The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1920-04-30
BANKERS, EDU CA 0 Rs
AND ECONOM |STS TELL
OF THE H. {. |. CAUSES
AND SUGGEST A nlImtuY

New York, April 3O.-Bankers, edu.
Gators and economists Of the United
States and Europe, discussed the facts
and causes OF initiation and high
prices and their remedies, at the
semiannual meeting of the Academy
OF Political Science, which opened
here today.
DR.. Il. NJ. Anderson, Jr,, Of tho
national bank Of commerce in New
York, speaking ut the forenoon ses.
sion declared that the shortage of
goods and the attendant speculation,
Is the prime cause of present high
prices in this country.
when our enormous export bal
ance disappears and when our do.
nestle markets are called upon to
absorb three or four hundred mil
lion dollars worth Of goods per month
which they have not been absorbing,
we shall see lower prices" he de.
clared.
The speaker said that increased
production had been expected when
the 100000 men withdrawn from in
dustry for the army AND navy. re.
| turned, but that it had not come.
In 1873 we produced less by at
least 10 per cent, in physical units,
| than in 1911" he said Coupled with
this decreased production, due to the
prolonged strain on our industrial
| system. came q great increase in our
! export balance of trade and a great
! increase in demand Of consumption
as our president relaxed wartime
economy and swung to the other eX
trcme The next result is greater
shortages Of goods than at the end
Of the war"
DR.. Anderson declared bank eS
pansion has been more passive re-
suit than an active cause Of the ris
ing prices"
! Edwin kemmerer, professor Of econ
omies and finance, Princeton univers
ity, after reviewing the two groups
Of causes for imitation the country has
experienced, which he classified as
"non-war causes and war causes,
said:
I'VE won our independence nearly
century and half ago in Il war
financed predominately by paper mon
ey initiation; we maintained the unior
a half century ago by a war financed
extensively by paper money inilation'
we have just preserved our poltica
Inheritance by war financed in the
United states, largely by deposit cur
rency initiation, and yet we nearly al
condemn initiation as n most ineGuit
able method OF financing 4 war.
"The great difficulty has been
and. / fear, win continue to be, tina
Of nananclnr war by initiation. will
all its injustice and with Its nHces
sary aftermath Of economic and so
cial problems, is none the less boti
politically and economically, durinl
the war itself, the line Of least re
sistance."
Two mistaken policies in American
war financing are responsible for in
fation, according to DR.. Jacob II
Hollander professor Of political econ
omy, John Hopkins university.
"The first" he said consisted II
issuing bonds at artifcially low in
terest rates, with the aid of cheal
borrowing facilities at the fedora
reserve banks. so that bond buyer
found It easier to obtain annua
credit from the banks to pay thei
bonds rather than use their saving
near such bank deposits as they a
ready had.
The second and more importan
way in which the treasury contribu'
cd to Initiation was by continue
adherence, oven after the armistice
to its war time practice Of borrow
ing from the banks by means Of Ger
tihcates OF Indebtedness.
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