The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-11-24
gy LORD ROBERT CECIL

London, Nov 23--The reorrani-
zatipu OF industry on the basis OF
partnership between employers and
employed IS necessary for its peace
full progress in the future. There is
no doubt the most fuitful cause OF
present discomfort Is tho general rise
OF prices.
Wnen visited constituency at
tho end NJ August there was no topic
on whics anything like the same
unanimity was shown. The chief
complaint was that the increase in
wages from which SO much had been
hoped was Iargcly~-it was often said
cntirely---ca ten up by the higher cost
of living
I'VE were better or with our old
wages and old prices They" l. g..
tho powers that be take out Of on"
pocket what they put into another.
and SO on
The disappointment is general and
is natural enough though the wage
carriers does not perhaps ALWAYS re-
collect that the large number OF peo-
pie with small fixed incomes are even
worse off than he is.
What is the cause of high prices
The most general popular belief is
that II is proftcerns Yet Il II sure-
" clear that profteeriug. repuisive
"a 1t is. can havc very little TO do
with phenomenon prevalent in
every trade in every country in
Europe II is not really credible that
all the merchants and tradesmen
have suddenly and simultaneously
become unconscionable r.gues
GENERA SCARCITY or GOODS
The most plausible expia nation is
the General scarcity caused by re-
a,+t, 4 4lg3S ss,ey. -
trad and transport. That Increased
output and the restoration Of trade
are virtually important and that they
wifi have some effect IN towering
prices IS certainly true. but that gen
oral scarcity is the full or main
explanation of the high prices is al
most certainly untrue
The best economic opinion seems
to he agreed that while scarcity mo-
doubt PLAYS some part In causing Il
risss s,t,psk@ee s4ic chief reason for II
il the "rcat increase of currency
To I'D means To pay for the vast
amount al munitions and other war
cxpentiitBres, TING government created
a large number Of so-called curren-
eY notes that is. notes for which
gold cannot he domanded--by which
tht actual currency vas made be
tween two and Three times greater
than it was before the war.
Hence there is now SO much more
currency available to carry on COM
J mcrce than there used TO be. and in
consequence more is used for each
! transaction. or in other words larger
sums OF money are required and given
! for the purchase price.
! \ PRoPORTIONATE hfSE
! Certainly this view has this To be
: C4.fl in. tfz In, l,nt
with fair completeness for what is
actually happening both here and in
the rest Of the world. Prices here
have gone UP about the same ex-
| tent as the currency has been in
| creased, and the same phenomenon
I is observable in other countries.
Whatever be the accepted explana-
ton of the rise in prices one thing is
certain II is of enormous impor-
! lance that government expenditure
should be ruthlessly cut down, and
! that in no circumstances should a
| further expansion OF currency be per-
t mitted, That ought to have been
done months ago. The atmosphere
! of the general election and the sue
cceding period was utterly pernicious.
/ Instead OF allowing it to be thought
that with the end of the war all our
economic difficulties were over and
( that we might with light hearts an
| tieipate land fit for heroes. we
should have been thus prepared
Does Government Realize
Unfortunately. for many months
the government showed no sign that
! 1t realized the urgency OF the eco
nomic situation. TO he frank. it does
not seem at all certain that 1t does
so yet. 1t is therefore NECESSARY to
press with increased vigor for real
policy of economy
!. Next tho question of reduction OF
currency should be faced 1t may be
that such measure would, on bal.
iance. do more harm than good by
creating further uncertainty and dis
| location. III so, we may have to rec
ognize that high prices have come to
stay. and that we must permanentlv
alter all salaries, wages, and other
payments for services rendered.
: But in that case II should be also
recognized that all persons with fixed
incomes from investments have al
ready lost very large fraction OF
their capital 1t has been taken from
them by government action Just ~
effectually as II they had been de-
Drived OF 1t by n capital levy.
We have during the war piled up
an immense debt. which we are at
, present trying to deal with BY an
enormously Increased taxation. \ 10
I = 49, - - at