Evening star., 1934-04-22

4 \ between two schools of
thought in the councils of
the Government and in Congress.
One school is a contender for more
currency initiation through a broad
use of silver for money. through print
ing press dollars to pay of bank de-
positors who lost in the 1888 bank
moratorium. for a huge production of
new paper currency to refnance farm
mortgages.
The second school is a contender
for more economic planning, through
Government aid to industry and to
agriculture. Those in this group
prefer to soft-pedal any more infia-
ton. other than gradual and control
led credit initiation. They would plan
for, and manage. the country's money
as well as its economy, according to
a fairly definite program.
Third Group.
There is also a third school that
would end both initiation and plan
ming, favoring a return to "laisseZ-
faire," with its rugged individualism
and probable further def1ation. This
group, however, just now has little
influence either at the White House
or in Congress.
The infationiSts say the only real
benefit that has come out of any event
since March 4, 1888, has come through
money action. By cutting the dollar
loose from gold deflation stopped.
prices started up and recovery def
0ifnlyy in 4hncn a. nc
argue, what is needed is more of the
same remedy. Silver. right now. is
their special pet.
The planners, who are the real
members of the brain trust" admit
that unhitching the dollar from its
gold base was a helpful move. They
contend, however. that it now should
be kept under careful control to pre-
vent any wild initiation and a boom
that would be followed by another
collapse.
They argue that without further
tinkering with money the Govern
ment has the machinery, in the Ma
tional Recovery Administration and
the Agricultural Adjustment Admin
stration, to make needed adjustments.
Sides With Planners.
President Roosevelt has inclined re-
Gently to throw his weight to the
side of the planners. Instead of print
ing money to retire government debts.
as he could do under existing law
to the extent of S3,OO0,0 100000, these
debts are being refinanced. The
A. A. A. is being tightened up and
given new powers. Gen. johnson and
the N. R. A. are getting reorganized
for more effective action.
Not only that, but thumbs have
been turned down on various infla-
tionary proposals. This is true of
the plans, much favored in Congress.
to print money to be used in paying
off depositors in closed banks. 1t also
is true of the plan, advanced by Sem
ator Frazier, of North Dakota, to
print about nine billions of new money
to be used in rehnancing farm mort
cages.
AS for the use Of silver to a greater
extent in this countrys money sys-
tenn, there is more of an inclination
to compromise.
The inflationists, who are concen-
trated in Congress, where planning
is far from popular, have been push
silver. Judged by the argument put
forward for its increased use as
money, 1t would solve most of the de-
preston problems of the world.
Bryan Plan.
There are plans to bring silver
back to a relative standing with gold
as coin, in the manner that William
Jennings Bryan once urged. There
are plans to buy as much as 100000
tons of the metal to be used as back
ing for huge issue of new silver
dollars and silver certificates. There
are plans to exchange farm products
for silver, and plans to use silver for
all sorts of monetary purposes.
And the interesting point is that
the silverites have the votes in Con-
gress to put through just about any
scheme they urge. Only the threat
of a presidential veto deters them
from bringing silver into a relative
standing with gold in the country's
currency system. So great is the pres
sure for action favorable to this metal
that there now is every probability
that some compromise legislation will
be enacted at this session to give it
added Importance But, it is asked,
why all of this attention to silver and
to imitation at the present time?
First and foremost is the argument
that another dose of imitation will
cause a rise in prices, particularly in
farm prices, and make debts easier
to pay.
Then there is the argument that if
American dollars can be cheapened
enough, or if silver is made valuable
enough the hungry Chinese and