The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-10

s sH;ss!rs Sa. 1.-THE Coming American Boom
ms century has witnessed

fundamental revolutions in
several countries Of our west
ern civilization. The COmmu-
mist revolution in Russia, the
arbitrary Selling Of supreme
power by dictatOrial parties in
Italy and Germany, and lastly,
no less significant because it
has not been accompanied by
violence, the great, though
little understood, American
experiment. All these bear
witness to the deep-rOOted
discomfort and dislOcation in
the economy of modern civili-
ZatiOn.
To many observers, the
Roosevelt experiment appears
to lack a cohesive and easily
grasped theme. This is pos
sibly due to the fact that the
motif of his reforms is none
tary.
This subject is little understood
even BY bankers, whose professional
decisions concerning the size Of their
loans and investments themselves
affect the volume of credit cur \
rencv outstanding and with it trade.
and the price level. On the sur
face to an observer who sees from
dav TO day only the disiointed and
apparently unpredictable actions Of /
the administration. the whole eX-
pertinent is apt TO appear as the
muddled meddling Of happy-go-
lucky oppOrtunist. whose disturbing
though well-meant efforts are prov
ing more a hindrance than help
to recovery.
TT Is because I feel that this view
Il is so widespread that I humbly
offer this book as an attempt to
explain and justify the Roosevelt
experiment. and to show how, II
steadfastly pursued. 1t is bound to
reach a successful conclusion. These
chapters attempt 10 view the Amerl-
can experiment from a point ABOVE
the surface confusion and middle,
and TO pick out from the seemingly
disiointed and make-shift actions OF
the administration the underlying
theme. which in my belief IS clear,
consistent and fundamentally sound.
A point I would emphasize Is that
general industrial depression and
revival are not a mere matter OF
chance. depending on fortmtous
waves Of confidence: but are due 10
definite economic forces which obey
a definite series Of laws; and any
statesman or economist worthy Of
the name ought TO know them ana
be able TO state them precisely.
NTONMONETARY factors, such
~ as a changing need for goods,
variations in tastes. efficiency IN
production. varying harvests and so
on. are undoubtedly the cause OF
considerable minor fluctuations IN
trade. but the great underlying
causes Of the big cyclical swings
from prosperity to depression are
undoubtedly purely monetary IN
character.
In modern economy, the money
is interposed between every eX-
change OF goods and services, and
in view Of this many people are in
clined to regard il solely as me-
dunn Of exchange and no more or
no less important than the luhri-
eating oil in an engine. But money
is also used as "a store Of value,
for which the public demand varies
according as they think it is likely
10 appreciate or depreciate in value.
II money is expected to appre-
ciate. /. 2. II general prices are ex-
pected 70 fall. owing. say. 10 loss OF
sold. a strained banking position or
bank credit contraction through
nervousness. people tend TO spend
money less rapidly in goods: where
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