Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-12-28
SEESNOEAR[YDR0P.
IN THEH|GHPR|
A. C. Miller Says Expansions
Due to War. Must First
Be Eliminated.
LOSS IN POWER OF GOLD
By the Associated Press.

By the Associated Press.
RICHMOND, Va, December 2S.-
High prices will prevail until the ex-
pansion of currency and credit re-
sulting from the buying of war
securities on credit has been elimin-
ated and until the vplunfeE 81 credit
and currency has been REDUCED to an
equality with the needs Of industry
and trade, declared "A, c. Miller. a
member Of the federal reserve board,
speaking today at session OF the
annual convention here Of the Amert-
can Economic Association.
Gold Loses Purchasing Power.
Tested by price levels in the lead
ing markets. gold has lost about one
half it's purchasing power since the
beginning Of the war In 1914. said Mr..
Miller. Gold as a standard OF ex-
change has fallen In its purchasing
power he said, because 1t has shared
the fate of paper currency from rts-
ing prices, which, on wholesale
basis, are up about 100 per cent in
the countries where the gold standard
still obtains.
"Gold will not recover it's lost pur-
chasing power until prices decline,
MI. Miller said Financial, credit and
been thrown into confusion by reason
of the rise in prices will not be
Strengthened out until the price sit
uation Is rectifled. But the price SIT
uation will not be rectined until the
expansion Of our currency and credat
attributable to the buying OF var Sc
curities on credit has been el1minat-
ed and the volume of credit and cur
rency has once more been brought
back to a normal economic volume
that is to say, a volume correspond
ing to the needs Of industry and
trade for the production and ex-
change Of goods at normal values.
Should Lift Embargo.
The embargo laid by this country
during the war on gold shipments,
Mr.. Miller said, should be lifted at
tha earliest practicable moment or
"as soon as our internationa! imam
ciaI relationships are such that we
are no longer under the ;necessity OF OF
taking care Of adverse balances OF
the nations with which we have been
associated in the war arising out OF
their trade with neutral countries.
other Speakers and Themes.
Roger W. Babson Of the United
States Department Of Labor addressed
the association this morning on the
i%p that the dollar be based on 200
cnn,modities instead Of gold. Senator
Robert T.. wen of Oklahoma also
smoke on the subject Of the dollar;
irving Fisher Of Yale University pre-.
sided. ..,,a.
is a cake" dollar. He said the plar
to. base the dollar on certain com.
modities is Just as feasible as any
system. The worlds productivity since
the European war started increasee
20 per cent, but the purchasing power
speaker. e.. ,...-.-. =
Mr.. Babson's Address. 8
Mr.. Babson spoke, in part as fol-
lows:
For thousands of years people
thought that the sun went around the
world. At last this is no longer be-
lieyed. But people still think that
high prices are due to q scarcity OF
goods instead Of the depreciation OF
the dollar.
..The real crime Of plutocracy is not
that a few men today control the coal
iron, timber and other raw materials,
but that they control the purchasing
power of the dollar with which you
and I have to buy everything Of them.
Moreover, they are continually cut
ting down this purchasing power by
depreciating gold.
Grow Tired Of TreadmilL
.The people have trod the treadmill
about as long as they will The
masses will not be bled forever by the
present fake dollar. Either we must
Voluntarily change the fake dollar OF
today for a real dollar based upon
what we eat, wear and Sleep or else
we will encourage the bolshevists to
carry on their damnable work until
we have no dollars at ALL"
DR.. Royal Meeker of Washington
spoke in advocacy Of government In
surance. He favored an automatic In
surance, so that everybody would be
protected. He; said that 00,00o, ,ooe
persons in America can be insured
for what the present policy holders
In thi. country are paying under the