Evening star., 1933-01-31

Arguments against imitation are Wig
orously presented by the press, with
special emphasis on the experiences of
this country with cheap-money efforts
in the latter part Of the last century
and on the misfortunes of European
nations with deprecated currency fol-
lowing the World War. Defeat of the
16-to-1 proposal, revived in Congress,
has added fresh fuel to the discussion.
The calamitouS experience of Ger
many" says the New York Times, in
printing marks until a billion or two of
them were worth only dime, stands
as a continuing reminder and warning
before the eyes of our extreme 1nfia-
tionists." Pointing out that the only
assurance they give us is that, some
how or other, we shall pull up in time
to prevent such complete devaluation
Of money as drove Germany almost to
ruin and despair 10 years ago" The
Times holds that the trouble with this
theory is that when you once begin to
go down the steep decline of q depreci-
ated currency there Is no stopping until
you make the final crash" That paper
advises: Seek to control q runaway
locomotive with no engineer aboard, but
do not fancy that a deliberately planned
imitation can be controlled before it
brings about universal disaster"
%x
Holding that "even were it to work
perfectly, the history of price advances
shows that wages trail long way be-
hind" the Cleveland News argues that
the American worker cannot be ex-
pected to subscribe to a scheme which
would ruin the dollar and at the same
time foist high prices upon him" That
paper further contends that the finan-
cial structure OF the country would suf-
fer" and the phenomenon known as
the flight Of capital would take place" t"
The Boise Idaho Statesman states that
the schemes proposed are plain de-
basement and take money out of
pockets" The Louisville Courier-J Jour-
nal maintains that this country has
not forgotten the disastrous results of
the silver purchase act of 1890, which
caused such run on the Treasury dur
Ing the Cleveland administration, de-
spite all efforts to halt it, that the gold
reserve was almost exhausted and the
Nation made nearly bankrupt" The
Courier Journal, finding relation to
tariff wars, concludes: 1T is not diff
cult to foresee where competition in
imitation will end or what will result
from artiflclally manipulated exchange
BY one nation or group Of nations with
the object OF underselling other nations.
The process has been called a fools
paradise. but it will be paid for with
valueless currencies."
x y
1.-THE inhationists," remarks the
Philadelphia Evening Bulletin, Con
veniently ignore the circumstance that
there is no shortage of money in the
United States; that both currency and
the credit based upon it are already in
excessive supply. Also they ignore the
experience Of Germany, and of their
own country in the days of the green
backery, with the printing press. The
difficulty Is that they have made a false
diagnosis Of the prevalent disease
fatal obstacle to the selection of a prob
able cure"
In both branches Of Congress" re-
cords the Roanoke World-News, there
are members willing to grasp at any
straw, who would place upon the DEM
ocratic party the taint of a cheapened
currency, who would follow the un-
sound theories of Bryan rather than
the rugged honesty Of Cleveland, and
who are only stopped by the vigorous
opposition Of such men as Carter
Democrats who are proposing various
imitation schemes have evidently not
read the Democratic party platform,
adopted at Chicago, which declared for
"a sound currency to be preserved at
all hazards, and an international none
tary conference called on the invitation
Of our Government to consider the re-
hahlitation Of silver and related ques-
ionS'"