Evening star., 1934-01-08
FIAT MONEY FEAR
VOICED BY LABOR
Recovery Gains Cited, But In
fIation May Wipe Out
Progress, Leaders Say.
By the Associated Press.

BY the Associated Press
Business year prospects for 1884 were
pictured today by the American Fedora
ton OF Labor as brighter" but over
shadowed by a danger which may de-
stroy all progress made-infiation by
fiat money"
Fear of imitation is the chief obstacle
to restoration of confidence at present"
the federation said in an annual review.
The labor organization estimated g.
4o0. 900 persons had been put to work
largely as a result of Government meas
ures. but added that in November TO-
7O2 900 workers remained unemployed
and that Civil Works Administration
funds giving temporary work to 4.0oO,-
600 persons would be exhausted by Feb
ruary IS.
other gains by workers during 1898
were listed by the federation as the
acquisition of shorter hours and better
organization.
Wage Picture Spotty.
an wages" it said there have been
definite gains under codes for the lowest
wage groups: but workers of average or
higher wages have been forced TO
lower living standard. Hourly wage rates
average higher by 5la cents per hour.
but in many cases this is not enough
to compensate for shorter hours: and in
no case is it enough to compensate Tor
higher prices.
Millions who got jobs during the year
are better off. but those who had jobs
at more than a minimum have lost
ground
Mass buying power has gained dur,
ing the year =" The effect Of
this buying power has been to stimulate
business. and the gain in business makes
the outlook for employment and earn
ings in industry considerably brighter
at this new year than last.
lo,7os,Ooo Still Are Idle.
"AIl these gains show progress, but We
must not forget that in November TO-
7o2 900 workers still had no industrial
employment; that C. w A funds giving
temporary work to 4.ooO. 900 will be ex-
hausted by February Is; that business
is still 80 per cent below normal; that
the outlook is overShadowed by danger
which might destroy all progress made
Initiation by fiat money.
These business advances are due
almost entirely to Government meas
ures, not to private initiative.
To this Government credit We owe a
large measure of our progress toward
recovery =
Government credit does not replace
private credit extended in the normal
way through banks. Barring revolu-
ton in our ways of doing business,
we cannot expect industry to revive
until credit begins to flow in large
volume from banks.
To start private initiative and put
back to work l0.700 900 workers still
without industrial employment business
confidence must be restored. Fear of
imitation is the chief obstacle to res
toration Of confidence at present.
Fear Benefits Will Go.
THE effect of fiat money imitation
at present would be to take from the
workers any income gains they have
had and put increased wealth and pow-
er in the hands of rich property owners.
Uncontrolled imitation could destroy the
effects of the recovery program.
History shows that in the past fiat
money has usually been issued to meet
an overwhelming Government deficit.
Large Federal borrowings in the last
three years have alarmed many who
fear that the Government will not be
able to pay off its debts except by
issuing fiat money.
History shows no example Of un-
controlled imitation in a country with
a large gold reserve. Our gold stock
at present is the largest of any coun-
try in the world. 1t is far
more than enough to support our
present paper currency. These facts
show no reason for fiat money in
fiation because of the public debt.
The federation also asked that work
ers be given representation on N. r. A.
code authorities.