The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-12-12

puted. that the gold standard coun-
tries sank to a depth of depression
which the countries that abandoned
gold escaped.
Now let us look at our experience
after we abandoned gold and left
the dollar to depreciate to about
the amount which Britain allowed
the pound to depreciate. We have
seen that Britain, to put it quite
conservatively, remained at the
level of prices and of production
prevailing in September, 1881,
whereas we sank to much lower
depths.
What has happened since the
American dollar has followed the
pound away from gold? 1t can be
said broadly that we have recov-
cred the ground lost since 1881.
Taking the federal reserve figures
as a measure, we find that in Sep
TENDER the adjusted index OF in
dustriaI production was back where
it was in June of 1881, that fac
tory employment was back where 1t
was in August, 1881, that pay rolls
we're back where they were in
October, 1881, that freight-car load
ings were back where they were
about November, 1881, that COM
modify prices were back to Septem-
Der. 1881, that common stocks we're
back at a point somewhere between
September and November, 1881, that
the average price of bonds was
nearer the level of November, 1881,
than it was at any time while Brit
| ain was off and we still were on
| the gold standard.
ATOW it is open to any one TO
IN say that all of this would have
happened anyway. But it is most
impressive fact that since the dol
lar has followed the pound there
has been a recovery approximately
equal to the superdepression which
occurred when it did not follow the
pound. It will, think, be very hard
to convince the lay mind that all
of this is accident and coincidence.
Now, I realize that these are
rough gereralalizationS and that
dangerous and unWarranted INFER
ences might be drawn from them.
For example, it does not at all fol-
low that having had some recovery
by bringing the dollar into line
with the pound, both being depre-
ciated from gold between 80 and
40 per cent, that you can get more
and more recovery by more ana
more debaSement.
You might get a panic and a
collapse. But the inference is war
ranted. I think, that the British
have been justified by the results
in depreciating the pound as much
as they have, and that we have
been justified in following their ex-
ample.
There is another broad consider
alton which, to the lay mind, is
impressive. SO far as I know, the
United States is the only country
not on the gold standard where the
advocates of sound money profess
W OCuGNG U1ldb Vic CAO41Cl146C NcsAOC
of the currency in gold and other
currencies is of no Importance, pro-
vided it is fixed.
Here alone it is said that it does
not matter where we stabilize if only
we stabilize. I never heard of a
responsible Briton who said that
about the pound. On the contrary,
the British have fairly precise
opinions. not absolutely exact, of
course, as to how valuable they can
afford to let the pound be.
n
XXTHY is it that the upholders
VVof sound money in the United
States are so unwilling to discuss
the proper valuation of the dollar,
and even in many cases profess not
to regard the question as important?
There is a good reason, I think,