Show SOUND MONEY STAND TAKEN t SAYS SAVANT J professor Th Thinks In k s P President resl d en t Not Too Firm Though I in Position I By DR EDWARD S. S MEAD S1 of ot Finance Finance University of I if Pennsylvania Written for the Associated Press PHILADELPHIA PHILADELPHIA Jan 16 16 Et ent t Roosevelt has at last taken a ad ad aland land d for sound money not money not too firm stand tand He is still obsessed with the delu delu- on of the commodity rubber commodity rubber dol- dol r he stills believes that the price lt stia O can b be controlled by L ig 19 one s side de of it he still dreams of bimetallic standard of value he heill heill heill ill refuses to commit himself himsel to a aced axed axed ced content of the dollar but but bar bar bar- nj ng another relapse relapse relapse-he he has taken stand Instead of the cent 50 dollar of Jennings Br Bryan an we vc have the cent I-cent dollar of Franklin Delano Probable Consequences Consequence's We may anticipate from this action the president certain probable 1 A rise of prices until the 60 nt dollar level is reached This price Ivance In commodities exported and will be reasonably certain lie ic e prices of some imports imports coffee coffee Ibber and tin for example will vIll advance It is likely that me mc export prices such as raw cotin cot cot- in fl and lard will also rise A I tive movement at least for a time ay sy raise all commodity prices 2 If Il this rise of prices takes place i 1 a broad scale even if the volume business does not immediately inease inease inease in- in ease profits will Increase because naturally rise more slowly than Ices Increased sed profits will increase or the prospects of divi- divi and so raise stock prices of die ose companies which share in the of price increases Public fifty companies railroads and pr pro pro- r of articles and services whose Ices are fixed by law or custom ill iU not benefit from rising prices either will corporations benefit hose products are expos exposed d to com corn odit competition such as te ts coal coat or as In gasoline where c e limit linit of consumers' consumers demand has been reached Bonds Donds Will Respond 3 L Bond fond prices will respond to the these thee se e In fri commodity prices according the business of the issuing com corn mies Speculative industrial bonds w IW selling at low prices should hould ad ad- flee with the rise in Industrial oUts Railway and utility bonds ill LII increase their margin of safety earnings only if the volume of of ot the issuing companies companies' incases in in- eases cases and if Jt the he increase in profits not absorbed by y wage increases I reed upon them MUI Municipal cipal bond ices will rise if it higher commodity rices increase tax revenues Farm will wm probably rise as farm ices go up 4 Rear Reaf wages the purchasing I of money wages will wages will fall if tail prices rise Minimum wages ICed ed by the codes will assist the in lit holding money wages wn to present levels Wages ma may how prices upward probably as the suit sult of strikes or the action of at code I Business May Increase I 5 5 The volume of business will be creased by higher prices if another ave of speculative buying repeats e experience of last spring and early immer 6 8 Can the new price level be Yes unless increased at home and abroad in in- eases supply and again depresses arket values For example in in- eased cotton production in India and China may force down prices The The- AAA may hold 3 farm prices however by g supply and the code authorities in textiles steel and oil may hold wn production and so o assist in high prices |