Evening star., 1933-04-25
Debate on Imitation.

Debate on lnnatlon.
The Senate debate on the imitation
ary amendment to the farm bill has
become largely discussion of the prin-
ciple Of imitation, rather than close ex-
animation of the legislative and eco
nomic principles involved in the var!-
Gus sections of the amendment itself.
But, explaining the broad purposes OF
the amendment at the outset OF his
speech yesterday, Senator Thomas OF
Oklahoma, who is sponsoring the meas
ure for the administration, made the
bold statement that:
No issue in 5000 years save the
World War begins to compare with the
possibilities embraced in the power
conferred by this amendment. Two
hundred billion dollars now OF wealth
and buying power rests in the hands
of those who own the bank deposits
and fixed investments, bonds ana
mortgages. That 100000, 600, 900 these
owners did not earn, they did not buy
1t, but they have it, and because they
have it the masses Of the people OF
this Republic are on the verge OF
bread lines.
If the amendment carries and the
powers are exercised in reasonable
degree, it must transfer that $4,000
100000 in the hands of people who
now have it, who did not buy it, who
did not earn it, who do not deserve 1t.
who must not retain it, back to the
other side-the debtor class of the
Republic, the people who owe the mass
debts of the Nation.
OF course, the Senator did not mean
his statement literally. But the idea
he sought to express is the underlying
idea of those who believe in the prin-
ciple Of imitation as a method of reliev-
ing the debtor class" of the Nation.
This idea is necessarily based upon
. concept which divides the population
of the country into creditor and
debtor class. 1t is, of course, signid-
cant that the mortgage-ridden farmer,
whose friends in Congress are legion,
is today placed in the debtor class.
Anything that is supposed to help the
debtors will help the farmer, and infla-
ton is frankly proposed as one Of the
countless schemes to aid the farmer.
But, if the debtors are to be relieved
at the expense of the creditors, who are
the creditors? Those who favor taking
away from those who have to help those
who have not may envision the creditor
class" as the moneyed manipulators OF
Wall Street, the barons of wealth who
foreclose on impoverished farmers. But,
unfortunately the creditor class" Is far
from being made up of those who rep
resent the great vested interests"
Widows who have invested life insur-
Ance in bonds and first mortgages, and
who depend for living on the interest;
wage earners who sell their services for
a stipulated amount on pay day; the
small-salaried men and women who
have put their money in savings banks
or have invested it in annuities, life
Insurance or other securities; those of
small means who, In order to help win
the World War and to make the world
safe for democracy, patriotically bought,
and still hold, Liberty bonds-these are
the ones who comprise large propor-
ton of the creditor class. And one OF
the traditions Of this country has been
that the debtor of today becomes the
creditor of tomorrow; the creditor to-
day may, within the space of a few
years, become the debtor of tomorrow.
There is no line to divide the creditor
class" from the debtor class"
The danger of imitation is not that it
will work as a capital levy on great
wealth to the advantage of the impov-
erished. The chief victims of initiation
are the wage earners and salary work.
ers, whose pay never keeps up with a
stimulated rise Of prices, and those
whose small amount of worldly goods is
represented by money in bank or in
vested in what heretofore have been re-
garded as safe and conservative medi-
ums-life insurance, Government bonds,
eilt-edged industrial securities. The only
ones to gain, should imitation be al
lowed to run its course, are the specu-
1ators.
Speaking before the annual meeting
of the Associated Press in New York
yesterday, Senator Robinson, the DEM
ocratic leader in the Senate, said that
the chief purpose Of the so-called In
fation bin was to arm the President
with additional powers which might be
used to advantage in negotiations with
foreign nations. "Imprudent or uncon-
trolled expansion Of credit" he said,
Is not contemplated and the admin
istration has no intention of entering
into "a race to cheaper money or de-
preciate currencies"
1t would be comforting to hear from
others who, like Senator Robinson, can
with authority allay the fears Of such
Democrats as Tydings Of Maryland
that this amendment is dangerous. It
would be comforting again to hear the
prediction assurances of well informed
Democratic leaders that, under a
Democratic administration, sound
money" advocates have nothing to fear.