Imperial Valley press., 1922-02-13

joke to most of the people as the
"wherewith" had been taken from
them. They therefore did spend less
all right; thereupon industrial pro-
duction, already reduced by the defla-
tion process, went down still further.
resulting in still less spending and
less work and more unemployment,
and all this after we had been preach
ed before by the same authorities"
that more production and, harder work
was the only salvation for the coun-
try.
About six months or so ago the eau
thorities" seem to have finally real
lied that things were going from bad
to worse, the longer deflation was
continued, but thev could not vet see
why their kind of deflation was bound
| to be so very much more haltnful
than the preceding initiation.
They then guessed that the reduc-
tion of wages had not gone far en-
ough and that this is now the cause
Of the trouble Considering that times
got worse most rapidly while wages
were being reduced most generally
the argument is not very convincing
certainly not to us farmers; most OF
| 10 uO ticlE OWH WOIh, anu
what we get paid for it as wages,
they are already down on the aver
age to about Is cents an hour, accord
| ing to figures presented in some Of
the Washington hearings. There is
undoubtedly lack Of adjustment in
the relation with each other of wages
in different classes OF employment,
/ but the adjustment Of these could not
bring about any material change in
the situation as whole, as the even
ing up could not all be made in a
downward direction. Besides, we doubt
that this theory Of lower wages being
necessary to create better times, is
correct. Carried to its logical con-
clusion this would mean that times
would be vastly better if all wages
were uniformly adjusted down to 15c
an hour. and the golden age would be
reached when they are put down to
nothing.
1t will of course not take you very
long to figure out that nothing of the
kind would, happen, but that on the
contrary its first effect would be to
make disappear entirely the purchas-
ing power, about the shrinkage of
which all hands have been worrying
so much during late years.
What then can be done and what
| will probably be done? Clearly the
choice lies at this stage between two
evils, deflation or all around eXten-
sion of credit. We believe the Gov
ernment and financial authorities now
have about come to the conclusion.
after all their unsuccessful expert
ments, that they have no other choice
and that of the two evils, credit
expansion is the lesser one. We are
encouraged in this belief by Secretary
of Commerce Hoover's statement be-
fore the Interstate Commerce Com
mission last week that Expansion
means prosperity"
We anticipate that this new change
will be made very quietly and be car
red on circumspectly, without much
being said or preached about it, which
is Just rs well. We would therefore
conclude that prospects are pretty fair
for this change being made gradually
| from now on, in which case times
will soon get decidedly better for
farming, industry and business-untll
seine new trouble develops.
There were 1000 tons of grain and
alfalfa hay received on the Los An
geles tracks the week ending Febru-
ary 4th, with $50 tons held over.
Prevailing prices last week, deliv-
cred in the vicinity of Los Angeles:
No / Dairy Alfalfa-$25.00
Standard Alfalfa-$2OO0.
Prevailing prices last week, fob.
San Francisco:
No. Dairy Alfalfa-$20.00.
Standard Alfalfa-$1S.00.