Evening star., 1934-01-17
|WARBURG ANSWERS|
C0UGH[|N ATTACK
MaIdistribution of Wealth,
Not Famine Of Money,
Blamed in Letter.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK. January 1.-THE feud
between Rev. Charles e. Couehlin of
Detroit and James p. Warburg was
continued yesterday when Mr.. Warburs
issued q reply to Father Coughlin's s
Sunday radio address, defending himself
against the charge that he was "one
who wants to see the classes benefit at
the expense Of the masses"
II am not q spokesman for Wall
Street." Mr. Warburg said In his state
ment which he issued personally in
the lofty Colonial directors room OF
the Bank Of Manhattan Co., 20 Wall
Street, nor for any other group"
The greater part Of his statement
was devoted to what Father Coughlin
had called the philosophy Of our dis
agreement" Only q few paragraphs
at the end did he devote to the radio
priests proposal for the issuance OF
s25, 900 900. 900 new currency through
the revaluing and nationalizing of gold
and the restoration Of silver.
Criticism Is Implied.
Mr. Warburg explained to reporters
that as Father Coughlin had tried to
throw him out Of court" as . none
tary expert on the grounds that the
blood Of financiers flowed in his veins
he felt his primary duty was to defend
his detachment of view. AS for the
priests program. I'm Just stating what
I think he said" Mr.. Warburg ex-
planned. land I'm leaving it to the
reader to draw his own conclusion
The bankers restatement. however. in
cluded some implied criticism between
the lines.
Mr. Warburg began his statement by
repudiating "the inherited philosophy
which you attributed to me. because
upon this assumed inheritance you seek
to discredit me with your listeners
You are under several misapprehen-
sions" He denied that he opposed the
revaluation Of gold-"though I haven't
indorsed it''-that he tried to bring
about sterilization last June against
the wishes of the President" and tina,
he opposed the President.
1T is very easy" Mr.. Warburg OBJ
served. ito appeal to certain natura
feelings In people. Since the world be-
gan a creditor has been a target Of
abuse Do you really believe the wal
was started by bankers? Do you really
believe the bankers pushed the Govern
ment into selling the bloody bonds?
Don't you remember how every
bank and every corporation and every
individual was urged by the Govern
ment to be patriotic-to invest every
available cent in Liberty bonds?"
"Attackinr U. s. People"
Mr.. Warburg then proceeded to point
out that these bloody bonds" were
held today not only by banks. but by
savings banks, life insurance COM
panies and thousands Of small in.
vestors.
when you attack the holders OF
bloody bonds" Mr. Warburg contin-
ued. you are not attacking the rack
eteering banksteers.' you are attacking
the whole American people. Do you
not see that?
And when you say that there are
only some $40 OF currency per capita
in the country and talk about q famine
Of money. what about bank deposits
savings accounts and marketable Sc.
curities? We have no famine OF money
we have q maldistribution of wealth
And II YOU quote that sentence. please
quote 1t all. Making two dollars out
Of one dollar will not cure the NAL
distribution Of wealth. 1t will not
enrich the poor any more than calling
inches foot will make you any
taller. You will be IL feet high instead
of 6, but you will not be able to reach
what is out Of your reach now. Dc
you not see that, also7
You will not believe me when I say
want the greatest good for the great
est number just as much as you do
But, because honestly admire youl
talent as q leader Of public opinion, ]
shall not give up asking you to see
some of the basic things I am con-
vinced you do not see and that think
you are big enough to recognize If you
do see them"
Comments on Money Proposals.
Complaining that Father Coughlin';
own pharsing Of this currency program
was neither clear nor complete, he re-
iterated the priests proposals for two
kinds Of money-one of Treasury note;
and the other symmetallic currency
In conclusion he wrote:
DO you realize what this means?
We have outstanding now six kinds oi
paper money-Federal Reserve notes
Federal Reserve bank notes. National
Gates and boarded gold certificates
That Is bad enough. Our currency sys.
tenn as Q whole does not represent 9
plan, but the leftover remnants oi
many plans. You now propose to ado
two more kinds of currency. $15,00O,-
100000 Of Treasury notes, secured Il
per cent by revalued gold and so pei
cent by nothing. and $4,000. 100000 ol
your symmetallic currency. But. per-
hapS I have misunderstood you again.
"You will notice" Mr.. Warbure
pointed out to his listeners. that
have underscored the phrase so pei
cent by nothing. That's q subtle point
OF criticism"
He announced that on Friday he
would issue a full statement explaining
his own point of view and his own pro-
gram In detailed fashion.