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Statement of Principles
The Republican Party sacrificed the interests of the country
to a blind adherence to the old gold standard. It permitted speculators both at home and abroad to deplete the gold reserves. It
encouraged by its acts the deflation of values, the decrease in
the debt-paying power of the dollar, and the loss of depositors1
money in the growing wave of bank failures culminating in the
closing of all banks in 1953. In place of a blind adherence to a
formula, the Democratic Party accepted as its fundamental principle in the fields of currency and banking legislation the view that
the soundness of a currency and banking system must be judged by
the goodness and justice with which it serves the interests of all
classes in the community. It is a means to an end and not an end
in itself. This principle animated legislation and policy since
1935 and the Party now reaffirms its allegiance to it.
In furtherance of this fundamental principle, the Democratic
Party advocates:

1. The continuance of monetary and fiscal policies that will
moderate and counteract the inflationary and deflationary tendencies of private business, and will
thus avoid the twin evils of inflation and deflation.
2. The continuance of the powers vested in the President by
the Congress to defend our currency system so long
as the prosperity and wellbeing of American industry


- 2 and agriculture can be jeopardized through excessive
depreciation of foreign currencies*
S. That in any negotiations leading toward the stabilization
of the world1s currencies primary regard shall be
had for the interests of .American, agriculture, industry and trade.
4, That the increased po?irers of Federal regulation and supervision over banking secured in the past four years,
shall be exercised in the public interest toward securing safety of depositors' money and stability in
its purchasing and debt-paying power•