The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-01-10
Liberal Viewpoint
BY DIR. HARRY ELMER BARNES

binding it very difficult to meet the argu-
l. ments of sane inhationists with either fact
Or logic the anti-nf1ationiSts have had recourse
to the big, bad wolf" in the form of historical
bogeys. They have called attention to every
classic example of currency debasement by me-
dieval kings, emperors and churchman
They have pointed warning finger at every
case of wild imitation in modern times-the
South Sea Bubble, the John Law Scheme, the
assignatS of the French Revolution, our Con-
tinental currency, the paper money of the
Southern Confederacy, initiation in early Bolshe-
vik Russia and the debauch of Germany in
1922-23
We are led to infer that President Roosevelt
is about to pitch us into just such maelstrom
as that in which Germany found herself during
1928. Senator Thomas is represented as con-
temporary John Law
Once we examine the historic record in the
effort to learn the truth rather than to support
thesis, we easily can see that it presents over
whelming evidence that such anti-infation
propagandists are either downright dishonest or
abismally ignorant
A compared to the German imitation for
1 n example Mr.. Roosevelt's policies to date
are like shower bath as set off against the
Johnstown flood. Mr.. Roosevelt thus far has
been unwilling even to depreciate the gold dollar
by so per cent to print any Of the $3,000 900 GOO
Of paper money which he was authorized by the
Thomas bill to bring forth, or to renonetize sill
yer. Mr.. Roosevelt's monetary policies must be
diScredited, If at ALL on the basis Of their own
defect, and not by the grossest abuse of false
historical analogies.
The imitation Of the French Revolution and
| of the American Revolution was the product of
rudimentary economy and Of an age in which
no real economy or monetary science existed. It
was primitive effort in both cases and was car
ried on in the face of desperate military ex-
tremities.
The German imitation was as much mill
tary defense as a fiscal policy. 1t was prompted
by military invasion and rendered necessary be-
cause Germany had to use printing presses
rather than machine guns to defend herself.
| NOTHING short of ignorance or a deter
~ mined and deliberate effort to deceive
could explain the charge that the Roosevelt in
dationary policies bear any resemblance to those
ancient fascoes or to the frantic German
episode.
The administration program aims at nothing
more than the raising of prices to what they
we're in a very recent and normal year. Even if
considerable paper money were printed, the
result would not be comparable to these his
toric examples of imitation. There is, indeed, a
sufficient excess gold reserve legally to back up
twice as much paper money as any recognized
inf1ationist asks to have printed today.
What the Roosevelt administration has in
mind is much nearer to what England has been
doing since she went off the gold standard than
it is to any of the historic cases of imitation
There the government and the Bank of Eng
land deliberately reduced the value of the pound
by use of an equalization fund" and arbitrarily
fixed the price Of gold from day to day.
Yet, many of our fierce banker opponents of
imitation in the United States have praised Eng
land for her monetary policies since 1884, Even
Professor Sprague, who resigned in protest
against Roosevelt's policies, was an adviser to
the British government during this very period.