Evening star., 1939-06-28

to get a political advantage is not
new, but it is decidedly novel to see
politics played with serious matters
of international relations. Whether
silver should or should not be bought
from foreign countries is matter
that offers room for differences Of
opinion, but for the Senate suddenly
to project itself into the relations
between the United States and Mex
leo and the relations between Amer
lea and the rest of the world SO far
as gold values of the dollar are con-
cerned is to subject the whole
foreign policy of America to new
hazards.
The Republicans have been de-
claiming for months that they are
against subsidies, that the New Deal
Is failing to balance the budget be-
cause it is using public money to
get votes, and then the Republicans
turn around and do the same thing
in order to corral votes in the Sem
ate with which to defeat the ad-
ministrations proposal to continue
q power that has existed for the last
three years and has not been ex-
ercised to the detriment of anybody,
but in the best interests of the
United States.
Power to Stabilize.
- The power to devalue is a power
of stabilization. The existing law
enables the President to change the
gold content of the dollar from a
SO to a so cent basis. a relatively
narrow margin which would hardly
affect prices or cause any material
change in the dollars purchasing
power. The margin is declared es-
sential by Treasury experts so as
to protect America against currency
wars. The House of Representatives
by substantial vote agreed to per-
NIT this power to remain in the
Presidents hands. If the Senate
did not trust the Executive to exer-
else the power, it could have dele
gated the same authority to ma
tional monetary commission. But
the desire to keep the dollar rigid
no matter what might happen
abroad was held by minority of
Senators, who, in order to gain their
point, were willing to sacrifice all
their convictions on the principle
of subsidizing the silver industry.
How any Republicans who voted for
the silver subsidy can consistently
oppose hereafter farm subsidy, a
labor subsidy, w. P. A. subsidy or
any other kind of subsidy, using pub
lie funds for their vote-getting pur-
poses, is difficult to see.
The whole episode is one of the
most discouraging in the whole his
tory of American politics. 1t shows
that in the United States Senate
politics supersedes conviction when
partisanship gets the upper hand.
The Republicans took such step
backward by their vote on Monday
that they will be a long time ex-
planning to the country. 1t will raise
significant questions as to whether
the Republicans, If intrusted to
power, will do any more toward a
balanced budget and sound econ
omy without subsidies than their
democratic Dretnren.
Further Complication.
The situation will become further
complicated when the Senators from
the silver States, being given by the
administration a higher price for
silver, as now seems inevitable, will
agree in turn to support the extern
sion of the present devaluation law.
Where will that leave the Repub-
licans? All they will have sue
ceeded in doing then will be to
furnish two record votes of June 26,
1899, which will be used against
them time and again.
The real trouble in the Senate Is
that the leadership in the Repub-
lican as we'll as the Democratic side
is faced with grave problems Of
public policy, and it would appear
that somewhere between the ex-
ecutive branch of the Government
and the Senate there is lack of
cooperation which Is so essential
when delicate matters of foreign
policy are at stake. The present
devaluation controversy has been
going on for many weeks. Recon-
ciliation of opposing views could
have been achieved long ago. In
stead, what amounts to open war
fare has been begun between the
Senate and the Executive and the
Republicans have succeeded, tenn
porarily at least, in dividing the
nenoocrats Meanwhile Mexico con-
siders measures Of reprisal at the
sudden action of the Senate, the
world price of silver is falling and
q situation that could have been
rornposed lonc AGO is lust added to