The midland journal. (Rising Sun, Md.) 1885-1947, 1934-08-24
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National Topics Interpreted "a ffMTT17fbA
by William Bruckart knx1757T

National Topics Interpreted
by William Bruckart

SIUer Chief Executive by
Problem congress in the sill
yer purchase law
and has "nationalized" silver. It has
placed itself in the position where it
becomes virtually the sole purchaser
of silver In the United States and from
which position 1t controls, by license,
the release Of silver stocks for use in
industry and the arts.
Mystery still surrounds the promul-
cation Of the naturalization order.
Secretary Morgenthau at the treasury
has continued to hold the reasons
therefor within his own breast and
the result Is that thousand and one
interpretations have been placed on
the action. The action, like SO many
having to do with the currency, has
proved disconcerting, first because Of
the secrecy surrounding 1t and second
ly because 1t has in way added uns
certainty in many lines Of commercial
endeavor.
That 1t Is inflationary In character,
there can be no doubt. The extent.
however, Is another matter and one
about which experts disagree. 1t will
mean the obvious flotation of addi-
tional silver certificates in response to
the amount Of silver acquired and
stored by the treasury. This fact
doubtless will brighten many persons.
Followers of the administration, how
ever, have taken fresh heart from the
action and the naturalization order
gave such infationists as Senator
Thomas, the Oklahoma Democrat,
cause for great joy although the SEN
ator believes the inflationary policy
should be extended almost to the point
of free printing press operation. In
business circles, as that opinion is re-
Elected in Washington, there has been
a determined stand taken already
against what these men fear to be an
important move toward uncontrolled
and unrestrained imitation.
The best opinion / have been able
to obtain-it amounts to a consensus
of authorities in whom have faith
is that the action just taken on silver
In and of itself will not be disastrous
The danger, so I am informed, lies,
therefore, not In the purchase of silver
and the issuing of silver certificates,
but in the potentialities of the move
ment. There can be no doubt that
once the silver movement gets
thoroughly underway that 1t is only
short step, easily taken, to the use of
printing presses and fiat money.
1t will be recalled that Mr.. Roose-
welt said in his inaugural address that
he would support an adequate and
sound currency" In the opinion Of
many observers If he goes no further
than the recent silver order he can
still find justification for repeating his
inaugural declaration.
Obviously the devaluation of the dol
lar taken about this time last year has
proved inadequate to
Hope to accomplish price in
Roosf Prices creases to the 1926
level - promise
which Mr.. Roosevelt frequently made
during his campaign. His advisors ad-
NIT with some freedom that the gold
reduction program has not forced the
anticipated price boost. This being
true, it is only natural as many OBJ
servers hold that the move regarding
silver Is intended to supplement the
action which cut the gold content of
III hy,p nfc IN
slightly below sixty cents. Whether
this further change in the monetary
structure will accomplish the desired
price level, of course remains to be
seen. Administration leaders are hope
full. Old-time sound money men and
the conservative thought of the coun-
try are distressed.
In some quarters I hear discus
sion of the silver action which places
the possible Interpretation upon it that
1t is nothing more than a confiscation
of commercial stocks Of bar silver at
a price arbitrarily fixed by the govern
ment. Among this school of thought
some hold to the opinion in addition
that the step is not particularly sig
nihcant.
Fellow observers, believe, pretty
generally have accepted the silver ma
tionalization as having been partly due
to the serious agitation for imitation
about which reported several weeks
ago. 1t is easy to understand how this
would come about and why the date
of August 9 was selected for promulga-
ton Of the new order. Out through
the drouth stricken areas and in in
dustrial sections where employment
is seasonal, summer doldrums of the
first order are existent. Discomfort
along with distress always has and
probably always will breed radicalism.
The imitation agitation now surely can
be said to be fostered mainly by the
left wing and the more radical of the
politicians. Would it not then be only
natural that, having the power accord
ed him under the silver act, Mr..
Roosevelt should seek to alleviate
this condition by utilizing the dis