The Washington times., 1934-10-26

c o n er n e d =%$:
about "the peo-
ple," and that 80 T"mo
they should
have confidence in the people
Of the country"
Then he said, II assume and
expect that private business gen.
orally will be financed by the
great credit resources which the
present liquidity of banks makes
possible"
3. He mentioned as a great
necessity the relief of unemploy.
ment, and stated that large Gov
eminent expenditures will con-
tinue for the purpose.
4. Then he argued that no one
can know when Government
spending for this purpose will
cease, a thought for which the
way was carefully prepared by
an Introductory speech by New
York banker.
Incidentally he gave no assur-
Ances as to the period or amount
OF spending, the balancing of the
budget, initiation, or further de-
valuation of the dollar.
S. He offered no suggestion Of
Stabilizing our currency, but
talked vaguely about "steadiness
of prices. He stated that steadi-
ness of prices (whatever that may
mean) has been constantly in his
mind as our National policy.
6. He came out frankly in
telling what he considers to
be his powers and duties, and
held these to be sweeping.
Said he, "the public" does not
know whether a bank is max.
ing safe investments. So the
public turns to the Govern
ment, which must tell the bank
how to invest. He accepted this
responsibility! This goes along
with his assumption that he
should tell the banks when to
make loans.
He asserted that he had re-
stored the confidence of the peo-
pie in banks by an appeal" to
them. Now he tells the bankers
to have confidence in the people.
Finally, he remarked that the
Government has more informa-
tion and better information than
the banks or any private agency.
The idea seems to be that the
Government knows best-about
investments, loans, etc.
Z. In conclusion, the President
gave his definition of "the profit
system" It is as follows: Wealth
should come as the reward of hard
labor of mind and hand" (Pre-
Sumably, therefore, he did not at
the moment consider as wealth
the so-called purchasing power"
created by merely going into
debit.
The whole show was obviously
staged to develop feelings of
confidence" and cooperation"
with the idea of inducing bank.
erS to back the Administration
program of borrowing and spend
Ing, and support Government
credit.
The outstanding point is that
the President regards himself as
the head Of the Government Il
find no mention of Congress or
courtS), and regards the Gov
ernment as the dominant part
ner" in the banking business.
"Relief Of unemployment" re-
mains the goal, rather than relief
OF the unemployed. This means
that to make work" and "stimu-
late business" will continue to be
mixed up with relief"
"Steadiness of prices" as con-
Stantly conceived by the Admins
tration, has meant manipulation
OF the dollar and managed cur.
rency." AS long as the Govern
ment holds that it has the job
of controlling prices by doing
things to money, unstable prices
will prevail, and the danger of
initiation remain.
But for the present, the old
game of forcing bank credit into
use is to be played, and the lead
erS among the bankers are going
to sit in with the Government.
Anyhow, most of the credit in
the banks, is based on Govern.
ment debt (bonds.)