The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-08-07
II. S. MAYLEARN
ECONOMIC PLANS
FROM FRENCHMEN
Older Nation Has Struggled
With Crises for Many Years,
Says Times Expert.

Four causes nave Deen assigned for
the increased costs of all food pro-
ducts, says Walter Durant, in writing
In the New York Times.
Three Of them arise from the eff
fects Of the war on the food supply,
from its production right along the
line to the purchase by the ultimate
consumer.
The fourth cause is entirely an ex-
traneous one, independent Of food but
also due to the war, and in the opin-
ion Of most French economists, is
chiefly responsible. 1t is the unpre-
cedented initiation Of currency. Where
as in 1906 the floating quantity of
paper money in France amounted to
1900. 100000 francs and 1900 900, 900
In 1914, it is now 10000, 900, 900. Ac-
cording to economists one should not
say that food is twice as dear, but
rather that money is twice as cheap.
They reckon that currency depreCia-
ton accounts for fully fifty per cent
of the apparent rise in French food
prices, which have quadrupled during
the five years of the war. The re-
naming fifty per cent increase is due.
first, to the huge diminution of food
production in Western Europe owing
to the lack Of labor, which combined
to bring about the world shortage.
A second cause is the deterioration
and reduction Of transportation by sea
and land. A third is profiteering. The
bad effects Of all three are aggravated
and augmented by high wages due
in the first instance to the demon Of
currency initiation, which Is at work
in every stage in the game
French Have Learned by Experience.
In French history there have been
too many unsuccessful attempts to
dispose of this trouble maker by arti-
fetal means-frOm COnfiScatiOn of for
tunes to a tax on capital, and the arbi-
trary calling in Of paper with the re-
sultant financial panic-for econo-
mists to suggest anything but nor
NAL and gradual remedy. Profess or
eide of the Institute Economique de-
clares that nothing can be done save
to gradually reduce the floating debt
by repayment and that this is only
possible when the natural revenue eX-
ceeds expenditures. Very much the
reverse is the case in France today
so that half of the cause for high
cost of living must persist until the
return of prosperity permits the
country to get back to d cash basis
AS regards the three causes when
contribute the other half of the in
crease, the situation is more hopeful
AS far as western Europe is concerned
rehabilitation will bring production
back around normal in a year OF
two, and even in the east-with the
important exception of Russia-things
are looking brighter. Similarly in re
spect to transportation. Here, too. the
release of ships and railroads from
the transport of war material-to say
nothing of the elimination Of mines
submarines and traffic interference BY
enemy shell fire-will improve COndi
lions just as the release of men from
fighting will improve production. II
both cases the Improvement can be
artificially FASTENED by use Of labor
saving machinery better methods anC
better seed or stock as regards fooC
PRODUCTION. and by international co
operation and closer working to SEIZED
ule, more and newer ships, freigh
cars, locomotives and automobile
trucks.
France is working hard along these