Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1920-04-30
| lE|l'|F'LIAl|ITnlON' \ ] | ! / ! !. And
HIGH PRICES
] ARE. I. DISCUSSED
Bankers, Educators and Eco
r,ornists Meeting in New
York Today. s,

!NSW IOIh, 'ApTu .sO.>-1nS NeHIIEy
world must tighten its belt. il there
isrto be enough for all, and that belt
Is a strict control Of bank credit
without which the world will con-
tinue to gorge itself and initiate, de-
clared Paul M-Warburg, banker, dis
cusstng initiation, its causes and rem
edies, before the acadanhy Of political
science here today. st,
Summing up what, he termed prac-
'titioners<adyice in the case, he said:
First, we must fight imitation
with all the means at our disposal:
by arrestingr the. further increase Of
government indebtedness, and If pos
halt in further bank credit and note
issue expansion. We would thereby
destroy the atmosphere Of easy mon
ey and paper prosperity that makes
for individual and corporate eKtrava-
gance- and fosters discomfort among
the masses. rendering them dtsin-r
clined to give their full measure of
work. This includes the most ditR-
cult task Of curbing the production
Of unessentials and sof stimulating
the production of essentials.
And finally, we, ,Ahust fight rising
prices by stimulating essential pro-
,Guction, both here and abroad,
which means that we must farnish
Europe with the materials required
in order to rehabilitate her indus
tries. so that once more she may
this involves the granting of further
credits it should be our detefnined
purpose to provide them from our
iisavings II we are incapable or too
irresponsible to accomplish this, we
must submit to paying for the un-
saved balance by initiation. That
would prove. as we have seen. a
native, but 1t Is easier for us to beak
the sacrifice than for Europe"
New York, April s0.-Bankers. ed
ucators and economists of the United
States and Europe discussed the
facts and causes of initiation and high
prices and their remedies. at the
semi-annual neeting of the academy
ltof political sctance which opened
There today.
~ DR.. B. NJ. Anderson Jr. of the
!. National Bank lof Commerce in New
/ York speaking at the forenoon ses-
i sion, declared that the shortage Of
\ goods and the attendant speculation
is the prime cause Of present high
Fprices in this country.
\ May See Lower Prices.
! when our enormous export bal
lance DISAPPEARS and when our do
absorb three or four hundred million
I d04lars worth of goods per month,
II (which taey have net been absorbing,
gsEsshsAsA ~ see loves prices" he de-
The speaker said that increased
production had been expected when
the five million men Withdrawn
from industry for the army and navy
returned, but that It had dlnot come.
least 10 per cent in physical units
than in 1919 he said.
Edwin Kemmerer, professor Of
/ economics and finance. Princeton
\ university. after reviewing the two
J, groups OF causes for initiation the
country has experienced, which he
classified fas '.non-war causes" and
t."war causes he said:
i We won. our independence nearly
a century. and a half ago in a war.
Financed 1predominantly by paper
money initiation. We1maintained the
union 9 half century ago by war
financed extensively by paper money
initiation, WE have just preserved sour
political inheritance by a war fin
anced in the United States largely by
deposit currency initiation and vet
we nearly all condemn initiation as a
most inequitable' method of financ-
Hng war. H,e.
The Least Resi4anoc. /
"The great dinicufty has been and,
1 fear, wtll continue ito be, that fin
ancing q war by initiation, with all
its injustice and with its necessar ~
aftermath of economic and social
problems, is none the less both po-
litically and economically, during the
war ITSELF. the line Of least resis-
!. tance." -
Two mistaken policies in Ameri-
can war financing are responsible
for .infiation,' according to DR.. ia
] c0h.s ,Hollander. professor of po-
litical eSonomy JOINS Hopkins uni
i verSity. ]. ~.
4 ..The first he said, consisted in
issuing bonds at artificiAllyl low in
terest rates with. the aid OF cheap
borrowing cilities at the federal re-
:The second ana more important
q way in which the treasury contri-
buted to initiation was by continued
4 adherence, even after the armistice
toI It's wartime practices Of borrowing
) from thehbanks By means Of certi-
ficates Of 'ndebtednen.'1 - s.s.
JUDGE TAKES NO
ACTION TO STOP
I !, VIFE'S NAGGINC
:, ~ .. 4. 49, s ~