Show all by george donsen washington D C J thores theres infinitely more in tile the current inflation than meota the eye infinitely more than Is reflected in higher prices so much more indeed that administration spokesmen are warning the bankers their warning Is an official admission not only Y that a dangerous us inflation or ai i movement Js Is under way but also that this inflation stems dl di from froin long pursued new deal fiscal policies up to this point everyone in the administration had becat t priding hil adelf on ill the 0 fact that I 1 11 anyway wo nave no emch ciuch dangerous credit expansion no na in th tho a twenties I 1 now they are alarmed the credit expansion is under way and Is 14 already so great that marriner y luc cies load head of the federal reserve board and pros ton delano comptroller of tile ho currency warned bankers that they must keep credit within bounds it should be ba rei lioni bored that art an enormous credit expansion aft after pr world war 1 I caused tile the boom of tile the twenties and prepared the way for the collapse of was based entirely upon gold holdings and the public debt held hy by banks for every dollar of government Rovern ment bonds held by the banks a credit of 10 Is possible thus the government debt Is used to pump huge bums of money into the capital and industrial du markets the result Is 2 rising ising prices fricas cheap money and boom times look at the public debt today it Is 16 infinitely finitely greater than it was in iii the twenties hence tile the potential credit expansion to ta en ell ormo imly greater A real credit inflation now would make the boom of that decade look like a penn yanto poker game in comparison vart son bear in inra mind ind too that t it was wao ii idt busl 1 nesa and industry u in ini the alie twenties to borrow from banks banha that prevented nied the inflation that informed p persons knew was inherent lu ill tile the new flaw deals deala deficit financing well what do we find today commercial loans going up so rapidly that mr eccles and mr delano feel it t necessary to ao warn bankers against them since july the rise in such buell loans has been at the rate of 1000 a year that normal conditions and it ft Is superimposed upon re a commodity inflation 11 at the end of june loans loana and discounts were billion an increase ot of nearly 30 sance aln ce june 1946 commercial and ln dustral 1 loans are up dij 54 over a yeat year ago consumer loans are up 81 and roil real estate loans are 54 p higher tills this Is based entirely on the now new deals long continued monetary and fiscal policies fred bulletts Bul letta la Is returning to hill field where lie he has been iv working prior to ills hla coming to chanab kanab where he has been with his wife on oil october 21 they became the proud parents of twins a boy and a girl frank judd who has been employed aloyed with standard oil has been tr transferred no forred to salt lake city for the winter 0 |