The Waynesville Mountaineer (Waynesville, … /
July 9, 1942, edition 1 /
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THE WAYNESVILLE MOUNTAINEER
THURSDAY, JULT ,
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
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
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
Uoclc Sam wni
you io co fruin
and bcrriea and
will Ice you have
for hu purpose. :
mftng mmy tlmmpi,
four board will
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
"In the first period of inflation,
there actually was a considerable
time lag between the movements
of commodity prices and foreign
"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
"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
"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,
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
"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
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
The pastor of the church, Rev.
Mr. Parris, extends for the church,
a hearty and cordial welcome to all.
Man Is Writing
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
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
Robs me of that which not en
And makes me poor indeed.
"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!
j POWER SLIGHT
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
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,
No. 1191-June ll-18-i25July
2-9-16. ' ' .
NOTICE SERVING SUMMONS
IN THE SUPERIOR COURT.
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
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
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
"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
"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
"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
"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
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
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
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
"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
when the crop is X'.
in bloom, and .oybejjT
to when the seed ar?
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.
There N ever Was L
Better Time To
Our 61st Series
Wednesday, July Is
Haywood Home Building and
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
VII II Ul' UTII
"A NORTH CAROLINA COMPANY FOR NORTH CAROLINIANS C1E
BUY U. S. WAR
BONDS and STAMPS
No. 1195 June 18-25-July 2-9
The Waynesville Mountaineer (Waynesville, N.C.)
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