Show TIlE THE DAILY W WASHINGTON J I Financial Whirligig Written for The Telegram I By JAMES IES McMULLIN NEW YORK YORK The The shadow of a federal monetary authority lurks behind Senator Thomas' Thomas proposal to nationalize the federal re reserve reserve reserve re- re serve banks Even though the Goldsborough I bill got nowhere last session the thc project for a supreme court of finance finance fathered fathered by Frank is is a lively ghost The informed predict that Uncle Sam will willbe willbe willbe I be exercising much tighter control o over er money and credit before another year rolls past The daly chance they see to head this off is s the election of a thoroughly conservative congress which could be trusted to view with disfavor any such sweeping change in the financial system T Tie e big New York banks take to the idea of a monetary authority or nationalizing the thc thel federal reserve as a cat takes to swimming But they know Senator Thomas is no puny adversary especially adversary especially as he is once more working working working work work- ing closely with the Committee for the Nation Nation- so they're pulling hard for a political flood that will wash away their worries Silver SlIver Keen New York observers interpret one phase of the thc silver policy as an indication that the government is laying the found foundation tion for a monetary structure under full federal control They point out that week by week the number of silver certificates in circulation is increasing So far this has meant no net in increase increase increase in- in crease in ill the total volume of currency outstanding outstanding outstanding out out- standing but the silver certificates are arc tending tending tending tend tend- ing to replace federal reserve notes and national national national na na- na- na bank notes of the smaller denominations and thereby retire the latter from circulation This shift hasn't yet reached important pr proportions pro proportions pro pro- portions but it easily might in the next few months Silver certificates are i sued issued by the government federal reserve and National bank banknotes banknotes banknotes notes by the thc banks The more federal currency currency currency cur cur- rency is substituted for bank currency the easier it would be to bring about a government monopoly monopoly mo mo- of the money issue privilege That's one of the main objectives of Senator Thomas and his New York associates Improvement Business improvement in the last few weeks gives impetus to New York hopes for enduring enduring enduring endur endur- ing gains this fall Some experts believe that the soundest base in five years has been laid aid for an autumn rise though rise though they admit that price factors can still throw monkey wrenches A number of New York authorities agree with N R A Economist Leon Henderson that payment of personal debts is an important fac fac- mc- mc tor Theres There's plenty of evidence that a large volume of income hitherto diverted to meet depression d depression de de- obligations will soon be freed for the p purchase of consumers consumers' goods which goods which will help greatly to build up demand Completion of auto instalment contracts this fall faIl will vill also be good news to the stores The only jarring note is the drouth situa tion New York is beginning to take it very seriously The Thc decline in farm demand for autos farm machinery mail order goods etc may largely cancel l the pickup in industrial centers Railroads Informed sources rate rails rans the weakest link linkin linkin linkin in the recovery chain at present Traffic is bound to drop because of the drouth and this loss of income coincides with increases in iri w wage ge and pension bills Rates are arc secondary ry observer comments that what the roads can charge for hauling freight is trivial compared to what freight they will have to haul A number of roads which have stalled off re reorganization reorganization reorganization re- re organization so far may yet have to go through the wringer before they can cari get back to solid ground Joseph B. B Eastman's dream of direct public ownership of railroads doesn't look as remote as New York would like to have it S S S Wall VaIl Street learns that some of its ex em are arc doing well for themselves in government government government govern govern- ment jobs The cases of men who used to make 60 or 75 a week working for lor bank affiliates or brokerage houses and are now drawing a year on the payroll of public works and other administrations make a lot of buzz a S S The transco transcontinental airlines are quietly planning to fix it so you can travel from coast to coast between dinner and breakfast this fall All three expect to shake new high speed planes out of their sleeves One One T W VI ballyhooed A-ballyhooed an overnight service service ser ser- vice to the coast some months ago You dont don't hear much about it now because the line figures figures fig fig- ures it would be smarter to let Postmaster General General General Gen Gen- eral Farley do the rest of the thc promoting promoting and and also abo drag down any resultant credit for lor the party S S I Dont Don't expect the presidents president's order for an in investigation investigation investigation in- in of foreign airmail to bring on anything anything any any- thing like Februarys February's domestic contract ruckus They're quite different pigeons For one thing the state department ap appreciates appreciates appreciates ap- ap Pan-American Pan Airways Airways' value as a good will agent in South America For another another another an an- other you cant can't use army planes to carry the them m mail il through 23 foreign countries Copyright 1934 1334 McClur Newspaper Eradicate |