The Washington times., 1934-12-19

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ing, in the shape
Of business as Lewis Haney
usual" and buy now" propa-
ganda. Of course, that did not
even check the enemy. 1t never
does.
2. Then came the schemes to
"create purchasing power" De-
spite the fact that real purchas-
ing power comes only from pro-
duction of valuable things, the
high command ordered that some
how something camouflaged as
purchasing power" be created" "
So wage payments were boosted
without regard to labor produc'
tivity. And some government
funds were scattered around.
And extensive "open market
operations" were order d-aS
though the Federal Reserve were
body of troops.
The results have been exactly
zero, simply because the "cre-
2ted" purchasing power is not
real. 1t doesn't purchase!
Bank purchases Of Govern
ment bonds merely piled up ex-
ceSSive reserves, and Govern
ment spending piled up unused
deposits. Bank loans declined.
The rise in deposits and the de-
cline in loans, both prove the
futility of the attempt to create
purchasing power.
CD Then the purchasing power
creators said, 1--WE must make our
creation circulate" So there came
drives to force currency into cir.
culation.
The bankers were castigated
and vilified for not making loans.
The Government undertook to
make loans.
Borrow now" drives were engi-
neered.
Money rates were forced down
In vain attempt to coax people
to borrow it and induce banks
to lend more freely.
Now comes another one of the
dozens of Roosevelt boards or COM
missions, and recommends the
creation Of a new direct-loan
agency, to try to force credit into
circulation. This report uses such
wild words as the following:
"The country cannot get back
to q normal volume of prOduc-
tive activity without utilizing a
larger volume of bank credit
than is needed" I'VE are to
catch prosperity by putting salt
ON its tail. And we are to use
more salt than is needed.)
4. AS the purchasing power"
piles up in the banks. and as
pump printing" and circulation
forcing" prove futile, we come to
the final stage of the war on de-
preston. The politicians and
brain trusterS who are running
the war are now planning to
spend the fictitious purchasing
power they have created"
They can't prime the pump, so
they will make a Government
pump.
This is where the social plan.
ming" drive comes in. Another
Of the many Roosevelt "boards"
(the National Resources BoarO
reports that by spending $105,000,-
100000 we can put a great deal of
currency into circulation!
And note that this final social
fstic stage of the war on depres-
sion comes at a time when taxes
have just about reached the limit.
Heavy taxes exhaust the coun"
try's savings, but at least money
raised by taxes represents real
purchasing power, and as long as
we pay our way by taxes We can
remain solvent.
Now, however, there is nothing
left but borrowing, and further
new high records for our public
debt.
So the Government takes
over the banks in order that 1t
may "flOat" its debt. Then it
plungeS on to assume the posi-
tiOn of employer, capitalist, and
enterpriser for the nation. Mil
lions of labOrers can't find work
that pays, so the Government
pays them for work. Business
men can't plan (because of Gov
ernment-made uncertaintieS), SO
the Government makes plans.
This is State Socialism.
In conclusion, just remember
two facts. Cd "The Govern
ment" is a little group of poll
ticians. co Bank deposits are