Evening star., 1938-09-29
The Political Mill
Pittman Advances Cottonfor-Silver Plan to Aid u. S.
and Southern Growers.
:hern Growers.

There may be criticism leveled
against his plan to increase the cur
rency-on the ground that it is infla-
ton. At the same time there will be
great many persons in this country
who will agree with the Senator en-
tirely in his criticism of the admins
tration's cotton policies. What has
happened to the cotton producers
and the Governments what has
been predicted ever since the admin
istration started to pay the farmers
has proved q terribly costly expert
ment for the Government and has
helped to increase the production OF
cotton in other countries and to in
crease the use Of that cotton abroad
in place Of American cotton.
Senator Pittman does not take any
stock whatever in the suggestion that
his proposed increase in silver cur
rency would be hazardous imitation.
There Is danger, he admits, in cur
rency imitation, but adds there Is
danger also in currency defiation. He
says that in 1929 there was currency
deflation on large scale, while at
the same time there was dangerous
credit imitation, accompanied by alb
normal loans and large bank de-
posits due to such loans. At the time
OF the crash the percentage of circu-
lating currency to deposits and to
national income was at its lowest ebb.
He claims that ratio of non-retirable
circulating currency Of 10 per cent
of the total income would not be q
threat Of currency imitation. The
President, he says, estimates that the
annual national income should be
$lOO 900, 100000, which would justify
a circulating non-retirable currency Of
$40 100000.
Sees No Imitation.
The total currency and specie In
circulation the latter part Of August,
according to the Treasury, was $6,-
451 ,857 ,428. Senator Pittman's plan
would add 1854 300 900. making the
total $7,326,157,428. This would not
constitute imitation" Pittman says. 1T
would not be sufficient to reach the
point of sound relation"
What the administration will say
to Mr.. Pittman's plan remains to be
seen. 1t cannot blink the fact that
the cotton situation has become dan
gerous or that resentment among cot
ton producers has mounted to q high
degree Representatives Of the ad-
ministration have been booed down
in some cotton farming areas when
they have tried to put good face on
the cotton program in recent weeks.
The administration, however, is in
clined to be stubborn 1t has asserted
again and again that it was on the
right track in its treatment of agri-
culture-but agricultural prices have
been on the toboggan lately. 1t would
be bitter pill to admit now that the
theories advanced by Secretary Wal
lace and backed by the President are
wrong.
Outside OF the Pittman plan to
make a trade of cotton for silver, the
chances for the farmers do not ap-
pear any too good-unless there should
be another European war and it
should be possible to export much
needed cotton and wheat to the COM
batant and other nations abroad. The
administration, however, would not
like to be compelled to count on a
war every so often to keep its agri-
cultural program afloat.
Yet in some quarters today. with
considerable amount of cynicism. 1t
is said that European war may after
all prove the way out from the en-
barrassments in which the New Deal
Government finds itself.