The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-11-17
INFLATIONISTS
\ DELIGHTED BY
TREASURY SHIFT
Henry A. Morgenthau Jr,
Is Cheaper Money
Advocate.

~ ScTfpps-HO Cdrd Neirspdper Alliance
WASHINGTON. Nov. lin
fiationists and dollar revaluationiSts
expressed enthusiasm today over the
shift in the treasury which put it
under the direction Of Henry A
Morgenthau Jr., the staunchest ad-
vocate Of cheaper money in the
Roosevelt administration.
They saw a distinct swing toward
their views on monetary reform, and
a departure from the conservative
element represented by the retiring
secretary, William II. Woodin, and
Undersecretary Dean Acheson, both
Of whom we're opposed to the at
tempt TO raise commodity prices by
buying gold.
Mr.. Morgenthau, transferred from
governor Of the farm credit ad-
ministration TO become acting sec
rotary of treasury, is one of the
chief sponsors Of the gold-buying
policy. He was associated in press
ing it npon the administration with
Professor George F. Warren Of Cor
nell, who is its author. Mr.. Morgen-
thau's monetary remedy Is devalua-
ton Of the dollar by reducing its
gold content.
Farmers clamoring for cheaper
dollars to lift their load of debt
welcome his selection.
WOOdin Believed Out
As for Mr. Woodin, it is generally
believed here that he is out of the
administration permanently. He
has been in i'll health for several
months.
1t would not be surprising to see
other treasury officials depart, for
1t is an open secret that the treas
ury was seething with discomfort
over the policy promulgated by the
Cornell professor. Under the new
dispensation it can not be imagined
that they will be comfortable.
Among those who had no praise
for the Warren theory are Gov
ernor Eugene Black of the federal
reserve board and DR.. o. NJ. w.
Sprague, who was formerly attached
to the Bank of England and now
occupies an Office in the treasury
as consultant on financial policy.
DR.. Sprague has not been consulted
in some time.
If Mr.. Morgenthau's personal
views are carried out, the country
will have relation" through de-
valuation of the dollar, which some
experts see as the ultimate objective
in the present gold policy. He has
expressed his views through edito-
rails in his farm journal, the Ameri-
can Agriculturist.
For instance:
Must Control Initiation
"One way to get more currency
into circulation is to devalue the
dollar by not putting so much gold
In it."
Again:
Re1ation-if it can be controlled
will do more than all the other re-
lief measures put together to end
hard times. However, America must
make certain that any method for
initiation can be controlled. Wild
imitation would, in time, ruin the
country.
Free and unlimited coinage of
silver, for example, on a 16-to-1
basis, would not work and would be
disastrous, However, it is possible
to put both gold and silver back of
our currency. limiting the amount
Of silver to be used for such pur-
poses"
Mr.. Morgenthau thus is a moder-
ate inflationist. BY profession he
Is a farmer Of the gentleman farmer
type. winning prizes with cattle
and vegetables raised on his Dutch
eSS county farm, which is near the
Hyde Park home of the President.
The two have been friends and asso-
ciates for fifteen years. Mr.. Nor
enthau was commissioner of agri-
culture under the Roosevelt regime
in New York state.