Evening star., 1933-09-25
Initiation Dispute Becomes
Vigorous National Battle

Another wave of spirited debate on
the merits of imitation breaks upon the
American strand as two or three mem
bers of Congress take the lead IN Ad-
vccating currency action.
1t is accepted as fact that the
administration advocates extention of
credit, but the latest legislative demand
is based on the declared need Of money.
Those who support the imitation idea
speak in the name Of agriculture, while
those who hold that extensive cur
rency expansion would offer no advan-
tages to the farmers suggest that it
might possibly increase prices of other
products more rapidly than those on
posed policy is declared by some OBJ
servers to have its chief effect on pay
ment of debts.
Business dmands additional money"
says the Portland Oregon Journal, with
the tribute to the President that he
is moving toward faster recovery
through unemployment and credit, and
the effect is bound to be felt in early
days" The journal also states that
extension of credit to trade is i'm
portant,' and that without circula-
ton of money there is delay in pur-
chase, delay in payments and a retard
lOf LraQe IN general.
The Abilene Reporter gives the in
formation: Every time the President
or any one else in authority has made
ton prices have bounded upward. That
ought to be a pretty good clue as to
the relation Of commodity prices to
the scarcity of money. The dollar is
still too precious; 1t takes too much
cotton, wheat, hogs. cows and whatnot
to match it. Nobody wants unrestricted
and ill-advised imitation; but 1t is be-
coming more evident each day that
the country is headed for some form
of rational imitation =,
"One way the Government is push
ing for credit" according to the Char
lotte Observer, is trying to make it
Improbable and unnecessary for banks
to hold on to their stores Of money.
Excess reserves Of Federal Reserve Bank
members-reserves over and above the
risen to 500, ,000, 900 this past week.
Government officials feel that this
money soon will have to seek work and
that when it does the arteries of trade
will be opened q bit wider. and that
the demand for currency tinkering then
will die out. 1t is on that basis that
they are planning. This means that
the Government would help banks to
make loans on security that is slower
and less high grade than might be re-
quired by the Federal Reserve Bank.
With the bank situation Strengthened
out as the Government desires it, all
sail will have been set for n quick
voyage to the Port Of Prosperity
Assuming that there is unquestioned
demand among some people for the ex-
pansion of currency, the Salt Lake
DeSeret News quotes statement by
Senator Harrison that action will be
taken by Congress, and suggests a
bimetallic standard as a means OF
creating new ties with Mexico, Cuba.
Central and South America" The News
concludes: I'm spite of the opposition
of financiers. We may see a decided
currency increase. II that occurs, it Ia
rational and probable that the coinage
Of silver will be the means Of bringing
it about"
There is no guarantee that imitation
would increase farm purchasing power,
says the Columbia Is. c. Record,
pointing out that ut might also increase
the price of things that the farmers
must buy still more" The Record quotes
from statistics on the subject Of farm
returns: Farm income this year, 1t
increased about Q billion and q half
dollars. And billion and . half dol
lars Is an impressive sum. It is less
impressive, however. when it is under
stood that the total of farm income,
increases included, will be little more
than half the average for the years
1s23-1s2S. And any paticular farmers
share of the increase may be Cancelled
and more by increases in the costs Of
manufactured goods. And there is no
visible prospect Of anything Intervening
to make matters better. The demand
for infatao win be increasing. there