The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-11-28
M. Tracy Says:

XXTHEN it comes to loose thinking the anti
w inflationists, as they call themselves, have
gone the limit We mustn't think of devaluing
the dollar, they argue, because of the injustice it
would do creditors. Then they proceed to prove
that creditors out-number debtors by three to
one. Count up the life insurance policy hold
ers, they say, or savings bank deposltors, and
see for yourself.
1t sounds very plausible, until one begins to
peek behind the figures and approach the ques-
ton from it's dynamic side. Most people are
on both sides of the fence at one time or
another, borrowing today, lending tomorrow and
vice versa. You don't make debtors without
credit, nor creditors without debt.
Take the average life insurance policy, for
instance and you find that when premium has
been paid it's a credit, but when premium
falls due, it's debt.
And the savings bank structure-what does
it rest on if not foundation of debt? Where
would the depositors get their or per cent
if multitude of debtors were not paying in
terest on bonds and mortgages?
A LII Of us who have anything, or who are
"A trying to get anything, are intangled hope
lessly in the debt structure. Indeed debt is the
whole basis of credit as far as money is con-
cerned. But money forms only part of our
capital structure-the moving, dynamic part
The rest of our capital consists of land build
ings equipment and, above all else, man power
Money has become too obstreperous during
the depression to serve its legitimate purpose;
has ranged out of line with other values, de-
stroying equities, stagnating industry and
throwing people out of work. Those who hap
pened to be caught on the debtor side have been
subjected to merciless treatment in the rush to
grab, or keep money because OF its rise. Their
homes, workshops and jobs have been taken
from them in order to feed the sacred COW.
Walter B. Pitkin puts his finger on the dan
ger spot when he says that about half the people
in this country have been reduced to a sub
sistence viewpoint, have been taught by Cruel
ling hardShips how to get along with the bare
necessities of life, have lost their appetite for
luxuries and their ambition to strive for them.
How are you going to correct such situation
as that, except through increased consumption
made possible by restored buying power, and
how are you going to restore buying power
without bringing money back into line with
commodity values?
THOSE advocating a lower dollar are not
l. seeking to change a normal setup but to
correct change that already has been brought
about by an abnormal setup.
The debt burden Of this country virtually was
doubled between the fall of 1929 and the spring
Of 1888. That worked grave and, in some cases,
an irreparable injustice not only. on people who
couldn't pay, but on people who couldn't collect
In other words, it stopped the natural movement
Of exchange, until We found ourselves with a
surplus on hand, while millions went cold and
hungry.
Things are so arranged that if we fail to re-
produce the wealth Of this country once every
five years. or turn over the volume of money in
circulation ten, or a dozen times each year we
can't make both ends meet. Well, try to do it
with the dollar at its last March level, or with
the debt load unreleved.