Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-12-07
SAYS INFLATED MONEY
BOOSTS LIVING COST
'""S'iShman Says Many Men Prefer
VIA Wage Schedules as Well
~ Prices.
GENERAL SCARCITY or GOODS
!" fihu Means to Pay for Vast
mount of Munitions Large Guam
'i'icS of Currency Notes We're
Created

LONDON Dec G-I'hc rcorEaniza-
, l"n ct in"nstrN on the basis OF part
PIptc" is necessary for It's peaceful
progress IN the future. There is no
""Hbi the most fruitful cause, of pres,
Pftccs.
When | visited my constituency at
'h' end OF AUGUST thcr" was no topic
"u which anything like the same
p.aiit was that the increase In wages
lt@m whiGn 50 much had be been hopsd
iH eaten up by the higher cost Of
avm-.
we we're better of. wiSh our. old
thcpowcr s' ,R R:G De!@cS,S;take out Of one
pocket what they put into another"
INA 50 on.
The disappointment is general and
Is natural enough. though the wage
garner does not perhaps always rccol-
.erl that the large number Of people
Mn SINAI, hAed incomes are even
-. what is the cause OF hish prices?
Tn. most general popular belief is
HAT il IL proiitccrins y Yet il is sure
IE lear thdt prOiitecrius. rcpulsivc as
is can have very little 10 do with
I, phcnomcnon prcvaien; IN every trade
.a!i? credIDie that ali the merchants
ana tradcsmen nave suddenly and
simultaneously become unconsciona b
General Scarcity OF Goods.
y moro plausible explanation is the
genera! scarcity caused by restricted
"ltput and dis location OF trade and
transport That increased output and
inc restoration Of trade are vitality
important. and that they viii have
some effect IN lowering prices is Ger
AMY true. but that general scarcity
IS the fun or main explanation OF the
high prices 10 almost certainly uAtrue
nc hesi economic opinion seems 10
bc agreed that while scarcity no doub;
plays some pat ia causing rise OF
prices the chief reason for II is the
great increase Of currency.
TO mud means 10 pay for the vast
mount OF munitions and other war
'A'e nd!iurcs. The government created
,'fse htmoer OF so-callcd currency
cannot be dramatically which the
"ctuAl currency waS made bctwccg two
;N"d i"rte times greater than il was
ilence there now so much more
currency available TO carry on com
In.Tec ihan there used 10 be. and in
transaction, or IN other words. larger
sums OF money are required AMI given
-or inc purchase OF goods
A rroportionatc Rine.
Certainty this view has this % be
-sa.d in It's favor, that II docs accoun;
wita far completeness for. w-aac is
actually happening both here and in
have gone up 20 about the same cx-
itni a. me currency has been IN
,rtascd. and the same phenomenon is
"";a.ryab!c IN other countries.
Whatever be the accepted cXplana-
Ion Of the rise in prices one thing is
certain. IL IS OF enormous Importance
mat government expenditure should
.t vuthlessly cut down, and that in
20 circumstances should a further OK
pansion OF currency be permitted. That
ought TO nave been done months ago.
ne sphere o: the general cleo
lion and The succeeding period was
utterly pcTn!c!ous. Instead o. allow
Ing II 10 be thought that with IN. end
az the war all our economic difficult
ties wcre over. and that wc might with
Sht hearts anticipate 4 land III for
l"rocs, We should have been told that