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The Weston Leader
Weston, Umatilla County, Oregon
What is this article about?
The United States Council of National Defense in Washington, D.C., warns of the need for national unity among producers, distributors, and consumers to combat the high cost of living through increased economy, production, and saving, echoing President Wilson's 1919 address. The Federal Reserve Board attributes high prices to credit expansion outpacing production and advocates for more saving.
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MUST
GIVE
WAY
COUNCIL WARNS
War Unity of Producer, Distributor, Consumer Needed
To Meet H. C. L.
Washington, D. C.—The United States Council of National Defense composed of the secretaries of war, the navy, the interior, agriculture, commerce and labor reiterated today a warning to the people of the United States of the necessity for increased economy and saving on the part of every citizen.
After outlining the causes of the high cost of living the statement of the council said:
"The entire nation—producer, distributor and consumer alike—should return to the unity that won the war. Group interest and undue personal gain must give way to the good of the whole nation if the situation is to be squarely met.
"Our common duty now, fully as much as in the war, is to work and to save. In the words of the President in his address to the country on August 25, 1919, only 'by increasing production, and by rigid economy and savings on the part of the people, can we hope for large decreases in the burdensome cost of living which now weighs us down.'
The Federal Reserve Board, in its bulletin outlining the financial condition of the country just issued, says:
"That the high price levels which have been attained in the United States present a grave situation is clear from the attention which current discussion of the causes of industrial unrest is directing to the cost of living problem. So far as profiteering practices are responsible for price aggravations, some considerable mitigation of the cost of living situation may be expected and indeed is already in sight.
"The problem of reducing the high cost of living, however, is mainly that of restoring the purchasing power of the dollar. The dollar has lost its purchasing power because expansion of credit proceeded at a rate more rapid than the production and saving of goods. The way in must be the way out. As the way in was expansion of credit at a rate more rapid than the expansion of production and saving, the way out must be an increase in production and saving. The effect of increased saving will be a reduction in the volume of purchasing media in use, and by consequence, a reduction of prices also.
"That the expansion of credit has been a considerable factor in our financial and price situation is clear; that it is still a factor and one that calls for correction by the process of increasing production and savings and by the investment of the proceeds of savings in the absorption of government bonds is equally clear."
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Domestic News Details
Primary Location
Washington, D. C.
Key Persons
Outcome
reiteration of warning for increased economy and saving to address high cost of living through national unity and reduced group interests.
Event Details
The United States Council of National Defense, composed of secretaries of war, navy, interior, agriculture, commerce, and labor, issued a statement urging producers, distributors, and consumers to unite for the national good, emphasizing work, saving, and increased production to combat high cost of living, referencing the President's August 25, 1919 address. The Federal Reserve Board bulletin highlights credit expansion as a cause of high prices and calls for more production, saving, and investment in government bonds to restore dollar purchasing power.