The midland journal. (Rising Sun, Md.) 1885-1947, 1933-05-12


perate but hopeless fight, arguing that
while controlled" imitation. as prom
ised by the amendments sponsors.
might temporarily restore measure
of prosperity to the nation. previous
experience here and abroad showed
that control could not be maintained
and that the ultimate results would
be disastrous. Reed. Tydings of Mary
land. Democrat. and others seemed
terribly dismayed by the prospects for
the future and their sincerity could
not be doubted
Senator Thomas of Oklahoma him.
self led the debate for the affirmative.
opening with the startling statement
that the amendment. if it prevailed.
should transfer value to the extent of
almost 100000, 00OOOO from the cred
itOr class to the debtor class. OF course,
the effect, of this assertion is greatly
weakened when one realizes that our
people cannot really be divided into
such classes. There is scarcely cred.
it0r in the land who is not also a
debtor. and vice versa. But this point
and many another were ignored by the
proponents of imitation. Senator Pat
Harrison of Mississippi. for instance,
on the second day of the debate, con-
fined his efforts mainly to haunting the
Mellon Mills Reed" group for its al
legged failures during the Hoover ad.
ministration.
The Wheeler-Ki silver coinage
amendment was accepted by the SEN
ate. It would enable the President to
fix the ratio between gold and silver
and to provide for unlimited coin
age of both metals at the ratio so
fixed.
lust what imitation, even if ICON
y trolled," will do to the nation and
its business is question ON which
economists and financiers are as far
apart as the poles. For the present
the prospect of it's adoption and the
abandonment of the gold standard
have served to create almost boom
In certain lines Of business, and the
prices of commodities have begun to
rise. But how this will in the long
run benefit the ordinary citizen has not
been shown to the satisfaction of most
of us.
An especially dangerous clause in
the Thomas amendment is the one CIV
ing the President power to devalue
the gold dollar to the extent of so per
cent. Senator Borah. an inflationist,
argued that this would be declared un.
constitutional. It may be this power
will never be exercised by the Presi.
dent. but if it is it will be followed
by steps to abrogate the gold clause
In bonds. mortgages and other con-
tracts Provision for such action is
made in the pending Goldsborough bill
which provides that existing contracts
shall be satisfied by payment of their
face amount in legal tender, that after
its enactment. gold clause contracts
cannot be made legally and that any
profit made from exchanging gold for
legal tender would be subject to 100
per cent tax.
Some experts are of the opinion that
the imitation bill may never be used {;
that it is "a mere bluff intended to
have the very effect it is now having
arresting and reversing the downward
course of prices" and giving the Presi-
dent better position in the economic
conversations with foreign statesmen,
as did the abandonment of the gold
standard, which also was inhationary.
XXTAR debts and reduction of arm
w aments came to the fore in the
White House conversations as Prime
Minister Macdonald concluded his part