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Show 1 ' ' 1 Stabilize Money Or j Face FascistiFisher Real Grievance From Inflation and Deflation Must Be Cured, Yale Professor Avers. BY 1K lt; 1 SHER. Professor of Political EScAiomy, Ynlc Lniycr (ty. j NEW HAVE?;. Conn.. Nov. 29. I A recent circular sent to bankers bank-ers an employers expresses deep anxiety over the Fascist! victory j In Italy and the gains of the 1 Lrfibor party in England and eise-j eise-j where It predicts that the same ' Idea of the political domination L of labor will soon appear moro I explicitly In America and will threaten the existing order I believe that bankers and employers, not to say tho rest of j us. have cause for anxiety. But what the circular overlooks Is that, as Roosevelt so often warn- ed us. the only real escape from the danger of an overturn lies In redressing real grievances. What Is needed ls to Interpret the recent labor unrest as symptoms symp-toms of social diseases needing to be cured. Thr nr several such soc!a! diseases which I could tianti . and probably several others which would be tevfcaled bv a searching Investigation. But here I shall point out only one probably by far the most Important. This Is the unstable money growing out I of the war. But what has unstable money to do with recent labur unrest? j Vfe do not remember seeing any mention of It in the newspapers Yet lo find It we do not have to seek far- We can trace our way back In three simple stcps from tho recent political demonstration of labor discontent to unstable money as a prime cause. The first step brings us to un- 1 Ull ING I 1I1ER. employment as tho grievance which. more than any other, caused labor to make Us recent (Coutlnueil 011 Page Two) STABLE MONEY HELD NEEDED (Continued from Page One.) Political commotion.. The English Eng-lish labor preelection ' manifesto" M'.ld, among other things "Unemployment and low wages, caused largely by the policy of tho liberal and Unionist government, havo brought distress to the bulk of the working pc-oplo " 1 Since the election in which labor came off second best, the unemployed have been demanding a hearing with Bonar Law. In other words, labor in England held tho Lloyd George government responsible re-sponsible for the vast unemployment during the last two years and will hold the Bonar Law government responsible re-sponsible for putting an cud to un-empl'oj un-empl'oj ment The opportunity to work is likewise like-wise the domand of the Fasclstl in Italy. In America also the back-swing back-swing of the last election is largely because of the depression of trade and unemployment. Next wo traco back this depression l trade and unemployment, whether In America. England, Italy, or elsewhere', else-where', to the fall of prices in 1920 and 1921 Always and inevitably a r. at fall of prices kills enterprise, .loses factories, discourages farmers and throws men out of work. Going still further back, we may trace the fall of prices to the deflation defla-tion of credit and money beginning early in 1920. As professor Cosscl, of Sweden, shows so clearly In Ms 'Money and Korc-lgn Exchange After 1914." Just published, and as every other economist knows so well, this restriction of credit which bankers in so many countries began In 1920 was the main reason for tho fall it prices which bankrupted thousands of farmers and business men and made millions of workers idle And thero you have it! Tho chain of causes. Deflation, fall of prices, unemployment, producing political indlctlveness. Whenever deflation or inflation occurs oc-curs somebody s toes are trod on and dlseontc-nt. and unrest result. First we complain over tho high cost of living and then over the depression of trade. If those now so anxious over labor unrest, for fear their own pocket-books pocket-books will be injured, once realized that there are those real grievances ; from Inflation and deflation (which are what "unstable money' means) they would do something else than 1 Wring their hands in bewlldored anxiety. They would take-measures to prc-irent prc-irent Inflation and deflation that is, to stabilize the purchasing power of money Incidentally this would not only prevent the real grievances mentioned men-tioned but would help their own pocketbooks. As stated at the outset, of course, there are other grievances But it is doubtful if any aro so Important as those produced by Inflation and deflation. defla-tion. Lord D'Abernon. now British ambassador to Germany and ono of the masters of this subject, once sa:u that ho believed 90 per cent of tho world's bolshevlsm camo from unstable, un-stable, money That is a higher percentage per-centage than r would ascribe but I believe over 50 per cent would be a conservative estimate And the worst of it Is that neither labor nor capital has yet clearly seen the situation. Labor ta therefore now on tho rampage and is qulto likely to hang tho wrong man to the lamppost; lamp-post; wrhllo capital does nothing except ex-cept to demand that nothing bo done. When both sides demand and obtain stable money over half of their dtffl-rultles dtffl-rultles will disappear |