The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-05-30
Liberal Viewpoint
by DIR. HARRY ELMER BARNES

by DIR. HARRY ELMER BARNES
Editors Note-This is the first of two articles by
Harry Elmer Barnes, PhD. on the present silver
controversy in congress.
THE present silver fight in congress is very
much like the initiation controversy of last
winter.
Both have tended to muddle and confuse the
public and to distract its attention from the more
fundamental nonmonetary issues which are tied
up with the problem of recovery. This applies
both to the Utopia mongering of the silver in
terests and the calamity bowling of their
opponents.
Another deplorable result of the silver battle
has been the division of the forces which should
be united behind the more liberal and important
phases of the new deal.
For the most part the silver senators and
congressman are progresSives whose basic in
terests are identical with those of Mr.. Roosevelt
and his advisers. By going off on the silver
tangent they disrupt the ranks of progress and
place in jeopardy not only sensible settlement
of the whole silver controversy but also a
progressive solution of our economic problems as
whole.
If the new deal proves flop silver will get
summary treatment at the hands of the reac-
tionar1eS, along with the liberal program which
the silver senator's support in the nonmonetary
field
Not since the campaign of 1896 has the silver
issue forced itself upon the American public
with such persistence and clamor.
THERE are a number of silver bills before
l. congress- One proposes to make man
datory the restoration of bimetallism at the
ratio of Is to (which was left discretionary
with the President under the Thomas amend
ment of last year. Another directs for the pur-
chase of billion and a half ounces of silver.
third provides for the sale of 100000 900
worth of American products in return for for
eign silver which will be received at a valuation
25 per cent above the market value of silver.
Other bills call for large subsidy to silver pro-
ducers or for the purchase of still greater VOL
umes of silver metal
The bill directing the return of bimetallism
would of course wipe out the gold standard at
once and the other bills would certainly weaken
or destroy it in practice.
The protagoniSts of silver would have us be-
lieve the Utopia will quickly follow the passage
of sweeping silver act According to their rea-
sonlng, prices would rise, debt burdens would be
lifted industry would be stimulated and the for
gotten men would come into their own.
Little attention is given to the fundamental
question of how silver or any other kind of
money will get into the pockets of the workers
and farmers in sufficient volume to boost pur-
chasing power to any marked degree
Nor do these silver groups seem much con-
cerned over the fact that rise in prices out of
all proportion to increases in wages and salaries
will only still further depress the already in
adequate purchasing power of the country.
TINE anti-silver forces take an equally extreme
Il view on the other side of the fence. The
executive committee of the economists national
committee on monetary policy has recently cir
cuated resolution opposing all silver measures
before congress. It contends:
l. That no additional silver should be
purchased at any price.
2. That the purchase of silver bullion at
artificial prices will not promote sound re-
covery, but on the contrary will add to the
liabilities of the government and reduce con-
hdence in the nations currency.
3. That the restoration of bmetallism at
the market ratio would cause national injury
and retard recovery.
a. That the restoration of bimetallism at
ratio of 16 to l would be a national calam-
ity
8. That rise in the price of silver bene-
fits materially neither domestic industry nor
the foreign trade of the United States
The committee predicts disaster if the adj
m1nlStration makes any concessions to the silver
interests:
Congress, under this administration already
has placed on Our statute books a series of I'M
sound and potentially dangerous monetary laws:
ana to add to their potential dangers or to con-
vert these potential dangers into actual man
datory law, is to invite monetary, economic
social and perhaps political disasters
The government is liable for the dollar
value, and every additional silver dollar going
INTO the vaults is national liability placing an
additional burden upon the gold reserves"