The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-08-25
M. ySays:

THERE has been a marked improvement in
Il foreign trade since last February This
generally is regarded as due to depression of the
dollar Depression of the dollar also is recog-
nized as an important factor in stimulating
domestic trade
In this connection it is Just as we'll to re-
member that, provided it is kept under control
depression of the dollar serves the same eco
nomic purpose as a general rise in prices and
wages
The problem confronting the Roosevelt ad-
mnStration when ii took Office was to elevate
the earning and buying power OF this country
in dollars. The national income had shrunk 10
about one-half of what it was in 1928, but the
taxes and fixed debt charges had not been
reduced
This served to raise the value of the dollar
in comparison to all other commodities.
There were Just two ways of meeting such a
Situation-lrSt by depressing the dollar: second.
by advancing prices and wages. The President
also asked for and received power TO carry out
the national recovery program, designed 10 re-
organize our industrial system in such way as
Will put more people at work raise wages, and
increase buying power
A DEMONSTRATION autlorities appear to
L n have assumed that the National Recovery
program would advance wages and prices far
enough and fast enough TO bring the dollar down
without exercising the full authority which they
had been granted to depress il. In this however,
the results have been Disappointing
The dollar has not come down TO anything
ike the level it must reach 10 be in line with
commodity values IL this country or currency
values abroad. AT present there is little reason
TO suppose that il Will come down TO such level
unless more drastic measures are adopted
We have not obtained the degree OF imitation
which Is necessary 10 square the country's earn
ing and buying power with its fixed charges
Most people think OF imitation as meaning
the issue Of paper money. and they are right in
being afraid Of it. In this particular instance
however, initiation ca1 be brought about by
specific reduction OF Ire gold content OF the
dollar which leaves little room for such v-'ld
and uncomfortable speculation as goes With
printing press currency.
7 HAVE thought from the beginning that re-
l. duction Of the gold content Of the dollar
would have 70 be made and still think so Il
always has struck me as the quickest and most
effective way 70 readjust and stabilize values Of
goods and labor on a higher level
That IS what France did and France is the
only country that has come through this de-
preston on her feet
We face the burden Of paying of debts and
meeting taxes incurred when our national
income was round eighty billion dollars a year
How can we do il on an income Of about forty
billion?
What has occurred yet 70 warrant the belief
that NRA VIII produce the necessary income
quick enough 10 relieve US? Well as il has
worked the results obtained thus far suggest q
slow. long drau-n-out battle.
Meanwhile. the rapid rise Of security values.
the Improvement OF foreign trade, and the
awakening Of confidence which have followed
every stump Of the dollar show how swift and
effective is that method.