Evening star., 1934-11-20
BALANCED PRICE
STRUCTURE URGED
Warren Says Hoarding and
Caution" May Continue
Many Years.
BY the Associated Press.

By the Associated Press.
! Prof. George F. Warren OF Cornell
University, counted among the New
Deal monetary advisers, asserted to-
day that before full employment car
occur and business proceed IN a nor
NAL way some approximation to q
balance in the price structure must be
obtained"
Speaking before the Association oi
Land Grant Colleges and Universities
he held:
/. Hoarding and caution in borrow
ing and lending are likely to continue
"for many years"
2. Most of the so nations attempting
to debate their currencies have found
it impossible.
3. Conditions in the United States
would have been better if this coun-
try had accompanied England of the
gold standard in 1881.
4. Recovery is aided by placing en-
ume Of employment rather than on
wage rates and prices.
S. Further efficiency in distribution
must precede higher standard OF
living.
6. International trade restrictions
will be modified only after nations
have balanced their internal price
structures.
Gold Price to Stay.
Because Of boarding and reluctance
Of credit agencies to lend or individ-
uals to borrow, Warren said. 1T is not
likely that prices in gold will return
even to the pre-war level, at least for
considerable time"
1T is probable" he said. that some
rise ultimately will occur in prices ex-
pressed in gold, but this is likely to
come after general world recovery has
occurred. rather than as an aid in re-
covery."
He added that conditions are still
getting worse in that considerable part
OF the world that is attempting to re-
tain its pre-depression currency"
After his speech Warren told re.
porters he believed the full effect Of
President Roosevelt's increase in the
price of gold had been achieved"
In his address he said Argentine
and Australia avoided a large part OF
the depression by leaving the golc
standard In 1929 and England avoided
its worst effects by dropping it ir
1881.
THE United States continued unit
our entire credit structure COLLAPSED.
Warren said. After such a wreck re.
covery Is slow and painful process
Had We followed the example of Eng.
land in 1881 conditions here woulc
be very different"
Adjusted Level.
Relation Of currency does not cal
for an increase In those prices which
| did not respond to def1ation, but re.
lieves them Of the necessity of falling
he added.
The only desirable price level.
Warren observed, sis the price leve
to which the internal affairs of thu
nation are most nearly adjusted" anc
increases in prices of monopoly goods
and wages that had declined very lit
tie are mot sound economically.
Recovery Is aided by placing en-
phasis on volume of business and vol
ume Of employment rather than on
wage rates and prices of manufac-
tured goods when the volume of busi-
ness and employment is abnormally
low.
Before full employment can occur
and business proceed in a normal way
some approximation to q balance In
the price structure must be obtained
A considerable start toward such q
balance and a corresponding improve
ment In business had been made, but
much remains to be done.
Either commodity prices must rise
further. or the slow-moving charges
must be reduced" He added the
warning that I'VE, therefore. know
what the human reactions will be to
q price collapse"