The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-04-26

L s~SsOSO - su0y % 0OCOUD2xY In
conform to this policy.
Against IMITATION
Garrison, North Dakota,
April 22nd, 1858.
Editor, Tribune:
We feel that the problem Of infla
ton q % fundamentally important IA
relation TO National recovery that too
much stress can hardly Be placed M
On the arguments and evidence, both
pro and con, relating to It.
Imitation q national policy has
always had certain drawbacks that
have operated to create confusion and
discord over . period Of time. In its
primary stages initiation naturally an
pears to Be helpful agency for slim.
ulating prices, effecting . widespread
distribution Of currency, stimulating
confidence IN those who have been
short Of liquid funds and substituting
increased cash transactions for the
missing normal credit business Of
easier times.
On the observers side, however, the
difficulty Of controlling the reach Of an
imitation program makes It . danger
Gus policy. Imitation has been tried
many times and has almost always
continued beyond the needs Or desire
OF the governments that have used It
q an emergency measure-usually
ending up BY destroying the very
prosperity ana security that It was in
stituted to stimulate. The story Of
the German mark u the outstanding
recent example Of what uncontrolled
currency imitation can come to.
Granting. for the sake Of argument,
that our government would Be able
to control its initiation policy-there
Is still much to be said In opposition
to the accomplishment Of the purpose
through the debasing Of the gold dol.
lar. At present there q . move to fol.
low this plan, reducing tho gold con.
tent Of the gold dollar BY law to q
point where current gold reserves may
Be used as . base for q greatly ampli-
fled currency that will at least ap-
proach In parity the debased monies
Of other countries. The theory Of this
scheme Is to upset the variable that
now exists between our money and
that Of our important foreign custom
ers 20 that foreign trade can b re.
stimulated, an outlet for industrial
and agricultural surpluses created.
commodity prices improved. stock and
security quotations advauced-and q
part Of the contraction In existing in
debtedness eliminated by providing
the means Of refinanctng old obliga-
lions now past due but not foreclosed
by loaners.
This sounds very fine III Il will
workout 1t q the opinion Of many
that the plan will not work that way:
First, because our foreign creditors do
not want It 10 work. For example, at
the present time this country Is serv-
ing as q dumping ground for foreign
goods due to the disparity In the val
ues Of sterling and the American gold
dollar. Imports are exceeding exports
by . large margin and the differential
Is flowing out to the credit Of foreign
countries-in gold Cup until the Presi.
dents order stopped the shipment and
earmarking Of gold for foreign &C.
counts.
II we were to debate our gold dollar
In the hope Of stopping this drain
otherwise than BY injunction It would
only be necessary for the sterling
countries to further debase their own
money In order to pick up the slack
occaSio0ed by our action and this
policy could 60 On lad infinitum"
until world monies had become prac-
Ideally worthless, recalling the day.
when It took . million marks to buy
, cup Of coffee In Berlin.
II such development Is even . re-
mote possibility Of gold dollar de.
basement the matter calls for mighty
serious consideration before anything
s done. Aside from the benefits Of Q
character to foreign trade,
It u difficult to see where there q
much domestic need for imitation BY
gold dollar debasement ct Ill. We
now have more currency than We can
Use. eve have now In circulation 34S. g
per capita more than We have had In
The last 70 years, excepting 1919 and
1910. In 1915, the exceptional year OF
good times, We had the lowest amount
u circulation for any year for q Pc
riod Of 20 years.. Deposits have been
consistently returned to banks since
he bank-holiday period relieved the
country from the specter Of fear-and
our banks viii be bursting