| Show GON CONTROL I 1 ROL OF CREDIT A BASIC QUESTION economist describes conflict between opposing social views on central bank agitation tor for government banking Is a phase of 0 the conflict between our present personal competitive enterprise system lit in america and tile the compulsory state collective security system of several european states virgil jordan president ilent national industrial Con conference Conte terence renco board says in hanking published by the american bankers ankers ri association they involve irreconcilable principles of human conduct and philosophy of life and the conflict between them ts Is the key to the tha economic social and political struggles of today mr jordan says the enterprise system ot of which the development of tile the united states has been tile unparalleled ox ey ample depends for its motive power of progress upon the inexhaustible reservoir of energy in individual desire for personal advancement in prosperity but it guarantees nothing to the individual save freedom ot of opportunity tile the article says the collectivist security system im ho says bays places all emphasis epou tile the maintenance of a minimum standard of living tor for the miss without regard to tile the creative power of the individual quite simply the so ao carity system involves tho the modern form of tho the philosophy of the slave society lie continues A sign fijn of the times tho the many sided movement toward governmental banking deposit insurance and currency management Is tile the most direct and decisive expression of tile the universal instinctive search tor for security which Is the sign of the times in america our so called social security legislation Is an important indication of the drift away from tho the enterprise system toward a collectivist security system with concentration of authority in ili a federal government the nationalization of credit Is crucial and indispensable for corn cam floto state control of the complex industrial and business structure of this country the drive toward government banking and monetary control is most determined because the relation of bf tile the state to credit goes to the root of the enterprise system A collective security system Is inconceivable without nationalization of credit an enterprise system la Is inconceivable with it under a collective security system based on oil government banking the controls lie ile solely in the hands of a few persons ind depend upon their judgment will or caprice mr bir jordan says adding that it Is they who must determine upon tile the basis of some predetermined plan or upon pure political expediency of tile the mo mant what lines of industry and even what individual enterprises shall ahall have the credit every government Is an organ of party power and must respond to tile the will of tile the party that put it in power the jordan article says under unchecked government operation it Is an inescapable tendency of every currency to depreciate and for or credit to expand however much it may be ba in the Int interest orest of the nation deflation Is too dangerous politically liti cally for any government in the end government banking and aad currency management maua gement resolve themselves simply into the use of credit as a political instrument of power and this instrument tends bonds to be used in the long run tor for expropriation of the community sav insa |
