The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1935-05-25

plete ignorance
Lewis Haney of the subject.
3. An implied proposal to print
billions of currency, coupled with
an astounding lack of suggestion
as to what to do with it.
My conclusion is that we need
fear or hope little from this man.
You can't fool the people very
long, and one who merely calls
names, but has nothing to pro.
pose as a remedy, will not get very
far.
There are two questions I want
to ask him, and hope someone
will call his attention to them
and demand a direct non-ora-
torical reply. They are as fol-
lows:
1. Father Coughlin, how
would you pass around the cur
rency you propose to issue?
After the printing job, how
would you issue it, and put it
into circulation?
In order to answer this ques-
ton, he must tell us whether he
proposes to GIVE us each part
Of this currency. Is it to be
handed out as a sort of bonus?
He proposes to print over $22,-
00O, 100000 That would be about
$3.50 per capita. So he must also
tell us what good that would do.
After each of us had spent our
$3.50, then what?
If he says that all he has in
mind is to have the Government
carry on public works, what
would he have the Government
do that it is not already doing?)
2. Father COughlin, how is
the currency which you pro-
pose different from the cur
rency we now have? In what
way would it be any better
than what you call "bankers'
money?
If this man proposes to base his
proposed currency upon gold,
what becomes of his rawlings
against the gold standard? If he
doesn't, what basis of value will
his currency have?
If his currency is not the debt
Of the Government (Which means
all of usD, it will be no good, and
I, for one, will give my share to
the good Father. But if it is to
be the Governments debt, how
much will it reduce that debt?
Coughlin stated that cash de-
posted in a bank becomes the
property Of the banker. That is
not true.
He stated in effect that when
bankers made loans by extending
credit, they are making printing
press money and violate the Con-
Stitution. But his own words,
which he does not seem to under
stand, refute him, for he says that
the banker lends against the Sc
curity behind the promissory
notes of borrowers"
A storekeeper or farmer wants
money to use in his business. He
tells the banker his plans. If they
look reasonable, and the man IS
honest, the banker decides that
the money will be well spent, and
that the loan is sound. The Sc
curity for this loan is the Dor
roWer's venture and his integrity.
When the borrower gives his
note, he is really putting up
part Of his business assets at the
bank, and that is what allows
him a deposit" credit. Then he
can draw checks and get money.
But note that the money he
draws out must be real money.
There must be enough good
money of generally acceptable
value in the bank, to enable the
borrower to get the cash he may
need. And this real money, the
banker does not make. 1t is
controlled by the Government
and in better times was con-
vertible into gold.
It is completely in error to say
that bankers create money. They
do not even create deposits. Most
deposits depend upon loans, and
can a banker make a loan I'M
less there is a borrower? Or
should a borrower have a loan
unless he can repay it?
One final question: Does