Show INCREASE IN CURRENCY the U S senate and house voted to expand the nations currency by by issuing bank notes to nat foal banks with gitil federal bonds bearing 3 38 per cent or less leas as security this action was in tho the form ot of an a nien dment by senator horah borah ot of idaho to the home loan dank bank bill under this provision circulation privilege lege la Is given to all treas treasury tiry and liberty bo be Is id bearing interest of 3 38 per cent or less lesa this was calculated by the sponsors ot of the amendment to make a all bible able sufficient bonds so that the total outstanding national bank currency can be increased by about the national banks may rc comp lish this expansion by acquisition of these bonds and their deposit with the U 8 treasury under the statutes providing for the issuance of currency by banks this Is one of the tests testa that the fw cur roncy expansion program has received lit in the senate along with the vote on the soldiers bonus if the plan for or the immediate payment of this bonus had been t adopted it might havo have called for the issuance of new currency many think the better plan la Is to tc produce more currency and thus avoid uie the issuance of bonds with the cone con i sequent payment of taxes by owners ot of the bonds and the payment of interest thereon by the government it but as secretory secretary f the treasury mills said in a recent speech at no boston stoll we resisted the printing of additional currency because all experience demonstrates that human nature being what it la Is once onca the printing press was started they cannot be stopped short of disaster this was what happened to germany Ger meny when the mark was not even worth the paper it was printed on many opposed senator boraas in fit sia si tanco stance on oil the need for printing more money with the argument that there la Is in ili use today ri far larger volume of currency than at the height of the boom period and the statement was made that the recent bank failures in chicago increased the currency in circulation by the the question la is being asked how will this addition in currency raise the price levels and how Is it to be distributed tri buted during the last three years the currency in circulation it has been stated has increased by yet deflation has steadily pro and business conditions have been getting worse so that people hwo been hoarding boarding the currency rathor rather than putting it to work it more inore currency were needed undoubtedly I 1 the federal reserve banks could supply it without any difficulty under the law already in force according to senator glas giasi of 0 virginia who scald that there Is 19 no need tor for extending the circulating privilege to gov bonds at this time thile the federal 1 I reserve banks banka have boon been purchasing ing government bonds bonda and thus putting money into the commercial comin forcial banks plenty of 0 money la Is available senator reed of pennsylvania pointed out that an increase in tile the volume ot currency cannot raise commodity prices unless the currency la Is debased under the federal reserve system the volume ot of currency Is controlled by business needs and other demands it another in currency w wore ore issued r mid nd the gold value ot of the lie dollar remained tho the same it could have no possible effect affect on commodity prices and would not act as a stimulant tt for business nothing can be gained ly by adding to the amount of currency lying idle in bank vaults it apparently appa Is not so much the need 0 f more money as the wiser use ot of tile the money now in circulation the extravagant trava gant prices that were for or commodities during the recent years were out of proportion to their real value and besides creating a tala fals sense of values and an exaggerated style ot of living this system makes it nil all the harder for people to adust themselves to a simpler mode do of 0 life aich after all la is no different than the normal life the majority of tho the people led be foro fore the so called era of prosperity |