Evening star., 1933-04-02

dent pretty willingly. Yet there Is in
Congress great impatience with the
present level of prices, much eagerness
to raise 1t.
Congress May Attempt 1t.
Perhaps fairer answer about the at
titude of Congress might say this: If
there Is within a short time consider
able rise in prices ana considerable
increase in business activity-an in
crease in what we call prosperity-in
that event there will be no attempt at
statutory initiation by Congress, but if
there is not rise in prices and con-
siderable resumption of prosperity,
then Congress might make the attempt
at statutory imitation.
Congress, if it should come to the
point of enacting imitation. would not
do so through use of silver as basis of
dence of likelihood of that. Neither
crease Of fiat paper money. There is
not the faintest evidence of likelihood
Of that, either. Those-silver and pa
per-are two of the three familiar
methods of statutory imitation.
The third method of statutory in
f1ation would be reduction of the quan-
tity of gold in the standard gold dol
lar from the present 1922 grains to
something lower. If statutory inf1a-
ton comes at all, this is the form 1t
would be likely to take. If there is
not reasonably early rise in prices
and increase of prosperity-if condi-
tions continue as they are-in that
event Congress might pass with a rush
measure to reduce the quantity of
gold in the standard dollar. They
would do so Overwhelmingly if such
measure were proposed or not resisted
| by President Roosevelt. They might
readily do so even against Mr.. Roose-
velt's opposition. Assuming that de-
preston continues, it would be no
trick at all to find two-thirds ma
jority for a proposal to reduce the
weight of gold in the gold dollar from
1922 grains to, say, Is grains.
Last year, against the opposition OF
President Hoover and the Federal Re
serve System, the House passed by 289
to so the Goldsborough bill whose aim
was to raise the price level. Passage
in the Senate was only averted by per-
suading Senate leaders Of both parties
not to let the measure appear on the
floor. The Goldsborough bill read, In
part, as follows:
''It is hereby declared to be the
policy of the United States that the
average purchasing power of the DOL
lar for the years 1921 to 1929, inclusive.
shall be restored and maintained by
the control of the volume of credit
and currency" -.
II is in terms of price level that
Congress mainly thinks. Most OF the
concrete proposals for raising the price
level by statute have now come down
to the notion of reducing the weight OF
the gold dollar.
Probably a fair summary of the atti-
tude of Congress would say something
like this: Nine-tenths-more than that,
ten-tenths-of both chambers want
prices to rise above their present ao-
normally low level. If the rise takes
place, as now seems possible, through
the addition already made to the cur
rency and through other normal and
wholesome forces, well and good. But
IL by any chance considerable rise
should fail to develop there will be
a very strong disposition in Congress
to reduce the present quantity OF 23.2z
grains of gold in the standard dollar.
The talk about such measure does
not contemplate a very material reduc-
ton. A figure sometimes mentioned
is 20 grains. The lowest quantity seri-
ously mentioned Is Is grains.
Who VIII Take Responsibility.
When the history of this depression
is written, vivid chapter will say that
on March IL and March 15 1873 Repre-
sentatives and 13 Senators voted nay
against "An act to maintain the credit
! of the United States Government"
President Roosevelt, on the seventh
day he was in Office, sent to Congress
measure bearing that title and having
that purpose-'to maintain the credit
of the United States Government"
Mr.. Roosevelt described the measure
as "of urgent necessity" as dictated by
great present emergency" as calling
for frank. courageous and prompt
| action" as necessary for "the safety OF
! (savings bank deposits, the security
of insurance policies" as calling for
sary for "the very stability Of our
Government" as dictated by the fact
that "a great danger threatens our
basic security. 1t is in this spirit
that I appeal to you"
| On this bill. thus described by Presl-
dent Roosevelt. and thus designated
IAN act to maintain the credit OF the
United States Government" 266 mem.
bers of the House and 81 members OF
the Senate voted "yea" and the Dill
was enacted. The credit OF the United
] states ArOV6InI1tIlI was
| But 1873 members of the House
and 13 of the Senate voted may"
They voted may" for the reason, al
most without exception, that the bill re-.
duced pensions to veterans and pay OF
| Government employees. They voted may"
that is. because the bill was against
| the interest of the two groups upon
whom most Congressman mainly de-
pend for reelection. The lobbyist OF
the American Legion in a letter to
every member of Congress called on
them to vote may"
All the members of the House, those
who voted "yea," and those who voted
may" will come up for denomination
and reelection, beginning about one
year from now. when the primary eiec-
tions will start. (The Senators Will
come up in series, /, 8 and 5 years from
now.)
The Congressman who voted "yea," "
to maintain the credit Of the Gov
ernment of the United States" will be
opposed by fully 19 out Of 20 of the
veterans Let there be no doubt about
that. Every politician knows it to be
true. Some leaders of the veterans
have given lip service for the moment
President Roosevelt. But the mass of
veterans will carry deep and biting
animus against Congressman who voted
to reduce their pensions, present and
potential. They will express this sullen
resentment next year by opposing re-
election Of Congressman who voted to
sustain President Roosevelt and to
maintain the credit of the United
States Government"
The veterans will remember will be
organized and will act, powerfully.
Who will remember on the other
side? Who among those now indig-
nant against the veterans and their
congressional spokesman will keep their
indignation alive for year? Who will
now take the trouble to preserve the
: names of Congressman and the record
t of their votes? Who, and what organi-
' zation, or what newspapers, or what
other organized instrumentalities OF