Show CONTROL o OF lr GR CREDIT DIT DITA A BASIC QUESTION Economist Describes Conflict Between Opposing Social Views on Central Bank Agitation for government banking Is a phase of the conflict between our present t personal competitive com enterprise system In America and the compulsory state collective se sc security security system of several European States Virgil Jordan President National National Na Industrial Conference Board Doard says in Banking g published by the American Bankers Association They lu Involve volve Irreconcilable prin of or human conduct and philosophy philosophy phil phil- of or life and the conflict between be tween them is the key to to- tho economic economic economic eco eco- social and political struggles of today Mr Jordan says The enterprise system of oC which the development of ot tho the United States Stales has been the unparalleled example example ex ex- ample depends for Cor Its motive power of progress upon the Ine Inexhaustible reservoir of oC energy In Individual desire de de- sire for Cor personal advancement In prosperity but it guarantees nothing to the individual save freedom of oC opportunity the article says The collectivist security system he says places all emphasis upon the maintenance of oC a minimum standard of living for the mass without with out regard to the creative power of Oc the Individual Quite Quito simply the security security se system Involves the modern form Corm of oC the philosophy of oC the slavo slave society He continues A si sign n of tho the Times The sided many movement to io- ward w w governmental banking deposit Insurance and currency management management manage manage- ment mentis Is the most direct and decisive expression of tho the universal Instinctive Live tive search for Cor security which Is the sign of the times In America our called so-called social security legislation Is an important Indication of oC the drift away from the enterprise system system tem tern toward a collectivist security system with concentration of authority authority au au- au In a Federal government The na national lIonal lion of oC credit Is crucial and for complete complete com state control of oC the complex Industrial and business structure of this country The drive toward government gov government banking and aud monetary control control con con- trolis is most determined because the relation of oC the state to credit goes to the root of or the enterprise system A collective security system Is Inconceivable In inconceivable conceivable without nationalization of oC credit An enterprise system is Inconceivable with It Il Under a collective security sy system t. t tern tem based on government banking the controls lIe He solely In the tho hands handsor of or a few persons and depend upon their Judgment will or caprice Mr Jordan says adding that It is they who must determine upon the basis of some predetermined plan or upon pure political expediency of the moment moment mo mo- ment mente what lines of Industry and anderen anderen eren ores what Individual enterprises shall shaH have the credit Every ery government Is an organ of party power and must respond to the tho will of the party that put it In to potter the Jordan article Days Under unchecked ked government operation operation op op- op- op oration It is an Inescapable tendency of every currency to depreciate and for credit to expand However much It may be bo In hi the tho Interest of the naties nation na na- na ties tion deflation is too dangerous po po- po II tI ca II for any auy government In the end government banking and currency management resolve themselves simply into the use of credit as a political Instrument of ot power and this Instrument tends to tobe tobe tobe be used In the long run for expropriation expropriation atlon of the community's savings |