DEFINITE MONEY POLICY NEEDED, SPRAGUE STATES

Oliver M. W. Sprague '94, professor of Banking and Finance at the Business School, declared to the House of Representatives committee on coinage yesterday that the devaluation of the dollar could not possibly have any beneficial effects, unless it meant that in the near future there would be no more monetary experiments. He declared that the purpose of France's revaluation of the franc was to maintain the price level that was then obtained, not to cause an increase in prices.

"Public works expenditures, and civil relief expenditures," he went on to say, "may have the effect of impeding absorption of the unemployment industry, It does not seem to me that proper consideration has been given in the recovery program to the problem of arriving at a point at which emergency expenditures will no longer be necessary."

He declared that the effect of American devaluation as much as 50 per cent would be much more disturbing than the action of France since it would not have the same result as in the latter country, on account of the price levels which are existent at present. He asserted that the direct effect domestically would be pretty small. "You and I do not have more money in our pockets," he asserted. "Our bank balances are not increased. The only considerable increase in purchasing power will be that accruing to the government because of that $3,000,000,000 to $4,000,000,000 windfall."