Show Cheaper Money Boost in Prices Seen By Thomas Oklahoma S Senator Denies Silver Edict Means A Inflation White Metal N Now V O Real Basic and Pr Primary Money l Oklahoma Democrat and an exponent of ot Senator Elmer Thomas Thoma i Associated Press Pres hu hi views silver rehabilitation has written for the nationalization move Ills article follows vOU it the governments government's By SENATOR E ELMER IER 1 THOMAS t Copyright 1934 1931 by the Associated d Press I WASHINGTON Aug 10 AP The AP-The The full fuU significance of oC the nation- nation of silver docs does not appear on the surface The condemnation end and taking possession by the government of oC some ounces o of domestic sliver silver itself would have effect economically or otherwise but nationalization of ot the white metal Is for most Important monetary purposes Yesterday silver was a commodity and md was more or less le used in this and anda a number of or f countries as token m than than money nd monc-nd zoney-nO zoney no more re important nickel bronze or copper pp r. r T The recent congress de declared lared that we should hould make a wider use use of ot sliver siLver as money and that our metallic money shall be he beis 25 cent sit sU- 75 is per cent gold and per Ver Breaks Gold Blocs Bloc's Corner Today our government has in effect effect effect ef ef- ef- ef declared that silver in the future shall be real basic and nd primary primar money Any other interpretation of or President proclamation would be contrary to the theory of the law of or condemnation where- where under governments may take uke private te property properly for lor government use It t is hardly consistent with this theory that the government could or would condemn silver to be used as token money only It If silver is to become real b basic sic and primary mone money again then such sucha a policy breaks the world gold blocs bloc's corner on and control of ot gold The demand for gold Jold will sc scand and the demand for silver will increase in crease and very shortly it will be possible possible pos sible ible for the nati nations ns to agree on a ratio between gold and silver and nd to use both metals as money and the Basis for the issuance c of paper cur cur- rency Will Have lve to Bid To 10 carry out the policy declared b by congress the treasury wil wit have to acquire some ounces of silver er The silver on hand and to be acquired under adopted plans leaves about additional ounces to be obtained Th This silver must be bought in the world market and we will have to bid bd to buy the metal It Il is probable t that t before we we wc get gel the balance we wc need the price will be per pero o ounce n whereupon the thc metal in a silver sUver dollar will be worth a dollar es as measured by gold sold TAs fast as we produce silver we are areto areto areto to issue silver ilver certificates certificates- aes' aes against such metal to the amount paid so the policy adopted ed will pro provide vide vide-Jor for ome me m expansion ion of ot our ur currency No ko Inflation 1 There will be no inflation in the program as each c dollar of or paper money put out will ilI have a dollars dollar's worth of silver fr ir If the treasury for redemption d p purposes r To the extent that the program does does' increase the mone money in circulation ton lion will become b more mor more money money- me plentiful plen plen- and thereby cheaper and prices of all kinds will rise thereby reflecting su such h increase se in a higher price level v This is the post most o t important step taken to TO date in our our monetary adjustment ad ad- j program Other steps have been in the m al or domestic while white our recognition of silver will willo soon roon o n be seen to be a movement of oft t 1 the greatest importance j an in bringing about ut a new world mo monetary policy I c if I Senator Thomas |