Evening star., 1935-02-25
MONEY EXPANSION
URGED AT SESSION
Public Ownership and Con.
troll of Banks Also Plea
of Utilities Speaker.

Extensive expansion Of the currency
and public ownership and control of
all banking facilities were advocated
by speakers today at the Public
Ownership Conference being held at
the Willard Hotel.
Former Senator Robert L. Owen.
author of the Federal Reserve act Of
1918, told the delegates there is only
one way to recovery from the depres-
sion and that is to put more money
in the pockets of consumers through
expansion of the currency.
He took DR.. Edwin w. Kemmerer,
Princeton, who spoke at the Town
Hall last night, to task for his asser-
ton that the depression was not
caused by lack of money, and said
that any one with common sense who
has the temerity to get up and tell
intelligent people that money did not
cause the depression must be the in
strument of those persons seeking to
keep the country on an unsound eco
nomic basis"
STAPLE Price Level"
Owen said that in framing the Fed
eral Reserve act of 1918 he included
a provision ito promote a staple price
level" which he interpreted to mean
the Federal Reserve should issue
money in accordance with price fluc-
tuation.
If we ever expect to whip this de-
preston, we must replace the money
destroyed as If by fire in this country"
Owen said. THE stock market crash
Of 1929, destroyed property values of
200 billion dollars, but a greater de-
struction was that of confidence by
the American people"
Another plan for expansion of the
currency was submitted by c. B.
Whitnall, secretary of the Public Land
Commission of Wisconsin, who ad-
vocates a national municipal currency.
He said his plan would be comparable
to national bank currency, but that
the currency under his plan would
be issued by municipal governments.
backed by national credit.
He said although the Government
is the only body authorized to issue
currency, it never has issued any to
itself or to any of its subdivisions
States, counties or cities. Under the
plan the bonded Indebtedness Of COM
munities would be definitely limited
and all bond issues would mature
serially in 20 years, which would
mean that s per cent of the indebted
ness would be redeemed each year,
such maturing bond or bonds being
sent back to the city by he United
States Treasury each year, the credit
against the municipality being called
in and Cancelled.
Portland Official Speaks.
J. E. Bennett, city commissioner of
Portland, Greg, discussed the depres-
sion, its causes and remedies. He laid
the whole blame for the depression on
the withdrawal of appropriately $46.-
000, 900 in credits, limited money in
circulation and the Tightening up by
banks of credit.
Bennett said we are really not in a
depression, but that the conditions are
a result of an unsound money and
banking system which will become per-
manent unless proper remedies are
applied.
The conference, which opened last
Thursday, will be climaxed by ban
quet at the Willard tonight. at which
Chairman Frank r. McNinch Of the
Federal Tariff Commission; Rev. Msgr.
John A. Ryan and Carl D. Thompson
will be speakers. j. D. Ross Of Seattle
will give q lecture illustrated by mov-
ing pictures of what is being done by
public ownership in Washington. Ed
ward Keating will be the toastmaster.