Evening star., 1934-01-12
COjCHL|N MONEY
PLAN CRITICIZED
James P. Warburg Describes
+ Policies as impossible
of Attainment.
BY the Associated Press.


tarv policies advocated by Father
Charles E. Coughlin were described last
night as impossible of attainment WITH
out unsecured printing press money
by James P Warburg, the banker VINO
was economic adviser to the American
delegation at the London economic
Conference.
IN an open letter to the pastor OF
Detroit's Shrine of the Little Flower,
Warburg sounded an impeIsonal note
In his first reply to Father Coughlln:
Although you have publicly attacked
me on various occasions and implied
that the position 1 have taken ON
monetary matters is motivated by self
interest, 1 am not concerned here with
the refutation of any personal charges
or insinuationS,
The Warburg letter dwelt on two
proposals of the priest.
In your broadcasts," Warburg wrote,
"you have frequently attacked the out
standing bonds of our Government
which were sold to finance the costs
Of the war. as bloody bonds sold to
finance a war engineered by banks and
special interests. You picture these
bonds as now being held by mighty
banks drawing interest at the expense
of the innocent taxpayers and further
enriching the bankers. You have pro-
posed that, in the interest of justice,
these bonds should be paid of in cur
rencv SO the banks would cease to
draw interest from the taxpayer.
In your article in To-day you ad-
yocate Symmetalism, which means, III
your own words, using gold and silver
together-not separate-ln one com
In this coin, which we VIII cail y
dollar, there will be IS cents worth OF
gold and rs cents worth of silver. or
course this coin will not be meant Tor
circulation. Paper money Will pe
printed against it. But the paper Will
be backed by real gold to the value OF
25 cents, real silver to the value
of rs cents
Not Enough Metal Obtainable.
The banker set forth in answer:
First: There is not enough gold and
silver obtainable in the world TO carry
out your two proposals.
Second: Irrespective OF your cur"
rency proposal. there is no way, par
ring confscation, in which a govern
ment can retire its funded debt by Is
suing currency, unless the currency so
issued is unsecured printing-press
money,
"Third: Irrespective of your bond
proposal, your currency proposal Is IN
complete and not clear; therefore l
believe 1t is not useful suggestion 10
launch upon the public in its present
form" e.,
Using figures on war bonds outstand-
ing as computed by Father Coughlin,
Warburg said you propose then, to
issue at least nineteen billions OF cur
rency, which means that you need IN
round numbers nearly five billions OF
gold and from IA to is billions OF Sill
YER"
The banker said only by devaluation
could sufficient gold be secured LOT
such a policy of symmetalism; and that
sufficient silver could not be purchased
in the world.
Shares Idea for Reform.
Discussing his second point Warburg
wrote:
"s Is it not true that the Treas
ury's funds available for retirement OF
the bloody bonds can come only from
the excess expenditure OF revenue
raised by taxation - an excess which
does not exist?
"' Is there any way in which the
Government can redeem its funded dept
except by issuing currency, except Dy
printing a currency which has no value
other than that Of an unsecured prom
1SSt hIlu QOCS INV 4OiAO" yS"N
proposal to retire Bloody bonds by Is
suing currency necessarily involves the
issuance of that real printing press
money which you rightly recognize as
the most cruel and unjust act OF which
q government is capable?"
Warburg said he based his statement
that the Coughlin policies were incom--
plete because no price on gold and
silver was given for figuring up the
dollar; no statement was made as to
whether these prices are to be fixed
or variable. ~
"If your gold and silver coin alloy win
not be meant for circulation" War;
burg asked, why do you propose going
to the expense Of coming it? Why not
let the Treasury hold bar gold and bar
silver in the proportions you have in
mind?"
The banker said he had no desire
to imply that the idea of symmetalism
itself was unSound; and concluded with
the declaration that he was not "one of
those who make a fetish Of the gold
standard Of the past. And I
share with you the desire for intelli-
gent reform"