Show AUTHENTIC STATEMENT special to THE EXPRESS roger r W bbb 38 BABSON DISCUSSES INFLATION DABSON BABSON PARK MASS according to an apocryphal story a legislator in mexico moved that Gc Ge shams law thit bad money drives out good money be annulled when old told that it was a natural law and could not be annulled he lie lion suggested that it be suspended for a time tinie the question of value has been a it problem lern ever since ance money was and in fact even bc be fou foit that time no hiitter what commodity wis ww used a ais the me daum of 0 exchange tobacco or wives money has always had a tendency to depreciate in value alue and it has at some time or other mot met with disaster in practically every nation as in germany alun the mark went to zero in 1923 spelling the end ot of inflation for germany what I 1 Is inflation one ca cause of inflation is a M much uch greater greate r f increase nerease in the quantity of money in circulation relative to the increase in the volume of goods and services this forces the price level upwards price indexes tor for a period of years show that there have been great fluctuation in the v value slue of money in practically every country when the purchasing power of the dollar has decreased too much injury has been dune done to the investors and creditors as a group kinds of inflation credit inflation can be generated by confidence conti dencel and mon lary tm inflation can be caused by lack of confidence inflation results from a combination of two things oversupply of money andor and or under supply of the nations goods and services national debt figures in that it creates bank deposits it is not how tar far the debt goes that makes people lose confidence it Is how low production goes if production keeps up with debt there if is no harm except psychologically lack of production means mears that the value of money Is under suspicion inflation Is always an attempt to escape heavy bur burdens denk debt is often the core of the problem the principal force making for price inflation la Is a huge expanded exo stream of income purchasing power which boots beats against a diminished supply of civilian goods and servie effects of 01 inflation lalion the tragedy of inflation is the loss of purchasing power the part of those who have been the most thrifty in saving money and building up tip assets and income for a raina day these are the holders of bonds and preferred stocks the holders of insurance annuities and those who have ar amassed large cash assets tt is characteristic of inflation that the time required for it to take hold is much longer than most people imagine the most dangerous period is usually when the general public has been it lied into a false sense of security it be remembered that today we have a 52 cent dollar and that the cost of living is still going up it is quite possible that tha within the next ten years prices es may he be much higher than they arc are today inflation and government go ever since the inception of our national government money and its value has been a concern of various administrations it is one of our major problems at the present time there are numerous opinions as regards the value of money the late senator longs campaign slogan eveia man A millionaire did not take into account the fact that I 1 L alfken all men were millionaires no one would be willing to work the problem today is the effect of In inflation nation on business politically one party wants bu business to remain good until after election while theother the oher party arty is not so anxious to sec see good business before el eleo etAlon Uon good moncal tho th mexican legislator was not tar far off in wanting to annul groshams Gre shams law we would like to accomplish it ini irp theUS but no political party fan van succeed in doing sv sm practically all of our paper money has an on its face a promise to pay but ut the government will not give us anything for it except the same kind of money printed promises by any government mean little the great financial need today is a national educational campaign by both parties combined to teach the al american an V voter ter the honest truth about ni I 1 ion these opinions jons of roger W dabson babson are pub published lIshe in inthis this paper every thursday |