The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-03-15
Reach Same Station

SGOs
Reach Same Station
Now it so happens that the gov
eminent, studying its problem of
raising money to meet its vast OBJ
legations and to render itself free
of the bankers, got around to pref
ty much the same station as these
inf1ationists. If the bankers rebel
against further bond issues, what
can we do? it asked.
Why the best thing for us to do
is to take over the Federal Reserve
System. Then if the banks resist,
We can issue our bonds and sell
them to the Reserve banks, which
is the same as selling them to q
central bank. And thus, for the
first time, the inf1ationists and the
government are almost united in
their plan to meet a growing diff
f1culty Up to now the government
has tried to block the inf1ationistS
But now, almost without realizing
it, the government finds itself NOV
ing over to that side.
This is the principal significance
of the Federal Reserve Bank bill.
Senator Carter Glass Cd, Md,
who considers himself the watch
dog of the Reserve system, has an
nounced his intention to lead the
fight on this bill. Senator Elmer
Thomas Cd, Okla), and the in
f1ationist bloc backed by Father
Charles E. Coughlin will put their
force behind the government. The
fight will split both parties.
You will be called on to take
sides. Do you think the banking
system should be controlled by the
government? Or do you favor hav-
ing it directed by private business?
Issues Are Raised
Are you in favor of the govern
ment raising funds for emergency
purposes by borrowing or do you
favor the issuance of government
reserve banknotes without interest
for this purpose?
Do you think the Treasury, which
has a number of political problems,
should direct the banking policy or
should that policy be directed by
some separate agency in either the
government or business?
These are the questions which
Congress is going to have to settle.
Meantime there is a growing num-
Der who insist that government
borrowing must cease. These also
are split into two groups. One group
thinks that relief payments should
be drastically curtailed. The other
favors continuing them.
But both insist that whatever is
done, the payments should be raised
by taxes. Some think there should
be higher income taxes. Others
favor sales taxes.
But the problem Of banking re-
form seems to get lost in the |
shuttle. The new Reserve Board |
bill does propose some changes in
the banking practices. But it may |
be they do not go to the root of |
the problem and it may be ques-
toned whether they are really |
reforms, such as permitting banks
to lend more extensively on real |
estate collateral and for very long
terms. This is, in my judgment, a
backward step.
OF course, if Congress supports
a great works program with a guar
antee of prevailing wages and if it
votes for the bonus, which would |
mean an additional two billion in
payments by the government, a
powerful impetus will be given to
the whole movement of initiation.
Looking over the whole picture,
therefore, and attempting to
answer the question-"Where Are
We Now?" perhaps we may sum it
all up about as follows:
Bushes volume-it has increased.
Production-it has Travelled half
the way to recovery.
Employment--it has travelled one
quarter of the way.
Wages-they have travelled Is per
cent Of the road.
Total pay rolls-they have jour
neyed one-f1fth of the way.
Profts-they have outstripped all
others.
To do this much, we have spent
nearly 10 billion dollars Of govern
ment money. How we shall travel
the rest of the way and how much
it will cost, we have not settled.
The big problem is to get the
heavy capital goods industries re-
vived and we have not tackled that
problem yet.
And out of it all looms great
battle over the control of our bank
ing system which will decide
whether we will move into tnfla-
ton before the year is out.