The Washington times., 1934-01-08
SENATOR URGES
DEVALUAT|ON
BY 80 P. c.
Reconciliation of Silver Also
Urged As Method for Re-
storing SOIVenCy

currency. RemonetisGtion OF
(. siIUer 1DiH restore Soluency, he
., Gdds-othertUtSe America can
= pap off only so cents on the dol
lar. He also tD1rnS against a
!" plan of Federal ReSerUe Banks
- to "protit" on the Governments
gold devdluGtion program. He
insists the Government should
- "Oet all the profit"
: By SENATOR ELMER THOMAS
Q. Father Of the New Deals
. Monetary Legislation
Written Expressly For
International News Service
: The American Government and
= people are bankrupt.
- Let me prove it. At the end Of
1882, our total long term indebted
ness, public and private, was $134,-
!. OO0, 100000; our short term busi-
ness indebtedness was $50, ,000, ,00c,-
600; our total short term personal
indebtedness was $4,000, ,0OO, 900;
and we have added a $4,000, ,000,-
900 Federal deficit to the total this
year.
IS The grand total is about two
ahundred and fifty billion dollars.
My authority for these figures IS
&he book, Internal Debts Of the
UNITED States" sponsored by RoS-
coe Pound, Owen D. Young, New
ton D. Baker, and others.
Dollar Worth $1.SO In 1882
:. In 1892, each dollar was worth
$1.80 in buying power. In order to
retire that total debt, we must
give up property valued in buying
power at $180 per dollar. This
means the people must give up
property, worth $450.0 0.000, ,0O0, 900
today, to pay that debt. That is
what we owe in liquidating power
Now, the highest estimate I
have ever seen for the total value
of all property in the United
States, is $500 900, 900, ,O00-and at
peak prices too. Today, that
property, because Of the high
value of the dollar, isn't worth
as much as it's peaks value. To
day, it undoubtedly is worth but
$3.50 ,000, 900, ,000-a very liberal
estimate.
So we owe $450,OOO, 900, 900 in
debts and we own but $3.50, ,000,-
100000 of property. That puts
our Government and people into
the red to the tune of $780,
900 100000. That is bankruptcy.
We can pay off at so cents on
the dollar by going into bank
ruptcy. Indeed, some Of our
cities have urged Congress to
enact legislation. enabling them
TO go through bankruptcy.
Urges so Per Cent Dollar
., Our only way out is to devalue
the dollar at least so per cent
in terms of gold and then to
eremonetize silver. using all the
silver offered. Perhaps, after
THAT, we will be forced to a
liberal use of other forms of
actual money to restore the coun-
try to Solvency. 1t is a mighty
problem.
Personally, I feel devaluation of
the gold dollar by so per cent and
Temonetization of silver will bring
sup solvency. Others fear we must
turn out paper currency-the So
called printing press money-to
be placed in circulation through
purchase Of Government Securi-
ties.
Four great groups Of citizens
favor reconciliation Of silver.
They are:
l. Citizens of the silver pro-
ducing States.
2. Citizens favoring metallic
backing for all money, who, in
the absence of a competent gold
supply, favor use Of silver.
8. Citizens, who fear the So
called printing press money and
accept silver as lesser evil.
4. Those who believe remone-
tizaticn of silver will bring q
O4CA1AC41NONto CAHI4An4OA Va OUA
foreign trade.
Warns of Reserve Plan
There is another group of citi-
gems who believe revaluation of
the gold dollar will restore Solv-
ency. Let me warn the country
against plan proposed by the
Federal Reserve banks by which
they hope to benefit from the de-
valuation of the dollar.
understand the Federal Re
serve banks are willing to cooper
ate to give the Treasury the
profit in any dollar devaluation
program. These banks suggest it
is unnecessary to impound all
gold, as they will credit the Gov
ernment on their books for any
surplus value created by the de-
valuation of gold dollars.
That sounds equitable. It isn't.
We have $4.500, 900. 900 in gold in
this country. If the dollar value
is cut in two, that gold will make
nine billion dollars. If the banks
keep the gold. they would give
the Government a credit Of $4.-
SOC, ,000, 900 on their books.
On the other hand. the banks
would. be able to issue two and