Evening star., 1933-01-03

exchange and our trade interests
throughout the world.
Still third proposal to meet the
need for more money is that we retain
the gold standard, but that we enlarge
the use of silver as basis of money
here at home and also bring about
international agreements for its use in
world exchange. thus increasing its
value and enlarging its basic use for
money purposes. Along with that, it
is proposed to enlarge the issue of
paper money based on Government
bonds, always keeping within the limit
for the gold reserve of 40 cents on the
dollar. Those methods would gradually
increase the amount of currency in use
without overttIrning the system ITSELF
until prices rise and credit again takes
the place of money as it always does
when the country is prosperous.
This last method conforms TO Mr..
RooSevelt's platform promise for sound
money and for the making of interna-
tional agreements to bring about
greater use of silver as money.
Discusses Budget Balancing.
Let us take the problem of balancing
the budget as another illustration for
the application of this method. The
national deficit Is increasing $f00 000,-
900 per month. Despite this. the adj
ministration spends and spends. His
tory will record the Hoover admins
tration as the most costly peace-time
experiment in hard times this or any
other nation ever knew.
But how shall we balance the budget?
Some say, Levy manufacturers sales
tax." That is something entirely new
in Federal taxation. 1t could only
make hard times worse. 1t would be
an additional tax on industry and the
unemployed Others say, Strike out
the exemptions on all incomes so every
body will pay an income tax" Moth
ing that drastic has ever been resorted
to, even in war. 1t would be almost as
Objectionable, as sales tax
Still others say, Cut the running eX-
penses of the Government so there will
be no deficit" That is the natural way
to balance the budget. That is the
method Mr. Roosevelt can follow in ac-
cordance with his platform pledge to
cut Government expenses 25 per cent.
Then when we legalize beer, the beer
tax can be substituted for some of the
nuisance taxes we now have.
Let us take the problem Of saving the
farmers of this country from further
bankruptcy. and apply this method for
solution. Some propose to raise prices
by law and finance. the increased prices
by special manufacturing taxes. At
best that could only be temporary
remedy, because of the overproduction
that would follow Others say we should
induce or compel farmers to take a
holiday from production for one year.
SO there will be shortage which will
raise prices. But prosperity is based
on production and this plan is impossi-
bic for enforcement Both Of these pro-
posals are in defiance of our entire his
tory of agriculture.
Another proposal is that we shall re-
establish world trade by increasing the
value of silver so that the half Of the
worlds population which has no money
except silver with which to buy any
thing, can buy our products. BY max
ing reciprocity treaties we shall secure
still other trade which high tariffs now
make impossible. This would gradually
build up a world market for our surplus
and would benefit all agriculture. This
method again would be in harmony
with Mr.. Roosevelt's pledges to the
farmers. and would be based on the
principle of finding permanent markets
for our regular agricultural surplus.
| Probably the greatest problem in