly to avoid blundering int .
pitfan Of actual dishsnesty In hi pur-
sait sf that will-o'-the-wisD, the nsal