The Bismarck tribune., 1933-02-02
Any Type of Initiation,
Reduces Moneys Value

In 1929. I guess II prices rise some,
III stu be where ! was In 1879. They
tell me my 1920 $500 is worth 4665
in living costs right now, and $825 In
farm prices.
HOW ABOUT SALARIES3
ANTI: You getting q good sal-
ary?
PRO: Fair. I get $50 . week.
ANTI: I suppose you realize that
II currency IS inflated 100 per cent,
and prices rise that much, you'll prac-
tically be getting $25.
PRO: Well, my pay1l be raised In
proportion.
ANTI: Oh, yeahf
PRO: Well, they aren't going to
initiate It any 100 per cent, anyway.
ANTI: That's just the trouble.
You can't tell. They may not at first.
But that's what they thought In Ger.
many, and Russia. And they went
right on Initiating until the whole
thing busted. Suppose your farmers
pay off those debts, and find they
have to pay twice as much for bind
ers, and seed, and labor. Then what?
More initiation.
PRO: No, I think It can be con-
trolled. Besides, the business man
stands to make money. He can put
up his prices the day money Is in
flated, to match. But he won't need
to raise wages except as . gradual
process. Big corporations with fixed
charges like bond interest will be
saved from receivership, because they
will take in more dollars, and 1t will
be easy to pay their interest and get
rid Of their debts.
MIR. AND MRS. COUPON
ANTI: That's break for them,
all right, but how about Mrs. Coupon,
the widow down on our block? She's
living on the interest Of the bonds
Mr.. Coupon left her when he died.
That interest viii be paid In these
cheap dollars, and her income win be
cut. How about the local university
with its bond endowment? Can It
run on half pay7
PRO: Sure, It'll be tough on them,
all right. but this is . tough situation
all around. Somebody's got to get
hurt. Plenty are getting hurt now.
II Mrs. Coupons got any common
stocks or owns any real estate, the
prices Of those ought to keep step
with the dollar.
ANTIi Ihappeh to know she has had
quite . few Of her bonds default al.
ready, and one of her mortgages was
sold at big loss to her.
PRO: Well, II there isn't initiation,
therell be wholesale bankruptcies.
She'll be better off at that.
ANTI: don't agree. Deflation Is
disease, and it's bad enough, but
your cure would be worse than the
disease.
PRO: One of the things it would
help is foreign trade. Our gold dol
lar is 50 high in comparison with
foreign currencies that they can pay
their help with their cheap money
and ship their goods In here even over
the tariff wall, at profit. And we
can't sell 'em thing, because they
can't afford to pay US In our dollars.
ANTI: don't believe 1t. ! think
| our devaluation would Just depresa
world prices further.
PRO: One thing, the government
could pay off the public debt with
new dollars, and cut taxes.
ANTI: Sure, and when they find
out how easy that Is. and need more
tax dollars they'll just issue more
money, and pretty soon the whole
thing runs away with itself. Person.
ally, I've been paying on my insurance
policy for Is years. When it pays Oft
I want 1t to pay off In money. not
shinplasters.
PRO: Well, We aren't going to
agree. I can see that. One thing I'm
sure Of Is that something's got to be
done, and I'd sooner try imitation
than do nothing. Come on, let's 60
home to dinner.
They probably won't agree, either.
though they argue It over . hundred
times. For the greatest economists
and statesmen don't agree either.
For instance, such economists as Bril-
tain's John Maynard Keynes, and
Americas Stuart Chase. advocate In
flation, while the whole conservative
school, headed by such economists
as Prof. E. w. Kemmerer Of Prince
ton, believe 1t is vicious. The question
Is as difficult as 1t Is vital