The Dawson news. (Dawson, Ga.) 1889-current, 1919-09-02
IMITATION AND PRICES.


Among the numerous causes of present
high prices the increase in the amount OF
money in circulation has received only pass
/ ing consideration, notwithstanding that the
! increase, both in total volume and per capt.
ia, is nearly the same as the general IN
crease in the cost of commodities. This IN
crease in the volume of money is being utilz-
ed by the profteers and price fXers as the
defense behind which to hide their opera
tions. 1t has provided the means by. which
they have been enabled to act, but it is not
the reason for the artificial mutations which
take the form of graft and price eXtortlon.
It is an elementary principle that an in
crease in the volume of money depreciates
the buying power of the unit and initiates the
currency. No matter how the proposition is
stated. the fact is the same 1t may be said
the dollar is cheapened; its purchasing pow
err reduced the currency deprecated; the
money inflated, but all are statements of
single fact.
Some days ago Garter Glass; secretary
of the treasury, transmitted to the senate,
in response to a resolution of that body for
information concerning certain features Of
the financial status of the government, a re-
port from which some interesting figures are
CLEANED. Stripped of the technique with
which financial experts would clothe them
these figures show that in the five years
ending July /, last, the money in circula-
ton increased by more than two-thlrds over
what it was at the beginning of that period
on July /, 1914, while the general stock OF
money in the United States doubled IN
amount Quoting the figures given by the
secretary it is found that the actual circula-
ton at the beginning and end of the period
was as follows:
July l, 1914-$3, 41O,108,368.
July /, 1919-$5, 841 ,029,528.
The per capita circulation on July 1, 1914,
was $31.87. On July l, 1919, it had increas-
ed to S54.38. The general stock of money
in the United States on the two dates was
as follows:
July 1, 1914-$3, 738, 62O,345.
July 1, 1919-$7 ,588 ,473,771.
Thus the actual stock of money in the ma
ton has doubled in the fve-year period
while that actually in circulation has IN
creased about two-thirds. To preserve the
standard value of the dollar the country
would have had to nearly double its business
during the period There are no figures at
hand to show what the expansion actually
was, but a superficial survey does not IN
dictate any material increase. There have
heen increases in some lines and decreases
in others, but the general observer knows
that the business of the country is not two
thirds larger than it was in July, 1914.
It must not be forgotten that IN secur-
ing redress from high prices by artificial de-
fation there is danger of disaster If the
purchasing power of the dollar were detat-
cd TO what it was in 1914 it is easy to see
that it will purchase but half the quantity
if does now, so that the burdens of the peo-
nile would be increased for the time bemg
instead of being relieved. In the end prices
would be forced to the level of the purchas-
mo mower of the dollar, but the interim
would be disastrous When both money and
prices were Debated conditions would be
sound and reasonably permanent, But eau
ton must be used in reaching that result,
else the country be swept into chaos OF
hardships and bankruptcy which would be
ruinous.