The Waterbury Democrat., 1933-11-27
Dollar Depressed By
 mHationary Fears
Definite and IrrevOcable Stand By the Federal GOyer-
 ment Against Imitation Would End Uncertainty

for the country cannot continue tn- definitely on a makeshift monetary policy, and the announcement of any specific currency program, re- gardless of it's ntaure, is likely to bring some degree of price realign- ment, Inasmuch as temporary price establishments are inevitable it is better that they be precipitat- ed for the express purpose of giv- ing the country the sound currency so essential to lasting business pro- gress.
 While the government has been making a satisfactory showing late lysin meeting ordinary expenses out of current revenues, the expenses in the budget listed as extraordi- nary, consisting for tn most part of expenditures for relief purposes, have been very great; and it is a certainty that much greater out lays will be shown in the near fu- ture. A large scale Notation of government bonds for the purpose of meeting current expenditures all ways presents an opportunity for a credit imitation such as this coun- try witnessed during and after the World War, particularly when pro- visions are mad@ to encourage or force the banking system to absorb large amounts of the new issues. Moreover, it is a frequent occur renee in economic history for na- tions to become so deeply involved in debt that payment is possible only by redeeming the obligations with fiat money printed expressly for that purpose.
 While it is hoped that such a disastrous turn of events in this country will not take place, the anti-infiationists are concerned about the possible disposition of congress when it assemblies two months hence. For almost the first time in history, imitation is being contemplated not as fiscal neces- sity but as a deliberate economic policy. Since the last congress ad- journed, some of its members have publicly expressed displeasure be- cause tn president has not used his more drastic monetary powers, which would enable him to issue up to S3,O00, 100000 in nirredeem- able paper money, to substitute bi :. metallism for the gold standard, and to reduce the gold content of the dollar by as much as 30 per cent.
 Currency imitation has always, been started at time of economic emergency when the people and the government became impatint with tn slowness of natural cor rective forces and sought some short route to recovery. But his tory warns us that infa tion, once begun, is likely to be fololwed by Increasingly large doses to bolster the artificial speculative boom that it has created.
 Many individuals in the nation today, weary of the hardships of depression, seem to look favorably upon any expedient that would au- tomaticaly bring about price ad- vances in the false belief. that higher prices are the cause rather than the result, of sound business progress.
 Both history and analysis show beyond question that those individ- uals who are favoring currency in fiation are also favoring (though in all probability unwittingly) a partial destruction of the value of their savings, a reduction of real wages, and a shrfnkage in the value of bank deposits, insurance policies, and trust funds, to say nothing of the inevitable ultimate collapse of the inflated economic structure, with loss of all the ground gained thus far toward re- covery on a sound basis.