Currie, Holcombe Express Views Concerning U. S. Departure From Gold Standard--Both Consider It Constructive Measure

The following statements were made last night concerning the action of President Roosevelt in withdrawing support of the American dollar abroad as a preliminary step to expansion of the national currency.

A. N. Holcombe '06, professor of Government:

"Inflation is absolutely necessary, and the action of the President in withdrawing support of the American dollar in foreign exchanges is a constructive move.

"We need a managed currency, such as England has, and as a step toward it the present move is to be applauded. Such action is far better than providing for the necessary inflation by a return to unlimited coinage of silver on a basis of 16 to 1. If the Thomas bill, as revised yesterday, passes Congrees, the President will have the power to bring about as much inflation as is necessary; this is far better than leaving the task to Congrees."

J. B. Currie, Instructor in the department of Economics and tutor in the department of History. Government and Economics:

"The embargo on gold, it appears to me, is a necessary Prerequisite to a vigorous attempt to combat deflation. The ground is now cleared both nationally and internationally, for a courageous, but same attempt to increase monetary incomes. Up to the present the success of any bold policy to overcome the depression would have been jeopardized by the deflationary effects of a possible outflow of gold. This danger is now removed.

"It is to be hoped that one effect of the departure from gold will be to put quietus on the proposal for bimetallism and paper money issue and to enable the administration to work for a restoration of prosperity, through a public works program in conjunction with a federal reserve easy money policy. This sort of expansion is subject to a high degree of control and should remove the fears of the uncontrolled inflation.