Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1919-09-11
WORKING AID SAVING
WILL REDUCE PRICES
Governor 81 Federal Reserve Beard
Telis tiew Living Expenses May De
Cut Downs-Why Everything Went
un.

what 10 the best way to reduce the
high cost Of livings
Work and save IN the answer civ
en- BY the Federal Reserve Board In q
isster written by its governor, w. p.
q. Harding, 20 the Banking Commit
tee OF the United States senate. The
committee had under considerations the
proposal 20 reduce the volume Of
money I'm circulation. Governor Hard
Ing opposes this pian. holding that 1t
win mot afford the relief expected.
The Federal Reserve Board be-
lieves- says Governor Harding in his
letter. shat any currency legislation
nc this time 10 unnecessary and unae-
sirabls. ana would suggest that wheth-
Or viewed from an economic or hnan-
cial standpoint, the remedy for the
present situation In the same. namely.
TO work and 20 save; 10 work regular
ly and efficiently In order 20 produce
and distribute the largest possible
volume Of commodities. and 20 exer-
else reasonable ECONOMIES I'm order
that money. goods ana services may
be devoted primarily 20 the Equida-
tion % debt and % the satisfaction 20
the demand for necessities. rather
than 20 indulgence In extravagances
or shs era ttfication % the desire for
luxuries."
During the last two years there has
undoubtedly taken place O certain
amount Of credit expansion. Governor
Harding shows. and this I'm the cir.
cumstances connected with the flnane.
ing Of the war was inevitable. But II
win DO corrected 40 the securities
issued by the government for war
purposes are gradually absorbed by in,
vsss0rs. This expansion Of credit ID
eanal 90 the difference. GovernoE
Harding says. between the total war
expenditures Of the government and
the total amounts raised by the gov
eminent through the medium OF taxa
ton and from the sale OF Ito bonds
and other obligations 90 far a. they
were paid for out Of the savings OF
the people. He does not believe that
any reliable estimate OF this differ.
that. whatever 10 In. Il win be grad.
usily absorbed through future savings
for the reason that banks are lending
and may always be expected 10 lend
freely on the government bonds do.
posiesA as collateral.
The prtneipal cause % price ID.
van6ss just before and during the per.
ioa Of the war was the need Of the
sovernmsnts % the allied nations &c.
I'll kinds of commodities and for I'm
mediate delivery In large voluEe. and
ths "competition Of this buy az by
governments with purchases ~ pr
vats individuals who failed 70 crntract
their expenditures at q rate m.neI.
sarats with the growing expe~ iltures
Of these governments"
One Of the features Of the sst-was
period. through which the n. on T.
now passing and which his beer
marked by rising prices. Is. re Re".
srai relaxation Of wartime pr tice 1:
personal economy. This has ''llte
In an increased demand for 4 ID an.
clothing and other commod' - b.
many persons who during q" v"F
practiced q more or less ri. = sc~r
omy In their personal purchase ~"
IL mast DO borne In mind tn =" y
are not only buying nc market Pc
hut are buying I'm eompet't'n' wtA
re export demand. In add:t:n- l"r~c
~ increased wages and inc1-' t.
the last ave years have d ei,D' :
..emand far many commoditse VIII
? not Of real necessity. T n:
Nv has diverted labor and W G. d
.nufactured materials from essen
Is 20 non-essentiais. eontribp Ing ="
III part 20 the tread Of Inc easing