The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-01-31

~
"A day.
Here, theoretically, is the richest
nation on earth, possessed of AZ per
cent Of the monetary gold stock CT
the entire world.
And yet millions Of Americans are
in want. America finds herself
poorer in many ways than other
nations which have so little gold
they are unable to keep their money
stabilized on the gold standard.
Which has become a ribald in
ternatiOnal joke, pointed by a re-
cent British cartoon depicting
tattered John Bull handing much
more tattered Uncle Sam a debt
payment, with the caption, "You
need it more than 1 do, Sam
More men are without work in
America in proportion to popula-
ton than in any other land
u 100000, according to an estimate
last week
1t is claimed there are only 30
900 900 unemployed in the world.
Those who still work in America
have had their wages cut 20 to 70
per cent, the average for all pay
rolls being SIS per cent.
Those who live by dividends have
been shorn, too. Common stocks
with an indicated value of 356,0OO,-
600 900 in 1929 are down now to
$33 0OO,O00,OO an incredible 9O2 per
cent collapse.
NTOW this shrunken earning
~ power is partly compensated
for by the increased value of the
dollar. The cost of living has
dropped % per cent since 1929
In general purchasing power, the
urban dollar now is worth $1.33
compared with the 1929 dollar. The
farmers dollar is now worth $1.52
In short, one has less money than
three years ago, but the scarce dol
lar will buy more.
But what about debts? There has
been no drop in the cost of debts.
Instead, debts cost more today than
ever.
Consider the citizen who mort
gagged bis home in 1928-1929, or the
corporation that borrowed a million.
The 6 per cent interest goes march
ing right on. The urban dweller or
corporation must pay that interest
in dollars worth $133 each.
Thus in purchasing power the
debtor must pay his creditor nearly
8 per cent interest instead Of the 6
per cent contracted for. And when
the loan comes due the debtor must
pay back the borrowed money at the
same premium in buying power,
$133 for every 81 obtained.
The farmer is even worse off. The
farmer is paying 912 per cent in
terest on every 6 per cent con-
tracted before the great smash, and
he faces the hopeless task of paying
off his mortgage at the rate of $1.52
for every dollar he was loaned.
If he borrowed $4,000 in 1929, he
must now pay back SIS, 200 in pur-
chasing power, and purchasing
power, of course, is all that money
means.
90 that everywhere in America
~ men are beginning to wonder
whittier is the republic drifting and
to suggest ways of doing something
about it.
More and more those who want to
do something are turning their
thoughts to that AZ per cent of all
the worlds gold which America has.
Has not gold always made rich and
powerful the nation which possessed
it in the past?
Do not other nations claim today
that they are not prosperous, be-
cause. America has drained their
gold from them? Why does not this
gold, this metal which all nations
have struggled to obtain throughout
history. why does it not do more
work for America now?
Thus, more and more insistent,
there arises a cry for imitation of
the currency-that is, for the gov
eminent to use that gold some way
to put more money in circulation, so
that each citizen will have more
money and spend more and prices
will increase and industry revive and
good days will come again.
Many CurrencV plans are being