Show 0 4 0 0 national topics interpreted by william bruckart national press building WaA hIngton D C washington mr secretary lately has gone into the money market to we borrow borrow a billion one billion dollars he asked the banks and other people having idle money to purchase four hundred millions in new government bonds and at the same time asked them to extend loans to talling about that matured on september 15 the maturing securities of course do not take new money out of the money market but it is borrowing just the same despite the technical name of refunding the Treas action in borrowing such a huge sum at this time came as a surprise to many financial authorities in fact to most of them there was no need for borrowing additional funds at this time it was a circumstance in which as far as most observers could saz the he t treasury had idle money in sufficient amount to meet the needs for the next several months aside from the fact that the sec re action results in an increase in the public debt by the amount of new money borrowed it is a matter deserving more than passing attention much more attention than treasury borrowings heretofore the reason is that the administration is again piling up in the treasury a huge amount of idle funds As nearly as I 1 can calculate the results of the september borrowings the treasury will be left with a mere in unused cash of course to the roosevelt administration which has dealt only in billions this sum may not appear important por tant mr Morgen thair said it wash was necessary to have these funds available because of unsettled conditions dit ions abroad but that answer to me does not suffice I 1 recognize that most people find little interest in discussing treasury financial policies I 1 know from the type of letter that I 1 get from those who do me the honor to read these reports that the subject of treasury finance seems far removed from anything in which they can possibly have an interest but notwithstanding those facts I 1 feel the matter should be discussed in every section of the country because it directly touches every taxpayer and that is of vital importance here is how it aff affects acts the taxpayer and when I 1 refer to the taxpayer I 1 refer to every individual in this country because all of us are paying taxes either directly or indirectly when the treasury arranges a cash balance it provides funds upon which the various government agencies may draw in accordance with congressional appropriations to that extent it is like money you deposit in a bank but otherwise it is quite different the cash balance in the treasury lies idle it brings no return no profit to anybody but it is important to remember that there are only two ways in which the treasury can get money for this cash balance namely by borrowing or by taxing you and me during the roosevelt administration the treasury has borrowed about for every dollar it has collected in taxes the result is a gigantic public debt there is another result however that is not as apparent to individuals since the treasury is borrowing money it has to pay interest on what it borrows you and I 1 are paying this interest in the form of additional taxes so therefore not alone are we being taxed for the money that is spent and which must be repaid but we are being taxed to pay the interest on idle funds mr Morgen thaus reference to unsettled conditions abroad directs attention to what is happening in europe and asia and the link that exists between those conditions and our own president roosevelt lately has said on several occasions that he did not like to be conditions away from wash abroad ington more than four or five days at a time because of those unsettled conditions every one knows that our foreign friends are re arming I 1 believe every one realizes as well however that each of those foreign nations is in a position where it cannot initiate hostilities at least each one is in a position where very great provocation must occur before it can justify the starting of a war in the eyes of nations like our own any one who wishes to examine those unsettled conditions c ons will find at the ve very ry bottom two types of propaganda one comes from russia the other from germany the two types of propagandists while violently hating each other are preaching exactly the same sort of thing they are telling the world that it if the world wants peace it must align itself with one or the other of the two schools of thought depending upon which type of propaganda you read with circumstances like that going on abroad it seems to me that we as americans ought to realize fully and ought to defend the type of govern ment that we have neither stalin nor hitler preaches our type of economic thought in view of that americans surely ought to tighten their girdle and take a definite stand for the preservation of our traditions our practices because it is under those traditions and practices that our nation has grown great I 1 have been a little bit disappointed that mr roosevelt and M r secretary american hull of the state doctrine department have not preached the american doctrine at more length I 1 am sure pronouncements by them in condemnation of communism or fascism would find a hearty response at the hands of the american people it is to be recognized that changes take place in world economic and political thought they are taking place in our country more are coming but I 1 condemn the practices of communism and fascism because they have ruined the lives lives of all excepting a few people in in every nation where those policies cles are operative they will destroy the independence of thought and action the happiness that we have come to know in this country as a natural right in negotiations with foreign powers mr roosevelt has not been fortunate I 1 think it is generally agreed among observers that the president fumbled the ball when he failed to take advantage of a splendid opportunity to deal with france and great britain when he first became president likewise I 1 know there are many students who are convinced that the president by his own acts broke up the london economic conference in the summer of 1933 and with the collapse of that london meeting went any hope for an early recovery from the depression en cn a world basis the war debts question still hangs in mid air the recognition of russia I 1 am convinced turned out to be a fizzle the far eastern program if there was a program has yielded nothing because it must be said in truth we have not cemented our friendship with japan 0 0 0 within the last few days we have seen the collapse of the french currency we have france off seen the gold standard dent join with great britain in operating cooperating co with the french in their difficulty yet it is apparent to anyone who will review the financial and economic history of the last three years that the french have made a great effort to remain on the gold standard and they had no help from us until they could no longer stand the strain itis it is always easier to use hindsight than foresight it is easier as well to call attention to mistakes three years after those mistakes I 1 have been made than to take a bold stand when the errors were first discussed these facts however do not in any way lighten the responsibility that was ours as a nation in 1933 I 1 refer again to the london economic conference and the events prior to it in 1933 there were plenty of men in the united states at that time who said openly that the united states should move quickly and take leadership in III world stabilization of currencies it appeared for a time that president roosevelt would take that action but instead he is charged with having broken up the london conference because he failed to assume that leadership which he could have had that brings us to the link between the united states and the conditions of europe mr roosevelt through secretary says now that the united states will stand with great britain in helping the french the question naturally arises why did not the united states stand with france in 1933 when france and a aalf half dozen other european nations wanted to remain on the gold standard for its currency personally I 1 have never seen any reason why the united states should have devalued its dollar as was done if we had not devalued one thing is quite certain maintenance of the gold standard by the united states would have continued to strengthen the currency of those countries in europe including france that desired to continue that currency basis I 1 have heard it said as well that if the united states had remained on the gold standard instead of devaluing its dollar great britain would have been able soon to have restored her currency to a gold basis certainly the british could not have remained off of gold as long as they have if gold coin were allowed to circulate in the united states I 1 believe no one can forecast at this time exactly what the results of the french devaluation will be 0 1 western newspaper New paper union |