Evening star., 1933-12-11
INITIATION HITS
! FORGOTTEN MAN
Fear OF Dollar Value Under
' so Cents Shared by Many
in Business Life.
BY MARK SULLIVAN.

I have reported from points through
out the country very little imitation
mindedness" on the part of the people.
Because of this I am reproached by
some, who say my reports have the
effect of assuring the people there will
be no infiat'1n. and thereby misleading
them
It is one OF the bedeviling attributes
of imitation or the threat of it that
awareness of the possibility comes first
to the Shrewd and sophisticated. They
are thereby enabled to safeguard them
selves in some degree against the con-
sequences of imitation if it comes. 1T is
the less sophisticated, Mr. Roosevelt's S
forgotten man." who is caught un-
aware by initiation and suffers by 1t.
I shall correct any incomplete i'm
preston if I say that many business
men, bankers and economists are con-
vinced that if the Presidents monetary
polices are continued they will sooner
or later be imitation Of the serious kind.
BY imitation of the serious kind" is
meant imitation which would carry the
gold value of the dollar down materially
below so cents
How Critics Reason.
The economists who think this are at
least as high in standing and much
more numerous than those who are ad-
vising the President to so on with his
present policy. These critics arrive at
their conviction that serious imitation
may come by several paths
One line of reasoning rurs thus: The
President has dedicated himself to q
policy of causing prices of goods to rise
much above what prices now are. For
bringing the price-rise about he is using
several devices. The one he relies most
upon just now is purchase of gold at
gradually rising prices. This has been
under way since october %.
The price of gold has been marked
up from about S29 an ounce to about
$34, rise of some Is per cent During
that period the prices of commodities
have risen on the average comparatively
little. In short, the policy of buying
gold has failed so far to produce the
result which its proponents said it
would. Consequently, the critics insist.
Mr.. Roosevelt is now faced with a
dilemma
AS one alternative, they say he must
abandon the policy of raising prices
through Government action
Reducing Dollar Value.
AS the other alternative he will be
obliged to mark the price of gold higher
and yet higher. When he reaches a
price of SABA an ounce for gold, he
will in effect have reduced the gold
value of the dollar to so cents Fifty
cents is a sort of recognized deadline.
Reducing the gold value of the dollar
lower than SO cents would be regarded
as serious imitation and also as likely
to give rise to a panicky psychology
which might cause the imitation to get
out of control and go so far as to send
the dollar seriously below so cents.
1t is necessary to record this possi-
bility, and also to say that many COM
petent judges think it likely to occur.
The men who think this way are sure
footed in the world of economics and
currency. The more sure-footed they
are, however, the more do they believe
that when Mr. Roosevelt sees the result
of his policy, sees dangerous imitation
imminent, he will change his policy.
What has been said in this article so
far constitutes as definite a Statement
as can be made. Whether there will
be serious imitation is in large part a
matter Of judgment based upon many
factors.