Evening star., 1933-04-22
"Say-So" Money Assailed
Text of Republican Statement Opposing Administra-
tion's Imitation Program Says Ke, to Prosperity
Is Cheap Long Term Loans.

recipients Of pensions and annuities, the
savings bank depoeitors, the holders OF
l22 ,000, 900 insurance policies, the small
investors with their life savings invested
in one or two sound bonds, and last but
not least, the farmer German farmers
today are heavily in debt and pay
higher interest rates than before the
great imitation.
Why Does He Ask for II?
It may be urged that the President
will not exercise the authority granted.
Then why does he ask for 1t? And
surely those who are powerful enough
to force him to agree to this legisla-
ton will be strong enough to compel
him to make 1t effective.
The third section would authorize
the President in his discretion to fix
the number Of grains In the gold COL
lar, but At not less than SO per cent
Of the present standard. This Is un-
constitutional. Section 3 Of the Con-
stitution vests In the Congress the
power to coin money, regulate the
value thereof and of foreign coin ard
fix the standard Of weights and meas
ures."
But aside from the constitutional
feature 1t Is unthinkable that there
arbitrary power to alter at will the
value Of money which so directly and
vitally affects all human relationships.
obligations, activities, rights and prop
erty.
To those who look upon the devalua-
ton Of the dollar IS . means Of rails
! ing the domestic prie, level, this action
will In our judgmeD prove disappoint-
ing.
It will accelerate the world competi-
ton in currency depreciation and fur
ther depress world prices and markets
to the detriment Of our agricultural
producers. It will only indirectly and
as long time process result In an in
crease Of domestic prices.
| The second and third sections Of the
bill destroy whatever chance Of success
the first may hold. The effect of the
first proposal would be to create large
excess reserves In the banks, which,
seeking employment would expand
credit and foster business and price
increase, providing other conditions are
favorable.
key TO Business Revival.
But the key to . business revival is
courage the revival of heavy industries
! and the purchase Of capital goods.
But who can afford to lend on time
with the threat Of imitation, dilution Of
the currency and the arbitrary decrease
of the value Of money staring him in
the face?
Who can afford to contract to build
or to make any longterm commitment
when the entire price, wage and none
tary structure may be altered at will by
one individual before the contract falls
due?
These threats, this uncertainty. mean
not business stimulation, but stagnation
and the complete elimination Of cap
ital market. Prices may rise, but they
will rise as . result of fear, not of con-
fidence. and no permanent prosperity
can be erected on any such base.
It seems unnecessary to emphasize
that these proposals may involve the
partial reputation by the Government
Of its obligations and the impairment
Of countless contracts affecting immense
sums payable in gold, Of the existing
standard of value-contracts made by
our States. our municipalities, innumer-
able corporations and individuals and
millions Of purchasers in good faith Of
| their securities and obligations.