El Paso herald. (El Paso, Tex.) 1901-1931, 1920-04-20
THRIFT NEEDED
IN j. s. CRISIS

teers. Signs Of economy and thrift
are beginning. however. TO appear.
Economy First Step
Broadly speaking il is felt here
that the peak in high prices has been
reached and that the tendency OF the
average American TO refuse paying
the prices being asked OF him is the
first and necessary step in the men
tai process that makes economy. Any
one who buys a suit OF clothes. a
pair OF shoes. or any other item Of
apparel. or builds a house. or motors
a single mile that is not absolutely
necessary does that much to keep up
the high cost OF living. That's one
principle which is being emphasized
Every state, city or town that Is
sues bonds for a single Improvement
that is not essential simply adds that
much more weight 10 the credit sys-
tenn Of the country. So long as Amer
lea consumes in money more than is
produced, so long as America IS buy
Ing less from Europe than she is SELL
ing, and foreign exchange is thereby
derluged, so long as foreign trade Is
confused by uncertainty over the Do-
liticl situation in Europe. so long
as France waits on America or de-
ponds upon payments OF German repa-
ration or the rest Of Europe CANDLES
on Russia's recovery. 50 long as
America is unable 10 trade with Ger
many because OF the absence Of a
treaty OF peace. there viii remain
factors Of destruction OF Construction.
That's another fundamental principle
which one encounters in studying the
viewpoint Of government officials.
Delay in Peace Costly.
Entirely apart from the blame that
attaches TO the president or the sen
ate for the failure OF the United
20
Germany. there is a distinct feeling
that the world would have gone for
ward by a good many stages in the
economic circle II peace had been es-
tahlished a year ago.
Incidentally. officials still look
at France and wonder how
long the French politicians will wait
before taking courageously in hand
the tax problem and raising money
by taxation instead OF loans Com
mendation for the British fiscal sys-
tenn in taxing to the utmost Is heard
again and again. for the universal
sentiment seems to be that nations
must find the economic salvation in
their own efforts and greater produc-
ton rather than in continued borrow
ing OF in leaning on other countries
Optimism creeps out as officials
survey the prospect OF better crops
throughout the world. Europe Is eN-
pected 20 reap a more successful har-
vest from this years planting IL
should help raise the spirits as vel
as the credit OF European countries
But rs for the United States,
there f. one tin which may de-
veIop into n nationwide movement
10 public sentiment gets behind
IL and sees its true value-it'E the
tip TO buy government securities
ut the present low levels
The idea seems 10 be that II enough
people in the country suddenly de-
cided TO get along without Injuries
and invested their savings in govern
ment securities. the prices OF those
securities would promptly rise and 20
high. while the cost OF commodities
held at fictitious values by proflteers
or by artificial demand would begin
to drop
As long as America IS thrifty and
begins to do without things. prices
will tumble The government bids
the public think little less OF gov
eminent economy and more OF indl-
vidual thrift and the two together
nav help the nation breath the
treacherous tides OF reconstruction
days-(Copyright. 1890. By David
Lawrence)-