Evening star., 1937-03-21

noting that some are associated with
natural recovery, while others reflect
the successful efforts of the Govern
ment to reCtify some of the wrongs
of the depression.
Revived demand for buildings ma
chinery, automobiles, etc. capital
goods, to replace those Worn out or
rendered obsolete by long use This
is the recovery process"
Bank Deposits Increase
Increased privately bank de-
poslts more money to spendD, due to
several years of Government eXpendi-
ture of new funds borrowed from the
banks (defcit inaation) and spent for
public works, relief, c. c. c.. etc, as
well as due to business revival.
The international armaments race.
with its resultant demand for metals,
chemicals, etc.
The agricultural program, the pur-
pose of which was TO increase farm
prices and agriculture share of the
national income.
Increased labor costs, through higher
wages and shorter hours, passed on in
higher prices.
Currency imitation through the pur-
chase of silver and its injection into
the currency system, and through the
higher price of gold, which stimulates
new gold production as we'll as the
heavy importation of the yellow metal.
Job
ing billions of foreign funds into this
country, stimulating the stock market
and swelling the idle volume of de-
posts in New York banks.
Shrunken inventories, rejecting the
gradual absorption of commodity
stocks accumulated between 1929 and
1888.
Statement of Eccles.
Illustrating the viewpoint that the
price level should be controlled by
non-monetary means is the recent
statement of Chairman Eccles of the
Federal Reserve System. Mr.. Eccles
thinks the powers of the Department
of Agriculture, the S. E. C. and the
Federal Trade Commission and the
tariff reducing powers Of the Presi-
dent can be effectively employed to
hold prices in check.
For example, in the soil conservation
program, Secretary Wallace has broad
discretion to influence the Size Of
crops and thereby the supply side of
the price equation. The S. E. c. can
influence the stock market in various
ways. The Federal Trade CommiS-
sion, by more rigid Interpretation of
the antitrust laws, can, perhaps, pull
the reins on the prices of manufac-
tured goods, minerals, etc. According
to this view of the price situation,
whereas too great competition proved
destructive during the depression and
warranted the creation of the NJ R.
A., now too little competition in Ger
tain lines may be equally inimical to
the public good. Encoura cement of
imports through lower tariffs is re-
garded in certain quarters as a card
up the Governments sleeve In fact,
it is held by some that the intima-
ton of a determination to use this
Pc"SI abopioJSo a oASllAAlSdilb pdlU
bringing about settlement of the re-
cent steel strike
Roper Indicates Concern.
Secretary of Commerce Roper has
indicated some concern over the price
trend. But his department. being
chiefly fact-tinding agency, has lit
tie power to influence the price level.
Industrialists and workers, in his view,
should Jointly work out the problems
OF mutual interest. If costs rise
more rapidly than purchasing power,
consumption will decline" All con-
cerned should study to prevent un-
healthy boom conditions from de-
veloping, Mr.. Roper urges.
From the Labor Department comes
the suggestion that the United States
should develop national labor policy
Labor disputes are Wasteful, they in
crease costs. THE time is ripe-right
now-for the leaders of organized IN
dustry and the leaders of organized la
Dor to get together and work out some
fair, sane and desirable program"
Where Are We Now?
Just where are we in the price re-
covery process? Is the price rise due
to monetary juggling or to natural
business recovery? Has it been even
on all fronts or not? If not, has it
been centered on the depressed Sec
| tors for whose rehabilitation the Gov
eminent has made such conspicuous
effort? In rectifying old unbalances,
are we perchance witnessing the ap-
pearance of new ones? These are ques-
tions of timely interest.
Just where we are today is not 70
be simply stated. The Bureau OF La.
Dor Statistics general wholesale price
index u readily available and It's post.