Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-12-03
POLITICAL REALICNMENT
SEEN THROUGH IMITATION
Possibility of South and West Uniting
Against Conservatives of East Init
mated in Present Set.Up.
REAIJGNM5NT of politica

A REALIGNM5NT of political
n parties is foreSeen by many OBJ
"A servers here as the result of the
4 a war over initiation.
The possibility that old Demo-
cratic and Republican lines will be viz
tually demolished is regarded by many
observers as not at all unlikely. Some
believe that out of the imitation con-
troversy there may come the long
taiked-of uniting of the West and
South into a cohesive political force to
oppose the conservatives of the country,
especially those in the East.
Campaign of SO Recalled.
To find anything like a parallel to
the present situation. the political eX-
pertS are barking back to 1896 when
William J. Bryan led the hosts of free
silver in a remarkable contest with the
sound money legions Party lines we're
greatly dSorganiZed in that struggle
and an equal if not greater diSorgani-
sation is foreseen if the administration
goes forward on its initiation program,
and if it brings about any OF the I'M
toward consequences which sound
money advocates are forecasting.
Until recently there has been little
TO indicate that such struggle would
arise over the monetary question as
to split parties and cause a recurrence
of the bitter strife which marked the
campaigns of 1896 and 1900. But the
decision of the President to embark on
gold buying against the advice of con-
serVatlVe members OF his party and
the consequent shake-up in the Treas
ury, have given rev color 10 the ma
tiOnal picture
The movement fer initiation has been
gathering head in Congress for three
years. Ii became more powerful than
ever IN the extra session last Spring
when Senator Elmer Thomas. Demo-
crat, Of Oklahoma, and others forced
enactment of legislation giving the
President broad powers to change the
country'S money policy, expand the
money supply, lower the value of the
dollar and increase the price of COM
1noditiaS. The President was en-
powered in effect to initiate or debate
through bond transactions. through
issue Of so-called greenbacks, through
silver ard through actual devaluatiOn
Of the dollar
Thought Initiation was Checked.
Momentous as was the enactment of
this legislation, the opponents of in
f2tiOn said repeatedly that in fact the
infationists had been checkmated be-
cause, while the President had been
given vast monetary authority he
fort themselves by the illusory asser-
ton that the President would prac-
tically pigeon-hole the initiation legis-
lation and proceed to forget it.
The inf1ati0nistS in Congress refused
from the beginning to accept this view
They said the legislation had imposed
on the President a degree of RESPONSE
blllty which he could not escape and
that before the year was over he would
be obliged to act.
1t has turned out that the inf1atisn-
lists were right. President Roosevelt.
quite apparently, was reluctant to set
out on new monetary program lead
ing along the road to imitation of the
coutry'5 money supply. He tried out
the method of credit expansion, but
without achieving his objective, that
to the mark of 1926. He came finally
to the buying of gold, a definite step
toward devaluation of the dollar, in
fatlo1 and raising Of commodity prices
Thus far. however the gold buying
plan has fallen short of raising the
level Of commodity prices to the point
sought by the inflationists, and the adj
ministration is committed not only to
proceeding with the gold purchase
method. but to further infationary
steps if need be.
Real Price Rise Not Expected.
Initiation leaders in and out of Con-
gress have sanctioned the gold purchase
order CT the administration. but with
little expectation that it will suffice to
raise commodity prices as they want
them laised. Accordingly they are
planning to demand a vigorous and di-
rect lnflationary policy when Congress
meets
While the irflatiOnistS are mapping
their strategy, the sound money forces
of the country are far from idle. They
are preparing for an organized fight
against the administration monetary
program as it now stands and as it
may develop under the pressure of the
demands for initiation from the farmers
of the West and South and some of the
business elements of the country.
With former Gov. Alfred E. Smith of
New York, Senator Carter Glass of Vir-
ginla. and other prominent Democrats
openly opposing the administration
course on money, it is clear that if Mr..
Roosevelt persists in his course he will
lose the support of large body of sound
money men in his own party If the
controversy is long continued, he stands
W lOSe lHeH support permanently.
Meantime, the developments over
money have given much encouragement
to the regular Republican leaders. All
through the extra session and through
the Summer and early Fall they felt
obliged to refrain from much activity.
Republican Leaders Encouraged.
But with the growth of feeling
against the n. R. A. In agricultural and
some other quarters and the rise of
antagonism in sound money circles to
the administration monetary procedure,
the Republican leaders have become
much encouraged They are militant
and are looking forward to the regular
session impatiently on the theory it will
give them opportunity to disseminate
their ideas fully through the country.