The Waterbury Democrat., 1934-10-25

IlOn WllI pc very QlllcEcnI II IucSS extravagant. expenditures are fi- nanced chiefly through the sale of government securities to the banks as they are being financed today, and if the loans to the government are made by the banks by means of currency and credit expansion. Then the value of the governments bonds is largely wiped out, as we'll as the value of all other bonds. Un- der such circumstances the ex- penditures would be met, as were the colossal government expendi- lures after the World War under the inflationary regimes of France, Germany, and Austria, largely out of endowments of the countrys the savings deposits of the poor and the life insurance policies of the foresighted and thrifty. Insti- tutions like Yale, Harvard, and Princeton, which have their en- dowments invested largely in bonds and mortgages, will have these en- dowments largely wiped out. The said irony of our financing extrav- agant government expenditures. through the mechanism of infla- tion, is this fact that in subtle way the government is financing itself largely out of the endow- ments of the nations public institu- tions and out of the life insurance policies and savings of the poor"
 Commenting on special Connec- ticut State problems, Kemmerer made the startling statement that Connecticut paid in processing taxes, from July 1. 1883. to Apr 30, 1884, S1,6S0,705 and the farmers of Connecticut received only $198,- SIS. According to estimates of the Department of Agriculture, the State of Connecticut will receive during the years 1883, 1884, and 1885, $S90,0O0 in the form of rem tai benefits to farmers. How much the State of Connecticut will pay in processing taxes. is only guess. Easing the figures on what has already been paid, my guess would be that it will be somewhere around five or six million dollars.
 Dr Kemmerer also commented vigorously on the rising price Of commodities - 'The recent silver legislation calling for broadening of our metallic money base by the purchase of silver, will be perfectly useless from monetary point of view. Add to this the fact that last years reduction in the gold content of the dollar by Al per cent will of itself ultimately give us an advance in commodity prices of something like 69 per cent if we retain the gold standard and if the value of gold in the worlds market remains approxl- mately where it has been since we went off gold in March, 1883. Re- member that the Thomas Amend ment is still on our statute books, giving the President full authority at his discretion to reduce the gold content of the dollar 15 per cent further. Finally, all contracts specifically calling for payment in gold are null and void and the present law actually makes "all coins and currencies of the United States heretofore or hereafter coined or issued legal tender for all debts public and private! ..
 with legislation like this on our statute books and with strong inflationary measures being con- tinually taken under it, with the prices of sensitive commodities already moving strongly upward. and with powerful inflationary groups both in congress and out. still loudly clamoring for more and ever more cheap money and credit. is there any wonder that business confidence continues low?"
 Cost of Government Inflated Also When prices rise under the stim- ulus of inflationary forces. the costs of government likewise ad- vance, and the government, there fore. needs continually increasing revenue; but rising cost of living with the usual lag in wage advances make the public increasingly re- sistant to increased taxes. For the obtaining of the additional reve- nue required to meet such situa- tions the pressure is, therefore. strong upon both congress and the executive to resort increasingly to imitation rather than heavier tax ation.
 Dr Kemmerer, internationally famous as monetary expert, who has acted as financial adviser 10 thirteen foreign countries since the World War, is a member Of the NdtlOndl AuViSOTy SouASiA VI e
 Crusaders. The meeting was arr ranged by Roe B. Metcalf, state chairman; pr Walter Landis. Old Greenwich; William H. Hays. Jr, Greenwich; Honorable Justus Fen nel, Stamford; George s. Steven son, Hartford; George W. Hatfield, New Canaan; George w. De Voc, New Milford; and Professor O. G. Saxon, Yale University, New Haven, Connecticut.
 New Haven sponsors include George Bassett, Charles F. Bliss' w. Perry Curtiss. David |. Dag gett, Professor w. M. Daniels, George Parmly Day. Thomas W. Farnam, H. S. Hinckle, J. D. Jack son, Edward A. Judge, Professor A. G. Keller, Holloway Kilborn, pr J. A. McGrath. Professor Leigh Page, William R. Pitkin. D. F. Root, Louis M. Rosenbluth. Lew T. Snow, Thomas M. Steele. Rich ard Warren, Professor Ray 5. Westerfield. Professor Wallace A. Wilson R H Wulf.