New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1923-06-08
BANKERS DISCUSS
dance OF DOLLAR
"HOW Can We Conserve Prosper.
ity" They Ask Each Other

New York, June s-Pessihle means
Of stahilisins monetary, credit and
price conditions ana hating What
Professor Irving Fisher termed "the
dance Of the dollar" we're discussed
/ by bankers, economists and others
Yesterday At the annual meeting ot the
National Monetary association al the
Hotel Aster, How eanawe conserve
prosperity" was the general question
OF discussion, and the answers OF
speakers Ia that question brought for
ward many theories.
The formulation of any specific plan
II extremely difficult, Carl Snyder 0f
the Federal Reserve bank Of New
York said In report as chairman nf
the research committee, or the parl-
Gus proposals that have been made,
Mr. Snyder said. the committee had
been able 10 agree only upon the pre-
liminary step OF return Of the ma
tons formerly on a gold standard TO
that standard, At the same time the
committee deerled the expansion OF
bank credit beyond the clear needs
OF business and Industry"
Sterilization to some extent has al
ready begun In a mild degree, Pro-
fessor Fisher said. while We stu.
dents have been discussing how to do
IT, he continued, mfr, Hoover.
Franklin Roosevelt and the bankers
have been doing II. BY raising Inter
est. by refusing loans on speculative
building and by warning the business
world against imitation the rise of the
price level was arrested In May. II
is great step forward for business
to discover that II can prevent infia-
ton and def1ation.
Rapid imitation OF prices oyerstim-
ulates trade. Rapid defation depresses
trade. the effect tagging behind the
cause about half year. The two fue
tuate together, being correlated 10 the
extent of so per cent. This is a
closer correlation, | think. than any /
discovered to exist between /
business fluctuations and other alleg-
ed cause"
Prosperity Peak This Summer
Colonel Seward p. Ayres, vice
president of the Cleveland Trust COM
pany, predicted that the present per-
cd Of prosperity would be a compare
lively short one. He said that II the /,
history of prosperity and depression
,eriods repeated itself the top of prose
oerity might be reached during the
present summer and the bottom Of
he next depression at about election
ime In 1924.
The end of the present prosperity
would be caused by q labor shortage 4
ather than by a credit stringency, s
'olonel Ayres prophesied. The symp- /
oms of such a condition are already s
resent, he asserted. c
Congressman Ogden L. Mills. who
nth Colonel Ayres was a speaker at
dinner Of the association last night J
eclared that the cost of government
n the United States, taking into &C
cunt all cost of states, counties and
was "out of all pro-
ortion to our national income and is
serious drag on our national pros s
Gritty" The conduct of the federal
overnm ent. however, he said OFFERS ]
refreshing contrast" TO the situation '
hich he pictured. ,
IF present prospects are realized, '
lere is no reason why the next con- :
res5 should not make a further re- F
sion of taxes downward" he de- |
AIRED, "why some more of the spe- !
al war taxes should not be discard a
l, and 1t is even conceivable that it y
Lay be possible to reduce the normal t
come tax. Irrespective of the f1nan- f
al status of the treasury, the higher t
lrtaxes should be further reduced In c
le interest of greater productivity c
I'd for sound economic reasons well t