Evening star., 1934-02-25

Prof. Sprague. have honestly and
courageously questioned Government
policies give the thoughtful observer
pause.
This writer, for one, does not be-
lieve that there is a present necessity
for the subdued tones, the cautious
indirections and the secret discussion
that veil the critical attitude toward
our present monetary policy OF mil
lions of intelligent and patriotic cit
izens. The program is admittedly ex-
perimental, and any citizen is entitled
to voice his protests against expert
adverse effects on his well-being.
Some day a clustered historian ex-
empt from mob influence and official
epithet will analyze with mordant pen
the administrative psychology OF our
time. But we are concerned here with
examining the direction of the ex-
periments in the field of American
currency.
Enactments Not Understood.
The Congress of the United States
is now 145 years old. In that long
space of years, with a consistency bor-
dering on the incredible. it has failed
to understand the monetary measures
it has passed. Many persons have
been distressed by the ludicrous spec
tacle the House presented when II
passed the devaluation law. That was
merely history proverbially repeating
itself
But only twice in its history has
Congress debased the standard golo
coin it had previously established
once in 1884 and once again, 100 years
later, in 1894. Those editorial Sa-
wants who have been referring to the
unique and unprecedented character
of the devaluation law have not ex-
plored among the dry bones OF none
tary history. Congress devaiued the
standard gold dollar in 1884. The re-
duction was small-something over
per cent.
The oStensible purpose was a read
justment of the bimetallic monetary
system. The real purpose was some
what different. Some trivial golo de-
poSitS had been discovered in Georgia
and North Carolina. Friends OF these
mines concocted the measure and
slipped it through Congress. They
were doing something for gold.
Curious readers who want the storys
ending must be told that this law,
long after the Georgia mines were
forgotten, destroyed the coinage sys-
TEN of the country. It was ultimately
responsible for the gold standard,
whose establishment was later SO blt-
terly reviled by the very party re-
sponsible for the law OF 1884
But there Is no analogy between the
law of 1884 and the law OF 1884. our
present descent down the golden stairs
is less by design than by accident, al
though it is a natural denouement OF
all that has preceded. Everyday per-
sons who are mystified by the meas
ure are not seeking to answer tne
question, How did we get this way!
They are much more concerned Win
the question, Where are we now?
A brief and summary review OF the
successive steps to the bottom stair OF
deyaluation will help to answer the
second question. In making this re-
view. let us weigh briefly the aims and
the merits of each procedure, not with
the inconsequential Judgment of one
critic without pretension to the role
of financial oracle, but with the COM
posite view of an overwhelming ma
iority of international monetary au-
thorities, qualified bankers and un.
biased academic experts. Even the
balanced Judgment of these compe-
tent authorities may be in error, but