Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-05-28
Continued From First Page

Only, are dSAu1S JOQhy WAldb JAAC
chances are Of serious imitation
in the United States in the fore
seeable future. The Communists.
Of course, who have been waiting
for our economy to collapse,
have been looking hopefully for
signs of q runaway imitation.
I think it would be a serious
mistake to confuse the kind OF
imitation we now have in this
country with the catastrophe
paper money imitation Germany
experienced after the first world
war. Germany. at that time,
issued astronomical amounts of
paper money with nothing tan
gible to back it up. and with in
dustry at a standstill and mil
lions unemployed.
We have made sure that moth
ing like this type of initiation
can happen IN this country
Since our last big depression we
have enacted into law many
protective measures TO guard
against any serious breakdown
of our economy. Any country
which operates under a system
Of free competitive enterprise
such as ours. should always be
administered in the interest OF
all the people. This applies
especially to country like ours
which is fundamentally rich in
natural resources and produc-
tive capacity. We should have
no fear for its future. Since the
last depression we have achieved
so vast a productive capacity
that not only have we been able
to meet our own demand for an
ever-increasing high standard
Of living, but we have also been
able to assist millions Of people
and many nations to be free and
self-sustaining. History records
no like performance by any
other nation.
But we must face the fact
that in the last 10 years there
has been a steady rise in the
cost Of things our people and
our Government buy. At the
same time, the value Of the
dollar has been depreciating al
q faster rate. particularly during
the last three years. This is
because the purchasing power Of
the people has been going up al
a greater rate than the rate Of
production of goods and services
I do not wish to minimize the
serious consequences of the type
of imitation we are now expert
encing. 1t has already brought
hardships to q large segment Of
our population, in the cities a,
well as on the farm, and espe-
cially to those who have to live
on pensions and fixed incomes
I would like to point out that
the imitation spiral had its big
gest increase during the period
when the advocates Of hard
money took control Of oul
finances. 1t is obvious this /,
no way to deal with imitation
We have learned from the ex-
perience Of several costly de-
pressions In this country that
there is only one sure way Il
sound economy and genera
prosperity. And that way is tt
encourage and foster a con.
stantly expanding economy
When supply and demand are
in balance in a free competitive
economy, prices will stabilize anc
imitation win be held in check.
One Of the great lessons some
Of our enlightened industrialists
have learned from their mas,
production experience was the
wisdom Of reducing the costs Of
goods to the consumer. as they
achieve greater productivity
They have learned to depend
more on volume than on q high
rate Of profit.
Some appeal has been made
to leaders Of key industries vol
unfairly to curb q growing appe'
tite for higher profits. So fal
the response has been feeble ant
discouraging. II industry con
tinues to be unresponsive. i
may well be in for some Gov
eminent pressure to do what 1
ought to have the good sens