Arizona republican., 1921-04-28
Prices and the Dollar

Prices were not higher in consequence or the war. Only money cheaper-it was the only cheap thing there and it cheaper than it ever before within the memory of people then and living. We called attention to this distinc- ton the time and explained why was so chesp-there was so much it in consequence of apparently unavoidable imitation. Always when there is surplus unusual volume of any commodity the price of it is low. That is true of corn. wheat, cotton. wool every thing
 If only one a few commodities had been high priced we would attributed that to extraor- dinary demand. But everything high priced-in terms of money and there unusual demand
 The dollar was hammered down rapidly until it was worth only fifty and later got low as thirty-two cents But all this time the general re- lztion of commodities to another maintained xcs kept complaining that prices commodities high That unreasonable the complaint of the lone juryman who held out against the other eleven that they the most obstinate he had met
 Money is worth more now. thanks to process begun year ago called deflation the exact reverse of nflation The banks under the direction of the federal reserve made money harder to get Though there much of it in the country as there was before. it made less available. So the 32-cent dollar began appreciate though not quite rapid iy as it had depreciated. Then said that prices coming down. when matter of fact money was going up. If you have sat in of standing train in trainshed while a train on an adjacent track moving past, you will understand the Illusion which feebly trying to describe
 This natural course of call adjustment. As 10 prices commodities the adjustment is auto- mafic But to generally and railroad rates it must be aided if forced. If it is long in being effected it will forced the earlier it is done the will the whole operation of adjust ment be completed and the of the dollar will again be par.
 is distance short of that now, but it has become worth considerably than fifty cents, perhaps than seventy Live cents As to some commodities which unusually affected by other circumstances during and after the period. it is apparently par For instance when the dollar at its lowest ebb about thirty cents. could buy only little than three pounds of sugar for a dollar Now can buy ten pounds or three times as much That is true of some other commodities rice. potatoes etc. But true of nearly all but perhaps we buy twice much of almost any thing as we could bought year years ago for dollar
 When wages and railroad rates have been ad- 3usted to the new the dollar then dollar can resume its upward progress toward 100 and we will all be better off.
 But we that there should be could be a general indscriminate> reduction of wages be- rause there was not such increage wages These increases caused by demand applied only tc urgently needed labor. The white collar boys did not share in them any extent, often not at all- clerks book-keepers. government and public em- p,oves generally salaried people, They shared witf an workers the thirty-cent dollar only they did .,-s,are and share alike" They felt the full .re high cost. oflivng without the shock absorbr relief of-nore of depreciated dollars They can ,o, ha suv made whole until dollars the are now receiving have fully appreciated.