Henderson daily dispatch., 1936-10-23
Rising Living Costs Are
Inevitable. Babson Saws
Continued from Page One)

continued from Page One)
type OF Imitation now seems less like
ly. Nevertheless, even the old-fash-
| Toned printing-press variety of cur
rency initiation is a possibility and
should, therefore, be kept in mind.
remember that the European infla-
tlon orgies were five to seven wears
in the making-they did not come
overnight
IL Mr.. Landon takes over the reins
at washington, we should have what
is known as initiation via the credit
route. Today this country has over
$1l,O00,O00 in gold. This is an all-time
high record and $50 per cent Gin dol
larS) above what we had at the peak
Of 1929. We have formed a gold base
sufficiently large to support credit
imitation which could stagger the
Imagination. Under our present bank
ing laws and the Federal Reserve
System of rediscounting, one gold dol
lar could be expanded to well over
twenty credit dollars. We could have
rise in credit to over $3.50 600. 600. 600
which would dwarf our 1929 prosper
lty' bubble into insignificance. There
lore, no matter who is elected, fur
ther imitation seems inevitable.
Living Costs To Climb.
Simply stated, initiation means that
your dollar will purchase less goods
than the same dollar can buy in nor
NAL times Mr.. and Mrs. Consumer
will find that they have to pay more
for meat, butter, furniture, shoes,
shirts, and so on right down the line.
Initiation lifts prices of all kinds Of
goods and articles from the fuel for
our homes to the milk for our babies.
1t hits us all-rich and poor-right
square in the pocket book. It sends
the cost of living higher and higher
and the standard of living lower and
lower. If acute, initiation ruins the
poor and middle classes. Even the
rich lose heavily.
Living costs have not vet risen
sharply although they are now about
20 per cent above the depression low
and four per cent above last October
Initiation has not taken hold in ear
nest. Yet I am convinced that it will
only be a matter of time before it
does. Only a miracle can prevent this
in the months ahead. In Germany,
where initiation went to the ultimate,
living costs skyrocketed into the
trillions. Even in France, where in
flation was moderate, prices jumped
eight times. If we should follow the
course of initiation in France, bread
would sell for eighty cents loaf and
eggs for four dollars a dozen. Such
prices now seem fantastic but they
could become a reality which would
strike US all.
Build Inventories
This initiation ahead, with its an
ticipated sharp rise in commodity
prices and living costs, call for ac-
ton now AS individuals, you should
take account of your supplies. You
should list your needs for household
goods such as sheets, towels, linen,
furniture, necessary repairs or I'M
provements Make out another list of
your family's clothing needs Go out
and buy now. Build up your house
hold and personal inventories. Shop
keepers and manufacturers, large and
small, should check the supplies of
goods required in their business. The
time has come for stores and manu-
facturers to carry larger stocks of
goods and raw materials. Now is the
time to put more money into inven-
tories and less into the bank.
Change Your Viewpoint
For wears the smart and profitable
nolicv in business was to buy hand
to-mouth and cut stocks to the limit.
Business focused it's attention on
cleaning house, on smuggling up by
cutting down on this and pairing that.
This was the natural corollary of the