xt7zcr5n9g1t_23 https://exploreuk.uky.edu/dips/xt7zcr5n9g1t/data/mets.xml https://exploreuk.uky.edu/dips/xt7zcr5n9g1t/data/82m1.dao.xml Evans, Herndon J., 1895-1976 3.5 Cubic feet Herndon J. Evans, editor of the Pineville Sun in Bell County, Kentucky, closely followed labor unrest in the Kentucky coalfields, especially in Harlan and Bell Counties, during the early 1930s. The collection contains handbills, leaflets, pamphlets and newspaper clippings collected by Evans primarily from 1931-1933. Also included are handwritten notes, correspondence, and drafts of articles and editorials written by Evans as well as memorabilia such as Communist Party membership books and organizational charts. archival material English University of Kentucky This digital resource may be freely searched and displayed. Permission must be received for subsequent distribution in print or electronically. Physical rights are retained by the owning repository. Copyright is retained in accordance with U. S. copyright laws. For information about permissions to reproduce or publish, contact the Special Collections Research Center. Herndon J. Evans Collection Coal miners--Kentucky Coal mines and mining--Economic conditions. Communism--Kentucky. Editors--Kentucky. Pamphlets. Strikes and lockouts--Coal mining--Kentucky. "Marx Inverted," Book Review, The New Republic, February 24, 1932 text "Marx Inverted," Book Review, The New Republic, February 24, 1932 2012 https://exploreuk.uky.edu/dips/xt7zcr5n9g1t/data/82m1/82m1_2/82m1_2_12/123639/123639.pdf section false xt7zcr5n9g1t_23 xt7zcr5n9g1t { I ` I V
Zgée New
Publiwhed lVéek@/
9 W€&H€SdaY February 24.,
_
Crecht I11Hat1011:
It Xvoré?
MUSSOIIDI III Sl'1€€p3S Clothing
by PASQUINO IANCHI
Crisp County CaYYI€S OIL E
A by JUDSON KING
Japan VS. thé WO1‘1d
ii by JONATHAN MITCHELL
A Mani{est0 to Critics
I * by NEWTON ARVIN
FIFTEEN CENTS A COPY
EI L_ FIVE DOLLARS A YEAR I `
VOL. LXX. NO. 899 »
.4 __ `:_. ._; , o_,,,T_
A ‘ ‘ . ’ H _ TH E N E w. RE p U B LI C Fezmm-y 24, 1932 I 1
A I _[ , __ _ ; ;_: y l e JUST "UBL'$“E°! rr H R E E {Une GERMANS · ei
· iii?E?*£E;EiEiE¤EiEiiiZ`Ei`i‘ii¤`ii·iZ;?E?i?’Z; · '
I _ » BY G¢°*S° Sh“’*°” h , " _ ;
· » l TI M ELY “ Ediwt The C°m"·°**”’°°’ ‘ · · ·< P I
The New Bunk bY B O O K S “Gg°rgg N, sl-luster arises to the levi; ".
A ’ f André $i¤8f¤'i°d at his best ‘"‘
WALTER LIPPMANN e {LM, .l.. mae. weeaeeaeg whether ’ -
his claim is not strong enough to .. ,_
In Collaboration with OUR mak., him a contender for the · ..
, ‘ " i _ honors of a master of nation . `
..o‘-o,- . ‘ =; Wm- 0- $cR0GG$ CHANGING ,,.,.....,.¤. His sustained energy a
. I and interpretative exposition ' V.; `
By R- Dm S"‘“"°‘ “Z.‘?.°2§Z‘§.‘.1Zi"°.i§°£?.°”.?,3‘Z r I
8
T H E U N IT E D S TAT E S IN en., juster analysis er ...1,,. .., make ere reading A _
the outstanding Pl¤Y$ °f of his books an unusual 1
w 9 r I d A a E r S the past few SCQSOUS has gvgnt,"—-Emil L€11g}'€l• \
V been made anywhere .... I l f .
Mr- Ski···e hm er¤¢ d me "T§i.iL“SZl; eilfpiili J .
_ _ . 19 7 X `
IN this book Walter Lippman interprets g¤¤¤tj·¤d¢ f>f °V°”Y *°°d°”· round Picture gf Gerlw ‘_ ‘
e_ the dramatic events of the past year {DOM S£"¥;;"’m0st unusual many since Prices ‘ l
_ and shows their inevitable sequence. The “° E h out of the Collier, in pre-war
muh is a compelling ¤ arra me which I’.i’e‘;‘iZ.‘e»‘i,;‘;,f°r‘J.‘§,.,. <1=·vss¤<¤=¤h¤<* ere T
traces the progress of the great depres· ' , $300 Germany and the
_ sion, and discloses its efforts on the Gerrn¤n¤·”·· _ ‘
foreign policy of this country. A careful SYMPHONIC LeWi$ ·G¤"”e”·‘ "
Sl-11`V€y of the year’s events-an essential $3.00
book for everyone interested in foreign BY Olm D°"’““
1'€l3tl0HS. "N - h ' 1, df `n theiren- _
tlféi; tic ICOLIYSE lll L I N C O L N
h trl music appreciation} —-
$:.00-..4r .411 Bookstores Ri? F? pee. M’§°VEACiH
“An interesting source of informa- THE DIAL PRESS `
· U tion Im ortant dictionary of mu- REW YORK
HARPER & BROTHERS, 49 E. 33d St., New York City sicaf faCtg,,_Phila_ RECOHL $250 p
I ‘ l "There has been but one Clarence Darrow in our
· national; history, and an interested public can here
` U I S S R discoverythe man as he was in thought and action."
O O • • ——Harry Elmer Barnes.
I
R U S S I A ’f¢*“`*m ’/lhf"'t
by I
’ ¢LA ENCE DARROW I
· By HA./VS von ECKARDT _ R il
. . . `Y Y
_ _ e "The fascination of his is .e, _
V Facts not romance characterize this book, the only Story is less in the StiI._ ` -e·_;—;_*·; , ..,
` one whichlauswers every question about what is ring events it narrates · _, V.
happening in the U. S. S. R. today and why_ its than in the Opportunity `
author is Professor of Political Science at the Uni- ‘ it affords Of getting 3C-
~ vcrsity of Heidelberg and was for years profession- qU8i1'1t€d with 3 unique s ' ~
ally in touch with the economic situation in Russia. character ·-·· _ He lo well I Y
His book deals with Russian economics, history, i Worth , any _1nt?1hg(?nt _ fi: ` A "
politics, art, science, philosophy, literature and the person Scultwaunglln" ·
I I-{ f d Y deed, he would be worth · _ · A e
Comnumn I C O to all Qnly fof his sity]- "ThisvclumewI1icIz1uillbzrzad ` —
· , , _ _ _ . by thousands, records a—sareer _
Bound 171 cloth, with 127 zllustratzons and diagrams Plo and often moving '° W ‘”””d: · - · -"‘°!””"””‘
_ _ ,. , , and ends wzlh mlrancuzg chap- .
and I3 main-. 6% XQ% wrlzes, 760 pages. At your Prose- _ yr; M @0-21 drhlgxieigggvm . -·
i b00h’.§`]lO]'J. ‘N€w York Times' sgiritual leader of his day, or _ V _ V, ‘
hung. . . . To-day he is greal." · ” ’
_ Illustrated. $3.50 -——New York Herald Tribune.), _ s _ l
E;) R Z OI . . . at your bookstore . r —' I i
ALFRED A. KNOPF 730 F'fth A . N. Y. . . A . . . ‘=;;.. · ‘
_ * ‘ “°· o CHARLES scmsurws soNs,,Nrw rome . e,»e qc
‘ H J L i. BOIOKS `G - · I .jg ` iii
' '\ . - ‘ V { Y ' l I
; · ‘oV. ; _. ; ..._ -_ .
~ _%` U . , 7 4 _ K. . ful
I — ` i\_ P _ 3. { ‘_
_, `x e ` _ — in 9e " _
i in V e i P `A . in 2; i, r
y ° J " “ rat .r..‘ L-`.;;g.s;,:;,5;_ e·_· 7~ v_ '
· ‘ ‘ it ~ ’o’> ¥·;e.»,:%*S e... *
, ‘ "`··r · .
—J»— ’ . . e I * . f `°_`"F”*`*?*"“_"_`—`*"r“"‘**_*‘*·"‘———e·· ‘ ‘" we ·»·‘ ~~·e ·
‘ T i ` " 9 I · . ·
r e· gsi, · ·-. . _— · V-J 1 - - . i · [ e {
Q3? »'4` if A ` V—“. if I · ` 1 ’ z
I 25,% ZWW i
»· Pc E P U B I.
ED _ T ' I ~
te . - _ _
y; r A Y jr · 9 A burnal of Opmztm
} Y
rd _ _. \·:>i.. LXX NEw YORK, WEDNESDAY, FEBRUARY 24, 1932 NUMBER 899 I
ie r I ‘
¤s ¤ ’ . ’
el s `Y V Justice Stone. There was the unavowable sectarian
, J _ Cgntentg difficulty.: one Jew is already on the Court. Happily
3; · , A ri. `weeir .......... A .................,............. 2 8 the l~?“*S*d<*¤* dmeeeded these leeleveeeles- He
tr-. at i, ~ Editorials appointed Cardozo not because he came from the _
eéifi ‘ {1 A Primer on Inflation .......................... 31 East er the Vvcsb not b€°”·“?c he was a Cathollcv
ar ` ~ Flinging Away an Empire ...................... 32 JCW er Protestant; he aPPOlUt€d him lD€Cii\l$€ l"l€
“’ I r Generai Arncies was Cardozo. In a period of rapid change such i
.2 . . . . · ·
I- _ Br1ta1n1s·Archa1c 'I;ariff...· ........ H. N. Rrailsford 34 RS OUTS, 21 SU1)I`€III€ Court Justice may III {IIC lOI’lg
It-- 1 _ Mussolini in Sheeps Clothing ...... Pasquino Ianchi 36 Vicxv excl-t more power than docs av President. By V
In re Japan vs. World ......,... Jonathan Mitchell 38 h h · f C d .
)0 Crisp County Carries On ............ Judson King 39 t C C O1Cc_O ar 920 the President has mede not ‘
The Qkin Food Skin Game..Thyra Samter VVinslow 41 only 21 capital 3.p1)O1lIflII€IIfZ IIC l13.S l'1€lp€Cl to €Sf3.l)-
`T yyaarséiiggton Notes ....................... T. R. B. 44 1151-A ar profoundly important tradition. FOI. the
V eighbor (verse) ......................... . _
;I ...................... Howard McKinley Corning 45 Cardozo appointment announces te the natlon
is Igiitogytand I3’I§steryE`i1...· ........ Estpiilg Yoprig 4; beyond possible misunderstanding that what mat-
’ T 1 I'€ to HI] OTIIC €0l'lCS...... Zlll OSEII C 4 tcrs is nOt`g€Og1.a h l` ' b
. p y, race, re igion or party, ut
i I V I COl'I'€SpOIId€I]C€ ............ .... ..................... Superb Htncss {01-the pal-t `vhich thc Suprcl-ne Court
» Reviews of Books 1 ' ' 1 i
p ays in our nationa 1 e. _
·—— I “Peac,e, Peace! \Vhen There Is No Peace" ........ ·
.................................. N · A ` '0 . . . . .
Two Poets .............,..... Robertf;diii)1nWaiii;ii Zi THE s}t¤eh<>¤ et Shehehel le e herrlhle mess sed . ·
T Marx Inverted.- .................... :.]o1in Dewey 52 one which grows worse from day to day] Even
B ‘ _ EF A" °f fnil? ‘·····‘·········‘ I?‘,d°'l§;“h“°‘d" 52 from thepoint of view of the Japanese themselves
e Jury Disagieecl ............. Philip Wittenberg 53 . . . . . .
’ Book notes .,.................................... tr ll is e ghastly failure: if they heel achieved their
- 1l _ objective within a few hours or days, and with a
·‘ minimum loss of life, their position would have `
been no better in the eyes of the world, but at least
E I The €€k the official explanations offered to the Japanese
people would have been more plausible. As things 1
I ITH the rest of the country, The New are, they have bungled as badly in the military l
v· _ Republic rejoices wholeheartedly over the ap- aspect Of things as in every Other-_ This is partly I
pointment of·Chref Judge 'Cardozo to the Supreme due to the superiority of land forts over warships,
ji Court and joins in the nat1on’s thanks to President which was denqnnstreted during the Gr-ent Xyar at 3
· Hoover. Mr. Justice Holmes remains umque; e Gallipoli, partly to other- advantages which the ter-
" ,_ great man’s place can never be filled. but Uno one rain gives to the Chinese, but perhaps chiefly to the ‘
t _ else would lI?1V€ SylIIlIOllZ€Cl 11I tlI€ pLll)l1C I1I1IICl (IIC lgtttcris mgmertntry Ovcrwhtglmirjg rmmericgtl Sue
qualities of the old Justice as lmuch as does the new periority plus the valuable tactics in which they
- Justicejlens learning, his philosophic detachment, have been trained recently by German instructors. j
I 1 his sensitiveness to the complexities that confront But the net result of it all is an obscene spectacle: Y
· -· » modern society, his far-reaching humility in sitting it is like a man trying to kill his wife with a club, 1
I , - in judgment upon the judgment of legislators. And in the middle of Fifth Avenue, while a great crowd i
I ’ R his distinguished qualities of mind and spirit will be of s e t t 1 k d l -=f d` I Y
M, , _ b __ h _ _ pcaors oosonan sieicusesto re. n
jg · · ¤€lm11‘¤l>lY €0llV€Y€€l by 3 f€l1C1f0HS and l¤S1¤l13t1¤g the end the Japanese will probably win their limited i `
gg J - _' style. By all his gifts, therefore, the Chief Judge objectives, unless their country is prostrated by an I
° j . of New York was marked for succession to economic debacle; but their military humiliation is ·
J e isi _ ‘ Holmes. Yet from the point of view of "pract1cal" already complete and irrevocable. If their com-
" jr politics there were serious obstacles to hurdle. manders had the high standards of personal honor 5
K . ·e;j;;,;_». Happily the President in this instance proved large- and responsibility traditionally assigned to them, •
,, 4’~.··_ Q; =~r— _ -__f _ ness of mind. There was the geographic objection: we should have seen already a series of suicides Q
r pi y,A” j I New York already has the Chief Justice and Mr. according to the prescribed forms of ham-ki1‘i.
' _ `-. I
f‘j_" _;`?&j{‘*;j,j ‘— i ’ ’ 2. .; V 1 __
* l‘r?<.Z.-»;~--ae; ..,. T .e.....;,r...-Qe» ._‘.`l i.., . ..>. ..,*.Ta...a.li._.._-c .... . _ A ,.,. __ t Y _ 1 V
p ,,A . r t so r _ V ,~ ; V _ i ‘‘ ’ __ ‘‘A· ‘/’'` · `
29 "‘ T H E N E VV R E P U B L l C A February 24, 1932 . .
p G QNE by one, the nations repres_ented at Geneva Germany has served notice, through Chancellor r " e
in the disarmament conference are setting forth Briining, that she simply cannot and will not con-’ ‘ clci G _ I
A their official positions. The United States last tinue to pay reparations, that no settlement willbe .
week outlined a nine-point program calling for the accepted by her which is not postulated on this fact. if '
extension of the VVashington and London agree- France has refused to enter the conference if there C F
ments beyond 1936, further naval reduction pro- is anyeagreement in advance that the Young Plan _ fl
vided all the Great Powers will agree, the abolition is to be scrapped. Everything finally depends upon _ in
of. submarines, lethal gases and bacteriological the attitude of the United States——and we shall not C ,
warfare, agreements against aerial bombing of be represented in the conference. The one hopeful · T *
V civilians, reduction of armies to police forces plus possibility is that Germany and the countries which of l -
additional troops necessary for “defense," and _ owe war debts to the United States may unite upon _
some other limitations. Russia has again embar- a common program and proposal to America: a i
rassed the delegates by suggesting that the way to proposal that reparations and war debts shall both V
disarm is to disarm, and that abolition of all mili- be scrapped, or shall be greatly reduced in amount ` c
tary equipment is the best guarantee of peacc—a and perhaps then paid in goods which are allowed s · _
position which is logically unassailable but one, of to enter duty~free. America cannot force payment i
course, to which the other Powers have no inten- of the debts; if Europe chooses to repudiate we " '
tion of adhering. Germany has o pointed out, are even more helpless than are the Allies if Ger- ‘
though only indirectly for the present, that the many should do the same thing. Heretofore,»Great V
Treaty of Versailles is being grossly violated by the Britain and France have failed to act in common, `L
Allies, which disarmed the Germans as a prelude partly because their conflicting national ambitions `
to disarming themselves. There-are, to be sure, have prevented real agreement on any subject, ni
certain agreements on detail. Two Powers have partly because each country nourished the delusion t i
asked the abolition of military aviation; four have that America would offer cancellation and sparc _
asked that aerial bombing be prohibited; two th€¤l tht? hlllhllliitloh of ?1$l~ lll
i · of their own futility that they would only burst into thssc S€lf‘StYl€d_umght Yldcrsn was lelcmclon Evahsi C
tears and gp hOI·nc· who, besides being head of the local Red Cross and ·
editor of The Pineville Sun, is the Bell County cor.
I-IOW bad are things in Europe may be deduced respondent of the Associated Press. Before the s
from the fact that the Continental press is hailing kidnaped writers were released at the Kentucky ..
as a great victory the news that the Lausanne con- border, Evans walked up to Allan ,Taub, whose
ference on reparations is to take place after all——in face, after the beating, was a sheet of blood. "VVell,’ · · i
june. This is the conference, you remember, which Taub/’ he said, according to the affidavits submitted i ' _ ,
was scheduled to meet hrst on ]anuary» 18,. was to Congress by several members of the writers’ com- 1 i l F
postponed a week, and then, when a hopeless dead- mittee, “why don`t you make us another speech one t ,r.i , _
‘ lock was seen to be inevitable, was put over in- constitutional law? This will be the last chance c , ____ °
detinitely. The date now set is after the elections you get to make a speech on constitutional law in “ ff
in France and Germany, thus partly avoiding the Kentucky? Evans then returned to Pineville and c i,`i[if lil . r
temptation to German and French representatives wired to the Associated Press the false story that if
of simply making intransigent speeches for the Taub and Frank had been fighting with each other., i ,_— iii. l ,. .
‘ benefit of voters at home. However, the outlook We respectfully submit that Herndon Evans, onthe ` w fi
when the conference does meet is not very hopeful. basis of these facts, is unfit to be the_correspond‘eint 1
W , - ‘i-i F e
— , i , __,. i ‘ ,., ,i _ - ;,y , g .;1j.-gl *.‘· .,, _
_ r_ v_ ,__r _ t · ._ _ A y . _ . ni? ct. .·,.ct _.t.-e,,.-., ..... ;.-..--...-.~-i».;~ ° ei· l ~
. l A `V "”'““”'“`“""”""‘*‘";··*·~—··*···-·——-——~··——~—~·-—4—·~—~-·-·-»·--U--r ,. -.---..
`'`· ` ‘ I X 0 . ~
A ·' V t filebmary 24, 1932 T H E N E W R E P U B L I C 30 i
`V . ‘ iof the Associated Press or of any other neiws- men_ so supposedly advanced as the book pub- ‘l_
Oli '·s· {Tg i up gathering agency that pretends to any degree of lishers. Everyone knows that what is needed is a 4
gl? impartiality. ‘ vast increase in labor’s share of the productive
,8 s ° I " dollar, not a decrease. A strong labor movement
It-, ‘ _-J t - SEVERAL months ago the Governors of the six in all industries is one essential for achieving this
YC * ,__s_ chief industrial states of the East met to discuss a goal. \Ve cannot believe that the action taken by
m _ t V Vigil uniform program for unemployment insurance. the board of directors represents the sober best
m c e C They appointed a committee of experts to draft a thought of the book publishers as a whole; and we
Ot _ pI·OpOSa1_ This committee has how reported, and hope that when its significance is realized, it will
ul ‘ ` ` its plan is endorsed at least by Governor Roosevelt find general rcpudiation.
In _Vy.i V, V c_ ip.: ` ‘ - 0 of New York. The proposal is strictly a minimum
m ‘ he one. It provides that unemployment insurance THE International Labor Office of the League of
la it -_p V V Shall be made compulsory by State iaW_ Each cm- Nations has recentlyiconduicted a worldwide survey
‘h· ‘ Q . ployer must build up a reserve fund by contribut- of lln€mPl0Ym€nlZi Wlfll Slfllilng 1‘€SlllfS- Th€ 60m-
st V `Q?. · ing 2 percent of his pay roll ooril his reserve cquglg parison is in all cases between some month late in i
ld I if - $50 per employee; the contribution is then reduced 1931 and tllc Sams! mnnlill in 1930- In tll€ €¤S€ of
it _ __ to one pereene The benenr is robe $10 e wreck, or countries with compulsory or voluntary unemploy-
rc —50 percent of the weekly wage, whichever is lower, insnt lnsllmn€€» lllssn ilglllns may he tl€€€Pt€€l tls 0
I'- i and the maximum period ut bcnefit is tu be ten lvccks fairly accurate; in other instances, where trade-
it I Q in each year. The funds of the several employers uninn nglllns Ol' thsss Ol €lllPlOYln€lll excllanfscs 4
It V. are not to be pooled, though steps toward coopera- WCW tslrsni lllslc mal' ht 3- nisrgin Ol srrvri.
is V tion of firms within industries are to be encouraged, thvtigh lt is Pl:OllnlllY not lsllgs Tlls Yellllns shsiv
t' I since measures toward employment stabilization sn lnslliilsci ln tl Willis unit, Ol 34 psrttnt in `
n Vi must be on an industry-wide basis if they are to be ` G€l`lnslnY» 63 Pnlcsnt in llallb and 30 psrttnt in 4
ic Y at all effective. State boards to administerithe law the UnittiYQ__ l" curtailed. Such an argument, however, seems trends shown are significant. Not one country on
? V,,i ‘. 3 _. . C . singularly 0ld·fashioned to come from aibody of the list registered a decline in the twelve months.
iii— ‘ -
3;; .... s . I ‘ ` _ _.
i`l‘ ..fV ..... -c .- ....-. is s - . .
A? 31, ~ THE NEYV REPUBLIC February ZZ}, 1932, 1 \
_. In some of its aspects, certainly, the disease now hesitated to lend except upon paper which could. i e " ‘
_c A attacking capitalism deserves to be called pandemic. be rediscounted, or to buy securities which could. » ‘ ‘ ·
not instantly be sold without loss, iniorder to be ` _
A WE HEREBY nominate Mr. George Kaufman, safe against possible runs. The new measure will A — J
‘ the playwright, for this year’s Pulitzer Prize for enlarge the liquid funds at their disposal and per; I
Effective Rebuttal. Mr. Kaufman is co-author mit a more liberal lending and buying policyeon- if
with Morrie Ryskind of the musical satire, “Of their part. . I ii
j Thee I Sing," which deals, and roughly, with 2. Small banks in danger of failureon account A vi
g national politics, a presidential election, the United of lack of liquid assets may individually be pro— a 3
2 States Supreme Court and related matters. In one tected by the same measures. A lessening of bank _
scene the French Ambassador calls upon the Presi- failures, plus confidence that failures are not im- ` , `
dent and presents “another note from my country.” minent, should check hoarding and may even ITC- r ( ,
, WVhen the President replies that "we’ve got a lot of store hoarded money to circulation. - ‘°i `
~ e _ notes from your country and some of them were 3. Federal Reserve notes (paper money) may - .
due ten years ago," the Ambassador says, "But this now be issued against government bonds, in ° ;
is not a promise to pay——this is serious." This addition to being issued against gold, notes, ac—` A
harmless bit of spoofing was taken solemnly by ceptances or other paper which could be used as ‘ I
Bishop VVilliam T. Manning and a group of other collateral for currency issues under the old law.-~. ~ .. "
well known American Francophiles, who proceeded This will give the banks more money to put into _-
to meet and pass a resolution demanding that the circulation as their borrowers and depositors may A
joke be taken out of the show. This action served require it. Perhaps the most important effect of . '
.two useful purposes: the newspapers printed the the change, however, will be to permit the Reserve ~
bit of dialogue in full and thereby mildly amused banks themselves to buy government securities F
many millions of people who would otherwise never freely, without fear of undue reduction of their ·
have heard of it; and it enabled Mi-. Kaufman to reserves by losses of gold through export or other-
make the Reply Magnificent. He would, he said, wise. Federal Reserve notes in Cll`Cblle1tlOI’1 must ` ,
` be delighted to take the joke out of the show if be fully covered either by gold or by eligiblepaper. ‘ A
Bishop l\/Ianning would supply him with another The legal mimmum §Qld Y€S€i`V€ Yemamsi as b€· Z
equally good (as demonstrated by the response of f01‘€, 40 P€1`€€¤t 3·g¤_1¤$t_ f€d€Y&l notes and 35 if
the audience) to take its place, One good joke in percent against Clep0S1ts m the Federal Reserve Ai
a lifetime! Surely the worthy Bishop and his banks. The Reserve banks have recently, how- ~_
COhO1'tS of admirers should be capable, among them, €V€I‘, been compelled to keep Pl much highengold A
Of meeting Such a challcngg reserve than this, because not enough eligible ‘
paper existed as cover for note issues. Thus a
large amount of gold has been unnecessarily locked _
A A Primer OH h·]H3tiOH up. The Reserve banks didAnot dare to buy gov- , . 93
ernment bonds freely. This affected the bond j
[S THE Stcagall-Glass bill a measure to promote market adversely and limited the expansion of }
in/lation? credit. VVith government bonds available as cover { I
I That depends on one’s definition of inflation. for the issue of money, less gold need be kept in ` j`
The bill is a measure to expand the volume of reserve, and an expansionist policy may be pursued A
credit extended by banks to customers, the pur- without fear of the results of foreign raids on the
chases of securities by banks and the amount of dollar. Indeed, we can aid foreign credit stringen- — ·
currency in circulation. The expansion of the cies by allowing gold to flow out of the country i,
,,_> means of payment is intended to p‘romote business. more freely.
lf inflation means any such expansion, this is an ZVlzat are the safeguards against an undue iIl— A
effort to inflate; if it means an undesirable expan— crease of credit and currency? , . _ il
sion, which outruns production, leads to speculative The Federal Reserve Board must consent to the
profits and makes necessary a subsequent reaction, advances to be made- to groups of banks sand to i
then this bill will promote inflation only if expan- single banks undeirthe new provisions, and has A
sion runs too far before it is stopped. discretion over the use of government bonds as - .
How does the bill aim to achieve an expansion collateral for currency issues. It is thus in aposi-
of credit and currency in use? tion to stop expansion through these channels at ,
‘ In three ways, as follows: any time. Advances to single banks and use of _
1. A group of member banks needing more government bonds as the basis of note issuesauto- _
· money, and having borrowed about all they can matically stop, under the law, after one year. _ _ . · `—
borrow from the Federal Reserve banks on the }Vhy did prices go up in the mar/cet for stocks, , _]
notes or acceptances which are subject to redis· bonds and commodities as soou as the plan was . n Y "~—
_ count under the old law, are permitted to borrow announced? .- ‘ iAi» .
on the security of mortgages, high-grade bonds or At this time the provisions of the billihad 'no_tli]_ _. "
other paper not eligible to rediscount. (Foreign become law and no expansion of credit or currency, I j
_ investments are excluded.) Many banks have had begun. Speculators merely saw the chance tod _“; , iirf ,.
lf) . ·.,` . r ‘ " ' i
` ( . February 24, 1932 i T H E N E W R E P U B L I C` ‘ 32 r l
.r_A Vi _ _ r make a profitin anticipation of the coming expan- If the expected expansion of currency and credit ‘
be ‘ T1 ‘v_·`‘ t , S10n· VN0 doubt bHnliS W€1'€ m0Y€ willing to ac- brings about real recovery and if the expansion is
will. » j ’`‘l ,~ commodate them with loans for speculative pur- then stopped before "unwholesome inflation" takes
cry V. ii _ poses, for the same reason. It does not follow place, may we expect permanent prosperity?
out . l that the advance will continue indefinitely, or that By no means. Vlle shall certainly continue to
V . F i it Was 1'10f overdone. i · » . have depressions as long as we do not plan and
me no PVhat are the jirst efects to be anticipated from control incomes, prices and production so that we
rn_` _V i the Wéw t{1€¢15W€? _ continually distribute all that we produce. Vllhole-
like ‘ [ V (1) Rise in the price of government bonds, sale manipulation of credit and capital markets in
m_V ` as - and hence of other bonds a