The Republican. [volume] (Oakland, Md.) 1877-current, 1933-09-28
NATIONAL AFFAIRS
By FRANK P. LITSCHERT

The NRA drive in political circles
is now being compelled, for the time
being at least, to share the spotlight
with Old Man Imitation. Every day
now we see in the public press inter-
views by prominent men and editorial
speculation on the possibilities of in
fiation. On just what would happen,
were we to have currency imitation,
there is of course no general agree
ment. Those opposed to the method
point to the unfortunate experiences
of Germany and other nations in
which imitation was permitted to run
riot. The infiationists tell US that
Germany's trouble was due to the fact
that she did not control imitation. The
anti-infationists counter with the re-
ply that once the plan is put into
effect it is impossible to control the
amount of imitation for the reason
that each "shot" requires subse-
quent more powerful one to prevent
collapse, until finally collapse comes
anyhow. Germany, they add, did not
intend to have uncontrolled currency
expansion either when she embarked
on a program of imitation.
The big demand for imitation now is
coming from the wheat farmers of
the west and the cotton farmers of
the south, who say that the prices
of their product, under the NRA have
not risen as fast as the things they
have to buy. They are sure that in
fiation is the only remedy for this
condition. Whether or not that is
true, remains open to question. If we
once embark on imitation there is no
assurance that the price of the COM
modities the farmer has to buy will
not continue to rise as fast as the
price of those the farmer has to sell.
Certainly in a short time the thing
would equalize itself and the farmer
would be not better off compared to
the rest of the country, than he was
before. And it is more than possible
that he might, in the long run, be in
fnitely worse off, due to the disrup-
ton of general stability.
$50
Now with initiation one of the prin-
cipal topics of the hour, it is inter-
esting to note the view of foreign
"experts" on the American situation.
It is generally believed in London and
Paris, by students of American at
fairs, that we are sooner or later IN
for a period of experimental imitation.
They take the view that our recovery
is not coming fast enough under the
recovery act, and that the administra-
ton will be forced by political pres
sure and the approach of a new ses-
sion of Congress, to go in for some
kind of imitation. They are counting
on our impatience as nation to bring
this about. The late fall of the dollar
on the European exchanges is said
by many authorities to be due to the
expectation that there will be lnfia-
ton in America, which has induced
foreign financial interests to sell the
dollar in the hope of reaping large
profits when imitation comes to Uncle
Sam, The weakness of the dollar is
probably due in some part, however,
to the fight of capital from America,
which is said to have been going on
for some little time, this, too, in antici-
nation of imitation. If and when
Americans turn their American mon
ey into European money or securities
there is, of course, natural weak
ening of the dollar. How much Of this
there has been is, of course, problem
atical.
What the outcome of it all will be
remains to be seen. Most Americans
are hoping that the rate of recovery
will be accelerated again real soon,
so that anything more radical than
credit imitation can be avoided. Of
course an increase in the price OF
farm products would greatly lessen
the agitation for initiation. The mere
discussion of imitation is enough to
cause a squirt in the price Of wheat
and cotton, but there is the inevitable
reaction when the talk is not followed
by real imitation. In past depressions
the agitation for initiation has usually
come at the end of the hard times, and
the defeat of the initiation campaign
has usually marked the beginning OF
better times. Let US hope that such
will be the case in the closing OF 1888
ood tho booinninp of 1884,