The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-09-27
Taking Out the Wind.

Economy is the most futile subject
that can be discussed. Notwith-
standing Its uselessness 1t has been
much discussed during the recent
months.
II was directed to elements, neither
II which was affected by II. Those
who were living on as little as pos
sible. because they had to do so to
make what they had go around,
needed no dissertation on how 10
make hash from warmed over round
steak. Those who were making more
Than they ever did before paid no at
ention to II because they had the
money to spend. No amount of good
,r well-lntentioned advice could mrn
them from the enjoyment OF their
lew- found affluence.
The trouble with most OF the advice
on economy Is that IL has been p1r-
sonal. 1t has been directed at the
Individual and in many Instances has
been for the purpose of preiudicing
MIN against the merchant with whom
he spent his money. The effect was
to create an impression that the
spender was not getting his moneys
worth without actually curtalling eN-
penditures.
What this country needs more than
economy on the part of the individual
I. Is economy on the part of the gov
ernment II the government will set
Ahe pace there can he retrenChment
on all sides without affecting bust
ness or trade.
The high percentage of taxes re-
quired for maintaining the govern
ment in extravaganza has had the
effect OF discouraginC the individual
from saving. What II he saves The
government gets IL. What II he
spends? He gets some pleasure out
OF II.
The government should cut down
its expenditures, The government
should be required to operate on a
basis of actual and necessary cost
We have started on a big naval pro
gram other nations are doing the
same thing. Japan says owing 10
her isolation she ought not to be
required to observe the suggestion Of
reduction in armament Further
more she isn't going to observe ~.
league or no league. We douht II
any Of the other member nations do
30. We have not heard of any, and
there are 80 members
The equilibrium of state budgets
should be restored The state, county
and nation should get away from thu
employment OF loans to meet ordi-
nary current requirements,
There is no excuse for an artin-
cially low bank rate. out OF COnfor-
nifty with the real scarcity OF CAPT.
tai and made possible only by tho
creation of new currency.
The first thing to do to guarantee
the recovery of the worlds economic
life is to stop the process Of infla-
ton. As long as initiation is per
mltted to go on deterioration In the
monetary standard will go on and
there can be no hope for reconstruc-
ton.
AT the international financial cor o.
ference at Brussels Prof. Gustav
-asseI. of Stockholm, discussing the
subject. said;
every country should decide at
the earliest possible date what
amount of deflation 1t thinks proper
and possible to attain, or perhaps in
the worst cases, what limit IL thinks
Ii can set to further initiation. And
the policy thus determined should be
made public in order that the people
should know what they lave TO
reckon with.
at Is often believed that the re
coyery of trade which Is now so ur-
gently needed could best be furthered
by the establishment of an interna-
tional standard Of money. This Is
obviously. a mistake; for II every
country should retain its own cur
rency, the international money could
only fill the function Of an inter-
nnediary link In international pay
ments. But there is no need what
sver of such a link. As long az tho
International value OF a currency
continued to fluctuate, the exchange
between this currency and the inter
nationai standard would fluctuate
90. and the introduction OF this
standard would not have brought us
bit nearer the stability Of ex-
shangea but orly created a new and
Unnecessary complication.
IF We anaiyze the different