ABSTRACT
Life insurance dues on old policies continue unchanged, but dividends are reduced and so the costs rise. If deflation had continued, it would probably have required a generation to get the farm and retail prices adjusted to their usual relationship. It takes much longer to make adjustments to deflation than to inflation. The price structure is thrown into chaos by inflation or deflation. Price inflation caused a greater rise in prices in the states far from market than in those near market that produced the same type of product. The longer the period from the beginning to the completion of an article, the more serious are the effects of deflation. If the producer can sell his finished product in a few months after he has purchased the raw materials, he may succeed in spite of deflation. When deflation occurs, radical movements develop in the farm areas far from market.
