The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-02-05
IS DEFLATToN CoMTNG2

Judging from recent developments the world of finance
progress being made toward deaon OF values We
witnessing declining markets. and indications that
OF the chief therefor that money which for several
years has been the cheapest thing the world has last Joined
the syward procession OF labor commodities and other neces
ties say nothing of Injuries Unless absolute
upset of all laws of supply and demand with the rise in the cost
Of money conversely will decrease in the cost OF most
things which buys How far this is likely extend is be
yond the guess OF any person who for his reputation
prophet tor are living in period where the abnormal holds
sway.
To large part OF the population of the United States those
who have felt the grind and burden OF high prices thar
any other clasthose who sarehe outlook to
the least bit encouraging. 1t safe assumption that
relief high living will follow the elevation of
and consequent punctung OF of the value initiation than
from any other direction Those who have pinned their hopes
governmental regulation of prices only to them in
ay every instance go higher than ever thereby esenng faith
in such CONTROL revive them unless of the wise
students OF economics wrong
Attention to money conditions has been accentuaed by the
average and since Federal Reserve banks short
time ago raised their Of discount thereby forcing response
throughout the channels of finance The steadily declining rates
measured the dollar have also caused notice and degree
Of thinking There has already been considerable progress
squeezing out value largely speculative much OF based the
expectancy of selling the various products Europe While
prices have shown the full OF this
sonabe to conclude that much OF the effect has been in checking
the rising tendency, which is quite important 1t would be
unwecome state OF affairs widespread and sudden crash
in values.
Although foreign moneys for many weeks have been working
lower mainly due the OF Euope mportaons her
exports the past few days have conditions described
moralized The English pound sterling normal times worth
about $3.50 money has been quoted low $50 for
demand depreciation OF about "a per The French franc
this week dropped proportonaey as low while the German mark
for time has been threatening disappear altogether hay
ing been quoted just shade better than money
compared with normal Of about "a Interest in quotations for
foreign exchange has become widespread being closely
connected with business that hear almost every
person meets discussing them whereas formerly only the
banker or exporter knew anything about them,
Here in the South the most direct connection between the
effect higher money and deprecated foreign exchange through
the cotton and lumber markets The idea that Europe such
need OF these products that she would be compelled buy them
without limit and whatever has already had rude shock
and ii signs are not misleading there will be wisdom in getting
ready for OF them
Coming as does just before the farmer is getting
ready to plant his crop this jolt may help prevent
planting The farmer in the South this spring will
that there departure from raising ample and feed
crops, and will not depend cotton ii dcation
should set in there will hardly be for the staple escape
its share.