The Butler County press. [volume] (Hamilton, Ohio) 1900-1946, 1933-05-19
FEDERAL ACTION
Held Vital to Bring Re-
cOvery

Washington, D. C. (ILNS)--A re-
bound from the low points reached
by business in March due to the
banking holiday put several hundred
thousand men to work in April, but
after the spring season is over it
seems probable that business will con-
tinue downward unless government
measures turn the tide, the latest
American Federation of Labor
monthly survey Of business says.
The survey points out that govern
ment action is the best hope for
starting business upward, as "defla-
tion forces are still strong and the
situation too uncertain to start credit
flowing to business from the banks"
Discussing the depression as
world problem, the survey says that
the main distractions to commence
between nations can be removed by
international agreement, if the will
to overcome depression is strong
enough to lift nations to world
viewpoint.
World Gold Shortage
1t says the currency problem is one
of the most crucial and goes on to
explain as follows:
'The international gold standard
has broken down, less than five years
after it was re-established following
the war; A fundamental cause of
this breakdown, not generally known
at that time, is the world shortage of
gold World gold production has not
increased rapidly enough in the last
two decades to keep pace with in-
creased world production of goods and
sustain prices at the prewar level,
unless currencies fall below their
gold par value.
with currencies at their present
gold par, world monetary stocks of
gold would have to increase 3.15 per
cent per year to sustain pricsee; ac-
tually they have increased only 2.8
| per cent per year from 1914 to 1881,
and it seems practically certain that
gold cannot be produced in sufficient
quantity to maintain a 3.15 per cent
| increase.
"Therefore, one of two things will
| happen: Either prices will fall con-
siderably below pre-war levels or cur
rencies will fall below gol' par. Ma
tions must choose between falling
prices accompanied by increasing de-
preston and unemployment or
lower gold value for their currencies.
Remedies Suggested
Since our trouble is scarcity Of
gold, it is suggested that silver be
remonitized, thus increasing the
metal base for our currency. A fixed
ratio between silver and gold Obi
metalism) it is generally held can be
safely kept only if it is uniform for
| all nations, established by interna-
tional agreement. Another method OF
using silver, 'synmetalism (bars of
gold and silver in stipulated ratio)
it is believed can be safely estab-
! lished without international agree
ment
| Financial experts point out that
the gold (or gold and silver value
of currency can be edjusted to the
price level and prices can thus be
kept relatively stable. This method
has been used with success in Swe-
den. 1t could be adopted by other
nations. To guard against price
changes would benefit wage earners
the world over"
The survey briefly reviews Presi-
dent Roosevelt's relief and recovery
program and points out that if prices
are raised by initiation methods, pro-
vision must be made for raising wages
proportionately or purchasing power
will be reduced and the price increase
will not establish a balanced upward
movement of business.
"The danger Of imitation is that it
may create an unbalance of economic
forces and get out of CONTROL" the
survey adds. Assuring increases in
workers buying power proportionate
to increases in prices and productiv-
ity would provide a strong balancing
force"