Evening star., 1933-09-22

Continued From First Page,l
amount of gold In it in accordance with
price indices. -.
This means that should 1t be de-
sirable to stabilize prices at, say 1925
levels, gold could be taken from the
1922 grains in the gold-standard dol
lar in sufficient quantity to raise the
prices to the desired levels. Conversely.
if lower prices were wanted, gold could
be added.
"By taking gold from the dollar, or
adding to it, you increase or decrease
the supply, which in turn raises or low
ers prices, respectively, by making gold
more plentiful or scarcer.
ut would not be necessary to control
production of commodities or to fix
their prices. A stabilized dollar would
not mean that if the wheat crop were
short, for example. wheat prices would
remain what they were If the crop was
heavy, because they would be higher.
But controlling the gold value Of the
levels of all commodities within mini
mum and maximum limits, would stop
price collapses and prevent wild inf1a-
ton Of commodity values that are due
to gold. It would not prevent fuctua-
tions in business due to other causes"
Swedish Plan Cited.
Sweden presents a good example.
About three years ago prices started
falling rapidly there, but PARKWAY down
the decline, Sweden began managing
her currency, and through this stabil-
lied prices at much higher levels than
has the United States, as this country
kept right on the price toboggan. We've
just started to turn uphill Sweden
now wants higher prices, so the cur
rency will be managed to lift the gen.
eral, average levels.
That is the way 1t is worked. If
price indices begin to swing one way
or another and the swing is not wanted,
the manipulation Of the currencs will
check it; II swing is wanted, the cur
rency control can force it.
Homes Show Loss.
"It is far better to have stabilized
price levels than stable wages and fall
ing prices, the latter two ruinous to
nation. particularly its hidden in
vestments.
For example. one may figure per
cent q year depreciation on his house;
but if prices are down on top of that,
2, 3 or 5 per cent more may be added
by forces over which the house owner
has no control.
yet his property has deprecated the
normal three, plus whatever percentage
the price fall is. Multiplying this by the
number Of houses presents a stagger-
ing total Of losses"
Senator Thomas said in a statement
last night that "the failure to initiate
the currency has caused the removal
of the New York Stock Exchange from
New York City to New Jersey"
Credit Famine Charged.
"Denation," the Oklahoma Democrat,
a leading imitation advocate, said, has
caused q famine in currency and credit,
and because of inability Of the property
owners and business men Of New York
City to pay their taxes, the officials OF
the city have found 1t necessary to in
crease the taxes on every active business
and the Stock Exchange was about the
only institution showing signs Of pros
perity, and hence the city tax upon the
transactions coming through the ex-
change.
'The taxes imposed by the Federal
Government on the State Of New York
were already a heavy burden upon the
exchange and when the City OF New
York added an additional tax, the ex-
change found it necessary to remove to
another point where taxes would not oe
20 burdensome.
Hence I attribute the forced removal
Of the exchange directly to the opposi-
tion Of Wall street to imitation and the
failure of the Federal Reserve System to
:. increase the amount Of money 10 circu:
latto -