The midland journal. (Rising Sun, Md.) 1885-1947, 1933-02-10


sactions of the nation, or else we do
not have sound currency. Germany
has had her experience with rushing
money out.
Bringing Up Silver.
In addition to these methods Of infia-
ton, there are considerable number
of men In congress, and outside as
well, who have been insisting on the
greater use of silver. They are pro-
posing bi-metallism. It means making
silver just as valuable as gold as the
basis of money stocks in the treasury.
Senator Wheeler of Montana, has res
directed the 16-to-1 ratio of Bryan
days. Senator Long, of Louisiana,
proposes that the treasury shall buy
all of the silver that is offered and
that this silver shall be paid for by
issuing new silver certificates Cor rep
resentatives of the silver bullion).
There is no doubt that the silver
advocates have strong support. They
can, and do, refer to the success Of
silver as basis of money in India
through the centuries, and to Chinese
experiences with that metal.
Silver adherents call attention to
the limitation on gold supplies Of the
world, and, in the same breath, to the
apparently limitless supply of silver.
1t is their contention that this type of
imitation can be managed" and con-
trolled to serve the country's purposes.
Senator Wheeler said in the senate
there was always danger in paper In
flation, a danger that it would get out
of hand and go too far. Such, he con-
tended, is not the case with his pro-
posal.
Would Raise Prices.
One must look beyond the act of in
fation, however, in considering the
question which it presents. There Is
no doubt of the effect, namely, that 1t
will raise prices. It will do that by
virtue of it's effect on available supplies
of every commodity. While opponents
of imitation claim this result will be
only temporary, advocates of imitation
ary measures insist the increase in
prices will be permanent to the extent
that, after the stress and strain OF
such conditions as now exist have
worn off, there will be an easy read
justment to normal base. That nor
NAL base, of course, can be no other
than ordinary buying and selling in
what we refer to as good times"
There will be an increase in the
prices, also, of such things as secu-
rites like stock in corporations. In
fiation might possibly develop another
boom market, not SO bad probably as
the 1929 debacle, but higher levels for
virtually all of the quotations. The eff
feet on bonds and possibly on pre-
ferred stock in corporations seems
likely to be the reverse from that on
common stock. The reason is obvious.
Bonds and preferred stock have a fixed
amount to be paid to their holders. In
terest is paid on the bonds and divi-
dends on the stocks. Their holders,
therefore. get that amount whether the.
dollar which they are paid Is worth
25.8 grains Of gold, or only half as
much.
Similarly, wages will be affected.
The wage Garner who is paid $50 a
month will continue to get $50, but
that sum will not purchase as much Of
the higher priced commodities as 1t
now does, or as 1t does in normal
times.
Advocates of imitation point to the
benefit which farmers will receive
from the increased volume of currency
in whatever way it is obtained. High
err prices, say the imitation supporters,
when they have been received by the
farmer for his wheat, his cotton, his
corn. or his live stock, will enable him
to buy more from the industrial plants
who need the farmers trade.
Opponents of imitation admit, as
true, that the farmer will receive
higher prices for his products, but they
argue he will be at disadvantage
rather than an advantage. For, say
the opponents. prices are not going to
be stable when the currency Is inflated.
They add the further argument that,
while the farmer is receiving more for
his products, he will be called upon to
pay higher prices for everything he
buys. 1t must be remembered, too,
that labor costs enter into the manu-
facture and labor, paid in the inflated
dollar. may not constitute anything
like a normal market, according to the
opposition views.
O. 1888. Western Newspaper Union.