Show m inflated THE CURRENCY george E roberts gives common sense explanation for currency increase and decrease government TOOK NO PART due to changes in supply demand and prices of commodities caused by war federal reserve not to blame tho the mistaken notion that the currency Is inflated and deflated by the government in the united states from motives beyond the understanding of average Is eff effectually set at rest by george E roberts noted banker and exponent of sound money in an article in the journal of 0 the american bankers association there has been inflation by the governments of 0 germany and other european countries which have issued money tor for the purpose ot of paying their expenses mr air roberts says the united states government has done nothing of this kind since the civil war i there Is a genuine need tor for elasticity in the volume ot of currency and for or machinery to adjust it to uie the legitimate needs of 0 the country the means provided are the federal reserve banks authorized to issue currency to their member banks either in payment of deposits or for or loans sidetracked side tracked like freight cars more currency Is needed in sep october november and december ilber than in Jani january jary and february As business slackens blackens currency naturally retires from roni circulation money accumulates in the member banks and they send it in to the reserve banks which in effect retires it as freight cars are retired when traffic falls alls off what caused the great inflation of 0 credit and currency it was due primarily to the war which made extraordinary tra demands upon the indus tries and caused a great rise of 0 wages and prices it was inevitable that mo more re credit and money would be called for or to carry on business the boom year of 0 business that fol 01 ol lowed the armistice was likewise abnormal the end of 0 the war released a great many demands that had been held in check the foreign orelan demands upon us at first increased there was it a tenpo temporary stimulus but the volume of 0 busl business iness was abnormal and could not bo be E stained agricultural pro in europe revived the prices of 0 agricultural products moved back toward normal importations from the united states fell ell off prices declined deflation began some say inflation should not be permitted but it war occurs inflation Is unavoidable recruiting armies makes a labor scarcity contractors bid above going wages to attract men the war industries did the same and the peace industries raised wages to hold their men governments of 0 eu rope sent representatives to this country to buy food and they bid up prices on the grain exchanges higher levels of 0 wages and prices meant that more credit and money was required to handle business more business more money the increased issues of 0 currency was a result of 0 allowing business to go ahead upon the rising level of 0 i wages and prices when hen a factory payroll pay roll doubled twice as much cor rency had to be furnished for or it when cotton rose from rom 10 cents a pound to 30 and 40 more currency was required to handle the crop and so all around the circle deflation did not come by an act of 0 the government or the federal reserve authorities in suddenly with drawing money irom from circulation ue do nation came naturally when business tell fell off on and prices declined just as ai an increasing volume ot of business at higher prices called more currency into use so BO a decreasing volume of business at lower prices released cur rency from rom use and caused it to re turn to the reserve banks there has been absolutely nothing new or strange in these price move amov 0 ments meats related to the war inflation and deflation have been just as al ways waya when wars have occurred the only new factor actor has been the aton that Is always being renewed and most people do not learn by the ex perince ot of others when hard coraa it Is always the thing to lay the blamed on somebody and this ibis tinie the federal reserve system has taken most ot of it |