Evening star., 1933-04-22
3y the Associated Press.

BY the ASSoclate0 fTeSS.
The full text of the Republican state
ment opposing the administration's IN.
fation move, signed by Senators Reed
of Pennsylvania and Walcott Of Con-
necticut, and Representatives Smell OF
New York and Luce Of Massachusetts,
follows:
The administration imitation bill vio-
lates the most elementary principles
Of sound monetary, credit and financial
policies. It is better designed to de-
feat than to promote business recovery.
1t Is said that the bill IS necessary
in order to avoid more radical legisla-
ton. What could be more radical than
authority to issue printing press money
and to give one individual, In direct
violation of the Constitution, the power
to alter at will the value Of the medium
through which all business transactions
are conducted and the terms OF all
monetary obligations and the value Of
all property expressed?
While there are grave objections to
the domination Of the Federal Reserve
system by the Treasury and it Is hare
to defend the unsound practice OF the
Governments borrowing directly from
the central banks, yet In spite Of these
objections and the doubts which We en-
tertain as to the efficacy Of the remedy
In view of the existing emergency and
the recognized need for an advance in
all commodity prices, We would be WILL
ing to support some such provision as
section l for the expansion of credit
by means Of open-market operations.
even through direct purchases from the
Treasury by Federal Reserve banks. pro-
yiding discretion as to the amounts to
be purchased up to the maximum pro-
vided were given the Secretary of the
Treasury and the Federal Reserve ON
cials, instead Of the provision as 1t now
stands which authorizes and practically
compels the purchase of $4,000, ,000, ,O0O
Of Government securities, irrespective
OF the credit or banking situation.
Printing Press Money.
The second section authorizes resort
to the printing press and the issuance
Of nat currency. It Is not simply an
alternative proposal to section l, but
may be supplemental. That Is, in addi-
ton to the three billion Of bond secured
currency provided for by section l, sec
tion 2 authorizes the issuance Of three
billion of notes with no reserve or Sc
curity of any kind back Of them-un-
disguised printing press or "say-so'
money.
In other words, the two sections COM
bined mean six billion of additional cur
rency, half secured by paper and half
lust paper This would represent q
doubling of our already swollen circula-
ton. 1t is imitation on a grand scale.
If it does not produce the expected
results the Government. having con-
ceded the principle, will be forced to In
crease the dose.
If it does take and prices rise because
of loss of confidence in the value Of the
country's currency, then the Govern
ment may well find, as did those Of Ger
many and France, that imitation once
started feeds upon itself and soon gets
completely out of control.
This bill may well constitute the nrst
step on the road to ruin which the
German people took under compulsion'
but upon which 1t Is proposed We now
voluntarily embark.
Let there be no misgiving as to those
who bear the loss. Not the well-to-
with funds invested In common stocks,
who are in any event best able to take
care of themselves, but the wage Garner
who sees the cost Of living fast outpace
a tagging wage. the salaried classes
and those with fixed incomes, the aged