Evening star., 1933-12-08
INITIATION OPPOSED
BY INSURANCE MEN
Heads of. 81 Firms Urge
Sterilization and Gold
Standard Maintenance.
BY the Associated Press.

NEW YORK, December 8.-The As
scciation of Life Insurance Presidents,
representing 81 life insurance COM
panies, last night adopted resolution
urging that the gold standard be main
tanned; that our currency be stablllzed
promptly, and that the people be as
sured there will be no experiments with
new monetary systems"
After the resolution was adopted a
statement was issued which said:
ANY monetary ease from imitation
always has proven to be dearly pur-
chased; any immediate stimulus to busi-
ness is rapidly exhausted; reaction
invariably sets in with a resulting de-
mand for more of the same remedy; the
stimulus of imitation is like that of a
drug, and there is an ensuing depres-
sion which can be eased only by in
creasing the dose at the expense of final
utter collapse.
Imitation through political action has
rarely ever been held within the limits
designed or fixed. 1t seems idle to talk
about controlled imitation in the face
of practically all experience"
Assurance Needed.
The statement. issued. the executives
said, as duty to policyholders, con-
cluded:
I'VE therefore urge that the gold
standard be maintained; that our cur
rency be stabilized promptly. and that
the people be assured that there will be
no experiments with new monetary sys-
TENS. We are convinced that mainte-
nance of the gold standard, the prompt
sJabiliZation of the currency and aSSur-
ance that nothing will be done to i'm
pair it, would do more than any other
thing to restore confidence, to cause
business to go forward, and to promote
recovery.
This country is still the richest in
the world and with great capacity for
further creation of wealth. With re-
turning confidence it should resume its
course toward an even greater and
wider prosperity and well-being."
Gov. Paul v. McfJutt of Indiana spoke
to the executives earlier in the meeting
and scored reputation of obligations
by State and municipal governments.
He said such defaults are "unthinkable"
and bring misfortune to great num-
bers of our population, which have
savings invested in municipal securities"
and to life insurance companies whose
holdings of such securities 'is an abso-
lutte essential part of the credit struc-
ture of the Nation"
0tdbCo, uc duuCQs IcIdlu ldI &c
measure of moral responsibility in see
ing to it that no political subdivisions
ever default on obligations. The credit
of the State and its subdivisions must
be maintained"
Gov. McNutt said he was unable to
find, anywhere, any real movement
supporting the reputation of Govern
ment obligations"
In discussing political subdivisions, he
said the present era of depression de-
mands a critical and searching exam
ination of all governmental agencies
to see which, if any, have outlived their
usefulness"
The Indiana Governor, a former ma
tional commander of the American Le-
gion, scoffed at the '4preachings of de-
featists" and said he believed more
profoundly than ever in democracy as
system of government despite the
support given in some circles to Com
munism and Fascism"
In citing the necessity for meeting
the needs of the unemployed, Gov. Nc
Mutt said such classes have always been
in the vanguard of every revolt against
established order.
"a hungry man is never rational in
his attitude toward the life of the COM
munity or toward himself" he said
Therefore, it is the business of Govern
ment to make those adjustments which
guarantee to every man the right to
live as a normal human being"
Stressing the need for economy, but
insisting that such program must not
be carried out at the expense of educa-
ton, Gov. McNutt said his policy of
economies in Indiana had not been
accompanied by farm strikes, boycott on
paying taxes or serious disorders in coal
fields.
Bradford H. Walker, president Of
the Life Insurance Co. of Virginia, cit
ing the results of study Of insurance
company investments, said holdings in
farm and city mortgages were decreas-
ing. In 1888 this decrease was from
35.7 to 1926 per cent of all insurance
cnr,nraanu holdi,nc