The midland journal. (Rising Sun, Md.) 1885-1947, 1935-09-13
CONTROL OF CREDIT
A BASIC QUESTION
Economist Describes Conflict Be-
tween Opposing Social View
points on Government Bank.


a phase of the conflict between our
present personal competitive enter
prise system" in America and the "com-
pulsory state collective security sys-
TEN" of several European States, Virgil
Jordan, President National Industrial
Conference Board, says in an article
in a recent issue of Banking" pub
lished by the American Bankers AS
ISOLATION.
"They involve irreconcilable prin-
ciples of human conduct and philoso-
ply Of life and the conflict between
them is the key to the economic, social
and political struggles of today" Mr..
Jordan says.
The enterprise system of which "the
development of the United States has
been the unparalleled example. de,
ponds for its motive power of progress
upon the inexhaustible reservoir Of
energy in individual desire for personal
advancement in prosperity, but it guar
antees nothing to the individual save
freedom of opportunity" the article
says in part.
The collectivist security system, he
says, "places all emphasis upon the
maintenance of a minimum standard
of living for the mass without regard
to the creative pc Ier Of the individual.
quite simply the security system In
wolves the modern form of the phil.
osophy of the slave society" He con-
tinues:
A Sign of the Times
"The many-sided movement toward
governmental banking, deposit insur.
ance and currency management is the
most direct and decisive expression OF
the universal instructive search for &C.
In America our so-called social security
legislation is an important indication
of the drift away from the enterprise
system toward a collectivist security
system with concentration of author
ity in a central Federal government
1.-THE naturalization of credit is
crucial and indispensable for complete
state control of the complex industrial
and business structure of this coun-
try. The drive toward government
banking and monetary control is most
determined because the relation OF the
state to credit goes to the root OF the
enterprise system. A collective secur-
ity system is inconceivable without
naturalization of credit. An enterprise
system is inconceivable with it"
Under a collective security system,
based on government banking the con.
trolls ''lie solely in the hands of a few
persons and depend upon their judg-
ment will or caprice" Mr.. Jordan says,
adding that it is they who must de-
termine upon the basis of some pre-
determined plan or upon pure political
expediency Of the moment, what lines
of industry and even what individual
enterprises shall have access to the
credit reservoir" The state, he says.
has the power OF life and death over
all enterprise that utilities credit.
Every government is an organ Of
party power and must respond to the
will of the party that put it in power"
the Jordan article says. Under un.
checked government operation it is an
unacceptable tendency of every cur
rency to depreciate and for credit to
expand. However much it may be in
the interest of the nation, defiation is
too dangerous politically for any gov
eminent to undertake it deliberately.
"In the end government banking and
currency management resolve them