Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-08-09
|DLAMES LIVING COST
ON MONEY SUPPLY
Student Of Money Problem Says
Depreciation of Dollar Causes
60 Per Cent of Rise
PROFITEERS TEN PER CENT

Law the blame for 60 per cent ot
the high cost of living to the fact that
there's too much money circulating
about in the United States
And 20 per cent to the willful waste,
by both mental and physical workers,
of time and commodities.
Ten per cent to the abnormal de-
mand of foreign countries for American
products.
And ten per cent to profteers and
spectators.
This is the opinion of Wharton
Barrier, journalist and lawyer, and Is
the result, he says, Of many years of
study of money and credit problems.
Mr.. Barker says:
"When there is a great volume of
money, money is cheap, and the prices
for commodities consequently rise.
when prices are stable the pur-
chasing power of money is unchanged.
"When prices fall money is dearer,
the debtor despoiled for the creditor 5
benefit.
when prices rise money is cheaper,
has departed from the level of honesty,
with the result of benefting debtor at
expense of creditor.
Must Regulate Money Supply
80 when the prices fall the volume
of money must be increased, when they
rise the volume must be diminished. y
Mr.. Barker's statement follows:
"The high cost of living that now
brings distress to many citizens and dis
comfort to almost all citizens is due, l
believe, to four causes:
"First. The great increase in the vol
ume of money and credit made during
the last four years. In 1914 the per
capita money of the United States was
S34 and a fraction: in 1919 it was S54
and a fraction. This increase of the
money of the United States has, of
course, cheapened the value of the dol
lar, so that, / believe, not less than 60
per cent of the advance of the cost of
commodities is due solely to this depre-
citation of the dollar to this initiation of
the currency of the country. To illus
trate: If wheat in 1914 was 81 per
bushel, 60 per cent depreciation of the
value of the dollar referred to would
make wheat now SIG and so on down
the line for ali commodities.
..C,- 49, 1f,,l aF
workers, both mental and physical, of
both time and of commodities produced,
/ believe, 20 per cent of the increased
cost of living is due.
Third. To abnormal demand from
foreign countries of American products
II believe 10 per cent is due.
Fourth. To spectators and prof
teers the remaining 10 per cent is due.
do not think more than 10 per cent.
Can't Consider Contraction
'Of course, any contraction of this
money of the country to get rid of the
60 per cent advance of the cost of COM
modities and living would wreck the
debtor class of the people and be of no
advantage to the credit class, and so a
contraction of the currency and credits,
no matter how unwise the initiation and
expansion of the currency was, cannot
now be considered.
"a second cause ascribed for one
ffth-20 per cent-of the increased cost
of living attributable to the waste of the
people can only be got rid OF by their
own voltion. The third cause for the
increased cost Of living. to wit, 10 per
cent brought about by the abnormal de
mands by foreign nations of American
products, will end only when American
capitalists refuse to lend money to for
eign buyers of American products; the
last 10 per cent of the increased cost OF
living-the spectators and protiteers
profts--can of course in a large measure
be eliminated by action of Congress.
.'The reason l have thought it wise
to make this statement is because the
public should appreciate, and few o,
the people do appreciate now. that the
major portion of the rise in the cost Of
living is due to the depreciation of the
dollar"