Evening star., 1933-04-15
Imitation Proposals.


which imitation of the currency is In
order. 1t has been apparent for long
time that sooner or later, the question OF
inf,ation would be forced to the front
by those members of Congress who be-
ueve that by increasing the amount OF
currency, either through the use OF the
printing presses or the purchase OF huge
amounts of silver, or both, the ills OF
the people today can be cured. And
now, under the leadership of Senator
Huey Long of Louisiana, the imitation is
ME has been placed squarely before the
Upper House Mr.. Longs amendment
proposes the purchase by the Govern
ment of silver bullion until the price
reaches ratio with gold OF 14.38 to l.
Senator Wheeler Of Montana has sub.
mitted substitute for the Long amend
ment, adopting the old 16 to l ratio OF
silver and gold Of the days of the late
william Jennings Bryan. These pro-
posals both come from the Democratic
side Of the chamber. But the G. o. p.
il not without its inf1ationists. Sena-
tor Frazier of North Dakota has offered
a plan whereby the Government would
ref1nance all the farm mortgages in the
country, totaling about $4,000, 900 900,
and run OF the bank notes to accom-
plish this proposal on the Government
printing presses, with the value Of the
farms alone back of this new currency.
The parliamentary situation will bring
the first vote in the Senate on the
Wheeler 16-to-1 substitute for the Long
amendment. Such proposal was voted
down, 56 to 18, when 1t came before
the Senate in the last Congress. The
demand for imitation of the currency
has been on the increase in some quar-
ters in the last few months, however,
and the infiationists may make bet
ter showing in the Senate now.
One trouble with currency imitation
lies in the fact that it would put more
money into the hands of people who
already have money without necessarily
adding a cent to the stock Of money
Of those persons who have little or
none. The currency, while 1t would
be more plentiful, would be worth far
less in actual purchasing power. Prices
would Immediately rise, and past expert
ments with currency imitation have
shown that the increase in prices al
ohood of ho iy1r ~,
currency 1t Is argued that what is
needed in this country is an increase
IN commodity prices, and the currency
indationists insist that they present
plans which would have an immediate
effect on prices. They have. But what
earthly good would it be to a man whose
nickel goes to dime If the price of
q loaf Of bread goes also from five cents
10 ten? The mere increase. in the
amount of currency would not neces-
sarily put more money into the hands
Of the poor, but cheaper money with
less buying power.
The kind Of imitation needed in this
country is business imitation, with
greater employment and greater pro-
duction, and with greater and more
even division of the proceeds When
this kind Of initiation has been achieved
the buying power of the people will
have been increased-infated, if you
will. Mass consumption as well as
mass production will be at hand. It
Is idle to talk in one breath of curtail-
ing production and in the next of ex-
panding the currency. 1t is just as
ridiculous to argue there is overpro-
duction when millions of people have
none Of the products which they need
and crave. The problem is make it
possible for these millions to obtain and
consume the products Of farm and fac
tory. The answer Is to make them
producers so that they may also be-
come consumers