The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-09-13
WEDNESDAY. SEPT. ID. 1893.
REGARDLESS OF INITIATION


MORE signs of dyift toward currency in
4'A fation appear in Washington When
such influential figures in the administration
as Secretary Of Agriculture Wallace and the
conservative Senator Pat Harrison, chairman
OF the senate finance committee, begin TO re-
fleet imitation demands. there can be little
question of the trend IN that direction.
1t would be inaccurate to say that the
President is planning this. On the contrary,
It is rather clear that he has no fixed none
tary policy. He is letting events decide
for him.
Since congress passed the omnibus infla-
ton bill, he has had his choice Of several
forms of currency initiation. including direct
dcvaluation Of the. gold dollar down to 80
per cent.
The fact that the President through all
these months has not used his currency infia-
ton power is sufficient proof that he is hold
ing that method as a last resort. Repeatedly
he has asserted his intention to re-establish
the purchasing power of the dollar. presum-
ably at about the 1926 level. But so far he has
depended upon so-cslled psychological infla-
ton and credit imitation.
He has hoped that the general recovery
program-including the agricultural adjust
ment subsidies. the public works plan, the
farm and home loan machinery, the RFC
credit facilities. the federal reserve open mar
ket operations, and NFA codes-would do the
trick.
But the recovery program is not moving
as fast as it was a month ago. Official state
ments indicate increasing disappointment with
results Chairman Jesse Jones of the RFC
SAYS the banks are Withholding business credit
and otherwise failing to cooperate.
Secretary Harold L. Ickes is having trouble
getting the huge public works fund translated
in.o- immediate jobs for the unemployed.
While General Hugh S. johnson loses ground
in his long fight for a decent coal code, and
strikes threaten in score of industries, Coun-
sci Donald Richberg of NRA warns of the
danger of a capital-labor war.
Consumers representatives of NRA and
AAA are concerned with price gouging Sec
Rotary Wallace pointing out the wide price
gap still existing between what the farmer
buys and sells, predicts imitation unless that
gap is closed. Senator Harrison and other 20
HticaI leaders who have been back home with
ears to the ground, are returning with the in
haJion demand.
So far as this newspaper is concerned II
is disposed to trust the President to choose
the best time and method Of currency intia-
ton. We say this precisely because he is not
an imitation fanatic and because We believe he
would have the maximum of scientific detach-
mcnt in conducting the very difficult expert
ment of controlling currency imitation.
But imitation, even at best, can not be
cure-alL
Whether there is to be currency imitation
or not. the recovery program will remain the
chief weapon against depression Granting,
for the sake of argument, that the recovery
program should be supplemented by gold dol
lar devaluation or some other form Of currency
imitation. no amount of tinkering with the
money standard can in itself take the place
of needed reform in our economic system
The administrations farm production con-
trol and higher-wage-lo hour industrial
code policies represent the bare minimum OF
necessary reforms.
If the country is too slow in supporting
that Roosevelt recovery program now, much
more radical economic changes may be ex-
pecled before We get through the fifth win
ter of depression.