Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1949-04-14
Curling Initiation

not the sky rocketing OF commodity
prices, but of industrial, utility and
other stocks.
For two years, and more, the
bulls had a merry time boosting
stocks higher and higher into the
air regardless of their earning ca
pacity. The people were stock-buy-
ing crazy. They saw fortunes grow
ing in everything that was offered.
The brokers were demanding only
narrow margins on an ever-upward
market, &ad the banks were loaning
"calp' money at comparatively
low-interest rates. The people saw
an opportunity for quick riches in
an easy gamble. Millions of them
were playing the game. They built
up paper fortunes and looked for
more.
The foundation on which that in
flation was built were world condi-
lions for which World War I was re-
sponsible. Such conditions were sup
plemented by the desire of the
people to take gamble, and the
ease with which they could crafty
that desire. There was no law, the
enforcement of which, would stop
the wild craze, but there was one
man who might have helped to
curb the runaway stock initiation.
That man was President Cool
idge. In Difference to the pres
tige of his office, the federal re-
serve board would, at the
Presidents request, undoubtedly
have raised the re-discOunt rate
to such a high point that it
would have stopped much Of
the borrowing of money with
which to gamble. Such move,
at that time, would have been
extremely unpopular with mill
lions of the American people,
those who believed they were
growing rich through their deal
ings in the stock market. 1t is
possible the President did not
wish to incur the resentment Of
those wealth-seeking millions.
Such a move in 1926 or '27 would
have prevented some of the bust of
1929, and undoubtedly softened the
long depression that followed the
bust. CURLING that stock initiation in
1926 or '27 would not have been
good partisan politics. Regardless
of who its nominee might have
been, the Republican party would
have paid heavy price for such
an action by the president in the
election of 1923.
Today we are faced with an in
flation in commodities rather than
in stocks. The primary cause of the
present initiation is an over-supply
of circulating, printing press cur
rency; too much" to which more
is being added at the rate of 80
million and over each month. To
correct that condition would not be
Immediately popular, especially
with some minorities. To peg the
currency we now have by re-esta-
blishing a gold standard, woul5
stop, temporarily, the days of easy
money flow; the continually-in-
creasing wage scales; the high
price of foods and other products.
1t would be opposed by CLIO and
other minorities.
Neither of the major political
parties wish to incur the Opposi-
tiOn Of these minority groups.
Both think more of partisan
political effect than of the best
interests of the nation as
whole. Such is partisan politics
in action.
Too much money creates de-
mand for commodities beyond the
present production capacity. That
means a sellers market and an
overwhelming purchasing power of
our printing press currency. A
smaller number of dollars, each
with a fixed value, would soon
change that sellers market to
buyers market, with prices coming
down. The consumer would be
quickly effected, but because of
the possible effect on wages, labor
would not be favorable, and
congress is afraid of losing the
labor vote.
Some members of the congress
have talked about stabilizing the
dollar at the present value. That
could be done by re-establishing a
gold standard, on the basis Of $35
to $40 an ounce for gold. Talk alone
does not accomplish a result 1t
takes congressional action, but
congress does not act. 1t prefers to
go along with the continually-drop-
ping values of our printing press
money rather than risk the dis
pleasure of the selfish minorities
that are opposed to a change.
Three billion dollars is lot OF
money. Enough to provide $50 for
everyone, men and women, who
cast ballot in the last national
election. 1t would provide $2l.42
each for all the men, women and
children in the United States. That
three billion dollars represents the
sum the government would save
each year should congress enact in
to law the recommendation OF the