Evening star., 1933-02-05
BY MARK SULLIVAN

reduce imitation" to an A B G
L explanation. Three or four
years ago should have said the
word was forbidding; that the idea Of
the average man being willing to try to
understand it was fantastic. But I
have learned that the one topic the
average man is just now mcst interested
n, most earnest in trying to understand.
consiTts of ideas and plans having to
do with this depression and how to get
out of 1t. There is ferment of dis
cussion Ct theories about business, even
theories about social organizations and
forms of government. Especially is
there ferment about money, about the
disparity between debtor and creditor
all the subjects embraced in what the
colleges call political economy"
The word imitation now flames
through newspaper headlines, resounds
in debates. Yet doubt If, as yet, the
average man knows what it means,
except vaguely-and to know imitation
vaguely is not to know it at all.
Speaking generally, the people do not
understand imitation" any more than
they understood "technocracy' when it
began to appear in the newspapers a
few weeks ago.
Scores of proposals having to do
with imitation have been introduced in
Congress, many by Senators or Repre-
Sentatives who are to be taken seri-
ously. The climax of discussion of it
will come some time after March 4. 1t
is known that nothing can be done
about imitation in the present Con-
gresS. The bills are introduced in ex-
pectation of the coming in of the new
administration March 4. and of the
special session of the new Congress
which Mr.. Roosevelt will call-the date
of which is expected to be some time in
April. So that the current interest in
theories Of finance is going to coincide
with discussion of imitation in Con-
gress. and with probable action on it
by Congress. The action of Congress
some time during the Spring, may be
either adoption or rejection.
Mid-'9Os Recalled.
When a wave Of thought and dis
cuSslon about such a. subject as infla-
ton gets under way, it is apt to 60 far
In the mid-'9Cs there was, as now, a
depression. Then, as now. the debtor,
especially the farmer owing a mort
gage, wa. in distress. Then, as now,
discussions of theories of money arose,
suggested devices about money In
that condition in the '90s, an obscure
man living in West Virginia named
William H. Harvey, wrote a pamphlet
crudely bound in paper and crudely
Financial School" That little book
was said at the time to have sold in
larger quantity than any other book
ever published In America, even Uncle
Toms Cabin" Indeed, Harveys book
about the cruelties of the gold-stand-
ard dollar was called "the Uncle Toms
Cabin" Ct currency. Coins Financial
School, had an immense influence.
Its influence was in the direction Of
causing the average man to be per-
suaded that initiation was good. Coin S
Financial School," as the chief amcng
many influences almost brought about
adoption OF the free and unlimited
coinage of silver, and almost carried
William Jennings Bryan to the presi-
dency in 1896. The momentum of
Coins Financial School" was arrested,
partially, when orthodox economists and
conservatives generally saw what was
happening, and started a counter
wave of education about sound money.
1t is not too much to say now that
the battle of 1896 is on again. Inci-
dentally the book that william Jen-
ming. Bryan wrote about the 1896
fight was called The First Battle.'')
the sensational thing, I should add
that, surveying the coming Congress
and the coming administration, I do
not believe imitation will be adopted
I should add again, however. that
many persons thoroughly well informed
believe imitation will be adopted. The
most conspicuous place where this an
ticipation prevails is in the financial
community, and bankers are notorious
ly apprehensive and nervous.
In any event, whatever the doubt
about adoption of imitation, there can
be no doubt whatever that agitation
about it is ahead of us. Hence, the
desirability of attempting to clarity
what imitation IS.
Provides Definition.
First, define your terms" The word
imitation" is in great need Of defini-
ticn because it is used so loosely, means
different things to different men. For
the purpose of this article, imitation"
means increase in the quantity Of
money.
That is the broad definition, but it
must be narrowed. For the purpose of
clarifying the word and the situation,
we had best begin with some elemen-
tary facts. Because must be brief, I
am obliged to omit technicalities and
qualifications. What is aimed at here
is rough statement of basic facts.
Money is of two kinds. They are:
Currency money.
Credit money (Or bank money!
Imitation" in the broad sense, means
to increase the quantity of either or
both these kinds of money. On the day
I write this article, the quantity of
currency-money in the United States
is s5676,O0O, ,0Oo-call it six billion
The quantity of credit-money is s45,-
852 900 000-call it forty-six billion. Il