I
UNO INFLATED
THE CURRENCY?
George E. Roberts Gives Com
mon Sense Explanation for
Currency Increase and
Decrease.
i
A
GOVERNMENT TOOK NO PART
Due to Change* In Supply, Demand
and
Price*
of
Commodities
Caused by War—Federal
Reserve Not to Blame.
Horseshoe Counter
A Better Oil
Next to Eagle Office
Even if it does cost less
Best Place to Eat
It isn't what you pay but what you get in
lubrication that counts. Thousands of hborcz
tory and road tests have proved that Zerolene
oils and greases reduce friction and wear to a
greater extent than any other motor lubricants
we have seen and tested or been able to produce.
Zerolene oils form on an average $0% less
carbon than other motor oils. They form less
carbon than any other motor oils known to us.
And because Zerolene gives better fabrics,
tion continuously, the Zerolene'lubricated
automobile averages 5% more mileage from the
gasoline consumed.
Insist on Zerolene even if it does cost less.
All Kinds of Pastry for Salo
STANDARD OIL COMPANY
(California )
30% less CARBON
5% mon, gasoline mileage
Orders taken for Birthday and Wed
ding Cakes.
Phone Yonr Orders to 212
Motile tit Al) Hours,
The mistaken notion that the cur
rency la Inflated and deflated by the
government in the United States from
motives beyond the understanding or
average people 1* effectually set at
rest by George E. Roberts, noted
banker and exponent of sound money,
in an article In the Journal of the
American Bankers Association.
“There has been inflation by the
governments of Germany and other
European countries, which have is
sued money for the purpose of paying
their expenses,” Mr. Roberts says.
•The United States Government has
done nothing of this kind since the
Civil War.
“There is a genuine need for eias.
tlclty In the volume of currency, and
for machinery to adjust it to the legit
lmato needs of the country. The
means provided are the Federal IL'
serve Banks, authorised to issue cur
rency to their member banks, either
in payment of deposits or tor loans
Side-Tracked Lix* Freight Cars
"More currency is needed in Sep
tember, October. November and De
cember than in January and February.
As business slackens, currency nat
urally retires from 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 trafllc
falls off.
“What caused the great inflation of
eredit and currency? It was due pri
marily to the war. which made ex-
traordlnary demands upon the Indus-
tries and caused a great rise of wage*
and prices, It was Inevitable that
more credit and money would be
called for to carry on business.
"The boom year of business that fol
lowed the armistice was likewlae ab
normal. The end of the war released
a great many demands that had been
held In check. The foreign demands
apon us at first Increased. There was
a temporary stimulus, but the volume
of business was abnormal and could
Mt be sustained. Agricultural pro
duction In Europe revived, the prices
of agricultural products moved back
toward normal, importations from the
United States fell off, prices declined,
“deflation” began.
"Some say •inflation should not be
permitted.’ but if war occurs inflation
Is unavoidable. Recruiting armies
makes a labor scarcity. Contractors
bid above going wages to attract men.
I The war Industries did the same and
I the peace industries raised wages ta
hold their men. Governments of Eu
rope sent representatives to this coun
try to buy food and they bld up prices
on the grain exchanges. Higher levels
of wages and prices meant that mor*
credit and money was required ta
handle business.
Ì
>
4
Wild Rose
Addition
Just Platted
Have You Seen It
*
If not, see it at once. It will sur-
prise you. Level, line soil, all cleared,
2 blocks from the Highway. Large
lots, low prices, easy terms. : : ;
4
O. B. Richmond
General Sales Ajzent
More Business, More Money
“The Increased Issues of currency
was a result of allowing business to
go ahead, upon the rising level of
wages and prices. When a factory
pay-roll doubled, twice as much cur
rency had to be furnished for IL
When cotton rose from 10 cents a
pound to 80 and 40, more currency
:
was required to handle the crop, and
so all around the circle.
"Deflation did not come by an act
SAME OLD PLACE QUALITY PAINT SHOP
of the government or the Federal Re
serve authorities in suddenly with
NEXT TO TIPTON LUMBER CO.
drawing money from circulation. De
flation came naturally when business
tell off and prices declined. Just as
tn increasing volume of business at
higher prices called more currency
Into use, so a decreasing volume of
business at lower prices released cur
rency from use and caused It to re
Any Rirl in trouble may com
turn to the Reserve banks.
Dillard & Dillard
“There has been absolutely nothing
municate with Ensign Lee of the
ATTORNEYS
new or strange In these price move
Salvation Army at the White
ments related to the war. Inflation
Practice in any Cxxirt—State or
Shield Home. 565 Mayfair Ave.,
and deflation have been just as al
Federal.
ways when wars have occurred. The
Portland Oregon.
•nly new factor has been the papula
Office, Court Plasa, St. Helena, Ore.
tlon. That Is always being renewed, ,
and most people do not learn by the
expertnee of others. When hard times
come It is always the thing to lay th*
blamed on somebody, and this time
the Federal Reserve System has taken
most of it."
F. R. ENOS
Pointing : :
: Decorating
Get a Meal Ticket.
G. C. SALE, Prop
AFTER THE SHOW
Any Time : : Day Or Nigh!
C hinese N oodles , T omales ,
C h ila , F resh O ysters ,
S andwiches , L unches .
THE LUNCH WAGON
NEXT DOOR BAST OF OLD MILL POOL HALL
DR. W. H HURLEY
SEE ME FOR YOUR PAINTING JOBS
PLUMBING
and ELECTRICAL WORK
DENTIST
Office over Haltom’s Store
Vernonia,
-
-
Oregon
Evenings by Appointment.
House Wiring and Suppltea,
AMERICAN SAVINGS INCREASE
a
Stop at the
DR. M. D. COLs;
The Old
VERNONIA HOTEL
DENTIST
Hot and Cold Water
Electric
LJghts
Vernsnia, Oregon.
RATES REASONABLE
Sheet Metal Work
HfATINd
AUTO
REPAIMM
RADIATOR
Write me, or Phone
NORMAN ARMES
Newhouse for sa!e;easy terms.
See Wright, 2 LI. m A' 8 north of
High School.
Reliable Blacksmith
General Blacksmithing,
Horse Shoeing,
Baths Free to Guests
Oregon
W.T. HATTEN
Forest Grove,
-
Machinery Repairing
o> nil Kinds.
Oregor.
One Block South of Rank
Vernonia, Oregon.
«
New York.—Continued Increase In
the saviags of the American people
I* indicated by the tateat national
compilation just completed by the
Saving* Bank Divinion of the Ameri
can Banker» Asaociation. Savina* de
posit* in bank* and treat companies
of the United State* were reported at
117404.000.000. June SO, 1922, the laat
available nation-wide figures, ** cm -
pared with 118.620,000,00«, June SO,
1921. This I* an Increase ef f«80,-
000.000 JT 4.1 per cent
The number of saving* depositor*,
a* indicated by the number of ac
counts, show* an Increase of 4.0 par
oont with the Hates reporting for the
flrat time in 1032 excluded. The third
san uni report of the Saving* Bank Di
vision on school saving* banking also
■how* increased American thrift,
071,030 pupil* having savings acconata
during the school year of 10S1-1M3
ao against 003,00«.
Plans and Katlmatoa Furntatisd
R. L. MILLS
Vernonia
Orsgoa
Stale Lice
Outside and Inside
PAINTING
QUALITY
our watchword, and
this applies to workman
ship as well as material.
E. B. DALE * CO.
IS
I
V