Montana labor news., 1933-04-13
BRADY, CONVINCED OF MONEYS
INNOCENCE, MUST PROSECUTE HIM

deposits of the country are in these
institutions. Doubtless many will be
recognized. Losses will, however,
be great and what is even more SER
ious, the freezing of depositors'
money in these closed institutions will
increase the deflationary trend, i'm
pairing the ~solvency of banks which
remain open. 1t would be most con-
sentative to estimate that the bank
failures of March will alone equal or
exceed the figure for all of 1882.
2. AS a result of the panic, bust
ness indexes have touched the lowest
levels reached in years. Business ac-
tivity fell precipitously. Steel pro-
duction, freight car loadings, and
construction all registered new lows.
These declines, appearing as they do
in a season which normally registers
sharp advances, make it apparent that
any possibility of an upturn before
fall has been cancelled.
8. Commodity prices continue their
downward course. The index for
March 4 was 1913, or more than a 40
per cent decline from the level Of
1926. Farm products have dropped
by 60 per cent in the same period.
With purchasing power c%urtailed,
price declines are likely to be ac-
tolerated.
A. Other financial and business in
stitutions are lettering as a result Of
the continuing deflation. A large
fire insurance company has already
entered r%eceivership. Undoubtedly
more concerns will follow this route
in the coming months.
5. Many great names in the bust
ness and banking world have been de-
flated. Leading financiers have been
involved in acts Of gross mismanage-
ment and outright fraud. AS the pub
lie comes to appreciate the full extent
to which the Hoover regime aided
and abetted these frauds, greater
scandals than we have yet noted will
appear.
Unless the spiral of deflation can
be halted and an initiation of credit
induced, America will inevitably en-
ter another panic even more disas-
trous in its results than that through
which we are now passing. At the
moment, President Roosevelt is tread
ing that deflationary course. Assist
ance is being given only to those
banks which seem "credit-worthy.'
The resultant choking of purchasing
power is accelerating the business de.
cline. The untried and possibly I'M
workable agricultural relief plans rep
resent no addition to the country's
purchasing power; rather they will
unbalance the situation still further
through a tax levy of a billion dollars
upon urban consumers. Federal pay
cuts and drastic governmental econ
omy may slightly lower the tax rate.
They do not create more purchasing
power. Nor does the attempt to
drown the depression with a flow Of
beer do more than alter the channels
of purchasing.
It may be hat initiation will set in.
Possibly the World Economic Con-
ference will provide the information
al basis for such a move. Possibly
the United States will deflate the
dollar and thus reduce the national
debt burden. Possibly a giant pub
lie works program will be sponsored
which will prove a sufficient boon to
business to start banks manufacture
ing credit.
Possibly the Democrats may sue
coed in launching a Sunshine boom"
which will restore public confidence
more successfully than the saccharine
comments of Herbert Hovoer. These
do not now, however, seem probable.
SAYS The London Economist: "We
a do no more today than hope that
Roosevelt's administration will sue
coed in finding a way out of its i'm
mediate difficulties before the storm
circles once again on its destructive
path"
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