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THE WAYNESVILLE MOUNTAINEER THURSDAY, JULT , Page 8 Weil Warns Against Dangers Of Inflation "Americans must be willing to pay, and be willing to suffer all the inconveniences of paying as we go along, if we are to keep from having any serious inflation," Leo Weil, president of the Wellco Shoe Corporation, told Rotarians here Friday. Mr. Weil, a native of Austria, and a Rotarian, was in business in his native country after the last war, and disagreed with a recent speaker in Asheville, who said that similar inflation would come to this country after this war. Mr. Wei) said: "I disagree with that speaker. I am of the opinion that European inflation cannot be compared with an inflation which could happen here. 'There are various kinds of in flation money inflation, credit in flation and commodity inflation. "During the first World war, it was a monetary inflation in Europe. The rate of exchange in 1914 was approximately 4Mt marks to one dollar. The government at this time had six million gold marks, and the money was based on this gold mark. During the war, the German government was forced to spend most of their gold to buy necessary raw materials, so by the end of 1922, the government had only one billion gold marks left. "That meant that the dollar in Germany was about 400 marks. This happened to a friend of mine: "In 1914 he bought 10,000 pairs of shoes in the United States for $3 a pair, or $30,000 worth of goods. Because of restrictions by SAVE FOCb Uoclc Sam wni you io co fruin and bcrriea and will Ice you have IXTRA SUGAR for hu purpose. : our sue- 'Oka io ration itbut rr mftng mmy tlmmpi, four board will ""V Takeallyoi V ftarvtw r.DaDic tou to set the treasury, he could not pay his bill, and was forced to wait until the war was over. In 1922 he had to pay over a million marks ; which is approximately ten times as much. This was so-called mone tary inflation, and an inflation like that could not happen here. This nation has ninety per cent of the gold of the world, and there is no need of buying raw materials from foreign countries. "Another kind of inflation which came after the war was credit and commodity inflation, in the most dangerous form. "In the first period of inflation, there actually was a considerable time lag between the movements of commodity prices and foreign exchange. "Commodity prices rose more slowly. Finally after 1922, when the entire nation began to realize the connection between the dollar quotation and price movements, ad justment was more and more auto matic. The dollar became the ulti mate measure of value in Burope. Every barber and house-maid was accurately informed as to the daily dollar quotation, just as in 1929 in America, the cost of a share of United Steel was known by everyone. "It was at this period in Europe that the people got panicky about the value of their money and put it into real things. "The people had lost confidence in the value of the paper money, and bought everything from cloth ing to real estate. Prices went so high that the printing presses of the treasury could not keep up with the required tempo, and more than three hundred paper mills worked at top speed to deliver note paper to the treasury printers. Cash in hand was exposed to daily and hourly depreciation. Factories printed their own money, and work ers who got their weekly salaries on Saturday had difficulty in pay ing for food for one day with their payroll checks, "On the other hand, there were a lot of profiteers, who had good connections with banks, and bor rowed some money to buy real val ues for it. They made a huge for tune in no time. While on one hand immense fortunes were, ac cumulated, on the other hand the middle classes and workers were pauperized. All property invested at fixed money values for instance Government bonds, mortgages, and savings bank deposits became val uless, and thereby a class was con demned to economic annihilation. "To give you an example, I know a lot of Swiss people who bought houses in Germany during the war in 1916, for example say of the value of 100,000 marks. They made Start Baptist Revival At Clyde -i iii.iiiiiii iiiiimi, .p., HiiiHii aai i ii 'TTm-TmmTm": ;Y , JAMES E. POWELL, of Gas- REV. J. A. BROCK, known tonia. will he in -hnrrp of the it 1 a. iL a rs 1 : Ml inrougnout ine iwo uaroiinas, win singing at the revivaI meeting at ue tne preacner. at ine x-uay re vival at the Clyde Baptist church, starting Sunday. &1 jentral Relax this summer! Let WlwCllIwI O your children play out of doors as much as they will Mnia 5frPP and turn over the worry of iuai oixeei keeping them clean to us. You can count on us for an expert job and a fair price. TH -i O White clothes and light fab- I II On C llo rics are safe with us. a first payment of 20,000 marks for the house and took a mortgage for ten years for 80,000 marks, from the bank. Six year later, in 1922, they could repay this mort gage of 80,000 marks with $6, be cause at this time $1 was already worth 17,000 marks. Finally the collapse of the monetary system became complete and money was no longer able to fulfill its proper function. Some people reverted to primitive economic methods, and refused to sell their goods for mon ey but tried to barter their goods. Stabilization in 1923 made an end of all inflation. "The reason I told you this story of inflation in Europe is because everybody in this country is asking: "'Will we have inflation?' "'Can we prevent inflation, and how?' "First of all, what is inflation? The comparatively speedy, uneven, ruinous price rise, is called infla tion I say in all probability 'No,' and should we have inflation it will come after the war. Our gov ernment, through the OPA and Leon Henderson, is preventing in flation at the present time, and I hope during the whole war. Through ceiling laws prices can not take their natural course and go up. Many of us do not like these price ceilings, but believe me it is better to bring about sacrifices right now than to have a disaster, such as I have just told you, later on. If prices can be kept down through these price ceilings in my opinion we can prevent an inflation. "Second, our money supply of the nation is quite different from Eu rope. You have, of course, some of your money in your pockets in dollar bills and coins, but besides the money in your pockets you have money in the banks, and that, of course, is nothing but a debt owed to you by a bank. When you piece of property, you write a check, and more than ninety per cent of the buying and selling of this nation is done by transferring bank promises among depositors. "In the United States last year there was a total of around 50 billion dollars in commercial bank deposits, but there are very few actual dollar bills behind this, and as far as I know, there was by the end of last year nine hundred mil lion dollars cash in the vaults i all banks of the Federal Reserve system, which proves that in the United States, as I said before, more than ninety per cent of the buying and selling is done by merely transferring bank promises. "This was quite different in Eu the Clyde Baptist church. Morn ing and night services will be held daily. Clyde Baptists To Have Talented Leaders At Revival In co-operation with the asso ciational simultaneous evangelis tic effort, beginning July 13th, and continuing through the 24th, the Clyde church has secured the ser vices of the Rev. J. A. Brock, well known in the two Carolinas, as a fine spirited and able pastor-evangelist. A'so James E, Powell, of East Gastonia come highly recom mended as evangelistic singer. "We believe all who can, and will come to worship with us dur ing these days, will be richly re paid for so coming," said Rev. T. H. Parris, pastor. The hours of service will be 10:00 a. m. and 8:00 p. m. each day, beginning Monday evening, July 13th through Friday evening, July 24th. The pastor of the church, Rev. Mr. Parris, extends for the church, a hearty and cordial welcome to all. Former Hazelwood Man Is Writing 326-Page Book J. D. Daggenhart, formerly of Hazelwood, plans to submit nnaj copy to his publisher within ten days on his book, dealing with the nation-wide case in which his father was the defendant, which arose out of the child labor law. The book will have 126,000 worlds, making 326 pages. Mr, Daggenhart worked at Royle-Pilkington Co., for about 7 years. He moved away from here about six years ago, and is now living at Lowell, working in a tex tile plant there. Besides writing his book, he is spending much spare time on sev eral patriotic musical numbers, some have already been copy righted. Specialists See State Facing An Acute Shortage Of Grade "A Who steals my purse steals trash; 'tis something, nothing; 'Twas mine, 'tis his, and has been slave to thousands; But, he that filches from me my good name Robs me of that which not en riches him, And makes me poor indeed. Othello. "Please send me 10c worth of electricity today J F YOU had to order your day's supply of electricity fresh every morning, you'd appreciate even more how little it costs and how much is does for you. Actually, about two-thirds of all American families light their homes and run radios, cleaners, toasters, percolators, clocks and washers for a dime a day or less! What's more, that dime buys just about three times as much electricity for the average Carolina family as it did 15 years ago! These bargains don't just happen. They come from the electric industry's constant effort to give you good service at low rates. They are made possible by practical, efficient business management. That's the American way and it works! It works so well that even though America is pouring record-breaking amounts of electric power into the world's greatest production if planes, tanks, ships and guns you still get loto-cost , urrent at the flick of a switch in your home! CAROLINA j POWER SLIGHT I COMPANY rope. There was a great flood 01 paper money, and this was the fea ture of the great German inflation. Over there they hoarded the paper money first and then threw it away. "Here the people do not hoard money because they have confi dence it it and deposit it in their bank. You spend your money much easier if you have bills in you pockets, but you think it over before you write out a check, and the government has much more control oyer how much you spend. "Now you will ask 'the gov ernment during the war needs goods and labor, so why not simply print the needed number of dol lars yearly and pay all bills and salaries with them, and why bother citizens to pay for them? The an swer is simple if the Treasury would do this, it would be the be ginning of real inflation, and no OPA and Mr. Henderson could keep the prices down any more. The government will not follow this disastrous way, and prefers not ADMINISTRATOR'S NOTICE TO CREDITORS Having qualified as administra tor of the estate of Lonzie Messer, deceased, late of Haywood County, North Carolina, this is to notify all persons having claims against the estate of the deceased to ex hibit them to the undersigned at his office in Waynesville, N. C. on or before the 11th day of June, I94d, or this notice will be pleaded in bar of their recovery. AH per Bons indebted to said estate will please make immediate payment. This the 11th for of June, 1942. T. L. GREEN. Administrator of Lonzie Messer, deceased. - No. 1191-June ll-18-i25July 2-9-16. ' ' . NOTICE SERVING SUMMONS BY PUBLICATION NORTH CAROLINA, HAYWOOD COUNTY. IN THE SUPERIOR COURT. HAYWOOD COUNTY, . vs. MRS. J. R. ADAMS, if she be alive, if not her heirs at laws, and her husband, if any, by whatever name he may be known, and HUGH J. SLOAN, Executor of the Estate of B. J. Sloan, Trus tee, and Lake Junaluska Assembly. The defendants, Mrs. J. R. Adams, if she be alive, if not her heirs at law, and her husband, if any by whatever name he may be known, will take notice that an action entitled as above has been commenced in the Superior Court of Haywood County, North Car olina, to foreclose liens for taxes due Haywood County; and said defendants will further take no tice that they are required to.ap pear at the office of the Clerk of Superior Court of said county at the Courthouse in Waynesville, North Carolina, within thirty days after the 20th day of July, 1942, and answer or demur to the Com plaint of said action or the plaintiff will apply to the court for the relief demanded in said Complaint. This the 17th day of June, 1942. C. H. LEATHERWOOD, Clerk Superior Court of Hay only to borrow money from the banks but also from individuals, If you buy a $100.00 Government bond and examine it carefully, you will see that you get a piece of paper promising to pay you $100.00 with interest in the future. It is nothing more than an existing promise to pay dollars transferred by you to the government for its use. "And now in closing my remarks, I want to raise a question in your mind. What can we do about in flation, and how can we help to prevent it? "First, to th limit of our abil ity, each one of us should lend as much as he can to the Federal Government through his local bank. That will keep our present money supply from dangerously rising. "Second, we should, every one of us hang on to that debt and re linquish it only when the need is very urgent, and of the direct per sonal emergency. "Third, everybody should keep from spending unnecessary money for the duration of the war, and should be prepared to pay higher taxes and willing to pay these taxes earlier than asked for. This all means quite plainly sacrifice on the part of everybody, without exception, for we not our children will pay the great hill for this war era just the same. There is no out for this!" In a stirring appeal, Mr. Weil concluded his talk by saying: "We must make up our minds as a real I intelligent democracy, to be will-' ing to suffer for all the inconven inces of paying as we go along. This is the only way that may prevent us from having any se rious inflation." J. C. Brown, vice president, pre sented Aaron Prevost, the retiring president, with the past president's pin, as the office of presidency was turned over to H. G. Hammett for the year. A shortage of Grade A milk for use by army and civilians m Nortn Carolina is predicted foi the near future by John A. Arey, Extension dairyman of N. C. State College. He makes a patriotic plea to all dairymen to feed liberally and ob tain the maximum production from every cow. During the past winter and spring approximately 7,500 gal Ions of milk were delivered to army camps within the state, Arey stat ed. This demand will be increased by 4,000 to 5,000 gallons of milk daily when new training centers for the fighting forces of the Na tion are opened during the next few months. "Local dairies have so far been able to supply both camp and civil ian demand for fluid milk" report ed the extension worker, "but it will be difficult for them to meet an increased demand. To do bo will require maximum production from all available herds located within the area from which milk can be collected. "Good production requires liber al feeding," he continued, "and that means every dairyman must pro duce this summer all the hay and "08 ms nerd will r., ter. Ample roughaeT is doubly important a m cations that grain -"La A behigher in L Zfife "M"B JODS 01) tho f Arey emphasized the ; of cutting hay at tv ttpor to get theo8riP SdTe one-fourth i' when the crop is X'. in bloom, and .oybejjT to when the seed ar? font. Those vellow nic i. ino- for " "JSUel dampened in borax watell wonders for them. Drv tkJ lit. .. vl-i iy wii.n another soft cloth. JoRfilievt Misery of n kt.i There N ever Was L Better Time To Save Money! R3) nn mi ARES m- Our 61st Series -Which Opened Wednesday, July Is Haywood Home Building and Loan Association Phone 17 Main Street Announcing-- The opening of our 23rd District Office in Waynesville, N. C, Room 10 of the Masonic Temple Building in order to better serve our many hundreds of Policy-holders located in and west of Waynesville. We have a complete line of Old Line Ordinary and Industrial Life In surance, as well as attractive Accident Insurance policies- ranging from a 5c weekly premium to a $25,000.00 contract. In our present expansion program, we have openings for several good men interested in the Life Insurance business located in Waynesville. Sylva, Bryson City, Franklin, or Murphy. Write direct to EDGAR A. WILLIAMSON, District Manager, P. O. Box 115, Waynesville, N. CV rrw VII II Ul' UTII Asheville North Carou "A NORTH CAROLINA COMPANY FOR NORTH CAROLINIANS C1E BUY U. S. WAR BONDS and STAMPS wood County. No. 1195 June 18-25-July 2-9 1
The Waynesville Mountaineer (Waynesville, N.C.)
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July 9, 1942, edition 1
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