INDUCEMENT TO SPENDERS

Manawatu Standard, Volume LIII, Issue 263, 4 October 1933, Page 5

INDUCEMENT TO SPENDERS

RAINBOW COLOURED DOLLAR. AN AMERICAN SCHEME. That he has a new idea, namely currency notes with a different colour for every month, for forcing people to spend their money quickly and so cure all of America’s economic ills, is said to be the reason why President Roosevelt has appointed Professor Arthur Dahlberg to be head of his “Brains Trust’’ in succession to Professor Moley, states a message from Washington. Professor Dahlberg is a member of the Social Science Research Council, and his new policy, it is claimed, spells the doom to every evil in the economic system—depi'ession, hoarding, deficits, taxation, and general misery. He proposes to make the people spend money by taxing money—that is, by a tax on bank deposits and currency. He suggests issuing a new batch of currency every month, the currency of the preceding month to be worth less at the bank and stores. Every month the currency will be a new colour, like baseball tickets, so storekeepers will knew whether the' dollar note you hand is worth 98 cents or 89. If your dollar is old and frayed it may be worth only 50 cents. A lengthy report submitted by Professor Dahlberg to Mr Roosevelt claims the same result for his plan as a shortening of hours. It will force huge incomes into circulation and divert them to those willing to spend. He says: “1 expect a little opposition to my plan. It catches economic experts and reactionaries napping. I can think of no reasonable argument against it.” Mr Roosevelt made it clear that he intended to back Senator Cordell Hull, the Secretary of State, after the world parley debacle, and gave a hint that Professor Moley could not hope for advancement in the Cabinet. The offer of a handsome salary by Vincent Astor. the head of the United States branch of the Astor family, settled Professor Moley’s doubts.