Milford chronicle., 1949-04-29
puttinq Cod 70 VOL

putting Cold to Work
: COULD NOT. if / wished. write
! Of the monetary situation in this
in the terms Of an econo-
mist, which / am not. But / do
know some Of the fundamentals
and / like to think / have enough
horse sense to understand them.
We have been. and are. fearful
Of an uncontrolled initiation, or a
severe depression. and we have
certain degree Of initiation now.
Imitation can produce depression,
with printing press money as the
fundamental cause Of both. Our
printing press money. all the cur
rency we have aside from linz
tied amount of silver certificates.
has no tangible value The foun-
dalton, if any, on which it is is
sued is liability. not an asset It
is guaranteed by nothing less than
our national Indebtedness. We cam
not turn it into the national treas
ury, and receive for it anything ex-
cept other money of the same kind
and of no tangible value. either.
II the printing presses con-
tinue to turn out an ever-in-
creasing volume Of such money
it viii inevitably lead to what
Germany and other European
countries experienced follow
ing the close Of World War
and what we get viii be Oc-
casiOned by the same causes
too much worthless money.
The money Of Germany. at that
time. had nothing back Of it re-
sembling stable, tangible value,
and for which their paper marks
could be exchanged. Because OF
that condition their money became
valueless for anything except for
paying debts. Those who were
forced to- accept those printing
press marks in payment of debt
could buy nothing with it. for it
had no purchasing power, it had
no tangible value. In Germany
such valueless currency produced
uncontrolled initiation. The after
math Of that initiation was depres-
sion, and the rise of Hitler.
When the government needs mon
ey, or credit, it can, and does,
force the banks to buy government
bonds. With these bonds-a gov.
eminent indebtedness as security
the banks can, and do. issue bank
notes. Such bank notes represent
quite the. largest part. Of our ma
tional currency. It is the same a:
printing press money.
By the simple expedient Of
buying bonds as they are Of
fered-by paying par for them,
but paying for them with
more and more printing press
mohey-the government has
maintained the price Of its
bonds. As In Germany, she
printing press currency win pay
debts, but it will not buy dol
lars worth Of commodities for
one dollar of printing press cur-
rency! It is a simple method
of temporarily maintaining
par price for government
bonds, but it cannot be con-
tinued indefinitely, as il could
not be in Germany and other
European countries.
In 1882 congress enacted tn
h legislation that started us on tn
/, road laid with printing press NOR
S ey. That road took us off the gol
s standard; it repudiated our prom
Use to pay off our indebtedness
good money; it repudiated on
promise to redeem our outstan6in
currency in gold on demand;
g opened the doors for initiation.
: That same legislation change
! the price of gold from $23 an ounc
= to $32, and to maintain that prize
: we agreed to buy all the GOLD o
" fered at that price. As resul
. we have two-thirds Of all the MOI
etary gold Of the world stored
government vaults, but not working
To close the doors on infIa-
tiOn, we should put that gold
back on the job; we should get
back on a gold basis for our
currency, not at the old price
of S23 an ounce, but at price
somewhere from SS5 TO $40 an
ounce. That would stabilize
prices at about what they now
are; It would maintain our
wage scales at about their pres
ent price; we could pay of
our government indebtedness
as on approximately the same
TN basis as the debt was con-
ISL tracted.
to Most important Of all, our ]
ne turn to the gold standard wot
on. stop the ceaseless flow of print
.oe press money. and it would st
v. the wild spending spree in viii
its congress has indulged- That
bv what we need most and what
need first.
Joe Doak is a civil service e
ployee of the government. the he
.ey Of a small department in one
.ch the many bureaus. He wanted
III. raise. The only way he could
,cb one was to increase the numI
- of employees in his small deps
LllG -. -