Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-11-10
Continued from preceding page
The Birth Rate


ahead, at least in anything like the same degree it has
since the end Of World War ii.
Some very competent and knowedgeabe explor-
ers Of future economic potentialitieS think that ina
ton will continue. Most Of them base their belief
primarily on the fact that labor promises to con-
tinue to be relatively in the years Immediately
ahead because of the shortage of births during the
great depression of the 3Os. This, as they it,
means higher wages, higher costs and higher prices
But other competent economists take the other
side of the argument. They assume that price infa-
ton due to scarcity: too many dollars chasing too
few goods. Then they observe. correctly, that vir-
tuaIly all kinds of goods are in ample supply,
and that the supply of dollars to chase the goods is
being held in check by the Federal Reserve authorities
Which Side Is Right?
&c. say those taking this side of the argument the
postwar imitation will soon have run its course. In
concluding much, they note that it has been the
standard behavior of prices in the U.s. to shoot up
as result of wars, and then settle down to rela-
lively steady course - until the next war blow-up
Who's right? Only time can tell. Barring war,
which is almost synonymous with imitation, l come
out in the middle of the two conflicting positions
As see it, the continuation of a shortage of labor
will result in tendency Of wages, costs and prices to
go up. But with virtually all kinds Of goods con-
tinuing in ample supply, which is the prospect,
don't believe that prices going to rise fast and
steadily as many people fear.
If, however, prices in general 60 up two per cent
year = and that's only about half of what they have
gone up in the past year they will eat up most Of
the increase in the value of your savings deposits pro-
vded by the interest usually paid on them.
What can you do to protect yourself? Should you
hurry and put your savings into things i houses,
land commodities common stocks - which tend to
have their prices marked up as prices in general 60
I'D? Should you do this rather than keep your saw
ings in places where the arrangement is to pay you
back in dollars, the purchasing power Of which is
steadily stolen by imitation?
A Safe Place For Your Savings
Again, I'm in the middle. There is enough of a
prospect that price imitation will be a continuing
plague to warrant having portion of your savings
in things which give you hedge against the sort of
destruction of the value Of dollars we have seen
lately. Just when is the best moment to buy these
things, particularly common stocks which follow
roller-coaster path, is something else again.
But there is no reason at this juncture for going
about in this direction. The odds that the integrity
of the dollar will be protected the years ahead
are good enough to make Il prudent to keep part Of
your savings in dollars. This, Of course, is form
which provides special advantages generally nclud-
ing quick access to the dollars if you need them.
Such advantages are something apart from what is
happening to the purchasing power of your dollars.
What is happening and is going to happen to this
purchasing power however, lies right at the heart Of
getting more for your money.