The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-05-31
HE INDIANAPOLIS TIMES
Liberal Viewpoint
by DIR. HARRY ELMER BARNES


CThs is the Second of Two Articles by Dr. Harry FL
Barnes on the Present Silver Controversy
YESTERDAY I briefly described the silver
l. issue as it faces the country and indicated
the excessive hopes and alarms of the protagon-
lists and opponents of silver.
Looking at the controversy in a broad and
reasonable fashion, it would seem that both the
silver fanatics and the alarmists are wide of the
truth
No silver bill possibly could bring any out
standing economic advantages to the United
States as a whole Further imitation and price
rises are not needed at the present moment.
Prices already are rising as rapidly as purchas-
ing power
Contrary to the silver contention, increases
in the price of silver and the like would not
stimulate the purchasing power of China and
other silver countries.
The silver interests alone would profit notably
by sweeping silver act. But their position in
the national economy is not such as to warrant
the present tempest in teapot.
Even before the depression the value of silver
produced in this country was only equal to
three-f1fths the value of our salmon catch or
our peanut crop.
To outsiders it would seem that the silver
interests received a very good break in the
Presidents silver purchase order of Dec 81, 1888
At the same time, any moderate silver law
hardly would produce the utterly devastating re-
suits which the silver foes allege
TINE restoration of bimetallism at is to l.
l. would perhaps, completely disrupt our
monetary system. The market value of silver in
relation to gold is less than one-half what it
was in 1896, when a proposal of coinage at the
ratio of 16 to l paralyzed the conservatives
with fear
Reconciliation at the market value would
on the other hand do no great damage. If such
move would debate the silver nonsense and
put all the liberal members of congress once
more behind the President, this might not be
too high a price to pay for the restoration of
unity among those upon whom the destiny of
the new deal depends
| Most sensible persons will regard the PreSi-
dents silver message of May % as a liberal and
statesmanlike bid for the loyal support of the
silver interests in congress. The essentials of
the Presidents proposal are the following:
| l. The increase of the amount of silver in our
monetary system with the ultimate aim of hav-
ing one-fourth of our monetary value in silver
and three -fourthS in gold.
| q Authorization of the President to make
sufficient purchases of silver to bring about this
result.
g. The provision that such silver purchases
should be made under maximum silver price
of so cents per ounce.
| 4. Giving the President power to requistion,
| if necessary, all silver in the country not re-
quired for industrial and to regulate foreign
| trade ana other dea1ngS involving monetary
silver.
| 5. The imposition of tax of at least so per
cent on the profits derived from subsequent
silver deals, thus putting crimp on those who
have been backing silver agitation for purely
speculative purposes.
g. The negotiation of necessary and suitable
adjustments of monetary policy with other ma
lions of the world particularly as relates to the
relative position of gold and silver in the
metallic standards.
| THIS is certainly as far as the President could
l. go in placating the silver interests without
doing more harm than good to the country.
If the more radical members of the silver
bloc organize any considerable revolt against this
proposal they certainly may be accused Of in
gratitude and of placing the selfish interests of
a few constituents above the welfare of the
country.
Graceful acquiescence in this silver gesture of
the administration is dictated by every con-
sideration of statecraft and political strategy 1t
is difficult to see how any further resistance by
the silver interests can fail to bring dscredt
upon their cause