Roanoke Rapids herald. [volume] (Roanoke Rapids, N.C.) 1914-192?, 1919-08-29
WORKING and SAVING
WILL REDUCE PRICES
osvsrNss u Federal Rsssrvs Board
YsHs hsw Living Expsnsss May Be
Cut pown-Why Everything Went
Up

what y the bsst way 10 reduce the
high cost Of uvtAgf
Work end save" 10 the answer Civ
On By the FEDERAL Reserve Board In
letter written By it, governor, ". p.
@. Harding, 10 the Banking Commit
~ q the Uuited States senate. The
ssmmistss had under confederation The
yeoDosal 70 rsdosS the volsms Of
nossy In circulation. Governor Hard
iAg opposes this plan. holding that II
vttl no& afford he relief expected.
Tho FEDERAL Reserve Board -
usvss" Gays 0ovsrnos Harding In his
letter. that say currency legislation
Il tbs time 10 unnscsssary and unde-
sirabis, and would suggest that wheth'
- viewed from ~ economic or anan-
sisi standpoint. the remedy for the
prsssnt situation b he same. namely.
70 WA and 70 save: - vefs regular
b and s9isisat,y IN ssdss = produce
and distribute the largest possible
volume Of commodities. and 70 sxer-
else reasonable seoaomiss IN order
tAst money. goods and services may
b DEVOTED primarily To tho iiosiAS
- q lsA and 70 The satisfaction 10
~ demand for necessities. rather
~ 70 Indulgence N sxtravasances
o. shs grs tiAoAtioo a ths desire for
iuxv1iss."
Durias the last two years there has
undoubtedly taken place certain
amount Of credit expansion. Governor
Hardins shows. and this in the cir
surnstAaess connected with the nnanc-
ND q ~ var vas Inevitable. But It
WIN b sogrsotsd - the securities
issssd b. IL government for war
ysrposss are gradually absorbed By In
ysstars. rAis expansion OF credit II
ssual 70 ~ difference. Governor
xaslias says. between the total war
sspsalisusss q the government and
SAs total amounts raised By the GOV
ssansns through the medium OF tara
Sioa aAl from tAs sale Of It, bonds
and eshsr obligations 20 far IS they
we're paid Tor out ot the savings OF
o. psepis. He does not believe that
Az rsaaAls estimate Of this differ
sHss can ~ msds. bat h 10 positive
80 vhstsvss II =. II will BE- grad
vsiiy absorbed tArozsA future savings
sos he reason tAat banks are lending
sal nay always b expected to lend
freely "a ths government bonds ds'
positsd % collateral.
The principal cause Of price ao-
ysadss iust before and during the per-
"a Of the war was The need OF the
spysynmsnts Of the allied nations for
eli kinds Of commodities and for I'm
Mediate delivery In large volume. and
The composition Of this buying by
governments with purchases by pri'
vsts individuals who failed to contract
ehsir expenditures at a rate common
surats with the growing expenditures
Of those governments"
One Of the features OF the postwar
period, through which the nation Is
now passing and which has been
marked by rising prices. is the gen.
sral relaxation Of wartime practice OF
psrsoual economy. This has resulted
in an Increased demand for food and
clothing and other commodities oy
many persons who during the war
prscticed q more or less rigid econ
omy in their personal purchases. Also,
Il must 10 borne In mind that they
srs not only buying at market prices
but are bsyiAs in competition with
the export demand. In addition, large
" Increased wages and incomes dur
md the last ave years have developed
= demand for many commodities which
an. not Of real necessity. This nst.
ursily has diverted labor and raw ana
Manufactured materials from essen
uah 70 nen-ssssatials. Contributing no
suall part - ~ tssal Of ssersssaAs
sests.