Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-11-07
DE FL A TITO n.

A deflaton of the currency is as difficult of at
tanment as the curtailment of over-eXpended fam
lily expenses Some member of the family objects
to cutting off the particular item under discussion
Father refuses give up his cigars; mother her
afternoon teas sister her pretty toys; brother ms
picture shows"
Our currency has been over-eXpanded. With
rediscouns with the Reserve Banks, federal bonds,
etc, money has become cheap; that is, it takes
more of it to buy sack of flour, suit of clothes
etc.
To get prices down. money must be made dear
err. But to make it dearer there must be less OF It,
However all of the money outstanding is now IN
USE Therefore to have less Of it, some one now
using it must without.
But for the wool-raser to go without means that
he sell his wool for what it will bring in order
to pay his note. He naturally, and perhaps rightly
objects He wants defation to begin somewhere
else So with the cotton grower and the wheat
grower and the hde-raiser. All would borrow money
to hold their product until it will bring satisfac-
tory price.
1t goes without the saying that it is necessary for
INC producer to be protected in reasonable profit
or these men will go of business and then prices
will become high through under production. But
just now talking about who~wants to debate
his business.
The merchant wants to borrow money to hold
the surplus goods his shelf until he can force
the needy public to buy them at reasonable profit
He feels that should not be forced to throw them
on market for what they will bring in order that
he may pay his note.
The laborer wants prices down all right but he
does not want the price of what he is helping make
to drop to point where a shutdown of the factory
or a cut in wages will be necessary.
1t occurs to the reader at that it is the pro-
fiteer who should have his loans "called" thereby
forcing him to let We agree that this must be
if holding stocks to force eXorbitant prices out
of the public is to stop But look: The reserve
bank had the loans of sugar profteers called These
profit-hogs let go Immediately and sugar is going
down because they had sell it to pay their notes.
But as result the republic of Cuba has been forced
to declare a moratorium to prevent every sugar
planter the island from going broke" because
of the slump in the price of raw
Loans were called middle who were
wool-hoarders. Throwing of their wool on the
market loans broke the price of raw wool in New
Mexico and Arizona.
''What goes up must come down" is true enough,
Most things go up with difficulty and down by
gravity. But prices rise with ease in times of eX-
pansion. Getting them back down without running
everybody is difficult.
They talk of orderly mark citing" of the stocks
hand. But that is not so easily done as said. A
million pounds of wool is offered reduced price,
AT all wool of like quality comes to that price.
IL all the wool in the hands of one firm who
could sell gradually, controlling the amount sold the
price might be brought down gradually by Orderly
marketing" but under present system there are
difficulties
Meanwhile the Federal Reserve Board is beset on
every hand to withdraw the restrictions re-dis"
counts in order aid in holding stocks to prevent
big slump. Yet they must force some liquidation in
order to bring down the prices. How to BRING
prices down gradually would tax the skill of a
Solomon.
Being a member of the Federal Reserve Board
or even an ordinary banker these days, lacks much
of being the comfortable and pleasant berth most OF
us imagine it.
Their daily prayer should be for wisdom. Much
depends them.