Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-05-09
HIGH PRICES DUE TO
MONEY INITIATION
Lord d'Abernon Sees No Per-
manent Relief Through
Increased Production.
CURRENCY Is WATERED
Settled Status Will Only Come
From Disposing of Finan-
cial Problems.
CURRENCY IS WAT Erred
ny LORD D'ABERNoN.

LONDON. May 8.-No large and
permanent relief from high prices is
10 DC anticipated from any probable
this undoubtedly Is.
Taking prices as whole. II is
doubtful whether pronteering has
added as per cent TO their level. and 1t
Is doubtful whether control OF prices
ence in the cost OF living.
Large and permanent relief can
come only from n wise settlement of
me me currency S question. The prevail
eng eng ss nngm prices are the necessary
rency action taken during the war.
and Will last precisely as long as the
causes are uncorrectcd.
In each country prices have risen
put into the Individual currency.
What is usually called initiation
amounts in effect to diluting or wa
tering the currency-with the neces-
sa!y result that each unit of cur
rency. each coin. represents less than
IL did before. bradbury" is ratiar
worse than half and half: a Lcnin
note is about forty parts water to
one OF the old currency.
Money Fall the Root.
The cardinal fact Is that it is not
which have risen in price as it is
the value OF the money which has
iailen. Diminution of production is
a relatively unimportant factor COM
pared with currency dilution.
Compared with other European
belligercnts. England has been fairly
wise and moderate In this process of
watering the currency. We taxed
more; We borrowed more; we printed
less. The result is that, compared
with France and Italy. our level Of
prices is lower and our exchange is
better. Compared with Germany.
Austria and Russia. our currency po-
sit!oE is incomparably superior.
Before considering plans for bet
ter system. IL is essential to get rid
Of many heresies and illusions. The
principal illusions on the subject
That prices will fall in natural
course to their old level as soon as
production Is restored to Its old
level.
That prices viii fall to their old
level ns soon as the floating debt
is consolidated.
Exchange VIII Return.
That exchange Will return to the
old PARTIES as soon as free com
production in. each country has re-
gained Its normal proportions.
That the general level OF prices
and the cost, Of living will fan to
are normal.
That accumulation OF gold In
the Bank of England or the Bank
OF France will restore the old pari-
ties of exchange.
No effective and permanent remedy
for present ills can by any possibll-
lily be found either in tho separate or
combined action OF the above men
toned factors in the absence OF spe-
cifc and energetic action with re-
gard to the currency Of individual
countries and with regard to world
currency.
The paper currency Of the world,
having been increased siS-fold dur
ing and since the war. and having
Increased indefinitely more in some
countries than in others. has v!o-
lently disturbed prices. exchange and
cost OF living.
For some unexplained reason, the
governments OF the world appear un-
willing to meet in conference on the
subject, or even to have IL examined
within their own borders with the
publicity. impartiality and authority
required.
They are inclined to take refuge
In false diagnosis and In the en-
pirical treatment of symptoms, in
stead of recognizing that one factor
is dominant-namely currency-and
that in the reform and control Of
that factor lies the only remedy.