New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-07-05
High Prices Laid TO War
Financing, Not Prot1teers
increase In Currency, in the Case of Russia.
.auses depreciation of Monetary Values, Ac.
cordng to Lord d'Aberon of England

LONDON. June Is {By MALTA bit
Ter cutlery against high prices is raised
oy aN-eNcept, perhaps, a few prof
teers-and the cry is heard. not in one
country alone, but in every civilized
part of the worlo. High prices are a
universal nightmare.
r LORD D'Abernon, president OF the
sound Currency Association who has
made special study of the present
crisis, is one of the great financial au-
'horltles who are convinced that the
root evil Is the dangerous extent to
winch the worlds paper currency has
oeen-and IS still being diluted. or. in
other words, to tkc excessive issue Of
pape, money. Lord D'Abernon-bet-
ter known to some. perhaps, as Sir Ed
gar Vincent. the title he bore prior to
ms elevation to the peerage-has re-
cehoiE made several important
speeches. on the subject in the House
OF Lords, emphasizing the information
al nature of the evil and pointing out
the remedy. at is q pity people do
TOT devote more attention to the ques-
non OF currency and understand it
better, said Lord D'Abernon to rep
resentative of The Tribune.
Result of War Financing
If proper attention were given to
the subject it would be realized that
the prevailing high prices are the nee
essary and inevitable consequence of
financial and currency action taken
during the war, and will last precisely
as long as the causes are uncorrected
hlgh prices Go not so much follow
from war itself AZ from war and post
war finance as 1t has been conducted
py bei!lgerents, more especially Euro
pean belligerents. High prices do not
suit Of mans action. The result the
world is now suffering from is precise
" If accordance with theory and ex
recitation.
Il see that some writer's attribute
the fall of the French exchange and
the Italian exchange-the franc and
the llra-to English or American &C
ton. 1t is nothing of the kind. 1t is
the direct result of the fact that in
0olh these countries currency issues
have increased 10 an enormous extent
since the armistice and are sti'l in.
creasing.
In this country the Increase has
been small Our own exchange would
have been as bad had we watered our
currency as extensively as have France
and Italy. As it IS, our exchange is
better. our level of prices lower. for it
IS quite incorrect TO suppose that
prices nave risen equally IN all Coun-
tries
Russia Currency History
But the really instructive currency
hla DRY IS that of Russia Lord D'Aber-
lcn added. Before the revolution.
ruble notes were turned out from the
printing press al the rate of 100000
$4,000 an hour. day and night.
Since the revolution the Lenine gov
eminent has deliberately debauched
the currency with a view to destroying
the old social order.
"Lenine has done deliberately and
Of set purpose what other governme IS
appear to be doing unwillingly and in
lgrorance
"One word respecting various al
legged causes Of high prices on which
some writer's and speakers lay great
stress. while overlooking the effect Of
diluted currency.
"Diminution Of production is a rela -
lively unimportant factor compared
with currency dilution Statistics show
that the diminution of agricultural and
commercial production during the war
was much less than might have been
anticip ated. In spite OF the vast di-
version Of labor 20 the ranks Of de-
structlon and military production, in