Evening star., 1934-09-13
70 To. Editor Of me ssar:

40 tuS GolSok OA Iue oteks 9Eer
II "only . lifetime Of devoted, sim
cere study and speculation would en-
able conservative mind to grasp ths
b Cs Of modern monetary science
says Mr.. Rsnelash Kern. And yet
~Mr. Potter makes the case needlessly
complex with his suggestions for
monetary. reformi
A certain type Of more or less m
dolent simplicity of thought seems
characteristic Of both the reactionary
and radical extreme. Such simplicity
could well be dispensed with, for II
results, not In simplicity Of institu-
tions, but In the complexity and con-
fusion of paternalistic bureaucracy
Thus In arranging the New Deal II
was 50 simple to see that competition
caused falling prices and falling
prices caused depression. So we rang
out the old deal Of competitive indus
try and rang In the New Partnership
the partnership Of pot and kettle In
the alphabetical soup kitchenl It's
simple enough for the reactionary pot
to call the radical kettle black, but
that doesn't obviate the need for
securing the pot Is well as the kettle,
which isn't 90 simplel
For instance, both the Democratic
and Republican pots have cooked up
the following undisguised bank sub
sidy which has been the outstanding
one Of the successive steps taken BY
the administration which have re-
suited In the present prosperous con-
dition Of these institutions (the
banks) and which makes possible
their cooperation" In the recovery
spending program. ! quote below from
public bill No. lis, approved March s,
1884, an act which will help Mr.. Black
wonderfully In his new aiaison duties:
Provided, however, that until
March 3, 1885, or until the expiration
Of such additional period not exceed
ing two years as the President may
prescribe, the Federal Reserve Board
may. should it deem 1t in the public
interest, upon the affirmative vote Of
not less than majority Of its menu
bers, authorize the Federal Reserve
Banks to offer, and the Federal Re-
serve agents to accept. as such collat-
eral security, direct obligations Of the
United States. On such date or upon
the expiration Of such period 50 pre-
scribed by the President. or sooner.
should the Federal Reserve Board 50
decide, such authorization shall ter
inmate and such obligations Of the
United States be retired as security
for Federal Reserve notes."
There should. indeed, be no DIM
Guilty In haisoning any Of US into CO.
operating on this basis Of handing out
crisp notes at the cost Of printing,
with which to buy bonds to displace
the Liberties We bought 20 dearly with
savings during the wari A lifetime
devoted to sincere speculation along
this line would give even ''conserva-
tive mind" . full grasp, right down TO
its itching palm, Of this - Y z Of
modern monetary sciencel
But Of course, 1t wouldn't be feasi-
BE. for Us oil to be engrafted upon
recovery" in this way. That would be
uncontrolled" and wild" imitation
another monetary experiment of the
worst kind. Partial imitation can only
be accomplished-what simplicity Of
thought-by partially, Of coursel Is
this, then, the partiality Of "cap-
italism"? Or Is 1t only the gold
standard? Or q new deal in money
changing-off the record and outside
the temple, Of course!
But let's scour Mr.. Kern's kettle Of
fsh for moment. Take this matter
Of rent and interest, for example. Mr..
Kern would not object to either II they