Evening star., 1932-09-21
END Of BOARDING
HELPS BUSINESS
Steady Return of Money to
Circulation Held Sign of
Public Confidence.
BY MARK SULLIVAN.

Among the many forces working for
business recovery and normal con-
dition. one of the most powerful and at
the same time least-noticed is the
steady return OF money from boarding
into circulation. While it is dtfncult
to be exact, the Treasury and Federal
Reserve officials are able to calculate
roughly the amount returned from week
to week. The return seems to be going
at rate OF from 20 10 oo iiiiiioAi
dollars week.
Tie return reflects state OF mlnd
on the part of hoarderS which con-
sciously or unconsciously realizes that
in keeping their money In boarding
under present conditions, they are
robbing themselves. A man who ON
June / last had a dollar in boarding
and who kept it there, has lost on the
average at least is cents OF 1t and To-
day has less than IS cents. The rea-
son is the increased prices OF goods,
or to put it another way, the decrease
In the purchasing power OF the oollar.
Dollar Now Buys Less.
To state the whole situation, man
who had a dollar in boarding June l
and failed to buy goods with it, can
now buy much less goods. To put II
another way had he bought goods with
his dollar on june l, he would TO-DAY
be much better off. For the purpose
of buving bonds. what would have cost
a dollar on June now costs S2. For
this purpose. what was dollar IN June
Is now only half dollar. For the
purpose of buying cotton, What was
dollar on June l is now only ABOUT oU
cents. This change has gone on IN
practically every kind OF commonly or
security. A person who has kept MS
money in boarding has done serious
detriment to himself.
Early last Winter, when hoardlng
was at its height an organized enort
was made to induce people to return
the boarded money to circulation as a
patriotic contribution to the common
5000. The effort had some success, out
not a great deal Today, however, and
since about July, the motive OF per-
sonal interest has been at Work ana
has worked powerfully. To take money
out of boarding and buy goods with II
has worked to the advantage OF eacn
one who has done it. The aggregate
has worked enormous advantage 10 the
country.
The total amount Of money boarded
vhen the practice was at its height mas
been estimated by Chairman Atlee
Pomerene of the Reconstruction Finance
CORPORATION at Sl.600, 100000. Some
Treasury officials think this may pe
high. The difference is not material.
Adding to Circulation.
If the amount was only $1,000, ,o00, 600
that was more than a quarter OF all
the money in use in the whole country
in normal times The return OF tnat
money, now rapidly under way is add
ing roughly one new dollar to every
four in circulation. Any person is able
to realize the advantage to any COM
munity and to the whole country. OF
adding one new dollar in currency to
every four in circulation. This pro-
cess is at once an effect and cause
of better business and greater conf
dence. The sum of the similar cura-
tive processes actively under way Is IN
vincible in bringing about better busi-
ness conditions.
The process may be obscured from
time to time by excitement about poll.
tics, or may be forgotten because OF
greater current interest in politics.
That the process is steadily under way
admits no doubt. The rapidly lncreas-
ing return of money from boarding Is
one of the best evidences. Complete
return of boarded money, probably with
in few weeks or months, is as striking
a phenomenon in the wholesome di-
rection as increase of boarding was
disastrous last Winter and before.
ICopvrirht IQ32)