Today And Tomorrow
By WALTER LIPPMANN
argument about prices.
!» tne been cooked up to cele
•iiicb has b oJ. the legislative
tl,erH 'he opening of the
&JL campaign, both Mr.
irssidentl , -y,., xaf took the
rjisan a _:nt for granted. They
<”,5 . !>»“, «*
ssti»e? chicf jnterwt will be
*»' and wno caused them.
ij3Prl ''n aid of course luce
It, TrUfthc'n on Mr. Taft and
) b'aa* ,vould like to blame them
!\ir. Truman.
’ it would be interesting _ to
* Lt they will be saying
0 . if the main point as the
estye romes along is no longer
l'ctl0nriL and the high cost o 1
if3Pr ut falling prices, unsold
surpluses and unemployment. This
is not an. idle question. For exter
nally and internally there are
powerful deflationary forces in op
eration which are of great signifi
cance to all who must look ahead
and prepare for the future.
* * *
It is well known that Stalin,
witness his interview with Mr!
Stassen, is extraordinarily inter
ested in the chances of an Amer
ican deflationary slump. But there
are others besides Stalin. Just re
cently “The Economist” of L o n
don, which is very close indeed to
the mainsprings or British gov
ernmental and private finance
was discussing the problem which
Mr Acheson broached in his Mis
sissippi speech and Mr. Marshall
With that goodnews
, Mother-don'tdeky
‘But bake a cake
This very day/
at Harvard—the problem of the
balance of payment, and the im
pending shortage of dollars as the
American credit is exhausted.
“The balancing of the British
accounts, it said, “will some day
be powerfully assisted by a turn
in the world conjuncture. It has
become a truism to say that the
whole world is now a seller’s mar
ket; but it is perhaps not fully
realize how much this affects the
British economy. There is every
reason to expect before long a fall
in the world prices of primary
products—especially 0f foodstuffs',
but also of many raw materials—
that will be second in sharpness
only to those of 1921 and 1931. Not
only will Britain gain in relative
prices but there will also be a
great gain in the availability of
supplies. This will not make low
costs and high quality of British
export goods, or aggressive sales
manship in disposing of them, any
less neceary. But it will bring
the solution of the problem of the
balance of payments well within
the range of possibility.’’
* * *
In saying that “there is every
reason to expect before long a fall
in the world prices of primary
products,’’ “The Economist’’ does
not say that it expects this fall of
prices next year. In fact it implies
that the big readjustment may not
come for two or three years' The
British crisis, it says, “will be sur
mounted before the 1950s are far
advanced.’’
Nevertheless by next year, at
the present rate of expenditure,
the exhaustion of Britain’s capa
city to pay in dollars will be near
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David S. Harriss, General Manager
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A rinsr service for a finer car
at hand. The same will be ture
of almost all our customers. For
the outer world as a whole is now
incurring a deficit of one billion
dollars a month. It is covering
that deficit with loans, credits, and
gifts from this country and it is
using up its remaining gold and
dollar balances at the rate of near
ly five billions a year. Quite clear
ly, this cannot go on much beyond
next year unless we supply new
funds to keep it going. If we do
not, our exports will be cut at least
in half. This will be a powerful
deflationary event. It would cer
tainly cause not only untold
misery in Europe but would go a
long way toward causing that fall
in the world prices of primary
products which “The Economist”
is predicting.
There are also powerful defla
tionary forces in operation here
at home which, despite offsetting
forces such as the expansion of
real estate mortgages and person
al loans and consumer credit, are
likely in the end to prevail. Much
of the discussion of the Federal
budget obscures the magitude of
the deflationary impact of the gov
ernment because for technical ac
counting reasons the budget
figures of expenditures, receipts,
and surplus do not tell the signi
ficant story.
As the monthly letter of the Na
tional City Bank of New York
says: “The government’s net
drain on spending power” — its
deflationary influence on the na
tional economy—“has been a good
deal heavier than is indicated by
the amount of the budget surplus.
This comes about, first, because
cash income is regularly much
greater than ‘net receipts’ under
the budget, and, secondly, because
actual cash outgo is frequently
less than total budget ex
penditures.” Thus in the first four
months of this year (1947) the gov
ernment cash income exceeded its
cash outgo by 4.4 billions, which
is at the rate of 13 billions a year.
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* DAILY CROSSWORD
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Yesterday’s Answer
89. Compass
point
41. Cebine
monkey
42. Thrice (mus.)
44. Moisture
ACROSS
1. Out of
5. Fragrant
wood
(E.Ind.)
10. Mineral
deposits
12. Grove of
small trees
13. Deputy
14. Loop of
running
knot
16. Man’s
nickname
16. Solemn
wonder
18. Music note
19. Herb yield
ing oil
ina.)
21. Spirit lamp
23. A son of
Adam
24. Localities
25. Board of
Ordnance
(abbr.)
27. Not fed
29. Half an em
30. Affected
manners
32. Birds, as
a class
34. Merriment
35. Most
infrequent
38. Samarium
<sym.)
39. Marry
40. At the pres
ent time
41. A ray
43. Roman
official
45. Officers’ as
sistants (mil.)
46. Dig into
47. Sluggish
48. Obnoxious
plant
DOWN
1. Ensigns
2. Rascal
3. Seaport city
(Ukraine)
4. Male adults
5. Skin
disorder
6. Game of
chance
7. City (Port.)
8. Perfume
9. Observe
11. Plant organ
17. Prosperity
20. Misuse
21. Senior
22. Hebrew
letter
25. Sack
25. Waterproof
cloth
28. Shunned
31. Made over
33. Character,
istic of
old age
36. Find the
solution
37. A kind of
woolen *
cloth
CRYPTOQUOTE—A cryptogram quotation
EMM IADMOTEMO QRZXSOLUT EYO
MDDTO ELZ PSBOYGOV U—S DLUEPXLO.
Yesterday’s Cryptoquotei EVERY FLATTERER LIVES AT
THE EXPENSE OF THE PERSON WHO LISTENS TO HIM—
LA FONTAINE.
When we remember that during
the war the government inflated
spending power by 35 to 50 billions
each year, and that now it is de
flating spending power at the rate
of 13 billions, there can be little
doubt that the main influence is
deflationary, and that sooner or
later we shall see its effects.
These things are all very com
plicated but, as we look ahead to
next winter it will be useful to
bear these two great facts in
mind. We have an export surplus
of a billion dollars a month. Which
will come very near to being cut
off entirely within a year unless
new funds are provided. And we
have in our government finance
a net drain on spending power of
of another billion dollars a month.
If you add the tw» together, as
suming that Congress refused to
support Secretary Marshall’s pro
posals, we shall be operating our
economy with a deflation of about
25 billions a year acting upon
prices, profits, and employment.
That is a lot of deflation, quite
enough to produce conditions alto
gether different from those which
Mr. Truman and Mr. Taft have
seen talking about.
Former Navy Officer
Visits Caswell Beach
SOUTHPORT, June 12—S. B.
laskell of Cincinnati, Ohio and
VIrs. Haskell have been spending
i week at Caswell Beach the
'uests of Dr. and Mrs. Landis
3rown at their cottage.
Mr. Haskell as a commander in
he Navy opened Fort Caswell for
a favorite overnight
in Chicago, New York, Boston,
Phiiaduphia, and wherever it’s been introduced!
I I
Your very first box proves why CHIFFON is the soap flakes you’ve always hoped for: I
V
j.. CHIFFON is here today! The soap
^ flakes that, in a few short months,
- ame top favorite in seven big cities.
Even in new stores where many old
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t Chiffon Soap Flakes today—and see
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i 1* Chiffon is GENTLE with
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i SAFE for colors I Your lovely
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Dishes, glasses come clean fast in
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\ —
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the Navy when it was first ac
quired by that branch of the serv
ice in November 1941. He remain
ed in charge of Fort Caswell un
til June, 1943 and was then trans
ferred to the Pacific. Dr. Brown
attained the rank of Commander
while at the base with Mr. Has
kell and before being assigned
to field service with the active
forces in the Pacific.
Tired Kidneys
Often Bring
Sleepless Nights
Doctors say your kidneys contain 16 miles
of tiny .ubesorfilters which help topurify the
4I°od and keep you healthy. When they get
d <?°? 4 w?rk nght in thc daytimes
many people have to get up nights. Frequent
“““ty Passages with smarting and bSning
sometimes shows there is something wrong
with your kidneys or bladder. Don't neglect
this c°ndition and lose valuable, restful sleep.
When disorder of kidney function permits
Poisonous matter to remain in your blood it
mayalso cause nagging backache^heXtto
*<« Pams, loss of per and energy
Sri SSe®neSS 1116 eye3' headacbei
Don’4 ^aitl’ Ask your druggist for Doan’s
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by millions for over 60 years. Doan's give
ktw,nllefoanu wiU heJP the 15 miles of
kidney tubes flush out poisonous waste from
your blood. Get Doan's Pills*
V
Dial 2-3311 For Newspaper Service
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_*