Evening star., 1935-12-22
Easier to Start
Than to Stop
BY OrUen L. Scott.


first financial advisers told him he would
learn-that it is far easier to start than
to stop fancy experiments with money
and with free-and-easy spending
The President, after two and one-half
years of experiment. is reliably reported
to have made up his mind to do the
following:
Liquidate pump printing. A new half
billion will be asked of Congress for P.
w. A., but this is designed largely to
already under way. Gone is all presi-
dental thought of vast spending to speed
recovery.
Start liquidation of Federal work re-
lief after the next year. More money to
be added to the leftover from last years
appropriation of four billions, will be
asked of Congress to continue w. P. A.
jobs. But decision has been reached to
force the whole remaining problem of
caring for the unemployed back on the
States. The process is to be gradual.
Stop syphoning all of the worlds gold
and silver to the United States Treasury
by giving foreigners good American dol
lars in exchange for what has turned out
to be largely unusable metal. This coun-
try would like to talk business with Eng
land and France on the subject Of cur
rency sterilization.
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But what does Mr.. Roosevelt find as
he tries to reverse his field in this man
ner?
Principally that, having sown the wind
of easy money, he has to contend with
a Whirlwind of politically powerful plans
Of those who would go him one better.
The President sold people on the idea
that huge Federal spending was needed
to prime the pump of industry. So now
he faces the argument:
Why not pay 5000 month to every
person over go on condition that this
whole 5000 shall be spent within the
month? That would really be pump
priming that is pump printing. Demand
for goods would pick up, factories would
operate at full speed, unemployment
would disappear, the depression would
end and every one would be happy.
The President also sold the country
on the idea that the dollar was worth
too much.
To cheaper it, he has been paying out
vast numbers of dollars to Chinese, In
dians. Mexicans, Peruvians. Spaniards,
Englishmen, Frenchmen or any other
foreigners who have silver and gold to
offer at fancy prices.
Then the argument follows: Why not
pay some of these easy dollars to former
soldiers who want their bonus and have
it coming anyway in 1912? Why not
forget about taxes and just take money
from the Treasury to pay bounties to
farmers? Why not print some money
and use it to help farmers pay off their
mortgages? Why should foreigners get
the dollars if they are going to be handed
out for something the country already
has in too great abundance?
Mr.. Roosevelt, now seeking to battle
his way back to financial orthodoxy, is
forced to combat those arguments and
to reverse his stand.
He is prepared to veto the plan for
spending 100000 on a soldiers
bonus at this time. But Congress.
backed by the spending -for-recovery
idea, will almost certainly override the
veto to upset the next years budget.
He is getting ready to check silver
buying maneuvers that merely serve TO
give bountieS to few silver producers
in this country and riches to silver
owners abroad.
He is whipping into working order his
social security system that is supposed
to serve as an answer to the $200-a-
month pension plan of DR.. Francis E.
Townsend. Right at that point is where
the latest trouble has developed Mr.
RooseVelt's pension plans fit in with his
new interest in budget balancing. They
are not fitted to the pattern Of spending
for recovery on a large scale. DR.. Town
sends plan represents the evolution of
the spending g-for-recovery idea. Appar-
emily the country--or large slice of
its voters-has suddenly taken in a big
way to really gigantic pump printing.
What Mr.. Roosevelt offers in the pen
sion line is this: For present old people
above 65-he promises that, if their
State governments have oId-age pension
plans that will pass Federal inspection,
then the Government will contribute as
much as SIS month to match State
payments. These payments are made
to those with no means Of support and
with no more than $4,000 in property.
For those under IS, who are working,
Mr.. Roosevelt offers national plan of
forced saving for a rainy day. Starting
January /, 1887, the Government will
force this saving by taxing employer pay
rolls and employe pay envelopes. The
savings will flow in and the Government
will keep them, paying 3 per cent in
terest. Out of those acCumulationS, pen
sions will be paid to the workers as they
reach the age of 65. These will range
from $l7.50 to $81 a month. Each indi-
vidual'S savings will be kept as separate
account.
X
What DR.. Townsend offers is this: For
every citizen over go, who stops work,
he promises pension of 5000 month
for life. This pension will be credited
to the individuals checking account at
his bank on the first of each month, and,
to earn the right to have the pension
continued, he must spend every dollar of
the amount within the month.
Instead of pay roll tax to build up
a system of savings, DR.. Townsend pro-
poses that tax Of 2 per cent be-placed
on every single transaction that occurs
in the country. He needs to raise ST.
500,000,000 month, according to his esti-
mate, to carry out the idea, which is that
that AMOUNT of money flowing into use
would dynamite the country out of its
depression.
DR.. Townsend objects to references to
his plan as "cock-eyed." He has con-
vinced millions that it is anything but
cock-eyed AS result, Mr. Roosevelt
and his Democratic aides in Congress,
as we'll as the RenIhlicans find that The