OPPOSITION TO INFLATION

Hawera Star, Volume LII, 26 January 1933, Page 5

OPPOSITION TO INFLATION

AMERICAN SENATE VOTING. RATIO OF SILVER TO GOLD. (United Pres# Association—By Electric Telegraph Copyright.) WASHINGTON, Jan. 24. The first attempt to inject inflation into legislation failed to-day when the Senate by 56 votes to 18 tabled two amendments to the Glass Banking Bill, the first of which was to remonetise silver at the rate of 16 to 1 and the second to revalue the gold dollar by decreasing its gold content. The attempt to peg the price of silver in a definite relation to the price of gold is of much historic interest. It led to the campaign issue on which the Democratic candidate, Mr. Bryan unsuccessfully contested the Presidency in 1896. As the present ratio of silver to gold is 85 to 1 the adoption of the amendment would have a revolutionary effect. Financial experts, including Senators Glass and D. A. Reed, denounced the amendment as certain to ruin the currency' and bring financial chaos to the country. Despite the defeat of the amendment the general, debate revealed that the inflationists have considerable strength. They indicated they would propose other measures to relieve the debtor class.