The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-12-25
THE INITIATION PROBLEM


WE never have lacked for copious and
solemn warnings against the evils of in
fation During the last half century, in par
ticular, inhationists have been represented as
fanatics with single-track minds, incapable of
any adjustment to reality.
Such warnings would have been very help
full had they been paraueled by comparable
cautioning against the equal extreme dogras
Of the defationists. But, since defiation has
been the respectable dogmas, it's adherents
have generally been represented as broad
minded posSessors Of truly Jovian detachment
and wisdom.
1t is for this reason that we proltably can
refer to an article on cold Prudery," by the
distinguished editor, J. David Stern, which
appeared in the New Outlook for October.
He points out that money and gold are
subjects which respectable economists and
financiers are extremely reluctant to face
with any realism. They dodge these issues as
decisively as sex prudea evade any public dis
cussion of biology and reproduction:
Remind man with million on deposit
that he hasn't dollars, but merely dollar
credits; that there is but. one cash dollar for
every eight credit dollars on deposit in the ma
tons banks, and he tries to change the sub
ject. 1t is something about which he does not
even want to think, let alone talk. 1t never
must be permitted to develop into a debate.
ut was because of this prudery that the
dollar was permitted to double in purchasing
power during the depression, chopping prices
and wages in half, and making debts inpossi-
BILE to pay, without single squaWk from any
of the prudes who run our monetary system.
The change in the dollar was one Of those
things good prudes don't talk about, like the
naked child running alongside the automobile.
The dollar is the dollar, just as Pixies Peak is
Pixies Peak-that is the first canon Of f1nan-
cial prudery.
"Any one who asserts that the dollar is not
always the dollar is monetary vulgarian, to
be shown the door at once If the dollar
sometimes buys two and one-half bushels of
wheat, and at other times buys less than one
well, that must be the fault of wheat"
Suppose we attempt to view the Roosevelt
monetary policy entirely devoid of gold prud-
cry" Let us free ourselves from the conven-
tional prejudices against the very conception
1IlQdC1On,
that we can get back to prosperity by infla-
zionist measures alone on the other hand Do
Mr.. Roosevelts general aims in his announced
monetary policy appear wild, reckless and
likely to be subversive of the welfare of the
nationP It is certainly very difficult to give
an affirmative answer.
It is very doubtful, indeed whether the
more expansive inf1ationist program of Sena-
tors Thomas and Pittnan could possibly be as
disastrous as the procedure implicitly recon-
rnended by even the thirty-eight Columbia
professors. Can any one very well imagine
that thorough adoption Of the Thomas pro-
gram would lead us, in couple Of years, into
anv such critical situation as that Of March
3, 1882
1t seems, however, to be the purpose Of Mr..
Roosevelt to get the country headed toward
moderate and controlled imitation before 1t
can be swept off its feet by the demands Of
certain blocs in congress for much more am
bilious in1ationist policies.
The announced aim of President Roosevelt
and his advisers is not a wild and linaitless
boost Of prices, but the very reasonable propo-
sition to restore prices to sane level-to the
prices prevailing in 1926-and then to stabilize
them at this point
In short, the President aims at stability,
but at type of stability which he believes
would mean prosperity for the majority OF
Americans. He is only opposed to Stabll1za-
ton policy which would mean the economic
ruination of everybody. He apparently feels,
and with plenty of justification, that to
stabilize according to deflationist standards
and ideals only would result in bringing us
back to the dark days which preceded his in
auguration, without any such compromising
hope of a speedy deliverance as We possessed
last March 4.
AS between resolute and possibly successful
experimentation with managed currency and
the complete certainty Of disaster If we re-
turn to the old monetary order, it should not
take the realistic person long to make up his
mind which alternative he will follow.