Evening star., 1945-01-08

able ignorance. The truth seems to
be that nobody knows. In fact, 1t Is
pretty generally agreed that, in or
out Of the Treasury, there is no clear
understanding of what the immense
increase means and how 1t is to be
accounted for.
All any one seems definitely sure
about Is that in April of last year the
total amount of money in circula-
ton was a little more than $21, ,O00,-
100000, or $15465 for every man,
woman and child in the country.
Since April, according to the
latest available figures December
15-the total was $25, 1853 ,00O, 900 or
$l8221 for every individual. In brief
the increase has been more than
$4,000 ,0O0, 900 in eight months-and
1t Is growing every week.
In the whole of history there has
never been such an increase in
money. No previous increase even
compares with it. No one so far has
adequately explained it.
Seven Reasons Offered.
Mr. Ralph Robey, one of the most
eminent authorities in the country,
asserts that so far as the general
expansion Is concerned there Is al
most unanimous agreement among
students of finance on the reasons:
First, the increase in factory pay
rolls, which are more than double
those of 1899;
Second, the great growth in mill
tary pay rolls;
Third. the q per cent rise in prices
since the war began;
Fourth, much more idle cash in
the pockets Of workers;
Fifth, the many shortages which
create q demand for more cash with
which to shop and, particularly, with
which to trade in the black market;
Sixth, individuals and businesses
which have gone on a cash" basis
In order to hide income and evade
taxes:
Seventh, boarding.
There will be slight dissent from
this statement of causes for the ex-
pansion of the currency; but, as Mr.
Robey points out, quite clearly they
do not explain the enormous in
crease OF four billion in the last
eight months.
Because the first four reasons were
all operating last April and there
has been no jump since then In
factory pay rolls not much in mill
tary pay rolls, only a slight rise In
prices and no great increase in
pocket cash"
How then can the four billion In
eight months be accounted for?
There seems but one answer-hoard-
ing, tax evasion and black market.
If there is any other explanation it
has not been advanced.
This Is not 4 pleasant theory, but
It has to be accepted-and 1t is ac-
cepted by those here whose busi-
ness 1t Is to hold the line" against
imitation, concerning which there Is
more justified apprehension now
than ut any time since the war
began.
Partly, this Is due to the manner
In which the administration has
yielded to CIO political pressure for
more money for steel workers and
partly, to the utter failure to evolve
. Arm, comprehensive and non
political tax program.
Jump in S100 Bills.
Al Of today, according to the
United States News, there are some
10000, 900 more $50 and 500 bills
In circulation or in hiding, which
Is 100 per cent more than a year
ago. There also has been a great
increase in the number OF $500 and
$1,000 bills.
Nor is there any end to the ex-
pansion. Month by month the
money continues to roll out. 1t is
. situation without precedent and
not without danger. 1t is causing
concern to practically every official
whose Job touches the fiscal facts
and who is capable Of understand
ing them-which does not include
all Of them by q long shot.
Nevertheless, many are convinced
that those three factors-tax eva
sion, boarding and black markets
are the real explanation and
that they have reached menacing
proportions.
Ways of discouraging all three
are being studied and there is a
prospect that Congress will act
along these lines-particularly on
lines to catch the tax evasion prac-
titioners.
There is, in fact, very strong
determination to prove to these
that they are not nearly as clever
rs they think-that, in reality, they
are exceedingly stupid and have
laid themselves open to pretty
heavy penalties, to say nothing of
extremely unpleasant publicity.
One thing which is pointed out
Is that no tax evader who has been
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