The county record. [volume] (Kingstree, S.C.) 1885-1975, 1919-09-04
WORKING and SAVING
WILL REDUCE PRICES
oevsrnor Of Federal Reserve Board
Tells How Living Expenses May Be
Cut Dewn.-Why Everything Went
Up.

What 70 the best way to reduce the
high cost of living!
Work and save" IL the answer Civ
en- BY the Federal Reserve Board in q
letter written by its governor, w. p.
G. Harding, to the Banking Commit
tee of the United States senate. The
committee had under consideration the
proposal to reduce the volume OF
money in circulation. Governor Hard
ing opposes this plan, holding that 1t
will not afford the relief expected
~The Federal Reserve Board BE-
nevss" says Governor Harding In his
letter, that any currency legislation
at this time is unnecessary and unde-
sirable, and would suggest that wheth-
ar viewed from an economic or fnan-
cial standpoint, the remedy for the
present situation 10 the same. namely.
20 work and to save; to work regular
" and efficiently in order to produce
and distribute the largest possible
volume Of commodities, and TO e1er-
else reasonable economies in order
that money. goods and services may
be devoted primarily to the liquida-
tom Of debt and to the satisfaction to
tho demand for necessities. rather
than 20 indulgence in extr~vagances
or the grs tincation Of the desire for
luxuries."
During The last two years there has
undoubtedly taken place a certain
amount OF credit expansion. Governor
Harding shows. and this In the cir
slmstancss connected with the hnanc-
tnx Of the war Was inevitable. But 1t
vim be corrected as the securities
Sssusd BY the government for war
purposes are gradually absorbed By n
vestors. This expansion Of credit is
equal to the difference, Governor
Harding says, between the total war
expenditures Of the government and
the total amounts raised BY the gov
srnment through the medium OF taxa
ton and from the sale q its bonds
and other obligations so far as they
were paid for out Of the savings OF
the people. He does not believe that
Any reliable estimate OF this differ
snos can be made but he is positive
that, whatever It Is, 1t will be grad
ually absorbed through future savings
for the reason that banks are lending
and may always be expected to lend
freely on the government bonds de-
posted a. collateral.
The principal cause Of price sd-
vanees Just before and during the per
iod Of the war was the need OF the
governments of the allied nations for
all kinds Of commodities and for i'm
mediate delivery In large volume, and
the competition Of this buying by
governments with purchases by pri-
vats individuals who failed to contract
their expenditures at a rate commen-
surate with the growing expenditures
Of these 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
eral relaxation Of wartime practice OF
personal economy. This has resulted
IN an increased demand for food and
clothing and other commodities by
many persons who during the war
practiced a more or less rigid econ
omy in their personal purchases. &lso.
II must be borne in mind that they
are not only buying at market prices
but are buying in competition with
the export demand. In addition, large
" increased wages and incomes dur
ing the last five years have developed
4 demand for many commodities which
are not Of real necessity. This nat
urally has diverted labor and raw and
manufactured materials from essen
taals 10 lon-essentials, contributing no
small part 10 the trend Of inersasins
sosts.