The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-10-26


No kundtDdy but he has advised
Price Boost administration lead
ers to be on guard
against runaway movement. In max
ing known his view, the President like
wise for the first time tossed over
board the plans of many theorists for
sterilization of prices On the basis of
the 1926 price range and adopted In
stead something approximating the av-
erage of quotations existing in the pc
riod between 1909 and 1914.
Although Mr.. Roosevelt never has
publicly espoused the 1926 price level
as such, his discussions have given rise
to a general belief that the parity ex-
listing around that time constituted
relationship between farm products
and industrial products which was sat
isfactory to him. Therefore, when he
said the other day that he preferred
the 19O9-14 level, he turned his face
from the position occupied by numer-
Gus groups, such as the committee for
the nation and several farm organiza-
lions that have contended the 1926 re-
lationship between farm and industrial
prices should be the goal.
Most Washington observers agree
that the administration is alert to the
dangers of runaway prices, resulting
not so much from the unbalanced con-
dition of the budget and paper infla-
ton as from uncontrolled and ungov-
erned credit expansion. In other
words, it is believed the President
recognizes threats of dangerous boom
which, If it occurred, and was followed
by the inevitable collapse, would leave
our country in the throes of another
depression, worse, perhaps, than the one
we now experience, because of exhaust
ed resources
In conference with the President
few days ago, Mr.. Roosevelt gave
newspaper correspondents every indi-
cation of conviction that price Ques-
tons involve many factors that are
at the particular moment quite impos-
sible of ascertainment He showed,
too, in the opinion of many of the
writer's, that he is not following adj
vice of the theorists without giving
doctrines they advance. For example,
the Presidents position clearly shows
a desire to find ways and means of
preventing wide fluctuations In COM
modify prices such as those that have
characterized quotations in periods like
1000 TO 1000 70 hn will not in
working out such system is, of
course, entirely predetermined, but his
comprehension of the problem has been
accepted by the conservative element
with more enthusiasm than they have
given heretofore to his pronounce
ments.
Mr.. Roosevelt believes that the ma
tion is solvent. He contends that the
column of assets has
Nation r. risen, through in
SolUenf creases in general
prices, to the point
where it exceeds the column of liabili-
ties or debts by small margin. Ar
rival of this condition, therefore, has
prompted him to give thought to the
question of putting on brakes for ris-
ing prices. 1t is my understanding
that the brakes are not to be applied
yet. He intends, however, 70 keep
them ready for use in case the run
away boom appears.
None of the administration spOkes-
men are willing at this time to dis
close statistics which will represent the
price level that is satisfactory to them.
1t is said, nevertheless, to be a per-
centage somewhat higher than now OBJ
tains.
The commodity price index of the
bureau of labor statistics shows farm
products now at 72.S, which research
discloses is not far below the period
from 1909 to 1914. The low point of
this index figure for 1884 was STA. and
the low point Of the depression in
March, 1888, was 42.S. OF course, in
dex figures do not breathe life, but
when two sets of them are arranged
alongside each other, they become at
least basis of comparison, and after
all, comparison is the best basis for
judgment.
In some quarters of Washington I
hear expressions to the effect that Mr..
Roosevelt's latest move regarding
prices indicates a conviction that res
toration Of the country's solvency is
more important In the general recov-
cry program than a good many of the
theoretical and untried remedies
brought into use in the last fifteen
months. His price proposals obvious
ly have not ended conjecture as to pos
sible new moves. The program being
in generalities did not cause fears to
subside concerning future tampering
with the monetary structure nor did
it alleviate conditions born of the pres
sure on commerce and industry result
ing from NRA and it's hundreds of
codes i releated to you several weeks
ago how many groups were forming
throughout the country to make their
positions known respecting NRA and
the codes, and these apparently are
getting up more steam despite the
Presidents latest pronouncements.
Taken as a whole, the Washington
picture at present is viewed by many
astute observers as an indication that
Mr.. Roosevelt is trying to get together
with those who would release credit
if given reasonable assurances as to
future plans of the administration. 1t
must be said that Mr.. Roosevelt has
not been coaxing business leaders into
the White House. 1t can be said with
equal force, however. that he is being
kept informed fully as to what these