| Show Expanded Currency Only Way to Avoid Chaos Borah Says Present Plans Are Only Step Stepin in Right Direction He Holds I Editors Editor's note Currency expansion expansion sion is one of the most controversial sial measures advanced as a remedy remedy remedy rem rem- edy for depression Government officials generally oppose it holding holding hold holde ing the present volume of money to be more than ample On the theother theother I Iother other side Senator Borah progressive progressive pro pro- senate leader declares that extensive currency expansion expansion expansion sion is the only way to save the country from disaster His arguments arguments ments are set forth in the following following following follow follow- ing dispatch By LYLE C C. C WILSON C.-WILSON Copyright 1932 b by United Press WASHINGTON July 20 Senator 20 Senator William WIlIiam E. E Borah R. R Idaho counseled counseled coun- coun the country today to turn to currency expansion to avoid chaos and disaster The expansion authorized authorized au- au under the home loan bank bill is a start toward the honest dollar but should be only the beginning beginning be be- ginning inning Borah told the United Press I in n an an exclusive interview He de declared de- de I de-I dared there could be much fur furher fur fur- her ther expansion without endangering the he nations nation's monetary system As William Jennings Bryan In 1896 1890 campaigned for free tree coinage of silver silver sil sil- ver to increase the amount of money in n circulation so Borah leader of the western vestern progressives now argues forthe for tor forbe the be same goal through currency ex ex- He said FAVORS 1926 LEVEL There is nothing ahead but chaos and nd and disaster unless we boldly undertake undertake under- under take to bring prices back to what they hey were when a substantial portion of f our current debts were obligated and stabilize them there We will say back to the level of 1926 We never c can n pay payout out under the present program and under present conditions It is possible to stabilize prices by means of a proper use of oC money noney I believe before we ve return inthe in he the autumn there will b be general realization that there must be a pronounced pronounced pronounced pro pro- expansion of the currency The currency amendment attached to o the bank bill will permit expansion to o the extent of oC about United States bonds would receive under this act act the circulation lege ege Such expansion would be of considerable considerable con help in alleviating present conditions I must say however that regard this of authorized currency currency currency cur cur- rency expansion merely as a step inthe inthe in inthe the direction of a desirable achieve achieve- ment DEFINES DOLLAR The definition of an honest dollars dollarIs dollar is s a dollar which can can be purchased by bythe bythe bythe the same quantity of commodities today today to today to- to day as upon some Agreed previous date An honest dollar is 15 a st stable ble dollar It is a dollar which when nominated nominated nom- nom in a contract does not accentuate accentuate the value of that contract contact bythe by hc the mere lapse of time Everyone wants want an honest dollar money or that he is counseling abandonment abandonment abandonment aban aban- of the gold standard The home loan bill and the currency currency currency cur cur- rency expansion rider championed b by Borah in the senate meantime awaited await await- ed President Hoovers Hoover's signature The president delayed laed action while Comptroller Comptroller Comp Compo of the Currency John W. W Pole prepared an analysis of the project It was understood Mr Hoover would use this as the basis of a statement designed to dispel foreign nervousness over the plan pIan The measure does not make the expansion mandatory It authorizes national banks to issue that amount of new banknotes if they desire The The new new money would be backed by government nt bonds which the banks would have to deposit with the treasury |
