The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-12
Liberal Viewpoint
BY DR.. HARRY ELMER BARNES

Editors Note-This is the first of two articles by
! Harry Elmer Barnes D.. the imitation pro-
grams most likely to be before congress during the
present session. :.
1T is held very widely that President Roosevelt
1 has adopted the mild in1ationary measures
which he has sponsored in part to forestall and
prevent more extreme infationist schemes which
will be thrown before the country as congress
assemblies.
This may be true, but such talk has aroused
a quite unwarranted degree Of apprehenslve-
ness concerning the inflationist programs that
may be brought up by responsible senators ano
congressman
The implication is that, even though Presi-
dent Roosevelt and Professor Warren are sane
and restrained in their inlationary enterprise
there are hare Drained infationiSts in congress
determined to initiate Russia and Germany.
Such an assumption is inaccurate, nlisead
ing and unfortunate. Not single inf1atonary
proposal likely to be brought forward by any
member Of the congress which has just come
together could be as harmful to our economy as
the deflationary tactics of Hoover and Mills.
What are the inflationary programs which
may possibly be promoted in congress?
First, we have the old Goldsborough bill which
may be reafirmed. 1t was a benign but ludi-
crous act merely directing that higher prices
should be restored 1t was absurd, not because
of its ideals, but becaue it made no suggestions
as to how higher prices might be recovered.
Second, we have the Patman project to print
!
able IN gold, and to distribute them through an
anticipatory payment of the soldiers bonus
due in 1915
CONGRESSMAN PATMAN is not interested
~ primarily in the bonus payment. He merely
adopts it as the handiest and most rational ex-
pedient available to get purchasing power into
the hands of many American citizens. Though
! the President were to print some billions of
paper money, this would not help a great deal
unless it is put directly into the hands of those
who buy goods. The bonus payment offers an
easy and effective way in which to do this.
The main objection to the plan is not so
much to the printing of the paper money as it is
to the possible invitation to other and later
veteran raids on the treasury This objection
| has some validity, but the passage of the Pat
man bill would not wreck our national finances.
1t would, in all probability, constitute decisive
boost to purchasing power and prices.
THERE is plenty of excess gold reserve to
L back up an issue of 81 250,O000OO in govern
ment notes Mr.. Patman doubtless could be in
duced to revise his bill and provide for backing
the paper money with gold if such procedure is
deemed wise. This would eliminate the fiat
money DOGGY.
The third plan, and the most important one
from the standpoint of probable promotion in
congress, is that Of Senator Elmer Thomas
Though the senator is more fortnight in his
doctrines and program than Professor Warren
and President Roosevelt. he is no extremist in
the inflationary field. Indeed, he has declared
that:
LAS I understand and interpret imitation
am as much opposed to an improper, excessive
and over-iSsue of either currency or credit as
any money changer in Wall street"
Senator Thomas wishes to continue the Pres
ident's policy of raising the price of gold He
desires to carry the price to rather higher levels
than either Professor Warren or the committee
for the nation The former has believed that
relation could be accomplished by a gold price
as low as S34.52 an ounce The committee for
$50 II an ounce
Senator Thomas would drive the price up to
SABA an ounce-a high but not unreasonable
figure. He would stabilize the price of gold at
this point. Then the gold dollar would be re-
valued on this deprecated basis-at approx
mately half its present gold value.