The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1935-09-26
CONTROL OF CREDIT
4 BASIC QUESTION.
Economist Describes Conflict Be-
teen Opposing Social View
points on Government Bank.

Z Agitation for government banking 30
y phase Of the conflict between our
present personal competitive enter.
prise system" in America and the "com.
pulsory state collective security sys-
tenn. Of several European States. Virgil,
Jordan. President National Industrial
Conference Board. says in an article
In q recent issue of Banking pub.
lished by the American Bankers As.
sociation.
"They involve irrecOncilable prin.
eiples 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 1.-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 minin. UNI standard
Of living for the mass without regard
to the creative power Of the indiv idual.
quite simply the security system In.
wolves the modern form Of. the phil.
usOphy of the Sla e society" He con.
tinues:
A Sign Of the Times
TIE Li;i!. -.Iueu uOt GlIent toward
gUyu. u.;:cntal bank lg, deposit iEsu:'
au"e and Cuf. Cncy management Is Inc
mo direct aud decisive expression at
tie uni; "sal instructive search for Sc
III i;y which is the sign of the times
In America our sol ulied social Sc. uiity
legis.@: ion is an Important indi a:iuh
uf the Il: 1T Away from the enterprise
sy.;em inV ard a coli. :. twist security
.yl.cm with con .cntration Ot author
ity in a central Federal government.
1.-THE naturalization of credit l.
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 q collective security system.
based on government banking the con-
trolls ''lie solely in the hands OF 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
ali enterprise that utilizes credit.
every government IL an organ Of
party power and must respond to the
will OF the party hat put it in power -
the Jordan article says Under uD
checked government operation 1t IL an
inescapable tendency of every cur,
rency to depreciate and for credit to
expand. However much it may be in
the interest Of the nation. de6ation Is
too dangerous politically for any gov
eminent to undertake 1t deliberately.
lin the end government banking and
currency management resolve them
selves simply into the use Of credit as
n political instrument Of power. and
this instrument tends to be used il
the long rum for appropriation Of the
savings of the community"