The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1919-08-22

convinced the public that profiteerng
mas Deen gong on on an enormous
scale, 1t is hardly fair to disregard
the primary cause of high prices.
namely, the withdrawal of 10000. 600
men and thousands of industrial plants
from profitable employment, to be
converted into instruments of de-
struction.
lhe most important remedy for the
present crisis is production and more
production. Not decrease of work
ing time to six hours a day, but an in
crease OF working hours commensur-
ate with the necessity for more pro-
duction. We are facing almost as
great calamity as we did two years
ago, and the same industry are needed
to bring the country back to the DO
sition it occupied in 1914. High prices
are not here to stay if we will, and
work to have it otherwise This is no
time tor experime nting with socilitstic
and bolshevik theories. Intelligence
OF the highest order is needed to cope
with the dangers that confront us.
The Federal Reserve Board is to be
commended for having called attention
to the shortage of commodities as one
vital factor in the high price situation.
mere is tendency on the part of
many people to look no farther than
to the great expansion of credits and
| the increase in the volume of circu-
lation as the cause of the present
abnormal condition in prices. The
tact OF the matter is that the present
inflated state of credit is merely the
symptom of general economic ill.
The disease itself is the failure of the
world to replace the commodities that
were consumed and destroyed in the
course of the war.
| With the removal of the disease in
the manner indicated by the Federal
Reserve Board, the symptoms will
disappear automatically, since the en-
lergement of the worlds supply of
commodities will carry with it the
cancellation of an amount of bank
credit equal to it in value Producers
OF commodities and services will ex-
change them for credits now outstand-
ing, and instead of re-exchanpinp
these credits for consumable goods
and services, will surrender them to
banks in payment of loans they con-
tracted for the purpose of carrying
| government securities. Outstanding
bank loans and credits, whether in the
form of deposits or circulating notes
will then undergo a corresponding re-
duction.
European Financing.
1t is becoming generally recognized
that any comprehensive plan for fl
nancing Europe is likely to await
formal ratification of the peace treaty
by the United States and others OF the
Allied nations. For the time, because
of the unsatisfactory state of the in
vestment market which has been un-
settled by the railroad naturalization
plan and other factors in the domestic
situation, even the method of doing
out credit piece-meal to nations seek.
ing accommodations here seems tc
have fallen into disfavor. However
this condition may change within The
near future. The one fact that seems
to be pretty definitely established is
that Germany will be unable to cor,
row here in large amounts until peace
between this country and Germany ha:
been formally proclaimed. At presen
!, difficulty is being experienced in some
cases in making financial arrange
ments for individual shipments.
Another important question is tina
of money rates. Some criticism ha.
been encountered from European Dor
rowers because the rates asked fol-
loans are far above what they have
been accustomed to pay in domesti,
money operations. But our investors
are not likely to forego the privileg.
of placing their funds in good paying
propositions at home in order to LOAF
to foreign governments on less favor
able terms.