The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1923-07-31
Widows and Orphans Among
Chief Losers From Unsound
Currency.
E. E. AGGER CITES EXPERIENCE
Spectators Rather Than Inves-
tors and Producers Win From
Currency Depreciation.

experiments. from colonial time
down. doubtless total more than GU
staggering World War appropria
lions. II Is declared by K. Z. Anger
an authority on economies. in tn,
Journal OF the American Bankers As
ISOLATION Cheap money" he says
Ii very costly. since frenzied finance
speculation and business disaster
have invariably followed In the wake
OF unsound currency. He cites his
torical experience showing that Wild
ows and orphans we're among tn,
chief sufferers.
New generations Of adults. like
children. have to learn over and over
again that. when playing with Ore
one runs the risk OF being burned"
Mr.. Agger says. 'Tndulging curren.
cy herssies constitutes such an adult
piayinE-with-fre. A glance over our
own historical experience would dem.
onstrate this to the most ardent easy
money advocate. but such advocates
are usually those to whom history IL
bunk
Soft Money Advocates Seek PROFIT
Unfortunately those who are will
Ing to kindle the kind OF confiaxra-
ton involved In 'soft-money' expert.
mentation are not the only ones hurt
Indeed. they may extort An advxn-
tage for themselves. But the record
IL all too clear concerning the mass
OF people. Heavy losses. injustice,
disorEanized production and numer.
GUS other evils are Inevitable.
"Unsound money projects impose
heavy costs on tho government itself.
The first effect of cheap money is to
raise prices. Mounting prices mean
that, to meet its needs. the govern
ment must appropriate always larger
sums. Again. dallyinE with unsound
money weakens the governments
credit. Prospective bond buyers be-
come hesitant whom currency depre-
citation il threatened. because there IL
danger Of agitation toward the pay
ment of government obligations In tbs
cheaper money rather than in specie.
Any such weakening Of government
credit means lower prices received for
bonds. consequently greater burdens
on the Treasury. Assuming that. in
the end. sound principles triumph. the
indulgences Of the unsound currency
days leave further costs to be met
II paper money has been issued II |
must be redeemed. II . government
be unwilling to stoop to reputation
1t must raise much moro In taxes to
pay for the paper money than It re-
ceived at the time of ISSUE
The total effect Of paper issues In
the cost Of the Civil War 10
estimated at about $500 900. 900. Mr..
Anger says. continuing:
Much moro serious than the costs
'f unsound currency to the govern.
nent are the heavy direct and indi
-ect costs imposed upon the people
Dur productive system II controlled
through prices, and the upset OF prices,
;aused by q depreciating currency. in.
erferes with the proper harmonizlng
" the different lines Of production.
Price changes are not instantsneously
" uniformly effected throughout the
whole system. The result of an In
Il speculation and ever-investment in
ome lines. with inadequate develop
nent In ether lines. The period OF
peculation seems . period Of prosper.
ty. but how false and unsound is such
10 disclosed In the stress
nd agony Of the inevitable period OF
LIQUIDATION which. Nemesis-like. fol-
ows on the heels Of the boom"
Wealth Unfairly Rs-dlstrlbuted
Mr.. Agger then describes "the dis
ressing effects Of an unsound money
n the distribution OF wealth among
lasses and individuals. Cheapenlngl
money through iRhationary expedi.
nts is . gigantic fraud upon the cred
.or classes ~ against debtors. All
hose dependent on hxed incomes. or
sceiving specified sums in terms Of
ioney. are penAlixed when the pur-
hasinx power Of money Is depressed.
, like manner the stakeholder profits
the expense OF the bondholder-a ,
vet which implies . reward to the /
ore speculatively inclined at the ex.
snse OF the conservative.
Advancing prices cause discomfort
I'D give rise to agitation and unrest Z
nong those whose incomes cannot
-omptly be adjusted to meet higher
wing costs. Strikes are fomented
I'd production is curtsilcd. Every. /
,dy shares in these burdens. Lack !
stability In money also undermines
Id weskens habits Of thrift. A cor. I
sion OF the moral integrity OF the {
'ople 10 inevitable. Dishonesty IA
Imulated and . desire TO gain BY Q
rather than 10 earn a live. o
>~x ~ ornturfkvs spd ussful Il hnx | a