The Waterbury Democrat., 1934-02-02
Copyright, 1884, by the United

NOORs-~S
 The professors monetary de- bate," which had reached q low ebb before President Roosevelt de- valuated the dollar in terms of gold, took on it's old fire today, with academicians agreeing and disagreeing with MT Roosevelt's premise.
 Harry Gunnison Brown, profess sor of economies at the University of Missouri and one of the 19 men in the world whom Professor Irv- ing Fisher said really understood money, approved of dollar devalua- ton.
 Professor Hudson B. Hastings, of Yale, did not think drastic de- valuation" sound.
 Dr Royal Meeker, president of the Index Numbers Institute and former Princeton faculty member, termed MT Roosevelt's action re- storation of the gold standard and thought it Hong delayed" Their views, released through the United Press, follow:
 Professor Brown: 1T am partic- ularly delighted that in his procla- nation fixing the weight of the gold dollar, the president has left the door open for future changes in this weight.
 "F'or, under certain conditions which might arise through actions of foreign governments and bank ing systems or other causes, Q gold standard based on an absolutely unchanging weight of gold would bring g. most unstable price level or severe business depression or both.
 Such an absolutely stable weight of gold could bring great and unwanted imitation as well as defiation.
 T believe that intelligent and courageous use of the rediscount rate of open market operations by the federal reserve system should be a first line of defense against a wildly fiuctuating price level and against dull business and unem% ployment."
 lover 8 long period, perhaps of a decade or two, 1t may be possible and even desirable to maintain a stable weight of gold back of the dollar.
 "If other countries follow a sim liar policy, this would give the ad- vantage of stable rate of ex- change in international trade. But we cannot afford to have our cur rency based on an absolutely and rigidly stable weight of gold. There must be provision for a change in this weight under certain circumstances which may easily arise again, such as for example a general world scramble" for gold means sharp increase of discount rates and restriction of credit by the various central banks, with re- sulting defiation, depression, un- employment and distress. From such calamities we must be protected"
 Says Dr Meeker: ''It is unfor- tunate President Roosevelt felt ob-
 liged to delay the restoration of a controlled gold standard so long.
 It would have been both desirable and possible to restore gold and stabilize the domestic price level six months ago. Had this been done, we would now be just six
 months Further along the road to eventual economic adjustment and restoration.
 "It also seems the President has
 been persuaded to cut the weight of the dollar much more than is necessary or desirable. If the ex- pected boost in prices and busi- ness confidence comes. American capital, which has fled to England, France and even to South Ameri- ca and Russia, will come flooding n.lS sln hA hot stead of "reflating". prices to the carry us past the 1926 goal to the perilous peaks of 1920.
 Devaluation of the gold dollar by no more than 20 per cent would have been enough to give us a wig orous start on the road to recovery with very little danger that "re- flation" would grow into excessive imitation and a speculative boom.' Dr Meeker says.
 On the danger of imitation Pro- lessor Hastings makes there points, namely: "l---If any considerable part of the profit to the government IS spent within the United States, as presumably it will be. it will not only set the stage for. but directly tend to develop sooner or later an uncomfortable speculative boom in both securities and commodities.
 "2--It greatly underwriters the dollar eH compared with foreign currencIes and thus will tend to bring about the rapid repatriation of American capital which hhA gone abroad in tho past year, ai' lnfInx of foreign capital, and the building ID of n large fav0rnbin balance of trade. The effnrt Of ali theHo factors will he toward n fiirs