Evening star., 1933-01-29
Farm Debts, International Economic
Congress and Initiation Factors of Year

pressed for negotiations in the Inter-
national Economic Conference leading
toward a lowering Of international eco
nomic barriers and toward the reStora-
ton OF the gold standard in the coun-
tries that have abandoned it. They
argue that the lowering Of economic bar
riers would revive the expectation of
farm products from the United States
and would thus raise the prices of
those products. They argue. further,
that the restoration of the gold stand
ard in countries now operating on de-
preciated currencieS would check the
imports into the United States from
those countries and would thus again
tend to raise prices here.
In any case, there is no doubt that
In the International Economic Confer
ence there will be strong pressure to-
ward devices OF some sort for bringing
commodity prices back to a higher level.
II. thereupon. the American farmer,
besides having seen his mortgage debts
reduced, should see his market prices
raised, he no longer, it is asserted,
would be interested in the supposed
debt-reducing and price-raising quail
ties of the various currency imitation
dors Of the Capitol
That those measures are meanwhile
winning greater and greater support
is proposition that cannot be candidly
contradicted. It is, nevertheless, ap-
parent that they cannot come to frui-
ton during this session Of the Con-
gress The one inflationary measure
that is likely to be seriously considered
by the Banking and Currency Commit
tee of the House Of Representatives
during this session Is the one fathered
by the chairman of the committee, Mr
Stegall of Alabama
This bill has silver aspect and q
paper currency aspect. In its silver
aspect it provides that the Government
shall purchase large quantities of silver
at silver's gold value, but 1t does not
provide for the free coinage or re
monetization" of silver. On its paper
currency side it provides that the Gov
ernment shall purchase Sl,000,000, 900
of its own bonds in the market and
shall pay for them in 81 200 900 600 Of
new legal tender" Treasury money.
The bill Is a very moderate one in
comparison with many of the other
inflationary measures now written into
proposed laws. 1t perhaps would be no
SIlOSh WlldloOCNCl W lilS llAOAlOSoAy oeooAA-
ity Of the country unless its passage
should throw Wall Street into an hys-
terical panic. However. its passage be-
fore March 4 is virtually impossible.
1t is In the special session OF the
Congress next Summer that bills for
new emissions of paper currency, bills
for diminishing the gold content OF the
gold dollar, bills for purchasing silver
and for "remonetizing" silver, and bills
for "stabilizing" the purchasing power
of money through Federal Reserve ma
nipulations at a different level from
the level now existing will reach their
full food 1t Is not too much to say
that President-elect Roosevelt, who
then will be President Roosevelt. will
find himself obliged to be successful
in the reduction of farm debts and
successful also in the revival Of pros
pect of prosperity through the deliber-
ations of the international Economic
Conference, or else fairly drastic cur
rency imitation measure of some variety
will go to the Democratic White House
from the new Democratic Congress.
Copyright. 1881