The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-12-25
HOW TO LOWER PRICES.

Speaking before the American Acad-
envy of Political and Social Science. in
Philaf -,lAS-ia. recently, DR.. A. C. Miller.
Pacific coast member of the Federal
Reserve board, took the position tina.
there is too much money in the coun-
try for the amount of goods In exist
ence. This situation he held respon-
sible for prevailing high prices.
when this nation has saved twelve
billion dollars more" he declared.
prices will have been restored to
nQymal."
Analysing our problem as one. not
of recons -ruction. but of re-employ-
ment and reorganization. Miller de-
clared that more production and alb
sorptton OF outstanding war securities
is the solution of the high price ques-
ton. He said the banks are holding
approximately five billion dollars in
war bonds; the governments require
ments for the rest of the fiscal year
will be about seven billion dollars and
until these have been absorbed by
savings, the .taint of initiation will
still be with u.s.
The price situation, Miller said, is
the worlds greatest after-the-war
problem. Its gravity Is revealed only
by the broad statement that prices
have risen 100 per cent in four years.
Until prices return to normal, actual
progress towards recovering from the
wars shattering cannot be made, he
stated.
There is already the welcome indi-
cation" Miller continued, that the
more forssighted american business
organizations are looking ahead to the
falling of prices as something inevita-
BILE. Inst Id OF waiting. they are an
reorganization by voluntary price re-
auctions.
'Such mental preparation paves the
way and thereby helps the process of
readjustment in prices"
Scarcity values" according to Mil
Ter, have ruled prices to a large extent
But he expressed the opinion that the
relative shortage in the needed mate
rial was not SO great as the range in
prices indicated. He declared this
angle of view proved that the solution
of the problem IL greater production
The world must have production as
we'll as America.
Too much purchasing power in
units of money has been let loose on
! the American people, Miller asserted.
There is more money than goods to
buy with, and. as he pointed out,
prices naturally scared to- dizzying
heights" He asserted that it is not
| the quality but the quantity of money,
which has created inflated values.
In continuation the speaker said:
OF the eighteen billion dollars in
loans floated by the government 1t
| maybe estimated that five billion dol
| lars is still carried by the banks To
| the extent that subscriptions to the
government borrowings are paid, not
| out of cash which already has been
saved, but by credit which has been
| obtained from the banks, the pay
ments must be regarded as giving rise
to the expansion of bank credit. Such
expansion of credit, unless it sets in
IN initiation, first of credit. then of
| currency. and as a consequence of
| both. imitation of prices.
| Those of us who in our liberty loan
| 'patgns were persuaded to borrow
| ana buy now must save and pay. The
problem of correcting this initiation is
largely a problem of saving and pro-
duction. We must either put more
goods behind the outstanding volume
OF credit and currency-which means
produttion-or we must reduce the
volume of credit and currency to suit
able proportlons-which means saving.
| ..............-=