The midland journal. (Rising Sun, Md.) 1885-1947, 1934-02-02
;ionaI Topics Interpreted

WaSnlngLOn.-IHe fTeSlucHIb uOFC'
now sanctioned by congress, to pro-
vide us with dollar
Means that has purchas-
H;o1.- pr;re. ing power OF not 10
exceed sixty cents
by comparison with the dollar that has
been our medium of circulation so
long has caused about as much con-
troversy in the National Capital as
anything that has been done under the
New Deal Nor is there. at this time,
any possibility of either side giving up
in their arguments, for 1t must be
said frankly that there is merit on
either side of the proposition. @
Mr.. Roosevelt has elected to adopt
a course that means roughly the es-
adjustment of prices for everything
you sell at levels that approximate
the range of 1926. At the same time,
1t means that roughly everything you
buy will be proportionately higher
than the prices that have obtained
during the depression. Thus, 1t must
become readily apparent that raw ma
terials, such as farm commodities, for
example, are going to return more to
those who are the source of that sup
ply than they have been receiving
lately. Confidently, everything that
the farmer buys will have jumped up
in price. And in between, we find the
Individual who lives by the sweat of
his brow, the so-called white-collar
worker of the office and residents of
towns or cities, who will pay more for
everything, and without any percepti-
BILE addition to their income.
The theory that has been advanced
by those who support the Presidents
plan is that 1t will start larger re-
turn of cash to the farmers and that,
when such a result is obtained, an
extended expansion will take place in
the general cycle of business. In other
words, it is their contention that the
agricultural Industry constitutes key
that will unlock the door of a more
prosperous era.
On the other side of the argument,
one hears the insistent contention that
nothing has been gained actually by
reducing the value of the dollar, as
measured by gold. Assuming that
there will be the restoration of 1925
price levels, say opponents of the
Presidents course, what will have been
gained for the farmer when the things
he has to buy are increased in price
and the buying power of the millions
who live In cities, towns or villages
has been reduced. And 1t cannot be
denied that after all the farmers mar
ket is in those areas. 1t Is equally
true that wages never keep pace with
increasing prices and the natural re-
suit of this disparity is to force the
residents of urban communities to cut
down on their purchases, even II that
entails reduction of the food they buy.
They cannot buy If they do not have
money.
What has happened to the dollar,
itself, by the Presidents action? The
answer is, nothing"
Fight OUer That is correct If
Money one considers only
the physical dollar
of silver or dollar in paper currency.
But the effect of the action is the bone
of contention, and from what I have
read of this nations political history,
anybody can be assured of red-hot
argument over proposals for tinker
ing with our form of money. Mr..
Roosevelt has done it, however, and
he moved so fast that there has been
argument after the fact, rather than
before it was accomplished. For that
reason, it appears certain, you will
hear arguments of serious nature,
and maybe a few fist fights. over
money questions through several cleo
lions to come.
To get back to the dollar again: The
President asked congress to prescribe
the limits Of the devaluization, or to
say it another way. he asked congress
to enact legislation tfor which it Is
responsible to the people, of course),
that will let him proclaim a new dol
lar value as measured in terms of
gold. He told congress that the upper
limit should be sixty cents and the
lower limit should be fifty cents. The
old dollar was rated as worth 20.67
grains of fine gold. The minimum, or
fifty-cent dollar, would be worth just
half of that amount of gold and the
sixty-cent dollar would be proportion
ately more. When the terms fifty-cent
dollar or sixty-cent dollar are used
here, they are for purposes of COM
parison with the long established dol
lar that was valued at 20.67 grains
of gold. and gold Is the accepted basis
Of international trade. Whatever
America does. however. does not alter
that basis, and consequently the new
Roosevelt dollar. assuming 1t stands
at 1924 grains OF gold. will be worth
just half as much In foreign purchases
as the former dollar was worth.
SO, as stated above. there has been
nothing happen to the physical cur