Evening star., 1933-09-29
A Welcome Armistice.

I. A Welcome Armistice.
Senator Thomas is one Of the leading
and one Of the most influential ad-
vocates of currency imitation. He
has reached the conclusion, after the
recently revived furor in Washington
for imitation, that the best policy for
in1ationists now Is to let the President
make his experiments on the other front
through expansion of credit-making
money available everywhere at low rates
Of interest and on easy terms to those
borrowers whose expenditures will do
most to create new business, and to
those who are in greatest need Of
emergency relief from pressing debt.
That, 1t seems, is an eminently wise
conclusion and it is to be hoped that
the Senator's allies In the imitation
movement will follow his leadership
The Senator says:
Believing that imitation Of the cur
rency is the only remedy, while the
administration believes in initiating
credit, it seems to me wise policy to
permit the administration to test out
its program. To date the prospect of
imitation has brought the only relief
the Nation has experienced. It seems
now to be wise for those who favor
imitation to cease their efforts and admit
there will be no imitation. Let the
Presidents credit policy work out.
The President, Senator Thomas be-
ueves, will have to come to imitation
Of the currency. Stopping the agita-
ton for imitation of the currency, he
thinks, will be "a short cut to imitation
because President Roosevelt will find
1t necessary to initiate
1t Is possible to agree with Senator
Thomas conclusion that agitation for
imitation should now end while the
President is given full support in carry
ing out the recovery program without
agreeing with the Senator's reasoning
In support of such a conclusion. There
are many who believe today that the
program Of credit expansion will not
be wholly successful until the ghost OF
CuIIeuCy ullldGio11 10 1o4O SAAAA sAA0S
ghost will haunt the markets and the
channels of trade until people are told
that the Government will maintain its
credit and stick to the sound money
principles upon which credit, In the
end. must rest.
Certainly the hopes for sound busi-
ness revival, aided by program OF
credit expansion, were dimmed as long
rs the clamor OF inflationists and cur
rency debasers was permitted to drown
out everything else in Washington. And
certainly 1t is fair play, and sincere
support Of the President. to refrain
from embarrassing his whole program
and placing its success In jeopardy by
denouncing 1t as failure and demand
ing that something else be tried.
An armistice on the inflationists' front
will be welcomed. But II q program OF
credit expansion does not succeed i'm
mediately in Fastening revival, there is
all the more reason to shun the de-
featist maneuver which lies in the dan
gerous and possibly fatal debasement Of
the currency through imitation. The
theory Of the inf1ationists that the mere
prospect of imitation has brought the
Nation the only relief it has experienced
toward recovery Is, indeed, q revealing
admission. It emphasizes one Of the
great dangers Of imitation, which is
that one shot Of it must and will follow
another until the fever has run its
traditional course in ruin and disaster.
It points out the fallacy Of controlled"
or rational" imitation. For the only
remedy proposed when one dose Of in
flation-even II it be mere imitation
through mental suggestion-does not
work its promised miracles is another
and bigger dose.
Temporary relief from the over
shadowing specter of inflated currency
should have its beneficial effect. 1t will
remove one disturbing, disquieting ele-
ment from the picture. But the very
depths Of the depression into which the
Nation has been plunged should indicate
to sensible people the amount Of patient
and dif1cult labor that lies ahead be-
fore pre-depression levels are regained.
Once the upward climb has begun. the
avoidance Of treacherous and delusive
short cuts becomes more important than
ever.