Evening star., 1935-02-21
The Political Mill
By C.. Could Lincoln.

Former President Herbert Hoover has
come forward with q proposal to return
| the country to the gold standard, with
the dollar stabilized at its present gold
value-59 cents. Here Is the sound
money" argument in an up-to-date
guise. 1t is o proposal that gives in
effect o 41-cent reduction on debts,
debts which under the old gold valu-
alton Of the dollar would have had
to be paid with much more service or
goods. It Is a proposal that seeks to
remove the fear Of further imitation
and devaluation Of the dollar from the
minds Of the people. Any one who
| thinks that Is not very real fear
| merely closes his eyes and ears to what
Is going on around him. It is pro-
posal that, Of course, will not rest well
with the proponents of greater infla-
ton Of the currency. These last
named gentlemen took great encour-
agement from the decision OF the Su-
preme Court in the gold cases on Mon
day. They figured out that II that
was the way the court felt about it,
there was no particular reason why
there should not be further devaluation
and imitation, and some Of them
frankly are demanding both.
- Il
It is the threat that the dollar may
be still further devalued that has the
people and business on the anxious
bench-causing them to hesitate to
put their money into long-term obli-
cations. In the opinion Of Mr.. Hoover
the removal Of this fear would do far
more to bring about unemployment
and recovery than the public works
plan advanced by the administration.
The former Presidents statement
was issued in Arizona, on his way
back TO his California home. 1t was
carefully prepared and gave Mr..
Hoover'S exact reasons for return TO
specie payment-which has come to
be recognized as a gold payment. Like
other commentators on the decision
of the Supreme Court in the case in
volving the payment of the Govern
ments own bonds, Mr.. Hoover called
attention to the agreement of all
members of the court that the Gov
ernment had acted unconstitutionally
in repudiating the covenant in its
bonds-the covenant to pay in gold.
He asserted the decision of the court
that the citizen has no remedy-since
he cannot prove that he has suffered
a loss-will have long moral conse-
quences. But, in the opinion Of Mr..
Hoover, 1t is time to look forward and
be practical. to. accept the situation
and make the best of it, but to take
no chances with further devaluation.
Briefly, Mr.. Hoover contended that
the stabilization Of the dollar would
stimulate industry and business, put
men to work and prevent a very
greatly increased cost Of living to the
workers. Sooner or later this ques-
ton OF sound money-of a stabilized
collar-is going to find its place in
the political campaigns.
&Ex
The decisions of the Supreme Court
in the gold cases. with the court di-
vtded, S to 4, show a strange geo.
graphical alignment. The five JUS
tees Of the court who rendered the
majority opinions all come from the
seaboard States Of the East and
North, usually reckoned conservative
territory. The four justices who de-
nounced the opinion Of the majority,
declaring that it broke down the Con-
stitution Of the United States. came
from the West, the most Eastern hail
ing from Tennessee, while the others
were appointed to the bench from
Wyoming, Utah and Tennessee. 1t
was the liberal East against the con-
servative West.
The Supreme Court of the United
States has never been dominated by
partisan politics. In these gold de-
cisions, In which Democratic ad-
ministration was vitality interested,
partisan politics certainly had no part
OF the four Democratic members of
the court, two agreed with the ma
jority opinion of the court, which
"gratified" the President, and two
dissented. The five Republicans ci-
vided, with three supporting the ma
jority opinion and two dissenting.
President Roosevelt's message to
Congress on the N. r. A. asked a
two-year continuance Of the national
industrial recovery act. Doubtless the
President and his advisers desire to
see the system set up for control of
industry through the codes made
permanent parts of 1t. It
may be that some of the recommenda-
tions which the President received
from his advisers, and which he has
transmitted to the congressional COM
mittees. will look to making the
system permanent. However that may
be, the President has not put the
final seal of approval on these recon-
mendations Of his assistants, and
what he has asked for is a continu-
ance for two years of the N. I. r. A.
In the light Of all the opposition
which has developed to the N. r. A. in
Congress and out, it is about as much
as the President could hope for. A
law to make the N. r. A. permanent
would have tough shedding in Congress
today, and there are evidences that
the two-year continuance may have
Its troubles.
As indicated by the President in his
messages, it is proposed in the legisla-
tion to continue the N. r. A. to meet
some of the most serious objections
raised to the system and its admins
tration. If these amendments work
well, then, it is figured, the country
will be more willing to make the
system permanent. Furthermore, if
the system shall have been in effect
for a period of nearly four years, un-
der the original act and under the
continuing act, it may be very difficult
to dislodge it.
The proponents of the repeal of the
income tax publicity clause of the
present revenue law will have to act
quickly If they are to be effective. All
returns on income for 1884 must be
in the hands of the Internal Revenue
Bureau by March Is. And under the
law the data on the pink slips" re-
garding income and taxes paid will
then become plIhlic RenreSentat five