The Washington times., 1918-12-22
PRICES HIGH UNTIL
IL BILLIONS SA WE'D

PHILADELPHIA. Dec. 22.-whsh
this nation has saved $4,000. .OoO. 900
more, prices likely win have been
restored to normal. Thus. DR.. A. G.
Miller, Pacific coast member of the
Federal Reserve Beard. warned that
America must save and pay up" or
suffer the ill-enects of imitation. DR..
Miller spoke before the American
Academy OF Politica1N and Social
Science.
Analysing our problems as one, not
OF reconstruction but Of re-eInploy-
ment and reorganization, DR.. Miller
declared that more production and
absorption, OF outstanding war Sc
curities is the solution Of the high
price situation.
He said the banks are holding ap-
proximateiy 5000. .000s In war
bonds; the GoveFnmsnts Nequires
lnents for the rest OF the fiscal year
will be about $1,000, ,000. BOO. and until
these have been absorbed by savings,
the '.taint of imitation will still be
upon uk."
Price sItuatioa Probes.
The price situation, DR.. Miller said.
Is the worlds greatest after-the-var
problem. Its gravity II revealed only
by the broad statement that prices
have risen 100 per cent in four years,
he said. Until prices return to nor
NAL, actual progress toward recover
ing from the wars shattering cannot
be made, he argued.
'Tf our price situation is quickly
IL 1Un tIan~fgnn
taxes may be expected to adjust them
selves to the altered conditions" DR.
Miller said. "Industrial enterprise
can then make its calculations 90
something like a stable or normal
basis. and the period of post-war re-
adjustment need have little terror for
us. The whole world Is inflated. 4
great opportunity awaits the country
which is first able to begin marking
down its prices toward peace levels.
''The world needs US and what we
can produce. II needs copper, cotton.
steel machinery and many other
things. Some OF these II will take at
any price, but II will take much more
II our prices are such as to invite for
eign demand We need give little at
tention to artificial methods OF taking
up the slack in the labor markets, and
otherwise stAbflizfng Industrial con-
ditions, II we take up promptly and
proceed vigorously with the solution
Of the price situation"
Handicap to Europe.
Europe cannot afford to buy great
of goods in the American
urgent as its need Is for ma
terials Of postwar Industrial recon-
unless our prices fail, no
matter how ready we stand to finance
them, because Europe cannot afford
toNhandicap her reconstructed fndus-
tries with a capitalization that will
not be warranted by earnings when
postwar prices get back to normal.
as sooner or later they will. For her
industries to do otherwise would be
to invite serious losses and possible
Indeed, much the same
may be said OF our own domestic bust
ness situation Increase OF the capi-
tai account will. in general. be a peril
Gus, proceeding for any undertaking
involving large permanent invest
ment and heavy fixed charges, as long
as prices Of materials Of construction
are on an inflated basis. Thus does
an inflated state OF prices tend to
check Industrial enterprise, and.
therefore, to retard Industrial recoy-
cry"
That too much purchasing power
In units Of money" has been let loose
on the American people, d.. Miller as