Evening star., 1933-10-09
The Political Mill
B, C. Could Lincoln.

going to do about currency imitation.
His only answer to the imitation de-
mand Of the West and the South
% far has heen to expand credit
the most elective kind Of ex-
pansion for the improvement Of busi-
ness. The two most persistent, guesses
are that he will Use silver for currency
expansion or that he will cut the gold
| content Of the doll,r-either course may
! be pursued by the President under the
authority Of the chomas amendment
to the farm relief act passed at the
last session Of Congress.
AS one Democratic Senator from the
West-who fears the effect Of currency
| imitation upon the country, and also
| upon his party-puts 1t, there are mil
| lions of men, and have been millions
since the dawn of history, who believe
that If government issues plenty OF
money and puts it into their hands,
that is all that Is necessary to make
them prosperous. These men, accord
ing to the Senator, never stop to think
titles, may be Of little value to them
or to any one else. His thought IS that
| that kind of currency would result in
this country only in disaster.
4 y
The fact of the matter is the drive
for imitation" of the currency-con-
trolled or otherwise-which has been
made on the White House n recent
weeks seems to be somewhat n eclipse
| lust now. In the first place PRESIDENT
Roosevelt refused to be rushed of his
feet and to start the printing presses or
any other form of so-called currency
imitation. And now the American Le-
gion in national convention has sdopt-
ed resolutions opposing currency infla-
ton and demanding sound money"
Earlier in the week, William Green,
president Of the American Federation
OF Labor, addressing the federation's
national convention here, attacked cur
rency imitation and demanded that
labor be paid in honest dollars"
Senator Robinson Of Arkansas, Dem
ocratic leader of the Senate, who has
Just returned to Washington from Eu-
rope, has apparently ranged himself
also on the side of the anti-infiationists.
The Arkansas Senator said that such
imitation as has been proposed is likely
to do more harm than good.
However, Mr.. Robinson's opposition to
imitation may not run to the revaluation
of the dollar with the corollary Of dol
lar "stabilization." A cut IN the gold
content of the dollar has been urged
repeatedly on the President. as well as
the issuance of Treasury notes. There
have been many rumors to the effect
that White House decision would be
made before long reducing the gold
content of the dollar.
If the American Federation of Labor
backs up its president and adopts reso-
| lutions demanding the retention Of a
sound dollar and opposing imitation OF
| the currency. it will go long way
toward retarding the movement for in
flation. The attitude of the American
Legion toward initiation and its declara-
tion that we favor sound dollar i;
| calculated to give pause to a lot of the
inflationists in Congress, and If the in
f1uence Of the American Federation OF
Labor is also thrown into the balance
in favor Of sound money, the predicted
action Of Congress in favor of cur
rency imitation at It's session in Janu-
ary may never materiallze.
The supporters of a sound dollar in
these two orgapizations say they dc
not want the veterans paid their COM
| pensation and war risk insurance in
dollars that are worth half. or may be
many times less, than tlfe present
dollar and they do not want labor paid
in money which is worthless.
The President will have a strong
| backing IN Congress, Notwithstanding
all the talk OF the inflationists. led by
Senator Thomas of Oklahoma and
Senator Wheeler of Montana, if he
sticks to a sound money policy. Sena-
tors from Western States, as well as
| from the East, are looking askance now
| on the proposal to issue Treasury notes
| and to devalue the dollar by reduction
Of the gold content. He will have the
certain support OF Senator Carter Glass
of Virginia. recognized as an authority
on banking ana currency. as well as
Senator Robinson of Arkansas, the
party leader. On the Republican side
of the chamber he may rely on support
from a majority of the Senators, and
probably the same is true in the House
chamber. The Republican party has
money" program. Indeed. il the Demo-
| cratic administration falters now and
goes to currency imitation, the cam
paign issue for the congressional elec-
| tions of 1884 will be made, in the
opinion Of Republican leaders here now.
x & X
one difficulty the inflationists face in
any drive to put through Congress a
law compelling the President to initiate
the currency is the differences of opin-
ion regarding Just what should be done
Senator Wheeler. for example, insists
upon free silver" coinage on a 16-to-l
basis. Senator Thomas is more partial
to the Treasury notes. Others wish to
cut the gold content of the dollar or
to buy silver and issue notes against it
The President has gone forward with
his plans for a wide expansion of credit
through many agencies of the Govern
ment and through the banks. 1t is the
hope of the administration that SUCH
an expansion Of credit, or credit inf1a-
ton, may solve the problem and turn
attention away from the proposal to
initiate the currency. The belief is
growing here that the President will
continue to stand to his guns and to
resist currency imitation as it has been
proposed. Improved conditions In busi-
ness and employment and better con-
ditions on the farms will help more
than anything else to prevent the de-
basement of the currency.
From Mississippi come reports that
the cotton farmer is in better shape
this year than he has been for years
with a reasonable profit sure on his
crop. If these reports are correct, then
the demand for currency imitation will
lose ground steadily in the South.
X
Republicans, except for few sporadic
outbursts. have kept pretty quiet about
the Roosevelt administration for the
eight months during which the Demo
Gratis have been in complete charge OF
the Government. So far not much has
been done looking to the congressional
campaign next year, although some re.
gional conferences have been held by
Chairman Everett Sanders of THE Re.
publican National Committee and hi
aides. With Winter coming on apace
however, it will not be very long before
the G. o. p. must 60 into action, anc
the probability Of a meeting of the Ma
tional Committee early in the year, some.
time after the assembly OF Congress, i.
being discussed. The Republicans are