East Oregonian : E.O. (Pendleton, OR) 1888-current, 1919-08-23
NOTHING WRONG WITH
DOLLAR BANKERS say
Prof. Irving Fishers Con-
tention Gets Rise Out of
Financiers in Chicago.

Chicago financiers do not agree with
Prof. Irving Fisher OF the department
of economics of Yale university that
the American dollar "is the real cul-
prit' in the present II. G. l.. situation.
in which the country finds itself fol-
flowing the war. Prof. Fishers state
ments and arguments for changing
our present monetary system and
currency basis as a means of adjust
ing our present economic condition are
considered theoretical and academic
by financiers and bankers in general.
according to the statements OF sever
al of them today.
The American dollar is still able TO
hold its place and its full face value
on the money markets of the world,
in spite of the fact that the British
pound. the French franc, the Russian
ruble. the German mark and the mon
ey of practically every other nation
has deprecated to an unprecedented
degree.
Absorb War Debts. Suggestion.
Bankers do not look with favor
on theories for changing our finan-
cial system or of making a dollar OF
fluetuating value from day to day as
has been suggested by Prof. Fisher"
said Il. ID. Hulburt president of the
Merchants Loan and Trust company
Some one is likely to be hurt. The
best and quickest way to get back to
the prewar values of the dollar, to my
mind. is. for the public to absorb the
billions of dollars of the governments
war debts. This is an initiation be-
cause it represents losse and property
detroyed which must be reprodced
again. Shortening of working hours
and loss of production are also reduc-
ing the purchasing power OF the dol
lar
"As I see It," said John Mitchell,
president of the Illinois Trust && Saw
/ ings bank. '-the terrible losses of prop-
erty and of production during the war
and the present demands that are
greater than the supply, are respon-
sible for conditions. When produc-
ton gets up to normal, the deprecia-
tion of the dollar will have Disappear
| ed. IT isn't a source of alarm to me
now much the workingman is paid,
but II is serious If we lower our Pro-
| duction and still demand high wages.
| This situation can't continue. hive
| must all practice economies until pro-
duction of materials from the ground
| and our factories has caught up with
demand"
Economy Is Needed.
'If we can get people to economic
and also to take up The governments
war obligations, then we can curtail
the expansion and initiation that exists
today" said Frank o. Wetmore, pres
ident of the First National hank. THE
biggest part of the federal reserve
notes are based on government Sc
curity under obligation of member
banks. If you can get the war obli-
cations into investors hands, you
automatically contract the circulation
Issued by the federal reserve banks.
There is always certain to be an
lextreme swing of the financial pende-
lum after a great war. 1t may swing
back to a low level again before it
strikes a center on the question of wa-
| ges and prices. Nothing will readjust
the value of a dollar so quickly as
economy on the part of all of us. Shop
carefully to get the fullest value for
the dollar, and help take up the float
ing debts of our county,"