Show The DAY IN 4 The Te Business Week maintains consistently con con- its it campaign against the interests In In- and policies work for tor monetary deflation I l I. I fully deserves the ic bouquet it i hands itself in its it curent current cur cur- rent ent issue Following is the text of ofis its is ts leading editorial For two years this journal joural has waged a solo war against the delusion of f deflation deaton forced on the productive community by the policies and philosophy phi phi- of our financial system We repeatedly demanded reversal of those lose policies by appropriate sion on of the powers of the federal reserve re re- serve system and insisted that restoration res- res rc oration of price levels was vas indispensable to avoid universal debt default and destruction of capi tal al claims Step by step since Britain aban the gold standard last September Septem Septem- September ber cr we have seen the advocates of bit bit- bi end er-end deflation surrender to the superior su suo su- su strength of inescapable facts fact When the banks bank suddenly discovered themselves as much debtors to their depositors as creditors to their customers cus cus- tamers omers they found that deflation was wasa wa a edged double sword Creditors everywhere have been driven into the same ame ditch dich with wih their debtors Both have lave been compelled to recognize that lat dollar doUar debts debt cannot be paid with wih cent 3 incomes and that tat it i is extor extor- tion ton on to try to collect them and imposible impossible sible ible to expect anyone to pay them 0 So today the deflation philosophy stands officially repudiated and the administration offers daily daly prayers that hat it may find some effective finan cial ml stimulant to offset the consequences conse conse- of uncontrolled liquidation before next summer By Bya a scratch of oi the ie pen new gold mines are suddenly discovered in the vaults of at the federal fedral fed fed- eral ral reserve banks un unrevealed revealed bans reser of credit credi opened to support the security market and provide the raw material from which the commercial banks bans anks may manufacture more money to q replace that which so mysteriously disappeared during the deflation As Amos and And Andy might say re is s the order of the day day if day i if the aton order can an only be executed Millions of men in the street no mere figure of speech any ally niece more e may wonder why all al this was not done long ago before belore so many last shirts of American Amerian business and labor were lost and when it I was much easier to todo do But the time Is past for postmortems post postmortems mortems on the stupidities that have been perpetrated in the name o of dc de- de flaton equilibrium and readJustment readjustment readjust readjustment ment ment 5 We join In the prayers that the emergency measures taken may com corn in part for them we can properly rejoice with wih some pride in inthe inthe inthe the belated victory of official insight over the blind folly oly of the deflation fanatics But we do not deceive ourselves our ourselves selves and Slid appeal to the productive interests Interest of American business not to deceive themselves into the easy assumption assumption as as- that the fundamental forces force of deflation deaton will be defeated merely by these financial devices on this des des- profession of official faith They Tey are too seated deep in ou our banking investment speculative ss s's tern ter to be so easily overcome Deflation is an idea and an att atti- atti ati tude It I ln lingers ers on in the easy stimulation str and acceptance of spurious stock market activity in specious preachments about public and private privat economy in bromides about balanced budgets budget in stupid price policies anc and competitive oppression f in outworn dogmas regarding wage readjust readjust- meats ments and standards of living in indifference in in- difference to the agricultural lem in infantile ideas about tonal relations All Al these and many other offspring of the deadly doctrIne doctrin of ol contraction and liquidation ar are arc still at large and no stable basis fo for business r Pr progress will vill wi be established till ti they are destroyed u The war is ls not over the thc decisive battles battes are arc still to be won the de della della- a. a ion ton philosophy is still sUl entrenched In strongholds from which only a prolonged pro pro- longed campaign of clarification and education can dislodge it it We mus must carry carryon on until the field is clear for real reconstruction cear and steady ex ex- ex |