Evening star., 1934-08-02
To the Editor Of The Star:

To the Editor Of The Star:
The adoption of free-moEey pub
lie budget system. not as a panacea,
but as an answer to the enigma OF
progress and poverty" would be
greatly facilitated il economists and
the business world generally could be
brought to realize that the free. COM
petitive market, in which price levels
ESPECIALLY of foods and other neceSsi-
tiesl are determined through the in
terplay of marginal production and
consumption, is a distinct and Sepa-
rate element in our total economy.
The other elements, using money
on an arbitrary, non On-competitiye basis
$50 that only consumption is mar
ginaD, may and do profoundly affect
the level Of prices in the free market
by the way in which they originate
and use money These arbitrary ele-
ments, which include central banking
and utilities as well as the public
budget, must, therefore, be completely
socialized, not for the sake of an
illusOry personal security in an ex-
istence of elysAn plenltude, but in
order to assure the fairness of the
competitive price structure and the
resultant equality OF opportunity which
alone can preserve and develop those
Selective inequalities upon which the
evolution of our civilization depends.
Specialization, to this extent and for
this purpose, of naturally monopolis-
tic or social enterprises, IS not new
or radical idea, i. e.. it does not in
volve the eOnf1scatory and unconsu-
tutional attempt to suppress the basic
elements OF capital inyestment-rent.
interest and profit-which are the
emoluments of private property. Our
own democracy was founded OH the
quite constitutional idea (srticle /.
section 81 that money must be So
eially. l. e. goyernmentaily. pro-
duced as q sort OF artificial commodity,
fixed" in its value by Congress. We
! also socially own our roads and
schools and. to some extent already,
| our public utilities
But we have vet to put this social
/ ideal into use by a plan sufficiently
| comprehensive to make it effective
J in Stabilizing the competitive price
/ system. Such plan can only exist
/ when it is realized that money must
4 0t QualIllldAiNCll H1aAlitfdALAtC0. AiOt W
: lending it into use .throagh q banking
system that is essentially g counter
/ feiting concession biased on the dis
J credited theory that commercial loans
will be liquidated at the correct rate
| for maintenance of prices without
| infiation). but by having all new
money earned into use through those
industries that are or should be So
eiahzed. i. e, through the public
budget
The arbitrary price system involves
no inherent relation between income
and outgo anyway. Its use OF money
is autocratic and not subject TO the
automatic restrictions that eompeti-
tion puts upon normally private busi-
ness. 1t thus yields abuse and ex-
ploitation when under private con-
troll Socially originated restrictions
upon the creation and use Of money
should therefore be arbitrarily applied
TO the balancing of the accounts ei
the arbitrary system in such q way
that al charges treeeiptsl become
taxes in effect and are exceeded by
expenditures tthus unbalancing the
public budgeD at an automatically
variable rate determined by q pub
hcly known legal formula available
! TO al and sssed upon q price index