The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-10-20
NEW DEAL GOLD
POLICY Played
BY LEHICH DEAN
Dr.. Neil CarotherS Speaks
Before Sound Money
Committee.


al government was severely con-
demned last night by DR.. Neil
Carothers, dean of the school Of
business administration at Lehigh
university.
DR.. Carothers spoke before an
audience of approximately seven
hundred persons in the Academy OF
Music auditorium. He came to In
dianapolis under the auspices Of the
Indiana sound money committee.
The monetary developments in
this country for the past eighteen
months are unprecedented in the
history of the world" DR.. Carothers
declared. "Tinkering with the
standard of value has killed reviv-
ing investment and destroyed con-
fidence," he said.
There is only one way to bring
about a return to confidence. Let
the President announce that the
present deva1uated gold dollar is the
standard dollar of this country, that
we shall return to an actual gold
standard at the earliest possible mo-
ment, and that the next congress
will be asked to repeal the Thomas
imitation act and every silver meas
ure now on the books"
Traces Money Course
Tracing the course OF money man
ipulation in the United States, DR..
Carothers asserted that the gold
purchase plan has been a failure.
1T has terrified the banking and in
vestment interests as well as the
common man. The decline in prices
causes a violent demand for inf1a-
ton to raise prices and to relieve
debtors.
THE present administration is the
first in the history of the country to
yield to this pressure. 1t is a. politl-
cal matter.
prices have gone up not because
of the monetary policy but because
there is a general economic recovery
and because of the A. A. A. and the
N. r. A. and all that. Imitation does
not help the debtor class. The only
people who benefit are the stock
holders and spectators"
when credit reviveS" prophesied
DR.. Carothers, Imitation will come
into it's own. There is a possible
issue of Az billion dollars Of extra
currency and credit. When this dy-
Mantle does explode, we may go on
another speculative spree like that
of 1928 and 1922
Cites Imitation Danger
The more immediate danger, de-
clared DR.. Carothers, is that the gov
eminent may initiate still further IN
order to carry the expenses of re-
covery and relief. Saying that
there is some question as to the
merits of stable price level, he
pointed out that "the important
fact is that a managed currency
lives only in the minds of few
Missionaries"
"Bi-metalism is way to give
dishonest profits to an unimportant
industry" he explained. 1.-THE sill
yer interests know that if they had
the right to have silver coined at
the weight of the old silver dollar,
they could make a profit of two or
three cents through this overvalued
coin. They are the most relentless
and best organized bloc in congress
today. The present administration
has given them the most glorious
opportunity in history. The Thomas
Imitation Act authorized the Presi-
dent to establish bi-metalism at any
ratio he chooses.
Last December, the President
ordered the treasury to buy all the
silver produced in this country at
the arbitrary price of 6415 cents an
ounce. Certificates we're to be hand
ed to the people, the silver behind
each one worth about 40 cents. The
silver certificates pouring into Cir
culation are merely debased fiat
money, serving to initiate the cur
rencv still more"