Newspapers / Henderson Daily Dispatch (Henderson, … / Jan. 12, 1935, edition 1 / Page 3
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M ore Confidence, Not More Currency, Country’s Need Rahsou Lxplains Inflation and Says Currency and Bud* gutary Inllation Will Be Disastrous; Credit lion Can Bring Unbounded Prosperity Here BY ROGER w. BAUSON, Copyright, by Publishers Fin ancial Bureau, Inc. Rabson Park. Fla., Jan. 12.—“ How <l<> you tool about inflation, Mr. Bab s-onv It 1 was asked this question once, 1 was asked it twenty times on my recent trip South. Bankers and publishers, farmers and manufactur ers. retailers and professional men asked the same question. While vol umes have been written on the sub ject, I would like to discuss what in fiation is. how it comes about, and jt-- advantages and disadvantages. Some Type of Inflation Inevitable First. what is inflation? Stated simply, inflation is an increase in the quantity of money. “Money" includes credit as well as currency. “Quan tity" includes velocity of circulation ;,s well as amount in circulation. Hence, inflation means it speeding up of the velocity of money and or cre dit. What good does this do? Theo retically'. it is suposed to make money’ cheaper and easier to get. This in turn increases public buying power, '•etail sales, industrial production, jrbs and wages, dividends, and a. rorml the circle again. In other words it s' iris lhe wheels of industry mov ing. In fact, some kind of inflation or expansion i« necessary' to boost busi ness. What ate the tl.ioc main types of in flat ion? 1. Currency Inflation: Through in rteasing the number of coins and bills by reducing the gold content of the : dollar, by the monetization of silver. ; at by printing more paper money’. 1 Tuis is commonly known as “printing , rvi-s" inflation. 2 Budgetary Inflation: Through the government spending more money’ i year after y’ear than it receives. It ! goes heavily’ into debt and sooner or j later makes up the deficit by’ print- j ing bonds or paper money’. Credit Inflation: Through ex panding tile volume of bank credit. ; K* member each dollar of credit, does 1 juM Ihe same work as each dollar of currency’. Currency Inflation Disastrous lie: first type is utterly’ disastrous. Numerous European countries tried it it: the past fifteen years and are still ! swallowing in economic chaos as a te-ult. Callable mortgages, life lnsnr ane.-. and bank deposits are smashed hi «li i this type of inflation. Only* time who ran afford to hold non ealiable mortgages, and the owners i f tea) estate equities, common stocks aai goods weather the storm. The hiu.i- t objection to this type of in i',-Aon is that it takes from the v .ihv and gives to the unworthy'. Hi. pital.-. colleges, “widows and or pin and till others who depend NONSENSE! KiM \ -sHOV)€.\_ V>£_ OMOV'i OFF VOUR TObT FFn _J SPECIAL AT EFIRD'S PAGE SHEETS Size 81x99 _ SI.OO JUST ARRIVED dozen men’s dress shirts in broadcloth, white and fancy patterns. | A A A Real Value At *r * EFIRD'S Ifonderaon’s Newest Department Store upon their investments for existence Pay the piper's ibill. Tt is not neces sary to print additional money now. We have a. larger money supply' than I at any time in our history. | rh.e second method of inflation is j the first type under a false | cloak. Because this is true, it is all : the more insidious. The government ,if today easily- floating bonds at a i ve, y l°w interest rate. But remember I only the banks are buy’ing these bonds | and paying for them with depositors’ j money', lhe government then distri butes hank depositors’ money in its ; huge spending program. A large part i of t.hp funds find their way back to | the banks as new deposits and more j government bonds are purchased i This same cycle goes on and on. ; Bank deposits have jumped about $3- ; 000.000.000 in the past y’ear. while gross government debt has increased $4,600,000,000 to a new’ all-time peak j We must w'atch our step very’ care ! fully for wo are slowly slipping to ward budgetary inflation. Budget Inflation Ends up with Printing Presses Finally, when all hope of ever bal ancing the budget has passed the sec ond type of inflation merges into the ; r irst. The government can no longer borrow money’ at safe rates. Confi -1 deuce- in public bonds fails. There is :a mad rush to exchange bonds and currency for tangibles. Prices of land and commodities skyrocket. Business booms for ah rief instant. The print i in g presses run faster and taster until finally the crash comes. And the ; pricking of the inflated balloon ush ers in another period of deflation far more drastic than the. preceding era. The third method, credit inflation, is the type which we hope for today'. It would 'be similar to the inflation we had from 1926 to 1929. It can ha controlled the other ty’pes cannot bt> controlled once actually under way’. In recent months we have laid the base for 5230.000.000.000 of credit ex . pansion which compares with $55,000.- 000.000 in 1929. Business men. how ever. are not yet using this latent credit. While bank deposits have j jumped $3,000,000,000 in the past ,vear ! and are almost back to the level of j 1929. their speed of turnover, as mea ‘ sured by’ bank debits, continues to slacken. During 1929 each dollar of I deposit turned over seventy times; in i 1933. only twenty.eight times; and to day’ it is only’ turning over at the rate j of twenty-four times per year. Credit Expansion Depends on Confidence Our great problem now is to use jour huge bank credit reserves and j to speed up 'he lur tovc - < * money’— J not to increase the number of cur rency dollars in banks o- to pile trj i government debt. P.tti before we can i hope to have any real credit expan sion. confidence must he reestablish ed among business men. If thi - is done and we use our tremendous fa cilities for credit expansion, Ameri ca will see the biggest boom in his tory’. But whether or noi confidence will return under the present admin istration is a qurstion. A change of. government or a coalation govern j ment may’ he necessary to bring hack : piosperity. But piosperity cannot lie delayed (indefinitely without ringing on radi i ca! inflation. Relief expenses are I mounting very tapidl.v. Unemploy ; mcni today’ i> at about the same level [as a y’ear ago. hut there are 3.000.000 more people receiving doles. On the (other hand, business has been mov ing upward since September and the i advance is gaining momentum. From here on is going to be a grand race ! between rising business activity in one lane and a. rapidly’ mounting dole j in the other. It now seems almost cer • tain we will have some kind of in j Ration. Which kind depends on the j government. Business, as registered by the Bab i sonchart, is now 12 per cent above a. year ago. but still 25 per cent be low normal. HENDERSON, (N. C.V SAILY DISPATCH, SATURDAY, JANUARY 12, 1935 Today is the Day By CLARK KINNAIRD Copyright, 1934, for thlo Newspaper by Control Prooo Association I Saturday, Jan. 12; 192nd day, 159th year of U. s. independence. Morn ing stars; Mercury. Mars, Jupiter, J Evening stars: Venus, Saturn. Moon: first quarter. ilistoby-u p-to-date Jan. 12. 1628 Charles Perrault was born in France. j He immortalized in literature the 1 most widely known stories in the world, next to those of the Bible; yet his name is virtually unknown. He put into literary form “Little Red Riding Hood.” “Puss in Boots,” “Cinderella.” the childrens form of "Bluebeard" and other well-loved tales i that came in time to he erroneouslv identified with “Mother Goose." Jan. 12. 1746—Johann Heinrich Pestalozzi was horn in Switzerland, i destined to become a world wide in fluence in improvement of the wass mind. “He had the deepest effect on all branches of education, and his in fluence is far from being exhausted,” say’s a modern authority. When Pestalozzi went to Paris and did his best to interest Napoleon in a scheme of national education, the great conqueror said he could not trouble himself about the alphabet! I Jai|. 12. 1874- The original “Siam ese Twins” died. They were Chinese, not Siamese. Chang passed on of brain hemorrhage at 63. Eng of fright 2 1-2 hours later. Post-mortem examination disclosed ; Eng could have been separated and saved. They had married sisters, daughters of a Virginia clergyman, and some of j their offspring' are alive today in North Carolina and Oklahoma. Jan. 12. 1919—The so-called Peace Conference convened formally in Paris, and sanctified ward politicians in frock coats sat down to make de cisions directly’ affecting the future of 1.000,000.000 living persons and the lives of their descendants. It continued a year, succeeded only’ in generously' sowing the seeds of an other war. NOTABLE NATIVITIES Joseph Jacques Joffre, b. 1852, French marshal who erroneously" gets the credit for devising the winning strategy' of the Marne and saving Paris. . . John Singer Sargent, b. 1925, American artist . . . Jack Lon don. b. 1876, American novelist whose stories are read around the world . . John Hancock, h. 1737. first signer of the declaration of Independence. . . John Winthrop, b. 1588, first colonial governor of Massachusetts . . . Edna May Oliver, cinemactress. SUNDAY IS THE DAY’ Sunday, Jan. 13; 193rd day, 159th year of U. S. Independence. Full moon Saturday. Zodiac sign: Capri corn . HISTORY UP-TO-DATE Jan, 13, 1691—George Fox died. His works live on. He was founder of the Society of Friends, or Quakers of which there are 110,000 adherents in the U. S. today, including Ex-Pres ident Hoover, and Maj. Gen Smedley Butler. Son of a Weaver, at 19 he went, forth to preach in England a religion which resulted in the estab lishment- without his intending it— of a new church. His insistence upon the personal aspect of religious experi ence made it impossible for him to counterance the organization of an elaborate clergy and the setting apart of palatial edifices for divine worship, and caused the continued imprison ment and persecution of his followers for “blasphemy’." In Massachusetts in the 17th cen tury’, persons found to be quakers were sanged. Jan. 13. 1733 -Georgia’s first per manent settlers arrived— in South Carolina. The ship Ann. Capt. John Thomas, with Gen. James Oglethorpe, Rev, Dr. Henry' Herbert and 35 families, anch ; ored in Rebellion Roads, S. C., whence the 121 persons proceeded to the present site of Savannah. YOU’RE WRONG IF YOU BELIEVE That there is anything unlucky about the 13th of the month, or the 13th of anything. Mrs. Glen Ousley, Rockefeller In stitute, Princeton University, asks us WORLD COURT MOVE ON AGAIN Pa 'c a •• - --jApM ggßgfc v£j3B| ; MwHBI ||H| : : ' "’- .ariiS BHI .. .0. .. . y ;: pm- v ■-*“■ -»*m 8e ■n rr rii«ar«v>'ii ;-viyi '''i*»'i'n> ■' l i' ii ; v -■■-.«»■■ ", .» Vif-i4 ;, ' Senator Pittman Senator Robinaon Senator Key Pittman, left, chair- leader. The picture was made fust man of the senate foreign rela- after the committee voted, 14 to tions committee, is shown confer-r 7, in favor of bringing the Unit ring in Washington with Senator ed States into the World Court Arthu* JtobinMßft Democratic under certain conditions. JANUARY SUN MON TUt WtO IHU FRI SaT IH 1 1* ! x 6 *B9IO 13 14 15 16 17 30 3133 33 34 37 to explain the origin of the supersti tition concerning the number 13. Precisely how it began, no one can say'. In Scandinavian mythology’ there are 12 Demigods, and legend has it that Loki came among them, making 13. Loki was evil, and among the Demigods, he became ‘the chief author of human misfortunes.” Be cause of him. 13 came to have an evil significance to Scandinavians. Another popular explanation is that there were 13 persons at the Last Sup per, Judas being represented as the 13th guest. The superstition regarding 13 is un iversal. as Lillian Eichlor shows us in her excellent book, “The Customs of Mankind.” And H. G. Wells remarks, “And Neolithic man was counting, and fall ing under the spell of numbers . . . i and wondering why some quantities like 12 were easy to divide in all sorts of ways, and others, like 13 impos sible.” That Vice Presidents of the United States always are elected by’ the peo ple. They aren’t. tXIT Amendment to the Constitu tion provides that a candidate must receive a majority of the whole num ber of electoral votes in order to be elected.- In 1836 the vote was split between four candidates so that none had a majority'; consequently, the Senate exercised its power in choos ing Richard M. Johnson of Kentucky) That priests never have been per mitted to marry. Celebacy' was decreed for the Ro man Catholic clergy in 385 A. D. But some Eastern churches under the nominal jurisdiction of Rome still have a married priesthood. Perhaps, you too, have a query con cerning some popular superstition. Ask Clark Kinnaird, care this news paper. enclosing stamped, addressed envelope. Attorney-Gen. Brummitt Dies At Raleigh After Battle With Pneumonia (Continued from Page One.) to 1914 he was chairman of the coun ty executive committee. In 1909 he started four years of service as may'or of Oxford, refusing to run again in 1913. at which time he be came a councilman. In 197 5 Mr. Brummitt came to Ray leigh as Granville’s representative in the House. He served in the general assembles of 1917 and 1919, being un animously' chosen speaker of the House in 1919. He again became chairman of the Granville Democratic Executive Com mittee in 1922, and in 1927 he was named chairman of the State Demo cratic Committee, a post he held j about a y ear. In 1920 he served the State as pre_ sidential elector. He was elected attorney' general in 1924, for his first term. In 1928 and 1932 he was re-elected. On June 25, 1912, he married Miss Kate Hay'es Fleming of Oxford, who survives. There were no children. Mrs. Brummitt is herself well known for her activities in women’s circles. Mr. Brummitt was a lifelong Bap tist. He also was a member of the Masons, Odd Fellows, W. O. W., M. W. A., and Junior Order. He was born on a Granville county farm on February 7, 1881, a son of Thomas Jefferson Brummitt and Caroline Bradford Brummitt. His fa mily name of Brummitt has been a familiar one in Granville county since Colonial days when the territory was the grant of the Earle of Granville. He was educated at the common schools of Granville county and at Wtake Forest College, being graduated from there in 1907 w ith an LL.D. de gree. He taught school for a year and then began the study of law. He soon won his license and entered upon the practice of his profession at Oxford, which has since been his legal resi dence, though lie also kept quarters here. Always an ardent worker for edu cational progress, Brummitt served as> trustee of N. C. State College from 1923 to 1925 and in 1925 became a member of the board of trustees of Wake Forest. He was a member of the executive committee of the Wake Forest board. CLARKSON PAYS TRIBUTE FOR THE SUPREME COURT Raleigh, Jan. 12.—(AP) —Senior Jus Senator Robinaon Power Fight Takes Center of Washington Stage ' ■ . i ■ ■■ "•••••• Frank R. McNinch (below) , chairman of the Federal Power Commission, and Thomas McCarter (above) president of Edison Electric Institute, commercial power industry organization, have become leading fig ures in power fight that is taking center of Washington stage. Privately exploited power developments such as Niagara Falls (below) vs. publicly owned enterprises such as Norris Dam, in Tennessee (above) ha<« become a dramatic issue, with unification of the entire production of all the nation’s generators mnm mended to the President by the Mississippi Valley committee of the PWA. , tice Heriot Clarkson, speaking for the Supreme Court, today' said: “The Supreme Court feels a keen ‘sense of loss in the untimely death of Attorney' General Brummitt.” Doing Nicely. Mrs. J. W. Pulliam, who underwent an appendicitis operation Tuesday at Maria Parham hospital, was said to being doing very nieelv todav. She was formerly Miss Rena Abbott. The problem facing us today is that of finding consistent direction 1 for a mass of alert and insistent en | ergies. I AUCTION SALE I I Os Valuable Farm Lands I With Good Tobacco Allotment m On the Premises At 11 O’clock A. M. I I Thursday, IHth 1 I January I# ms 1 I The J. H. Kelly home place of ninety I I acres on National Highway about two I I miles South of Henderson. I I The Fuller place of 350 acres on good 1 I sand clay road between Raleigh High- 1 I way and Oxford Highway, have been I 9 subdivided and . I I Will Be Sold Rain or Shine I 1 Tobacco Allotment to' Each Tract I I Also 57 acres of heavily timbered land B I near Poplar Creek Church to be sold B I EASY TERMS FREE PRIZES I Hi! Hj I Special Prizes for Ladies I I Penny Bros. . . I I Thomas Bros. I 9 For Information See W. F. Homer or AIB. Wester B Special Prices On Good dßk MB » Dry Cleaning Monday IIIm Men’s Suits and Plain Dresses — I Phone 296 Nu-Way Cleaners HW PAGE THREE
Henderson Daily Dispatch (Henderson, N.C.)
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Jan. 12, 1935, edition 1
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