Excerpt from High Prices and Deflation The true value of savings accounts has been cut in half by the rapidly depreciating dollar, and the same is true of paid-up insurance policies, of fixed incomes from bonds, mort gages, pensions and preferred stocks. Chief among the sufferers have been those who least deserved to be exploited - colleges, universities, benevolent institutions, and the thrifty people who in the past saved capital and put it to some productive use. All these have been penalized, and the newly rich, with extravagant spending tendencies, have watched gold pour into their purses. Teachers, clerks and others with fixed salaries have been hard hit. On the other hand, the facility with which money could be borrowed, owing to the low rate of interest demanded, led to dangerous speculation and shameless extravagance. Widespread discon tent and extreme radicalism have resulted. In this book High Prices and Deflation, Professor Kemmerer explains the process of inflation and the rise in the cost of living since 1913, examines the degree of inflation and con siders the economic and social results flowing from it. He shows why prices must ultimately come down and points out the policy to be pursued in order to bring about deflation. There are no more important questions de manding our attention to-day than these, and an effort to put them squarely before the public in a simple, clear and concise manner is worthy of the highest praise and the greatest success. Professor Kemmerer's book is a most useful contribution to a very Vital subject. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Excerpt from High Prices and Deflation This book represents a revision and enlargement of three articles published during the winter of 1919-1920 by the Bankers Statistics Corporation of New York City. The subjects of the three articles were respectively Inflation, High Prices, and Deflation. In view of the widespread interest shown in the articles, and of the receipt of numerous requests for copies of them, I have revised them for publication in book form. The Bankers Statistics Corporation has kindly consented to this republication. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

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Excerpt from The Journal of Home Economics, 1921, Vol. 13 We have now come to the break. Prices are falling. They must fall. We have the psychology as well as the fact of the falling prices. The consumer today refuses to buy, not for the opposite reason of his willingness to buy a year ago - that he had money then and has no money now; that is not the primary motivation at all. A year ago the consumer believed that the trend Of prices was still rising. Today the consumer believes that the trend of prices is falling and that he can accelerate that trend by refusing to buy. The consumer found to his bitterness a year ago that by his buying he hastened the trend of prices upwards, and he reasons now that in a similar way by refusing to buy he can accelerate the trend of prices downwards. And this is correct. The only question is: To what extent is it wise to accelerate the curve of prices downwards? Now, a panic is little more than an accelerated run of price deflation. If prices are to fall, and they must fall, and then on the basis of reduced prices consumption is to be maintained, it is apparent that the refusal of the consumer to buy cannot go to the point of lowering production so profoundly that it will be later unequal to the demand. In other words, the ideal method of price deflation is that it taper off gradually. If deflation occurs precipitously, it leads to such profound disorganization of the processes of production that later when the demand comes supply cannot be maintained and prices again rise, or in any event exhibit startling instabilities. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

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Excerpt from Forces Which Make Prices Customers at high prices bought more than twice as many shares as at low prices, in other words, they used big margins when stocks were low and small margins when stocks were high. Having held Steel in 200 or 300 share lots at $60 a share, they took on lots of 400 to 600 shares around $80. Similarly with Crucible, Baldwin, Studebaker, and Westinghouse these stocks grew more attractive and were held in larger quantity as they went up. The higher the price the heavier the load, roughly speaking, describes the situation. The market operator in this situation is unsafe. When his account is thus rendered top-heavy, a decline of ten points from high prices wipes out whatever profits were made on a twenty point advance from low prices. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.