The Courier News from Blytheville, Arkansas on August 19, 1936 · Page 3
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The Courier News from Blytheville, Arkansas · Page 3

Blytheville, Arkansas
Issue Date:
Wednesday, August 19, 1936
Page 3
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VEDNESDAY, AUGUST 19, 193G BLYTHEV1LLE (ARK.) COURIER Engage Attention ?es!il[ Would Be Disas- Irous Inflation, Writer en Economics Says. In Ihe lirsl two of thrfc ar- Itlrs abcuf "The Coughlin I'liiri," Jo lin T. Flynn gave loaders of the Courier News tin tlamli:>£ of tlie commodity dollar, managed currency the separation of deposit credit functions of banking: fi'oin wlilcli many of Father <'<-ugliliii's monetary Ilicorii-'j have been derived. Today's- con- clitilmg .article in this Imharll- a!ly written scries deals with 1'atlier C'oughlinV own financial plan and the Haws in it. BV JOHN' T. Ff.YMN -opyriglit. 1930, NEA Service. Inc. The monetary system nclvocnt- d by Father Coughlin would be eailed for overwhelming Inflation rom the moment it started. Aixl lis would be the wreck of all of l.ct us first examine his plan, '.:oii watch it at work. •Fallier Coughlin would lake the feserve Bunk svstc-m out of the amis of tlie private bankers ar.'l Ivc it to the government. He r ould buy up the stock of tlie Ceservo banks nnd pay for Uicsi locks witli government paper. Then lie would create a govcrn- lent-owncd bank—a central Irank -the Dank of the United Stalei, 'hich would take over all fnnc- -ons of the Reserve banks. ., Tills- bank would act as a cen- •s'al bank or a supervisory bank ver all private banks just as the I reserve banks do now. It wo'i'.rl mve the pi..ver to issue money: s the Reserve banks do. 'But nil ther fnrjns of paper money would e abolished. All existing moi^ •ould be called in and the notes f the Bank of the United Stiles Jbsliluted for them. Private banks would be permit- id tn exist, but they would be collated by the Dank f.! MM luitecl States. Private banks would lie deposit ants, like those advocated by rufessor Fisher and .the Chicntjo (Diversity group. But Father cughlm would give them a lit- !c • time to make the transition, 'hat Ls-, they would have to have 0 percent reserves at first arc! let] each year they" would "radu- lly increase their cash reserves ntil llicse^'reygjyes were 100 • per ;nt cash.' The. Fisher plan pro- oscs that the private banlis hell t once all their iiUsrcsl-curn'.ns sset.': to tlie govcr-;nicnt author- .v. But 'FE'.lwr Couaiilin would ir'-nnit tliem to hold these tem- "ti'arily and litiuidate them slow•" over a psrioil of years, lurnu-fl nem gradually into cash, hold :ie cash and make no fresh loans. illimalely they would go out of he lending business altogether nd would merely ue depositories )r Father Coughlin would, I ns- jine, permit private lending as- x:ialions like those advocated by hese other grou|« to make coin- lercinl and long-term crediu-. Hit they would have lo lend ac- jnl money which would be timid over lo borowers in cash, In- lead of by creating bank erc<liU is already explained in another rticle of this series, 'fntral l>:uik Scheme Vitli Ncu- Trinnniiigs Then Father Coughlin intro- luces some other features. His lew hank would buy up all gov- rnment bonds, paying fov them n cash—central tank notes—and bus putting an end lo the gov- •rnmcnt's huge interest burden. Next, lie would transfer to the lank the statistical services of he Department of Labor. With licse the bank would collect data ibout production, prices, wages, •lc., and use this data to regulate irices. Thus the bank would keep irices at an even keel. The ob- icct would be to insure that the lollar was always the same in •alue so that, a man who* coutracl- >d K\ debt would be sure always lo i-M' back dollars of the same value j-. \'«eivcd. >- This dollar would be based on commodities instead of gold .values, lull would probably be re- leemable in bolh gold and silver or bolh. but Ihe amount of gold and silver in the dollar would vary with the value of those metals while the dollar remained constant In value. Also Ihc government bank or some authority associated with it would regulate prices and keep purchasing jwwcr up by increasing and decreasing the amount of money In circulation. If prices nere too low the bank could put out additional money. If prices were loo high Ihe bank could draw in money. The bank would increase purchasing power .when needed by issuing additional money, which money could be used to pay gov- irnment expenses. Also Ihc bank would be au- liorized to Issue money to pay off tlie farmers' mortgage debts. ThiiS | lolders of farm notes would have' :nsh instead of bonds, the bank! n-ould hold the mortgages but al jrcally reduced rales and with! provision for easy amorllzallon. Anil back of It all Is the convic- :lon that, we have a money fam- ne. The plan | s conceived, of '. to help sorely troubled ^ Ii.r,!in:it!un:il Scliot I Lesson Text: Ads Uniform for Anx. Smiriuv No "' / ,.,„>, 1,1 un, '" ' '." u "' '!' er, the other. side must be given more or le.">s weight. But all this balancing apparatus Is wrecked al ihe start In two ways. With one tremendous rush billions are created to buy government bonds and other billions will flow to buy farm mortgages. Of course, any soldiers' bonuses »'oulil mean new Issues of money And llieii home mortgages would scon be clamoring for still more supplies of money. All tills nisli- od to one .side of the .sculo will tlnow us at onte Into n lilghlv hiflallormi) stale And this b, n one-way scale. We can put on new money to make the money side heavier, but we will have- no way of taking il off Besides de- ss-cjK-j-a£j ir., sr • •="- F purchasing power. And who Is'-' - "'^ Ol ch " ' ever going lo advocate, in politics, with a system like this, deci-cas- >l! purchasing power? Father Coughlin advocates good vuigcs foi ill sufficiency of goods for all workers, continuous production for abundance, and so on. Bui his means of getting thes!! ore based on his money theories I — ^....,.onm, tmnQ, And would most certainly 'defeat 1, l Gai rmlki blujk down I divine PVi-rx- nUln^it inn n... i..__ • ,. i > . i ill** llHLTOWHOSS 1111(1 Illilkl 1 til 111 PAGE THREE =WEEKLY SUNDAY SCHOOL LESSON= The Gospel for All Men ended when the three men who I ic<l teen tout lie in C'aus.ireii Ijy Corndhiii, u Homan olllcer. winic on tliulr mission. It Is lo Kin s uullt Hut M. 10 e to (In. \lslui tli i| |,i su it file his imuo\\ piepullus mil lulum d Cniullilb lo (111 Chilb tliui faith as a biothu en Ktei-s vision on the lions-.- Our prejudice miiy not be of <V MU'r 1C centuries, ihe Ocs- ihe same sort as PeuVs b" nn-c t,,'}':,? ? ' S ! /""I ""' n " x ' ls tlu> "'»"• m '» l >™8" >"* same uniieis of racial nnd see ' - . . . every has. objective th sort as I'eier's. b'.it ..- mini, even ilwiiijh his profession of faith lie deep, who tins not tomcwliere in him thi! traces nf seme bias and prejudice [ Una limits ihe fullness and the- lien iros Peter, i di out in I, Cspx-slon of his b olhe ly led rni irst man. so opin-mlnde! liu loMml hh fdlo\ nun I tlml lit. had become an -iposU • wiiui such pujmilu uuotius of thi IKU fill]] a HUH of nnet i Limn tn tin ihlni to men i finotlois md o' splmdicl cum-, of (In station Unit C.od In iigc. \<! so Loimd bi ladil nnd limls fni Hum It Is somcthlii' 1 P ijiicllu tlial It \\iis 1 moie than i smill and pusonal It Is Ull IIItLlfeHMIU \Utll I pliins and with divine- Unit cliiuiKed hhn ivus :;o sudden niuf. so extreme that Ills old prejudices were moio swh'lly and coiiTlctely swept away. Hc.\l|, Paul nnii l>eter were form! by Hie plain fneltrof grace to iDcoBiiIze ttrnt Cicil Is no rc- specicr of persons, nnd Mml llr.' GOSJ.UI of Clnlbl Is the power ol <_\<jd unto :;ii!vntlon to every i one who believes, regardless of Hit ,'juman limitations of' creed, race, ami other dividing factors.' Mini Is never .so somy as when lie sect Ills fellow men with the love lliit takes In Hie wholo hu- man family. The world would' Justify according to Us own Interests and philosophy the nar- prejudices of. race/creed, " which row . class, und nallonallsm" llnivc so abundantly in. that [hey would choke out tha flowers of grace and humanity Bui, In (ho light of .the New Testament and the iriie expcr-" icnce of Ocd in ihe soul, human prejudices anil hales have a base and mean aspect. On. Wert 4 Wert OPTOMETRISTS Over Joe Isaacs' 8 ton "WE MAKF 'CM SEE" Phone ew only b\ mciiis i)f u luimiknbti tliliu I Vlrfmi tin,I f\.-.\ *.....1.] l i- -i- f ., i 'good f Uhci I ute lin[ for UK ( intile as foi thi lmlr |i )LU j>, u ,i uound of Hornets' nests are made from dry wood collected by the hisecls. " The wood Is- chewed" Into and mixed wllh saliva. pulp and oui I in usioii MIIS s« d cldcd in iiijudln Hint 1'iiu hid its aeinlls md so plain In It, ( ,inu his pn.|udli,s more i ism hnplicaliuLs, that 1'etci' could l>eihaps this v.,s b canst l',iul ! s nunj miss Us minnlng espec injiidlce hid made linn n uial "'"> " s Ills '"t-'Un Inil sc.aii.elyl peisiuitoi and tlu comcislon We Pay Cash'For'.';.' 2nd Hand Furniture . Phone 10:il Hubbard 2nd Hand Furniture Store Near (Jolt Hole! Alfleil f;. VnmlcrbiK Kalhaiini' Baker Alfred Gwymic Vanderbilt, wealthy young sportsman, has become an air commuter between Saratoga and Southampton, N. V., since the opening of the racing season. ; The reason is said to be pretty Katharine Baker, • duughUr- cf Hnrcld A. Baker, who summers at Ihe fashionable seaside resort. Society awaits announcement of their engagement. : • • people. But it - has grave flaws. And these we can now examine. Elimination of Bonds ttalks Cuughlin Vlart As already pointed out, a very powerful argument can be made for tlie Fisher or the Vanderlip or the Univeisity of Chicago plans. These have" nothing to do with the inflation of the currency. They are plans to cr«anv/c bonking anil money on a sounder basis. But Father Coughiin introduces some new ideas into these so that they woukl be doomed from the itart if tried. First, lei's pee his plan to control prices and purchasing power at work. If prices are low the bank could issue more money; if high it could withdraw money. But lic.v? u could increase or de- ciease the money supply by buying or selling bonds and by Issuing money to pay the ordinary or emergency expenses of the government. At present the Reserve Board buys or sells U. S. bonds to increase or decrease money supplies, so this is not new. But how could it work under Father Cotighlin's bank plan? The Bank could issue fresh supplies of money by buying U. S. bonds. That is, it would buy bonds .and pay for them in money, which money would then be in circulation. Or it could sell bonds, being paid for them with money, which money the bank would cancel and thus put out of circulation. But under Father Couglilin'B plan there would be no bonds to buy or sell, because he plans to abolish interesting-bearing bonds by buying them for cash and can- 'celling them. Of course when the bank wanted to sell bonds it could do so by crealing' new ones. Bui tliis would be a little odd, to say (he least. Governments issue bonds to get money to spend. Can yon imagine a government issuing bonds to get money to cancel? So that won't work. Next it could increase money supplies by issuing new money to the government to pay its expenses. But what would happen when the government found It could produce money so easily? When pressure groups descended for subsidies, bonuses, etc., they could insist that the government need only have its bank Issue the money and the gifts could be Pawl- , i ] i How long' would the government depend on taxes to meet all its dues? Taxes arc nothing more than payments by cilizens for government sei-viccc. Also they are used lo correct grave inequalities in Income. But with the Im- mcnse pressure against taxes, how long would a political government lay taxe.s when ihe funds could be provided by an accommodating bank without taking money from anyone—at least without seeming to do so? Woise than this, the bank could always increase tlie supply of money by paying government ev- penses, bill how would it decrease the supply? The only method— selling government bonds—we see Im.s been taken from it. The flow ol money would . bo increased or decreased for two! purposes—to raise or lower prices; ! to increase or decrease purchasing power. naJanchif Dollar Se ins Impossible Task •There is another grave defect One of,.the great aims of the central bank is to keep the dollar on an even keel—with the same purchasing power all the time. This Is to be done by scientifically collecting data about wages, goods, prices, etc. Then the supply -. ol money is increased or decreased as may be necessary to keep prices even. It is a delicate operation. It is like balancing a scale. As one side gels heavier or light- M&ltetlie *ST.CHHttfS yout .. A/ew (jllea.n.5 dome Tastefully furnished rooms Beautyrest mattresses Simmons beds Comfortable chairs Restful bed lights Well lighted bathrooms These comforts are yours whether you occupy an expensive suite or a minimum P'iced room. And the same friendly and efficient service goes to EVERY guest. DINKIER HOTELS CO. INCORPORATED CARL1NC DINKIER PRESIDENT *HD CEMCBAL MAPIAGU • ' Oftriting The Ansky ATLANTA The St Chirks NEW ORLEANS The Savannah SAVANNAH The Tutwfer BIRMINGHAM Jeff ersm Davis MONTGOMERY A**** Jackson NASHVILLE LUMBER FOR SALE riant Closed Down rcrni.i- ncnlly Cheap Prices All kinds tough DRY LUMBER Chicago Mill & Lumber Company Bljthevllte, Ark. Phone 800 demonstrated in public tests Gasoline mileajge increases of 10% to 15%. are now being demonstrated by Ford Dealers in pub- lie test nms.'Stock cars are used—fitted with see- for-yoursclf glass gallon jugs.' Make one of these test runs. We invite you to see for yourself how economical a Ford V-8 really is. 'ffa mm TUDOR SEDAN WITH TRUNK F. O. B. Detroit. Choice of 3 colors. Safely Glass nil around at no oitra cost. Whcclbasc: 112". Springbaso: 123". Horsepower: 85. Standard accessory group extra. PERFORMANCE IN A CUSS BY ITSELF • See your FORD Dealer today Get the "Feel" of V-8 Performance Get the Facts on V-8 Economy! FORD V Only V-8 car below $1645—85 horsepower, with V-8 smoothness and pickup. Only Centerpoise Ride car below $1275 — springbase almost a foot longer than whcelbase •with_all passengers seated forward of rear axle. Super-Safety Brakes—more braking surface for car weight than any other car below $3195. Exclusive Readability— Torque-tube drive, free action on all 4 wheels (without sacrifice of the strong'front axle!). Handling ease —shockless steering, easy-acting brake and clutch pedals, silent helical gears in all speeds. $25 A MONTH after down payment, buys any new Ford V-8 under U.C.C. plans of %% a month on original unpaid balance. NOTE: Safety Glass all around— no extra cost. • Rich, btautijul new interior appointments in all body-types. See them today! We Invite You to Call Us Today for a Demonstration-Phone 811 PHILLIPS MOTOR CO. A u thorized Ford Dealers

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