Evening star., 1933-08-01
Rep. Beck's Pessimism
A Mere Technically
To the Editor Of The Star:

Representative James M. Beck of
Pennsylvania has many admirers. even
among those who do not share his
political views. In his public life Mr..
Beck has shown q wide range Of vision
and q clear understanding of many
dificult political problems 1t comes,
therefore, as somewhat of Q surprise
that he should take such O lugubrious
view Of some Of the doings Of the pres
ent Congress as is expressed in The
Star Of Sunday, July 2. 1888.
1t should be no news to Mr.. Beck
that the situation which confronted the
incoming administration on March 4
last was without parallel in our his
tory. Political, financial and industrial
leaders were helpless and bewildered
All attempts to apply old panaceas to
new ills had ended in failure. The po-
litical philosophy of those who had
welded governmental powers for sew
eral years was not comprehensive
enough to deal with present-day con-
ditions. Organized greed had secured
stranglehold on the medium of ex-
change, but lacked the courage and
public spirit necessary to use 1t sanely
and intelligently. Farms we're deserted,
factories idle, men walked the roads,
despairing of finding employment,
while women and children were suf-
fering from cold, exposure and hunger.
Murmurs against the Government were
frequent; riots had occurred and Ma
tion-wide unrest threatened lawful au-
thority. The incoming President was
faced not merely with desperate
situation, but with a phalanx Of desper-
| ate situations, each requiring a drastic
remedy. In view of all these matters,
Mr.. Beck's plunge into despair over
the lost-the irreparable loss-of the
honor Of the American Nation seems
not only rather premature, but also
somewhat childish. Or 1t Is quite pos
sible that Mr.. Beck has adopted the
| good old congressional pastimes Of
| raising up phantOms for the pleasure
Of knocking them down.
Mr.. Beck bemoans the power con-
ferred upon the President to change
the gold content of the dollar. II the
| gold content Is the true basis for
United states credit. then it has never
been other than chimeric and phan-
tasmal. Mr.. Beck knows, as well as
any man, that our national debt is
approximately $20, ,000, 900 900. and that
each certificate carries the standard
| gold guaranty. Inasmuch as our total
gold supply Is less than four and one
| half billions, 1t Is at once apparent
that the Government promised the per-
formance of physical impossibility on
at least three-quarters Of its obliga-
tions. The answer, Of course, Is plain
The gold supply Is not, and it never
has been, the true basis for the credit
of the United States. The credit of
this Nation is founded on the wealth
| of its natural resources and the in
1 custry and integrity of its people, and
l t,tc L. Anx E~I.
6eteriorate or crumble. Mistakes, to
of this Nation will not be seriously
impaired. at least by the present ad-
ministration
Going right to the merits Of the par
ticular case which Mr. Beck views as
! the bar sinister on our escutcheon
the plain import of the legal tender
cases cited by him is that all obli-
! cations arising out Of contracts are
subject to the constitutional power
of the Government. and that the power
Of Congress extends to that Of making
paper money the lawful currency for
all purposes. Consequently, the pur-
chasers Of United States securities are
not without notice as to the fact that
the medium Of redemption is subject
to change. And whatever may be
eAAS NeSS AOh tAiC PAA ANioo<A. tAiSiC 10
| little merit in the contention that the
securities were accepted by the present
holders without notice The vast bulk
Of United States obligations have been
absorbed by banks and bankers in this
| country and abroad, and this class of
security holders are not accustomed to
acquire any bonds without full investi-
CATION Of their legal rights. As to the
claim that there is any moral obli-
CATION to redeem these notes or bonds
in dollars Of specified gold content,
to any practical man that is sheer non-
sense. Mr.. Beck has, however, picked
out real plausible technicality and
| clothed 1t in dramatic and high flown
! language, embellished by scriptural
| and poetic quotations. Doubtless. if ex-
tended in the Congressional Record, it
would make excellent reading for the
! folks back home
ROBERT CONROY.