The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-10-20
For Years Come the Problem of Sterilization Of Money
Will Confront the Statesmen, Economists and Business
Mcn--The First Step Is to Stop Initiation

Uuu tho siaulIlotIon ~ money
o. brought about ihcr, Will continue
20 Uu urIINdl.ll stages ut initiation
ana depression. 600 Prof Irving
Fisher of h1io university, tol1 the
southwestern business congress ON
Thursday
Ilo believes that tho dollar 81 put
uu 20 HIhlc UuHis. 300 this country
aud with au exchange system abroad
.tuui .s UNIFORM That economic ,uu-
duuua throughout the world VIII
.hr.umr tUttlod.
Professor Fisher. speaking on 'tu-
stable Money and Prosperity huld
iu part as follows.
\ sew SIGHT for world
'Tbo present generation l1 wilt
messing inu most t.uuruduuH ilur.
tuu'tuUH iu the puI.uaHIUE power
Of money lu thr wuIln history ut
this louE.auitarlug world. Srvpl
before have such .lu.iuIipuH been
fp wide. 80 uulyCratl sp diverse. ur
tI long continued For HlItH 20
come tho problems N the instability
uf money viii continue 10 engage
the attention of ocouumla,s, huh
ness men, uui statesmen We tHlll
need tu study lts relation Go inter
national exchanges, To international
trade, to international Indobtvduosr
and repuIailous. as wei as tu tho
efual finance aud politics Of each
country and the private fortunes Of
It's Citi2cus Tho need ot our time
s. stubilizHtiou.
The French had saying that after
the paper money printing press
comes the gulllotino. Tho FIRST sep
IN solving the money problem Is 90
stop Initiation, whore initiation IN SIM
going on. az In Germany. AustriD,
Poland, and RussiU. But no govern
ment will stop initiation until II can
balance its budget, ana 10 often APP
pears that 70 cannot hulHucC It's
budget until II can reduce the burden
OF miltarlsm, ana 70 cannot reduce
the burden OF militariHm untll there
are international guarantees oi
keeping peace. and there can be, in
my opinion. no adequate internu-
tiunal guarantees OF Keeping the
peace except through the league Cor
"a lcaguc) ~ nations. Thus tho
problem of the league " n1tionH.
primarily political. is linked with tho
problem OF monetary stability pri-
marlly economic.
But the mere stopping OF infln-
tion Is only part Of the problem
OF monetary stability, We must stop
detlation as wen. These two, lnflu-
ton end dcflatlon, are twin evils and
not, as many unthinkingly assume.
sntidotes one OF tho other.
Injustice of Dcflnton.
Deflatiun was wanted TO do Jus
tlce to prc-war creditors, and doubt
less II did 50 20 tho few pro-War
creditors still surviving. Ru. It Gid
injustice to tho much larger num-
Der Of war and postwar debtors
We certainly have no right 10 choose
rt "a ma "a la. IL "a "A
hurt the many We must recognize
the fact that every disturbance ot our
standard makes Il impossible 10 do
Justice TO everybody,
what wo now need II rise in
prices, But an initiation which would
bring us back to the 1929 price level
OF 2i3. or oven TO tho 100 at which
we ought to hnve stopped on the
way down, would produce a prCpun-
derate injustice TO creditors. Justice
requires return to perhaps about
175, which level when attained
should he retained. Certainly to go
farther toward pre-war levels would
greatly impcril tho cause OF Justice
and prosperity.
For England much the snmo ar
gument holds, as Reginald Mckcnua,
formerly chancellor OF tho British
eNchequcr and now chairman OF the
lhl NtNA bhllh III Al' WNlluf nus tllu q
A Prominent British View.
I'VE have recently learned Of the
evil consequences OF deflation in the
school Of experience and this policy
has for the time being fullcn into
disrepute. but unfortunately the
lesson has had the effect OF turning
n considerable body OF opinion back
in favor OF initiation, and we seem
tnow TO have In prospect tho regular
alienation between the two policies,
each to be adopted I'm turn Gs a
remedy for tho other
The truth is OF course, that both
are bad. what is needed g. stnhllity,
the point from which both alike pro-
Ceed In opposite directions. when we
have stability OF prices, we nave q
basis upon which trade can be car
ried ON with confidence. Manutlc-
turors. merchants, and retailers are
then able TO make their contracts
with reasonable assurance that the
debts created under the contract
viii be paid when due IN n currency
Ot the same purchasing value rs II
rad when the obligations were as
sumed."