The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1943-09-17
BY Roger W. 6sbson

New York City, Sept. 17-Infla-
ton IS as catching as smallpox
an much more serious. II allowed
to spread. Il will cause far more
deaths than epidemics OF suicides.
heart failures and nervous break
downs. No wonder life insurance
companies are fighting 1t tooth and
nail. II the same intelligent ap-
proach is made TO the problem Of
avoiding initiation as was made in
the case Of reducing and elimina,-
ing smallpox, We shall be all right.
But II we neglect the present signs
OF the growing epidemic OF infla-
ton | am afraid we shall soon Le
beyond hope.
No Help to-inVestors
Some people are saying. Let in
flation come. They hope il will
help sell some long-held stocks
which now show a loss. Possibly,
but what will the money received
be worth? 1t may be far better to
hold stocks than to sell them at
double the present price and get
money worth only 400 or less Of
its present value. The same prin-
ciple applies to buying stocks now
with the hope OF selling them later
at profit. Even when buying the
right stocks as an initiation hedge,
they should be considered only a.
safe deposit box" in which 10
keep your money during initiation.
What money you do not put into
short-term war bonds, invest in
good, productive real estate or good
stocks. Do this as a permanent in
vestment and not as a speculation
Readers who have a little money
invested in railroads. public utili-
ties and other companies whose
rates are regulated should especi-
ally watch initiation. Initiation can
severely cripple these corporations.
Although rate increases are pos
sible they always lag considerably
behind the increase in expenses
caused by imitation. Imitation will
therefore. probably cause a decline
in the securities OF railroads and
certain other corporations.
Wages and Labor
II IL true that some mot alb
wages should go up under infla-
ton, but what good will this do?
Not only will these higher wages
buy less in food. clothing and shell
ter. but as wages rise, employers
will hire fewer people. This means
that initiation will result in unem-
ployment. The older ones and the
less efficient will be dumped first;
then the higher paid will be let go
and so unemployment will increase.
As unemployment increases. pur-
chasing power will decrease. When
retailers have fewer orders, manu-
facturers may be compelled to dis.
charge their workers. Then we
shall have another depression. This
may not come until around 1850.
but it certainly may be a bad one
when it does come. Its severity
will depend upon the extent OF the
preceding period OF initiation.
Hence, we all have selfish inte~.
est in helping to stave off infla-
ton.
Effect Upon Small Business
Initiation may hit the middle
man hard. The well-to-do will have
enough fat" to carry them through
the next depression. The poor will
be supported by the government or
have artificial employment through
another W.P.A. The middle-class
people, however, are out of luck.
They will not have enough capital
to carry them through the initiation
period or will not be poor enough
for government support. Small
businessmen feel they are suffer
ing terribly now but il we enter
real imitation their condition will
be much more difficult Periods OF
imitation result in great increases
in bankruptcy. These cases are
almost wholly among the middle
classes, especially small manufac-