Evening star., 1933-10-15

when, as and II" necessary does not
forecast that any decision on the ques-
ton as a whole will be promulgated at
| given time.
The administration feels 1t is making
decisions every day, that neither its
banking policies, its home and farm
loan activities, its gold price determina-
tion, nor any Of its other major sctivi-
ties in the field Of finance are without
their relation to the currency problem
Based on Definite Ideas.
The present monetary policy Is said,
on this same high authority. to be pred
icated on these definite ideas:
The President announced many weeks
ago that he hoped to perfect monetary
plans which would provide Q dollar OF
constant purchasing power. He still
has such plans. but the completion Of
the program must await higher price
level.
The President has been pressing
credit expansion almost from the day OF
his Inauguration, and this Is at this
time definitely part of his policy. This
involves:
First, the use Of the Governments
credit for public works. farm relief
loans, home loans, loans by the Recon-
struction Finance Corporation, and
so on.
Second, he has sought to increase the
power of the banks to lend privately,
and to stimulate business so that private
use Of this credit will follow.
Third, and of similar intent, his
plans are directed at strengthening all
banks and opening closed banks.
Ideas Are Not Secret.
None of these ideas is secret. They
are being worked and reworked con-
stantly on the thesis that once these
powerful agencies have stimulated busi-
ness sufficiently, private credit will be
open.
Credit expansion Is regarded here as
in part inhationary. since it decreases
the supply of money and the rate at
which it is spent.
Discussion of dollar devaluation or
of plans otherwise to provide dollar
OF constant purchasing power is pro-
ceeding Until more time has elapsed,
it is felt it would be extremely diff
cult to judge what q proper stabiliza-
ton point would be for foreign ex-
change. 1t must be remembered that
sterling Is constantly fluctuating in re-
tuation would be far wider except for
the use of an artificial pound.
Prices, that Is, American values. have
got to go up.
The relationship Of the dollar to the
pound, franc and all foreign currencies,
from the point of view of mathematics,
Is looked upon as affecting per cent
OF the total production of the Nation,
and per cent of the consumption of
the Nation. 1t is felt to be absurd to
suggest that the per cent tail should
wsg the 96 per cent dog.
Raise American Values.
The objective Is to raise American
values and put people back to work,
and in putting them back to work give
them purchasing power.
There is a definite question n.
IN the administration as to the CO. =.
tinued use by certain banking elements
OF the phrase currency imitation as
If it meant "greenbacks." The issuing
OF SIS, $40 or $100 bonds, definitely re-
tirable out of the budget year by year
over period of years for the purpose
Of retiring interest bearing bonds, Is
felt by high authorities here to be
merely the substitution Of one Gov
ernment debt for another Government
debt.
"Greenbacks." or starting the print
ing presses" is described as an entirely
different thing that means issuing
paper with no retirement provisions for
the payment of ordinary Government
running expenses.
Finally, it is asserted BY these au-
thorities that the policy and purpose
Of the Government is, just what 1t was
in AprilHto raise American values so
that top-heavy debt structure can be
paid off In the same kind of dollars
In which the debt was incurred.