South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-05-23
DOWNWARD TREND
MAY BE TO STAY
Believed the Federal Reserve
Banks Will Solve High Cost
of Living Problem.
By JOHN =. CARSON.
cal ~ The News Times

Npeffal - I1e News Times
WASHINGTON. May 22.-Prices
and the high cost of living are on the
downward trend. probably not TO be
halted In their orderly course until
a point OF stability or Of some per
manency Is reached
This Is the opinion Of expert nm
anciers and economists in and out Of
congress. That the peak Of the
period OF imitation has been passed
and that the nation is now 90 OK
perience a period Of orderly defa-
zion. Is the belief Of many students
OF economies.
The call made upon the federal
reserve banks by Gov. Harding. OF
the federal reserve board, for the
curtailment Of credits except for es-
sential production and the gospel
preached by the governor and now
being spread broad cast over the ma
ton By officers Of the reserve banks
that the financial situation calls for
sacrifices akin TO those Of war time
and for increased production, in
creased savings and lessened waste
and consumption II having "A whole
some effect.
10 IS predicted that there will now
be Iess speculation in the various
markets. and that money held by
spectators will be turned into the
channels OF commerce 70 relieve in
part the strain upon the financial
situation. To relieve this strain and
provide for the production and
movement OF crops is the problem
OF the banks, and finally the prob
lem OF the public, for through in
creased production and the practice
of proper economy, the public can
solve the difficulties
IL IS in such a period as this that
the value OF the federal reserve sys-
TEN is shown. Through this system
ft is possible TO keep a firm control
OF the financial situation and apply
the necessary remedies in time TO
avert anything in the nature OF a
panic. Through the orderly process
OF defiation, as is predicted will re-
suit If the public and the banks CO.
operate with the federal reserve sys-
tenn, the least possible injury will be
done TO anyone. That the public and
the banks are cooperating and will
continue 10 do so in the plan for
greater production and saving al
ready is shown.
Before the federal reserve system
was established under the first Will
son administration, such a situation
would have brought on a panic. with
heavy disaster. No close cneck then
was possible on the financial situa-
ton. Imitation existed and prices
mounted until they toppled OF their
own force. This financial system.
controlled by Wall st. and operated
for the profit of a few men con
tinued through many years during
which promises OF REFORM were made
but never kept Even now. in con
gress. there are hints OF going back
10 the old conditions. for through
one investigation and another and
one charge and then another, the
way has been paved i'm the house
and senate for a demand for revision
OF the federal reserve system and for
return 20 old conditions. In fact
Just at this period, those who bene-
fited through the old conditions, and
benefited at the expense Of the poor
and middle classes. the working men
are chagrined because the fedora
reserve system. makes a stable fSca
system possible and prevents the
control OF the money market and
the credit OF the country by a few
men.