| Show I Atty AUy Shay Discusses Inflation of Currency A At t Rotary Luncheon County Attorney R. R J J. J Shay gave a avery avery avery very interesting discussion of the silver allver all sU ver and to inflation flat Ion of currency qu question I before the Rotary Club at the regular weekly luncheon Tuesday noon Stating that the Discussion of allver silver all sil ver as se an international problem involves In Involves In in- two questions 1 1 la U there a aJust aJust Just rust need for Inflation of our currency system at the present time and 2 will the stabilization of silver aUver accomplish that Inflation Mr Shay gave gare an outline of the history of currency during during dur dur- ing and since the war discussing the issuing of currency during the war warthe the period In which the people lived in a sort of fools paradise with prices soaring w while lle actually we Vie were not much ahead In physical as assets assets assets as- as sets than we are at present Ha He then discussed the deflation that was necessary necessary nee essary and the damage that was done by Installment buying which madus made mad madeus us bears or short sellers on the money money money mon mon- ey market while at the same time we became bulls on 01 the commodity mar mar- ket Continuing his discussion lon Mr Shay said In part But Dut be the causes cause as 85 they may we find ourselves today with plenty of commodities on hand but no money We cannot dispose of our commodities commodities com corn because everyone else has hIlS no money It now becomes vice necessary y that something be done and done quickly and two policies have been advocated which are worthy of discussion 1 1 The balancing of ot national and and indi vidual budgets and the curtailment t of national and Individual expenses 2 The 2 The inflation of our currency system system tem tern to make money easy again a aleast at t least for the time being Our national administration and the larger bankers are in favor of th the e former And Md the reason is obvious Deflation always Increase fixed charges es such as interest The decreased dollar dollar dollar dol dol- lar loaned In Inflated times is repaid d dd with an Increased dollar of deflated deflate d times In other words the dollar dolla r which pays back the loan of 1927 ca can n purchase more than the dollar doltar originally originally originally origin origin- ally loaned Naturally it Is Isto Isto isto to their best Interest that In the payment payment payment pay pay- ment of ot the loans made they get as much money as ns they can As a government government government gov gov- we can with profit under ex existing existing existing ex- ex conditions cancel off oct a portion of our n Indebtedness and still be ahead financially If we can be assured of payment of the balance This Tills creditor class argues and with reason that a dollar is worth only what It can buy and should we Inflate Innate our currency both the government and the bankers will be the victims of a dumping program from their debtors under which they will wUl be re repaid repaid repaid re- re paid In money which can not buy Its present value In commodities But Dut on the other hand the producer the farmer the manufacturer manufacturer manufacturer manu manu- and the like desire more money money money mon mon- ey rather than more value in the money we have inflation stimulates business The la laborer laborer laborer la- la borer spends his earnings with the merchant who spends it with the wholesaler who spends it with the manufacturer who In turn hires the laborer our eight million men out of employment presents an eloquent picture if It the complete failure of the extreme deflation policy polley and ande th the e curtailment of expense expanse as a tionA tion A Assuming that we e decided to In Inflate Innate inflate In- In flate nate our cur currency system the question then which of two practical working methods shall we pursue 1 The The pledging of the nations nation's liquid I assets for the redemption of currency or 2 The 2 The arbitrary of some generally circulating medium He IEe favored ored the latter course pointIng pointIng pointing point- point Ing out weaknesses in the pledging of liquid assets In the first place agricultural agricultural agri agri- cultural cultura I assets are to a large extent dependent on supply and demand demond In the second place such cur- cur ency would be available only among nations needing the particular corn corn- modify pledged And the currency would necessarily have to be short term currency otherwise depreciation depreciation depre depre- or spoliation would I ultimately wipe out the value behind the currency I Favoring the use of silver in the arbitrary stabilization of some circulating circulating lating lilting medium he said The requisites of money are that It must have value outside of its use as money comprise much value In small bulk possess close approximation to con- con in value Blue be divisible into small proportions posses great durability etc As to its general use throughout the world we can say that it has as much use as gold The United States and France hold approximately 74 per cent of the gold of the world while the balance Is lJ divide among the people comprising the rest of the world china an anthe anthe anthe the Orient are on the silver sliver standard so ao we can at least say that silver sll is as much in universal ue a Is any other metal including gold He lie further pointed to the fact that the stabilization of silver would be a direct bid for the commerce of the Orient South America and Mexico and also stated that By fly and through the Inter-commercial Inter relations existing between the Orient and our chief debtor nations the recognizing cf of silver stiver will win play a great gnat part In enabling enabling en en- abling these debtor nations to pay us their obligations through their trade with those silver sUver recognizing nations |
