davidaulloa/AmericanStories huggingface dataset:
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17
INSTALLMENT VII

Inc 4AALA4E-N VII
NOW in the last chapter We
~ stressed the beneficial effect
on trade Of redundancy Of money
in the pockets and p~assbooks Of
the public, even though there
might be a time lag between the
actual imitation and its industrial
after-efects.
As a general rule, as we pointed
out. this monetary redundancy
usually results automatically"
from a fall in prices and in the
volume of trade, without the total
volume Of bank money being in
creased.
Monetary redundancy among
the public, in the form Of an in
territorial expansion of their bank
deposits, can, however, be deliber-
ately brought about either Cd by
the central bank widening the
credit basis by increasing the re-
serves of the other banks, OF 10
by the government borrowing di-
rect from the central bank, and
doing the same thing.
Here again the matter is subtle
to discuss, but the matter must
receive our care and attention if
Roosevelt is to be wholly uder-
stood.
Method %, as mentioned above,
was in fact, adopted by England
in 1928 as follows: If a country
has a central bank in which the
member banks keep balances which
they regard as cash reserves" as
is the case in England, the central
bank can initiate the so-called
reserves of the member banks
either by lending to them direct
or, by buying securities from them
Cor from private individuals who
bank with them)-for such pur-
chases can be paid for by the en-
trail bank by entering up in its
own books additional balances in
favor of the member banks, which
the member banks thereafter re-
gard as additional reserves"
For instance, a central bank, by
purchasing government securities
on the stock exchange, largely from
people who bank with the men,
Der banks, can actually create
additional reserves" for the mem
Der banks by crediting the mem
Der banks, with which the sellers
Of the securities bank, with a
sum of money equal to the value
of the purchases.
This is simply a bookkeeping n
try on the part of the central
bank and is purely inflationary in
character and effect. The mem
Der banks then credit the seller
with this sum-, but they find them
selves in possession of extra So
called reserves at the central
bank; and if it is their custom to
impose credit in the ratio Of say
9 to l on these extra reserves"
the meber banks can, if they
march in step, initiate their own
credit currency or so-called de
posits' (say by purchasing yet adj
ditional government securities on
the stock exchange OF by grant,
ing lOanS) to nine times the ex-
tent to which the central bank
has expended its credit.
n u q
THIS, in fact. is what happened
Il in England in 1928. large.
ly in order to convert the war
loan. The Bank of England
bought 100000 pounds of in
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17

of the President John Carter,
AAA research expert, more widely
known as Jay Franklin, an anony-
nous author of The New Dealers,
has a new Characterization for
his boss, Secretary Wallace .
Henry Wallace" says Carter,
comes closer to being ar Amer
lean Confucius than any man of
our time, and Confucius-be it re-
membered-laid the ethical and
pragmatic foundations for the
most stable agrarian economy the
world has ever known"
Copyright. 1884, by United Featur
Syndicate, Inc.)
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17

up thereon what is accepted as
the normal ratio of bank credit
currency. In other words, lack
of confidence may prevent the &C
tual credit currency imitation
which a prior imitation of bank
reserves has made possible.
It is here that method No. 2,
i. e. government borrowing direct
from the banks may be brought
in with beneficial results. If the
government deliberately steps in
and borrows money from the
banks, the loans so raised are
purely infationary in character,
since the government gives in eX-
change for it merely some form
of promise to pay in the future
which at the time costs" it Moth
ing. If the government then
spends the money so raised among
the public it may, despite the gen.
eral lack of investment confidence
among bankers, increase the total
credit currency in the hands of
the public and thus make their
money balances redundant.
Indeed, if government borrow
ing from the banks continues suf-
ficiently, the revival itself is not
open to Notwithstanding always
and we assume it, that u cur
rency theory of redundant bal
ances is correct.
The whole process of progressive
credit expansion may, in fact, be
compared with a man who holds
celluloid in front of a fire. The
celluloid becomes gradually though
invisibly warmer and warmer, but
nothing on the surface appears"
to be happening, and superficial
observers are therefore inclined to
exclaim that the experiment as
such is having no result. Event.
ually, however, when the critics
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17

vestments on the Stock Exchange.
The reserves of the clearing banks
were increased by this sum; they
then increased their investments
by 100000 o pounds, i. e., ten
times, with the result that the
deposit currency of the country
vas increased from 1,670 to 1850
millions.
Credit imitation thus occurred,
and the money of the public was
made REDUNDANT. Surplus money
and balances began to circulate
rapidly, and trade revival rapidly
ensued. AS was pointed out by
Mr.. McKenna, (eX-chancellor Of
the %eXchequer) at the last meet
ing Of the Midland bank in Janu-
airy, 1884, revival in England CO.
incided exactly with the above
imitation Of the deposit currency
of the country. Though certain
nonmonetary factors, like tariffs,
doubtless contributed to revival
there can be no doubt that it was
due more to this imitation than
to any other single factor.
In America, however, there is
no central bank; there are, how
ever. twelve so-called reserve
banks in which most of the other
smaller banks hold their reserve
balances, as though there were ten
little Englands.
Each of the twelve reserve
banks holds a stock of gold, or
rather gold certificates issued
against gold deposited with the
United States treasury, and held
very largely on its behalf by the
New York Federal Reserve bank.
What. therefore, the American
administration has done is to re-
duce the statutory gold content
of the legal tender paper dollar by
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17

strangle hold on the economic life
of the country"
He urged at the last session that
the secretary of treasury be m
powered to purchase all federal re-
serve banks and that bank credit
be replaced as a circulating me-
dunn by lawful money"
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17

home they saved their pay and their days off until
they had enough of both to permit them to ship to
France, Bermuda or and there then
ensued some of the most spectacular souSe parties
that the world ever has known. The Americans
made a name for themselves among the passengers
and ships companies Of other nationalitieS. Accus-
toned to shellac, %sheep-dip and radiator fluid at
home they first got their feet in the trough and
presently were getting in all over, to drink them
selves unconscious and raise the quaint varieties Of
hell by night which occur only to persons in the
thoroughly p~laStered state.
Setting fire to a ship would nave been only a
prank to some of the prohibition ~fugitives if they
only had happened to think of it and perhaps there
are stewards or sailors on the boats who could come
forward now to testify that this form of innocent
mischief did suggest itself and was attempted now
and again.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17
.FT. HARRISON BAND
DIRECTOR IS RETIRED
Warrant Officer Bowen Ends Thirty
Years Service.


Warrant Officer Frank A. Bowen,
director of the Eleventh infantry
band, Fl. Benjamin Harrison, was
retired today after thirty years
army service a. a musician.
Colonel oliver P. Robinson, regi-
mental commander, and Captain H
P. Hallowell, adjutant, we're among
guests last night at a testimonial
dinner for him. Mr.. Bowen will
make his home in Texas.
Other personnel changes include
assignment of First Sergeant Cor
bett Meeks to the Philippine de-
partment, who will be replaced by
Sergeant Laymon T. Clark, now in
the Philippines; transfer of Lieut.
James I. King to Hawaii and of
Captain Arthur L. Shreve and Lieut.
Robert G. Ross to Camp Knox, KY
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17
Delivery Messengers Meet

Invitation to hold the 1885 con-
vention of the National Association
of Special Delivery Messengers in
indianapolis was presented by an
indianapolis delegation at opening
of the 1884 convention today in Mil
Waukee.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17
DR.. WICKS ON PROGRAM
All Souls Pastor to Speak Before
Brentwood Methodists.

DR.. Frank S. c. Wicks, pastor of
the All Souls Unitarian church,
will speak on European impress
sions" at 7:30 tomorrow night at the
meeting of the Brightwood Metho-
dist mems class, Brightwood Metho-
dist church, 2414 Station street.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17

0SA-lSNSH
If the emergency skipper OF
the burned steamboat had said
that the young women got
dead drunk and were poured
to bed he would have described
a situation which has become
familiar on the passenger
ships, particularly on the short
holiday cruises, since the flap
per age of America. Early in
the prohibition era. when
Americans were making more
money than they had been &C
customed to. they were driven
to sea and to foreign ports for
their liquor.
Denied decent provisions at
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17

In the preceding instalIment. MaJor
AnEas described how the administra-
tons monetary policy provides the
driving force. despite the recent slump
in business. for a trade boom by ere
stinE additional bank notes and de-
poxits.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17
200 YOUNGSTERS SWORN
IN AS TRAFFIC COPS
Made Deputy Sheriffs by Judge Cox
to Monitor Children.

Two hundred boys and girls we're
sworn in as deputy sherifs Satur-
day by Circuit Judge Earl r. Cox
to monitor traffic at f%orty-seven
schools in Marion county.
Sheriff Charles Sumner told the
youthful deputies that it was up to
them to aid in preventing accidents
in Marion county"
The special traffic patrols will be
under the jurisdiction of the sheriff,
Miss Julia E. Landers, deputy sher-
if, and J. Malcolm Dunn, county
school superintendent.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17
COnscripted SerUice

THE SaCcO-Vanzetti case moved me to write the
Il first violent newspaper pieces I ever had done.
And pretty soon 1 was out of a JOB. Never since thaI
time has it been possible to get back entirely into
the mood Of the kindly commentator on the less
important phases of the passing show. Unlike Nero
I did most Of my nddIng before Rome burned. l
was left a tuneless minstrel in a world which pro-
ceeded TO 90 into commissions. Suddenly it no longer
was possible to write about bullheads. or crlckets or
the manner in which autumn comes to the naples OF
Hunting Ridge. It seems a little silly to write about
a fish and put into a paper which was filled with
aSsassinatiOns, riots and revolutions.
In the old days I sat down ten or twelve hours
in advance of the deadline and tried to imagine that
I was Charles Lamb. Naturally l never made the
grade but presently it was no dice even II you oid.
Being whimsical or arch while Rome burns is even
worse than meeting the fire with violin tunes. l
became a commentator because 1 was conscrlpted Dy
the march Of events. 1 do not regret the change IN
all WAYS. OF course nobody got mad at me then. l
was a little brother to all the world. 1t was not l
but the world which asked for an annulment OF the
relationship
Now I stay up all hours to get the morning papers
and find out who is dead and where the shooting IS.
on many occasions II is quite possible TO get aroused
genuinely about some snide performance by the cap
tans and the kings. I'm not kicking.
All I want TO know is would 1t be too much to ask
for the privilege Of writing once a month about
cabbaces and sealing wax or anything else which has
nothing TO do with the class struggle or the New
Deal? Excuse it please.
Copyright. 1894 BY The Timesl
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17
Fair Enough
by
WESTbROQK PEd[ER

NEW YORK, sept. 1.-THE Moro Castle inves-
IN tigation thus far only has touched upon one
phase of s~eafaring in the passenger trade which de-
veloped during the time of prohibition in the United
States and which certainly has some bearing on the
safety of travel at sea.
Captain Warns said he was told that several
young women who had sat up drinking in the lounge
had to be assisted to their quarters. He added that,
as a rule, he had no personal traffic with the pas
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17
THE NATIONAL ROUNDUP
By Ruth Finney

WASHINGTON, Sept. 1.-THE behavior of our banks during the
w next three and a half months, under promise of more liberal
treatment by federal bank examiners, may determine the fate OF central
bank legislation in the next congress
Plans for creating a central monetary authority with sole power to
coin money, issue currency and regulate banks gained a formidable
number of supporters near the close of last session. AS a substitute
deposit insurance was extended and the government was empowered
L. -nnko indrrtrio1 1nonc
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17

some 40 per cent, and thus raise
the dollar value of the gold stock
from about four billion dollars to
over seven billion dollars. (ThiS has
increased the actual or potential
cash reserves of the banks as a
whole by a similar ratio, which
institutions, being by nature profit
seekers, we're, and are, being slim
ulated to increase their invest
ments, thus tending not only to
lower the market rate of inter-
est, which in itself is a good thing
for trade, but also, which is an
even better thing, to increase the
credit currency in the hands of
the public, which redundancy
should eventually stimulate trade
further.
THERE is, however, one point
l. to note of considerable prac-
teal Importance. Although the
reserves of the banks may have
been increased, either by artificial
or natural methods, the banks
themselves, owing to their own
lack of willingness to invest or
owing to lack of willingness among
the public to borrow, may not
make full use of their extra re-
serve resources, and may not pile
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17

my belt. In desperation dashed
of a thousand words about my
experiences in trying TO buy a
farm.
Nothing happened. The man.
aging editor smiled pleasantly
and issued no rebuke. one week
later I still was behind on my
reading and threw into my space,
which appeared under the cap
ton Books" an article con-
corning my infant son. This
time the boss called me into his
office.
Those casual pieces Of yours
are better than your book re-
views" he said.
II wac an ambipiOuS remark.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17
/. The
DAILY WASHINGTON
RRY-GO-ROUND
By Drew Pearson and Robert S. Allen

ATASHINGTON Sept 17-Od Corden HUI, usually undemonstratve,
w got a bad case of the filters when the British government pro-
tested against the munitions investigation. The English, known as
the greatest statesmen of Europe, didn't like the charge that George v
pulled a Polish munitions deal away from an American firm. In
secret session If the munitions committee, the secretary of state showed
a s. woebegOne face that his compassionate ex-senatorial colleagues
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17

least expect it, the flash point is
suddenly reached and the cellu-
loid flares up into flames. This is
what will happen in America in
respect Of the process of credit
imitation. The demonstration will
then have the pleasure of convinc-
ing his critics of the irresistible
efficacy of his monetary theory, al
though to start with they were
sceptical and derisive, despite the
success of a similar experiment in
England.
1t is, moreover, Just as certain
that sufficient credit expansion in
America will, via redundancy and
cheap money, stimulate trade, as
that celluloid, if held sufficiently
near to a fire, will eventually burst
into flames. The time lag before
the flash point is reached may
temporarily confuse inexperienced
onlookers because of their lack OF
a technical knowledge of the
properties; the success of the ex-
pertinent, however, is not open to
practical or theoretical dispute.
This is, in theory and practice,
the core of Mr.. Roosevelt's re-
covery policy. And only those who
disagree with my monetary theory
can doubt the success of his plan.
In simple terms the theory is that
"if you go on pumping money into
peoples pockets and pass books
the result will eventually be felt
in the shops"
Tomorrow - How governments
cheap money policy is increasing
velocity of spending and effecting
expansion of credit, while expen-
ditures serve as primer for trade.
Copyright. 1884. by Simon and Schus-
ter. Inc: distributed by United Features
Gundipofa TTH
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17

You couldn't quite call II a compliment and yet
carried a certain amount Of Encouragement. As
matter Of fact this somewhat vague statement fro
my immediate employer changed my whole life.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17
HJeemC TO Me
b.
Haywood BROUN

Il WISH the void would calm down and so along
Il Tor a week without any threats Of war or violence
or ma or disasters. 7 assume that this wish might
well be shared by many. But I have a peculiar and
personal reason Tor desiring an ~arnristice in the
matter OF permanent crises. You see once upon a
time I had an ambition 70 be a light essayist. As a
matter OF fact that was the way in which I got into
this racket. At my own suggestion I was assigned 70
do three pieces a week on the most vital current
books. In fact. I believe Il might Be possible for
me % establish the assertion that I was the father
q the daily literary column. In those days I was
indolent. There came a certain Thursday and !
was al the Office with no novel or travel tome under
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-09-17

The theories of Major L. L.
b. Angas, in THE Coming
American Boom" r presented
by The indianapolis Times to
its readers as a journalistic
function of service. Publication
of the series of ten articles
written by the noted British
economist does not imply an
Endorsement of his views by
this newspaper.
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1934-01-31
TheW1e of a Strike>Bredking
Governor

THE PUBLICITY AGENT for Governor Clifford Pin
chot of Pennsylvania, Mrs. Clifford Pinchot paraded
the picket line OF the New York laundry strikers
long enough to allow the newspaper and movie photo
graphers to take her picture
At the same hour that Mrs Pinchot was conduct
ing this crusade against the sweatshops" in New
York, her husbands state police were beating up and
shooting at the striking anthracite miners Of Penn
sylvsnia who are fighting for union conditions and
decent wage,
The Sxte Police Of Pennsylvania, according 20
law, under the personal direction Of the Governor
Pincho sent into the anthracite strike area one hum
bred and twenty state troopers every available state
coSsack that could be spared from the mining and
steel towns Of Western Pennsylvania.
The sending in Of these troopers was accompanied
by an order Of Pinchot to allow no mass picketing
and to allow miners to picket except In the coli
liery where they work The state troopers, under
Pinchots orders, now spreading reign Of terror
throughout the anthracite beating up not only strk-
ers, but and children. sxteen-year-od striker
was fatally wounded on the picket line this week.
A number of town councils and burgesses in the
anthracite, in addition to many local unions, have
passed resolutions demanding the withdrawal of Pin
ready to do the bidding of the employers backs up
the bestial brutality of his state police.
Mrs. Pinchot evidently does not believe in the
slogan charity begins at home" She and her Gov
ernor husband know how to use denlagogy. While
posing progressive, Pinchot srangles free speech
in Pennsylvania by falling workers leaders such as Bill
Lawrence under the antworkng class state sedition
law, which robs the workers Of free Speech and which
Pnchot supports.
Under cover of such demagogy, aimed toward for
Warding his coming campaign to enter the United
States Senate Pinchot is directing the most vicious and
brutal attacks against the strikers and the unemployed
workers of the State of Pennsylvania, He is valuable
servant Of the employers who knows how to cover his
tracks by his own and his wife's liberal" talk
The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1934-01-31
The Birthday Parties

THE VAST and efficient machines Of the Roosevelt
machine are grinding overtime today. 1t is the
Presidents SIND birthday And the whole nation"
to use the gushing termnology Of the kept journalists
who busy scribbng all the details Of the birthday
parties, is supposed to rejoice.
The million or so C.wA workers who will soon
be flung by Roosevelt into the streets to starve-are
they rejoicing2
The million or so tenant farmers who have been
driven Off their land into paupesm by the Roosevelt
AA-A farm program-are they rejocing2
"A special dinner dance will be given at Sherry's,
Mrs. Roosevelt will be escorted by guard Of honor
from the list Regiment to the Waldorf -
So reads the capitalist press.
But outside the Waldorf in the bitter cold. march
striking hotel workers. picketng in protest against
s. a week wage.
The artihcially stimulated balyhoo for the Presi-
dents birthday Is part Of the elaborate rickery Of the
Wall Street ruling class dictatorship It's purpose Is
to give base to the Wall Street inperalist dc
tatorship to blind the eyes of the oppressed and ex-
plotted to the fact that Roosevelt the most
cunning, the most serve agent of Wall Street finance
capital who has ever sat in the White House.
Roosevelt seeks to disguise his ruthless assaults on
the millions of obless workers. the workers enslaved
under the NRA. codes, etc. by hiding behind the ny
pocrical cloak of charity to the poor victims Of in
fantile paralysis.
But there is something rotten in the charity OF
this President who coldy doom hundreds of thou
sands of working class children to disease and starya
ton by fnging their mothers and fathers into the
streets off the C.WA. jobs when he can turn deaf
ear to the cry Of the jobless for relief and Unempoy
ment Insurance at the time that he turns billions
over to the Army and Navy
In this vast attempt to cloak the ruthless capital
list character Of Roosevets program behind mists of
hypocrtcal sentiment, the ofacialdon Of the A. F. of
L. the Trotzye and other renegade groups take their
place.
John L. Lewis, Matthew woI william Green all
veteran strikebreakers all able assistants Of Hoover
and Roosevelt in their wage-slashing these are the
leading organizers of the Roosevelt parties and will
take their places at the fat banquet tables.
The leadership Of the Hotel strikers outside the
Waldorf, in which the Trotzkyites play a part, are
considering it Is reported to stop picketing for one
day in order not to disturb the birthday parties
Meanwhile, the record-breaking war building goes
on day and night. huge air bombing fleet is being
constructed at cost of many millions of dollars The
cost Of living, of milk, bread etc. continues its deadly
move upward
And behind the smoking meats of the banquet
tables can be the spectre of FaScsm of war OF
the starvation Of 100000 obless-uninvited guests