Newspapers / The Chapel Hill Weekly … / May 26, 1933, edition 1 / Page 2
Part of The Chapel Hill Weekly (Chapel Hill, N.C.) / About this page
This page has errors
The date, title, or page description is wrong
This page has harmful content
This page contains sensitive or offensive material
Page Two Tiie Chapel Hill Weekly LOUIS GRAVES Editor SI'BSCRIPTION RATES One Year 51.50 Sa Months 1.00; Thre* Months .76 In'.ertti at ifter <3-<iii» n-,a::e- 192] a: tx<- rctitfecr at C.’.ar-. Hili, Norte Girelizu iar.irr tfc* act of VJarck 3 i Wf'te Got the Roads Writing in the Greensboro _Y< f/ .v about the high-powered t r paganda campaign tr- put George Ross Pou in as chair mar. of the state highway com-; m.-'.on. in place of Pi. B. Jeff r«Tom Bos- recalls a s.nriiar movement in support of the late! Henrv B Varner. When a new highway commission was ere.; ted ■ the I<gi?latun 24 years ago, Varner, aspiring to the! chairmanship, had powerful J political backing, and th* en ■ * nt of 1* ading : it ians ;*.as' re-enforced by well-man aged boo. -yng that reflected the f the fan “drive.*' Governor Bickett >■*. ei-.ed deiegatior-. and a flood *•-:' letters, extoliif.g X’ar.ner. But the G l , error appointed Prank Page, in whost behalf almost no' wa- mad*-, and, say.- post. "r.e\er cea-ed *o thar.k h*.-a\ en : r leading 3r..rr. t* Pago.” In the cour*-* f his d* If : * -a; - i “Ei' kor • a a s ’. 11 liv .• g when the state ie-ued its • ;.• S',o 000 0110 f f r,f >! fj -for ■ roads. He wa- fearful that this * .•■as going too fast. Subsequent | * ■ liditjon- j*r< ,ed him. a prophet, a- to ‘fiat.” Ev pro; :,»•* Bo't mean-. * \ <;*■■ liy. a true prophet. That is he thif.k- that the - late go ng too fa.'t when it .-sued bonds r highway*. We dissent from this. I he fact that a deprex-ion has j rr.e upon us, arid that North Carolina has not collected ♦ nough revenue to meet its ex oenses for the last three- or four years -this i.» no reason to con • ude that the state's bonding . *>e]f for roads twelve years ago was a reek!* .-.' venture. It j '.‘•a- not. It was a wise venture.! T .*;♦ good highway' liav* add-j <d to the wealth of the ,-tate. 1 h< \ hav< saved owners ol a.• mobiles untold million.' of dol lar.' in repairs and depreciation. Their usefulness to business in the ,-tate and tin- pleasure they nave given 'to tin peoph ol th< -tale —these- are beyond < aicu ation. If the highways had not oeen built before the depres sion came, there j- no telling how many more year.' w« would nave to wait for them. When there is talk of*. North * arolina’s having been on a M joy ilde.” it is well to reflect that if its citizens hadn’t spent their money on license tags and gaso line taxes (thereby paying for the roads) they would surely have spent it in other ways, and the chances are a hundred to one that those other ways would not have been of anything like .'O much benefit to the state. Governor Bickett, says Bost, “never ceased to thank heaven for leading him to Page.” And North Carolina ought never to cease to thank heaven that it went ahead and provided itself with a modern highway system. When you hear anybody la menting the money tPiat North Carolina spent on road-building, don’t forget this important fact: We’ve got the roads. Koch and Connor in Colorado F. H. Koch and R. D. W. Con nor will conduct courses at the University of Colorado during the annual writers’ conference there, July 24 to August 12. The University’s junior class in civil engineering will begin •its summer surveying camp June 12 near Brevard. Bailey on Inflation fCnntxrtufd from preceding page ) of this fea'urt of the Bill i* irre sistible. They would exchange their certificates, whereas b< ,-r.d holders; would r.o* exchange the r bond? for; i the s:mpie promise-* to pay ir. the 1 form of greenbacks or printing-press money. But this would not sufficient ly inflate the currency and there wouid be an immediate demand that the Government print more money and pay its public -errants or its Molding program off with this mnr . The (flee* of this would >w to create twr sorts of money :r. tr»« country, one money payable r ,• anu the otner money payable in un-! define': money for whatever it might ibe worth. Money payable in gold - wi in ediatelv go out < t or. and this would ca... of course, j for mote of the printing-press money, j ! Xal'ona! bank notes arid Federal Bank note being secured gold j would p ■it of circulation. The it ta ‘ onsetjuence would be the. piac- J .r.g < f America or. the prir.*ing-press j ; mon*-y basis. i This, of course, wou.d mean ruin, i 1 1: ha.- always meant ruin when tried 1 .*:«• r* •• frt It would destroy the S value * f life insurant-* policies. * f :,i o o. pr * ex. t ng contract'. r* tract ,ar no mar v ■... 1 . > da; th* --xt wr.at ; the •• a: u< of the money he dealt ir. •xa Tr .happened .n h ran- * ■ it happened < ng th* r - rsfed< ra< y if .napp*; *•< • Germar y ar.d it i* folly : t■ • thins: :f. it should once he •acted :.>-!< • would r.o: happen *,i r *•. ] ’,;■!( y. - 1, * f.« -f r»* ■ ‘ wrT | (• wh' . ’.♦*•<■ A.'* th *■ v r.<iv 4 *i<t t •n.i.gl; •-.< J"!'-:’.on tnt ugh. They d' r.o* *•* teat * ..*■ w< .Id nevitai 1< ad t< a f irther ■ and t a *. rtner issue of j .ain pa* i pi-r money Without va:u*- behind it. j Tht tr ih plan proposed ..- the plan • t < .**.!.g do-a o or i educing t r.e ■A. girt '■*.•'* g' id :• •■ * g.d d- liar ’h< ; a: ’ r.a* 1 favored. I ] j favor this, p.ar; bei-ause t preserve •be pi • ■ ip,e ( f •.atu«- :r. nioiiey. h ur ther, .’ definite ar.d stab.* ; and, lurch* * , . ' and rri' ia: oecau'* 1 /• ]d ha- a'*) ~ red ar aor ormai «■*•• hiijTii* va!u< . f nmpari the r.-e m gold with the falling of cotton, or ••ori * r wheat. or hogs, or lands, or a.-.y on* of the entire 7M commodi j tie- dealt r. by the Atnerican p« o pie, ar.ri ai see a* one* that these commodities ha.r gorn- down in price because gr id has gone up in value. Gold has gone up becau.se each na tion is hoarding it and many indivi duals an hoarding it. Th* ieduction *,f the gold content of the dollar would < ori*-< • th* abnormal vuiu* * f tb< gold in the dollar. I Mr. W. iter Juppmani of An *ii< a and M K* net th< foremost econ* !rr •>.f l lr * a • Hi -rain. ' isr.* toe sam* !■, ,-w *-f ** - 'fjiitter that I *l* . Mr. Sad.er 'pu • *h* -ame and Mr. ( as* !! >.: sv. :*/.*■ r lat : ai.-o tak*. s th* -am*- \iew. J am prepared to argue that ’j, ■ co .!.-*• - moral m that the new dollar w> . d b* «-fjual .'i value to the oil' ,Jar ;> bet w< e.o o* i.it'-r and ct*'d ,t< r, a . w *,«-ri the greater portion of th*' j resent ndebtedne -of th* Anu-riear. people was <*ntiaeted, 'Jo be *;*•* :ot*, ! (.* pre.-ent g< id dollar .s worth 12 pounds of eettor.. The gold dollar of l‘.*2s was wor*h 5 pounds of cotteri. When the farm*-! borrowed his money, in ll>2b, h*. borrowed the **iual of 5 pounds of cotton. It is wrong to rcijuir* him to pay 12 ■ pounds where he borrowed only 5 pounds 1 use cotton as an illustra tion, but it is a safe proposition that practically eveiy known commodity, including lands, has lost value in terms of g"!d by at hast fifty per cent in the last four years. So the illustration with reference to cotton may be applied generally. No one would complain if the price readjust ment should be had by means of cred it inflation. Why then complain if it be had by mechanical devaluation? One is as moral as the other. I was in favor of giving the Presi dent this power and confining him to it because I considered that the other two methods were impracticable and unsound and I knew that they would stand in the way of the one sure and stable method. The.re is an old say ing “That the good is the enemy of the better.” 1 do not think the other two could be classified as good, but I consider them, even if they were good, as being in wa y cf the bet ter method. It is my judgment that in the com ing World Economic Conference Great Britain and the United States will stabilize their moneys, the pound around $3.70 and the dollar around 70 cents. If so, my view will have been confirmed. My view is confirmed by the recent rise in commodity prices. What has happened? There are people who think the Farm Bill brought about this ris;e. The truth is the Farm Bill has not been put into effect. Prob ably some of the rise was due to spec ulation upon the effects of the Bill, THE CHAPEL HILL WEEKLY. CHAPEL H/LL. N. C. but it should be remembered that the rise took place very quickly after the United States abandoned the gold standard on April lbth. We ceased to maintain the gold value, that is, we let the gold dollar slide, made no • further effort to maintain, it at the I Of* per cent parity, and when we did this, having ceased to maintain the value of the gold d' liar or the gold in the dollar, we released com modity prices from the effect of ad verse transactions with tr.e United States by foreign nations r ‘ or. the gold standard. In other v . w< had been main taining gi id at the expense of com modity prices. We ceased to main- I tain gold prices and thereby gave commodity prices ar. opportunity to rise to thei: barter value in the world ; market. What we need, now, of stabil ty. We have no j standard by means of which to main tain monetary stability. The problem > to find the point at which to fix ■ th: - stability Whenever we agree i on the point with Great Britain and i fix the va ue of the pound and the | value of the dollar according to this ! agreeing p-ur.t, 'here will be an end 1 of deflation of commodity prices, and a stabilization around the current • , for the current- prices ar* ap proximately the barter prices. Orce. we have reached tm- point f ve may trust to th* ■ jr th* w heat ro| and w • hav< ’ •*!.- year the shortest spring wheat ri twenty-five \ea rs, to *he de '■reas* in the .-r c: op and the de * f-a.-u :• che «•*•**••*. and tobacco crops and the p*an..t crop, to opera*.*- nor ma he law of supply and demar ■ a r.o th* <•< ; -co.- - ••*• ought to be with fee iced -a <:*•••.ded-y . teased ' j Ih* la\v of -supj .. demand does i-not v- ik 1 • dir*-* • rat <. 1* tend- to ! .v' ' r .. a- ar it h m*-t ical ratio, that is to say, f the cotton crops should be reduced by thirty per cent a- com pared with the normal demand, the !!.-<■ • would be thirty per | i tut. but wuuid com* close to ninety r,er cent. That may :• irprise you, but. t is well < -tablisbed by exp'-rien*'* and wa- developed very skillfully by Achille Loria of Italy in a famous work on economy published about 1910. A; in* iea.-ed d*-man*l • 1 a re duced - ipply would have ;< rn»-.- * grati fying effect, upon pric*••*. f)m Gov ernment is: ojierat ng with the view to both. Prices have been so low because there was not only excess of supplies, but very greatly reduced demand. So we had both ends of the law of sup ply and demand working agains* us and working in an arithmetical ra ther than a direct la’io. The of foil now is * ! have both ends woi k f< r The Goversemen* is now ab-iut to authorize the expenditure of $3,3(K'.- 000,000 in public works and the l*-a' - ing <*f at least $2,000,000,000 in mo;'- gag<- refirianving. This is loan <x penditur* or cre*lit iriflati-in. Ji the same sort *-f inflation tha * we have normally had in periods of pr* s-j polity, with the difference that the Government is both the borrower ar.d the lend*.-) of money. I am tupport ing these measures. They are indi cated as necessary by the extreme condition of unemployment and also by the extreme paralysis of business. 1 think these measures wiil have a sounder and much more effectual in flationary effect than any of the fea tures of the so-called inflation section of the Farm Relief Bill. I mention this matter in order to indicate the difference between credit inflation and monetary inflation. Eatn deals with money, but credit inflation is simply an expansion of borrowing power such as we had in the great rise from 1922 to 1929 On the other hand, monetary inflation, that is printing-press money or even devalu ation of the dollar value by reducing the gold content of the dollar, pro duces inflation by reducing money value. By monetary inflation we do not really increase the total amount of money available, but only increase the number of tokens representing mon ey. It is as if a man had a dollar and divided it into four quarters, but it would serve him but little purpose to call each quarter a dollar. How ever, the reduction in the gold content of the dollar is indicated as necessary wholly by reason of the fact that gold has reached an economic abnormal value. And debts contracted under credit inflation, which of itself de valued gold and the gold dollar, can not be paid. Credit inflation is much to be preferred to any other form or means of affecting monetary value. If we could reduce the value of gold, not just the gold dollar, but of gold, the correction would be had by the reduction in the value rather than in the content. Ordinarily this may be done (as it was in 1924-28) by credit inflation, but we have found it very difficult since October, 1929, by reason of the depth and magnitude of the factor’s of the depression. Credit in- flation operates by increasing velocity of circulation rather than volume available for circulation. The whole subject of money is one requiring a great deal of study and some capacity for abstract thought. I do not pretend to have any special knowledge on the subject, would not for a moment offer myself as an ex pert, biit I have been very faithfully arid arduously studying standard eco r.i mic works, ancient and mode-n, and standard works on money for fully two years. I have also -tudied the monetary and banking systems of our country and have applied myself right and day to the conditions pre sented by the situation which we de scribe as the depression. I recognize that the difficulties are v-ry great and the problems are new. I am rather gratified that our Presi dent is disposed to be bold and to break new ground. I have bqen amazed to -ee with what readiness the business men of America have realized the failure of their plans ar.d ape welcoming the leadership of the President. I am going to help him every'’way I can, and I think one way V help, him is to be intelligent in the n ideratior of the problems which a.-*- presented to him and the Con gl am supporting him on hi r ' gram as a whole, and I have been • *•;%• much gratified by concrete evi -i* - ce that he is relying on those fea tures of th* Farm Bill which I ap proved and is -rejecting th*- features wr.,ch I did not approve. Already he ha-, abandoned for one year the pro < *-.-ing tax and he has had the Simp . Pri' e Fixing Amendment -trick*-:, from tne Bill, which indicates that • • v. ould ; av opposed it n* Sen ate just as I did. He has so far hesi *at* d to impose the processing taxes and the high* t tariffs provided in the i : and there are statements in the N* w York Tim'* to the effect that h< w . >t tolerate the • proposition of p:■;nt ing— press money. Altogether I •hink his views and mine on the sub - • of the Farm Bill were almost in To-. The difference is that 1 had to .< te “yes” or “no” on each feature, while all he ha> had to do s to select th* good and reject the bad. No or,* niames him for rejecting th*- r ail fea ture.-. against which I voted, and .*.* i * will at length Warn* me for doing! it before he did. J. W. Bailey FOR RENT 2-room furnished apartment and a 7-room unfurnished apart ment for rent, beginning Sept. Ist. Steam heat and double garage. 21H Vance St. Tele phone 4406. •* - ! ' »./ g*s*■» «i 'J.'iv <*->lf** *■'J^', V? *** ' "’> " ' '•’£ ; .' r •*)'*• f„f!. J ' " ?•- v ’v/r . **C.-v j£ V,-.--. '-j.'y-L'fC'' >-o'Mi-f ~’- ,; ' t **'‘VjSls v /’>, * Y^a*?* ; K ’-' - ,v *^B|fc, ■ “Believe me, I know a low price see one— IHHHHHHH I’m buying my tires NOW!” Right now Goodyear is concentrating on two main lines of tires . . . This saves money for the factory that builds them —for the dealer C€J©IM?JI EAR who sells them and for the car owner who MMMiiLMMnn buys them ... If you want to know how real All-Weather Pathfinder these savings are —and how much they Supertwist Supertwist mean to you — Just check up on today’s J»* f * ’ tr * Cord Tire price of the size you need, and at the same sgßs $4.65 I time take a careful look at the finest quality and up up v that ever honored the Goodyear name • • . , This stepping up of quality, this stepping J^BL down of price leads the way to a better deal everyone we want now .. . Best of all —it means that everyone , can afford new Goodyear Tires, especially if lilf j you buy now while prices are still low. W f\/j KjSM H The Greatest Name in Rubber H»KIhB|II||uHHH Goodyear 1 i All-Weathers 4.40-21 $ 5.85 4.50-21 6.50 51 5 Strowd Motor Company 5.50-19 9.70 6.00-20 11.40 Ford Products Since 1914 6.50-19 13.60 COTTAGE FOR RENT Pratt Cottage No. 3 for rent. ! Call 6141. COTTAGE FOR RENT For rent: Cottage, Bryan Lane: Phone 5261. KITTEN FOR SALE For sale: Pure-blooded Orange ! Persian kitten, at very reason able price. Phofie 7351. LOST, A DOG Lost: Brown-and-white Shep herd puppy, 2 months old. Last I seen on campus. Return to Ir] * Summerlin, 519 Senlae road. Telephone 3341. FOR RENT Two seven room apartments with all modern conveniences. 738 E. Franklin St. Apply P.O. Box 254, Durham, N\ C. FOR RENT Sleeping porch with sitting room for two. Rent reasonable. Available for summer and fall. Three minutes from everything. Telephone 7711 or call to see Mrs. John E. Lear at 2 Cobb Terrace. FOR RENT For rent — 6 roomed house, 'A baths. Cool in summer—can be i divided into 2 or 3 apartments. Apply 121 Mallette St. FOR RENT FOR SUMMER Completely furnished 5-room apartment. Call 6966 or write box 125. ANNOUNCEMENT My place* will b<- closed to all visitors from June Ist to Ang us* Ist. K. M. W. Tack. Box 70, R. F. 1). 2, Chapel Hill, N. C. FI RNJSHED APARTMENTS Apartments, furnished, for rent. For Summer, or from September 1. 404 Hillsboro St. Phone 3851. APARTMENTS AND HOUSES FOR RENT Apartments and houses for rent. Available September Ist: Apply 132 W. Franklin Street. Fridav. May 26. 1933 FURNISHED HOUSE For rent: small furnished house in Gimghoul. for the sum mer. Ralph Trimble. SPECIALS Sugared Black Walnuts. 50 cents a pound. Raspberry hon ey, 25 cents a pint. Mrs. George ;F. Bason. 501 East Franklin Street. ** FOR RENT Two furnished apartments. 3 rooms each, private baths, for rent for the two summer schools. Apply 132 W. Franklin St FURNISHED HOUSE Completely furnished house for rent, beginning June or Sep tember. Three baths. Garage. All electrical conveniences. Sleeping quarters for 6 persons upstairs and 2 downstairbe sides screened porch. Write G. T. W„ Box 272, Chapel Hi!!. HAND-WEAVING FOR SALE Hand weaving and hand-ham mered pewter made by the na tive weavers and artisans of Penland, N. C. Bedspreads, rugs, coats, children’s dresses, platters, ash trays, etc. Mrs. George F. Bason, 501 E. Frank lin street, Chapel Hill, N. C. Telephone 5821. ® LUBRICATION ■ Cushions vour cat - W hearings and ,** 4 Keeps a protecting film of oil between metal surfaces that Would otherwise heat 4 ar.d ruin. Lubrication is lift for your motor car. ts University UU Service Station
The Chapel Hill Weekly (Chapel Hill, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
May 26, 1933, edition 1
2
Click "Submit" to request a review of this page. NCDHC staff will check .
0 / 75