The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-04-20
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THURSDAY. APRIL 20. 1898.
A USEFUL STEP

% DY taking congress and the country into
- his confidence, the President has headed
of extreme currency initiation. On assurances
from the White House that the admnistra-
ton is committed to raising The commodity
price level, the extreme currency infationists
have agreed TO withhold their proposed
panaceas until the more conservative currency
and credit imitation program of the President
is given a trial.
This is an exceedingly hopeful development.
Il indicates cooperation between the Pres-
dent and congress at time when the most
delicate monetary affairs of the nation are in
the balance
Technically, the monetary situation is about
the same as in early March, when the Presi-
dent suspended gold payments and exports.
We went off the gold standard then
Theoretically, the dollar should have fallen
on the world market. But Great Britain, to
maintain the trade advantages CT a lower cur
rency supported and maintained the dollar
at an arti1cially high level. Later this UNI
fortunate high level of the dollar also was
supported by a less decisive policy in Wash
ington, which temporarily permitted certain
gold exports.
Now the White House announces that it
will revert to the gold embargo policy.
But that is not all While in early March
the President refused to interpret his gold
embargo policy in terms of future or per
manent policy, he now lets it be known that
he intends to stay off the gold standard pend
ing the rise of commodity prices.
When we return to the gold standard it
may be at a different level, fixed in relation
to stabilized foreign exchanges This will be
discussed in the Macdonald and Herriot con-
versations in Washington. Meanwhile, we
shall be on so-called managed or controlled,
currency and controlled credit basis.
1t is essential to understand two things:
This is not greenbacksnn, or a fiat money
status
On the other hand it is not an automatic
guarantee of prosperity.
The administration now, by confirming and
simplifying its March policy of departure from
the gold standard, has embarked on an intel
ligent experiment. but it has not achieved its
goal yet
Great Britain, in her similar experiment
with managed currency. maintained a rel
atiyely stable price level but did not mate
rally raise prices and did not achieve pros
perty.
Hence the administrations policy inspires
hope precisely because it does not conceive
a mere departure from the gold standard as a
cure-a but rather as a useful part in a much
larger program.
vigorous credit policy by the federal re-
serve still is necessary. more liberal COM
mercial loan policy by sound banks still is
necessary The liberation of four or five bill
lion dollars of deposits impounded in closed
banks still is necessary.
Intelligent use of the currency expansion
powers under the March emergency bank law
still is necessary. unified and safely regu-
lated banking system still is necessary A large
federal public works program on legitimate
projects to create quick buying power and get
new money into actual circulation still is
necessary.
A short hour and minimum wage law, to
increase and distribute purchasing power and
to balance the anticipated rise in commodity
prices and living costs still is necessary Elimi-
nation of the wastes and dangers of arma-
ment competition tariff strife, war debts and
Sary.
BY cutting loose from an unfair and dis
astrousy dear gold dollar, the Roosevelt adj
minstration has a better chance to win it's
war against depression, both on the domestic
and foreign fronts