Show CU 1 TIROL OF CREDIT A BASIC QUESTION el economist cono mist describes conflict between opposing social viewpoints on government bank agitation tor for government banking la Is a phase of 0 the conflict between our present personal competitive enterprise system in america and the compulsory state collective security y system 9 3 s ot of several european states virgil jordan president national industrial conference Con terence board says in an article in a recent issue ot of banking published by tho the american bankers As so clation they involve irreconcilable prin caples ot of human burnan conduct and phy of life and the conflict between them is the key to the economic social and political struggles ot of today sir jordan says the enterprise system ot of which development of 0 the united states has been the unparalleled example de for its motive power of progress upon the inexhaustible reservoir of energy in individual desire tor for personal advancement in prosperity but it guarantees nothing to the individual save freedom ot of opportunity tho the article says in part I 1 the collectivist security system lie he says say places all emphasis upon the maintenance ot of a minimum standard of 0 living tor for tho the mass without regard to the creative gocr of 0 the individual quite simply the security system involves the modern form ot of the philosophy of the slave society lie he continues A sign of the times the many sided movement toward governmental banking deposit insurance and currency management is the most direct and decisive expression ot of the universal sal instinctive search tor for security which la is the sign of the times in america our so called facial security legislation is an important indication ot of the drift away from the enterprise system toward a collectivist security system with concentration ot of authority in a central federal government the nationalization ot of credit la Is crucial and indispensable tor for complete state control ot of the complex industrial and business structure ot of this country the drive toward government banking and monetary control is most determined because the relation of the state to credit goes to the root of 0 the enterprise system A collective security system is inconceivable without nationalization ot of credit an enterprise system is inconceivable with it under a collective security system based on government banking the controls lie solely in the hands of 0 a tev few persons and depend upon their judgment will or caprice mr jordan says adding that it is they who must determine upon the basis 0 of some predetermined plan or upon pure political expediency ot of the moment what lines ot of industry and even what individual enterprises shall have access to the credit reservoir the state he says has the power ot of life and death over all enterprise that utilizes credit every government la is an organ ot of party power and must respond to the will ot of the party that put it in power the jordan article says under unchecked government operation it Is an inescapable tendency ot of every currency to depreciate and for credit to expand however much it II may be in the interest ot of the nation deflation Is too dangerous politically lor for any government to undertake it deliberately in the end government banking and currency management resolve themselves simply into the use of credit as a political instrument of 0 power and this instrument tends to be used in the long run tor for expropriation ot of the savings ol of the community |