The Washington times., 1934-01-18

money? Is sill e. ~ ~.
yer to be taken - -
into the "me- Lewis nancy
tallic reserve? Of so, at what
priceO Is the gold dollar to be a
$50 cent dollar" or 80 cent dol
lar"? (There is a big difference
there is a 20 per cent difference
between so and CO.,
In short, we confront a 20 per
cent uncertainty as to the gold
dollar. And we have no idea at
all what the paper dollar may be
worth-none whatever.
No Gold Dollars
Don't forget that We have no
gold dollars. Nor is any definite
convertibility of our paper dollars
into gold suggested.
Some say, "At last we are to
get stabilization of our money"
Others say, "At last initiation is
going to be made effective" But
the two things are opposites!
AS a matter of fact, there is no
provision for any Stablization, ex-
cept possibly in foreign exchange.
Experiments Continue
Cd We don't know whether
the gold dollar is to be sut 40
per cent Ito 1898 grains of gold)
or so per cent Ito 11.61 grains),
or somewhere between. That
leaves a 20 per cent "side shake"
CD We don't know whether the
commodity dollar" is coming or
not. And if it is Gas is strongly
SuggeSted) we would have con.
tinued experiments in changing
the dollar. Would that be stabii.
zation?
CD We don't know whether the
dollar is to be gold or silver, or
some combination of the two.
No Limit Suggested
(D We don't know how much
paper money is to be injected into
our currency. No limit whatever
is suggested as to what amount
may be deemed adequate" for
"the needs of our people"
Are paper dollars to be con.
vertible into gold dollars or silver
dollars? If into gold dollars, will
they be $50 cent dollars" or what?
Nothing Definite
50 We don't know what is
meant by "fairer prices" Domes'
tic prices are up relatively little.
How much initiation will it take to
put them up?
co We don't know that there
will be no further experiments
and renewed "devaluation."
Is this stabilization?
The long and short of it is that
there is no definite figure, and
nothing final. There is no limit
to government spending and debt,
nor to currency and credit expan-
sion.
Some say, "a step toward the
gold standard" Others say, The
commodity dollar" or Something
done for silver
Can't Be Both
But the thing can't be bothl
Yesterday I showed that there
is strong leaning toward a
managed currency and the COM
modify dollar, as we'll as a de-
fense of some form OF oi'
metalism."
Most emphatically, vague talk
of "a metallic reserve" does not
necessarily mean the gold stand
ard.
Some say. Look at bonds
they are up as well as stocks"
Others say, Look at stocks
they are up as if anticipating in
flation."
Explains Rise
In my judgment, only those
bonds have risen which have
either Cd been overdiscounting
the depreciation of the dollar, or
(2) are being manipulated. No
reasonably secure per cent bond
should sell under IS. With
money rates as low as they are,
such a bond should sell close
to 80, even in 6O-cent dollars,
GOVcLIlIlcIlG JULIUS dIc OOuUGlcSS
being supported" by the Gov.
ernment.
How can a 60-cent dollar bond
be worth as much as a 10O-cent
dollar bond? Can you tell me?
Imitation Move"
AS to stcoks-well, they all
went up ogether. indiscrimi.
nately, just as in other Initiation
moves"
One thing all agree on, namely
that this is compulsory levy
on capital" If, as, and when
the purchasing power Of the dol.
lar is cut to SO or so cents, all
persons with money or relatively
fixed incomes will be hurt. That
will come when commodity prices
rise to a "fairer" level.
Another sure thing is that
there can be no real compromise
in such matters. All these con.
flicting opinions cannot be right.
Either Mr.. Roosevelt has reversed
himself. or he haSn1.