Evening star., 1933-12-31

nlng OF his administration, has pledged
tIea In 10 one sn of 5 5ce eari9 lGr fsdio sd
dresses, May 7 last, he said:
The administration has the definite
objective of raising commodity prices
TO such an extent that those who have
borrowed money will on the average,
be able to repay that money in the
same kind Of dollar which they bor-
roWed''
While Mr.. Roosevelt did not state in
exact terms the level to which he would
raise prices his description Of his OBJ
iective fitted the price level Of about
1926. everybody understood at the
time and understands now that TO raise
prices Of commodities on the average
to the 1926 level was the objective Of
the policy the President announced.
A second undertaking about prices
was made, not by President Roosevelt
personally, but by his administration
1t is in the shape of the preamble to
the farm relief act passed last Spring.
In that act the objective Of higher
prices for farm commodities is stated
as being to:
Establish prices to farmers at level
that will give agricultural commodities
a purchasing power with respect to
articles the farmers buy equivalent to
commodities in the pre-War period,
August. 1909-July, 1914"
Further the President repeated his
promise Of higher prices especially for
farm commodities in his radio address
Of October % last:
L say in the simplest. clear
est language of which I am capable
that it is definitely part of
our policy ito raise prices -. If
We cannot do this one way we will do it
another. Do it We will
Time Limit Not Fixed.
1t may or may not have been prudent
for the President to make these com
mitmentS about raising prices. And
it is TO be remembered that he fixed no
limit to the time which might be nee
essary to bring about the rise in prices
he described A fair comment might
say that a full year from the date of
the original undertaking. or even year
and half. would not be too much time
for the President TO ask for the fulfill
ment Of an undertaking so formidable
been As aeconplished e yetfar from a4 iH' it.
The President and his administration
have taken many steps designed to
bring about price-rise: The administra-
ton has flooded the banks with IA
cilities for credit in the hope that buSi-
ness men would make use of the credit
and thereby bring about more active
business. increased volume of business
and higher prices. The administration
has tried to raise the price of cotton
by paying farmers to plow under every
third row with view to reducing the
crop which should normally result in
higher prices for the cotton !ett grow
ing. The administration has paid farm
erS to reduce their acreage CT wheat
The administration has Bought hogs
and butter and ether farm commodities
to take them off the market and there
by facilitate rise in price. The ad-
ministration has employed some hun
dreds Of thousands Of men On public
works and has given or loaned hun
dreds of millions of dollars to States
and cities for other public works-all
with a view to making business active,
creating purchasing power and thereby
raising prices. The administration has
marked up the price of gold and
marked up the price of silver And
what is here set down Is only part Of
/ a large and almost feverishly ageres-
sive program of actions designed to
bring about rise in prices.
Far Short of 1926 Prices.
Compared to what prices were year
ago. or nine months ago when the
President took Office. there has been
very material elevation of prices. But
the rise is much short of the 1926 level
which the President has set as his OBJ
jective. More unfortunate yet from
| the point of view of the Presidents
project. the rise. especially as respects
farm crops, has recently been inter-
rupted During the very months of
November and December. when the
Governments efforts to bring about
price-rise were most energetic and on
the largest scale. the prices of many
farm crops actually declined. 1t was
on october q that the President made
the most recent of his declarations CT
policy about price. Since that time
wheat has declined s cents a bushel.
corn about 6 cents buShcl and rye
about IA cents a bushel.
In this state of facts, in the failure
of prices, especially OF 1arm crops to
rise to the intended ievei, and especial
ly III the apparent disposition of farm
lies the reason which the inflat!onIsts
in Congress will give ior demanding
that initiation be enacted at the COM
| ing session. I doubt If their demand
will succeed. l doubt if Congress will
actually enact imitation. But 'he de-
mand will be vigorously and persist
entity put forward
In effect the attitude of the imitation
ISIS toward President Roosevelt can be
put in some such words as these:
Price rise is absolutely necessary to
enable farmers and others to cay the
mortgages and other debts which they
contracted previous to 1929; price-rise
Is agreed by practically everybody to
be desirable you yourself have publicly
stated that price-rise is your policy and
you have undertaken to bring sprice-
rise about. But the price-rise has not
taken place. We hold that price-rise
can be automatically brought about
By imitation of currency. Therefore
| we demand imitation. If you are unwill-
ing to initiate OF your own initiative
We propose that Congress shall do it."
The advocates of initiation in the
coming session of Congress will recall
to Mr.. Roosevelt what happened last
April. At that time imitation senti-
| Inent was strong in Congress. An infla-
Wheeler of Montana, an initiation of
| the most direct kind, coinage of silver
in the same terms as the William Jen-
nings Bryan formula in 1896, coinage
of silver in the ratio of l6 to / to gold
such a measure when before the Sen
ate was supported by the votes of
majority of the members of Mr.. Roose-
velts Democratic party. In the face
of that demonstration of strength of
initiation sentiment (and because of
scme other events that occurred about
the same time) President Roosevelt
arrived at an understanding with the
imitation leaders.
Authority Given President.
BY that understanding Congress drop
I nod al the pendinp inf atiOn measures