IF52S Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924013818160 » **2SSS ro^ ^w Some Endorsements OF A PLAN FOR Standardizing the Dollar m. Cornell University Library HG 229.F52S Some endorsements of a plan for standard 3 1924 013 818 160 ! L -1/^ •, ... ... > f .(A. ECONOMISTS ARTHUR T. HADLEY, President of Yale University, New Haven, Conn.: "Your .method of standardizing the dollar interested me very much when I first saw it suggested. The proposal offers great advantages. If the plan can be carried out it will, in my judg- ment, not only reduce price variations and go far toward solving the prob- lem of the rising cost of living, but will operate in the direction of a fairer distribution of wealth. Consid- erable fluctuations in either direction offer fortunate or unscrupulous specu- lators an opportunity to make profit at the expense of producer or consum- er. There is one advantage of the plan which appeals to me strongly. If it were known that the Government was going to standardize the dollar in this way, people would not be in so much haste to make changes of price level in anticipation of added gold supplies. The mere fact that there was such an equalizing power in reserve might oft- en prevent the necessity of its exercise. "I will own that when I first read of the plan I thought it would be very difficult to carry out in practice. On further consideration, I am confident that this difficulty is much less than I at first supposed; and that the ad- vantage to be gained by the adoption of a project of this kind makes it worth while to meet and solve what- ever difficulties are incident to its in- troduction." / ° To 7 ^ ROYAL MEEKER, now Commissioner of Labor Statistics, Dept. of Labor, Washington, D. C: "I think you have answered all dif- ficulties. Your scheme seems to me to be the simplest and most practical scheme possible to be devised. I most heartily endorse your plan." From an article by ROYAL MEEKER in the Newark Evening News, Newark, N. J.: "The difficulty of substituting a 'tabular standard' for our gold stand- ard has heretofore proven insurmount- able. Prof. Irving Fisher, of Yale University, has solved this riddle. He has stood the economic egg on end." WARREN M. PERSONS, Harvard Uni- versity, Cambridge, Mass.: "I can find no flaw in your scheme. You have satisfactorily met every difficulty that suggested itself to me. "It seems to me that the importance of securing a stable unit of purchas- ing power can hardly be over-empha- sized. A fluctuating standard contin- ually works widespread injustice that is felt by everyone, but the cause of that injustice is recognized by few. "The plan that you outline is admir- able. It is simple; it is not dependent upon any theory concerning which there is conflict of scientific opinion; its adoption would not be followed by* the slightest economic disturbance; yet the results that would be achieved are of primary importance." ALLYN A. YOUNG, President Amer. Statistical Association, Cornell University, Ithaca, N. Y.: "Of the various plans which have been proposed for preventing these dis- astrous movements in the general price level, the one suggested by Professor Irving Fisher seems to me by far the best." CARROLL >V. DOTEN, Secretary Amer. Statistical Association, Mass. In- stitute of Technology, Cambridge, Mass. : "I believe you have proved, as far as such a problem is capable of proof in a deductive way, that your plan would work satisfactorily." FRANK L. McVEY, President Univer- sity of Kentucky, Lexington, Ky.: "I do not see any objections to the plan. It appears to me to be the only way that this great burden of Increas- ing prices through the increased pro- duction of gold can be met, and I cer- tainly shall be glad to do whatever I can to forward thorough-going discus- sion and consideration of it." E. BENJAMIN ANDREWS, late Presi- dent University of Nebraska, Lin- coln, Nebraska: "Publish me as an adherent of your plan of standardizing the gold dollar." JEREMIAH W. JENKS, Director Alex- ander Hamilton Institute, New York City: "I am greatly pleased with the sug- gestion. I have long been in favor of a multiple standard but have not seen before any practicable way by which it could be put into effect." which you present and which I can imagine, and thoroughly threshing it out in our graduate seminar there seems to be no course open but to ex- press complete approval. All possible accidents which we could conjure up seem fraught with less possible evil than is certain to follow from an in- definitely depreciating standard. "Your proposal is contrasted with the nostrums offered us in the past by one important feature in that it could be given a trial with no disturbance to existing business relations and if it should fail to work as expected no damage could result to any class or section by the experiment. "Granting that the price level re- sults from forces touching goods as well as forces touching gold I can see no reason why we may not throw upon gold the entire direct ONUS of sus- taining a practically uniform index number since you are dealing immedi- ately with the price level and not with the cost of living." JOSEPH FRENCH JOHNSON, Dean School of Commerce, New York University, New York City: "I can without reservation positively endorse the plan. You have made a very clear exposition of the way the plan would work, and seem to me to have given consideration to all possi- ble objections. I believe your proposal is entirely practicable, and that it or something like it would very soon be adopted if there were a general under- standing of the relation existing be- tween the value of gold and the level of prices." M. S. WJXDMAN, Leland Stanford Junior University, Cal.: "I read your Memorandum and ac- companying sheets with deepest inter- est. My delay in commenting upon the plan you will kindly charge to an ex- cess of caution on my part. After con- sidering all phases of the proposition A. C. WHITAKER, Leland Stanford Junior University, Cal.: "Your plan seems to me wholly sound and to be a reform of the great- est value. It would, I am confident* eliminate the major and more harm- ful fluctuations in the general level of prices. In case international co- operation could not be procured, there would probably be a balance of ad- vantage to the United States in putting the plan into effect alone, despite the fluctuations this action would intro- duce into our exchanges." AYARD I. BISHOP, Sheffield Scien- tific School, Yale University: "Your plan for standardizing the dollar appeals to me as being sound theoretically and I think that if it could be put into actual practice, it would contribute somewhat toward solving the present day problem of rising prices." JOHN BAUER, Princeton University, Princeton, N. J. : "It is unquestionably far the sim- plest, most feasible and effective pro- posal for monetary reform that has yet been made — going, as it does, at the very root of the difficulty." S. F. WESTON, Antioch College, Yel- low Springs, Ohio: "I, too, have long believed in the substantial justice of the 'multiple standard' but have never before seen any suggestion of a way to make it practicable. It seems to me that you have really found a workable scheme for standardizing the unit of value. I trust that something practicable may come from your suggestion." WILLIAM F. BLACKMAN, President "Winter Park College, President Bank of Winter Park, Florida: "My friend and former colleague in Yale University, Prof. Irving Fisher, has proposed such a method, and it is meeting with cordial reception by careful thinkers on this subject. "I am confident that Prof. Fisher's suggestion is much the wisest that has thus far been proposed." 0. F. BONOK, State College, Pa.: "The plan, as you present it, seems thoroughly feasible. I should say that no obstacles are in the way. There can, of course, be no doubt as to the need, a very urgent need, of some such reform as you propose." ROBERT C. CHAPIN, Beloit College, Beloit, Wis.: "I have read the Memorandum with great interest. It seems to me to pro- vide a method, essentially complete, for putting into effect the long-de- sired tabular standard of values." JOHN B. CLARK, Columbia University, New York City: "I see no point at which to suggest a change." J. W. CROOK, Amherst College, Am- herst, Mass.: "I have studied the scheme in all the material you have sent me. I have talked with business friends about it and I have stated it to busi- ness men's clubs when discussing the high cost of living and now I can see no vital flaw in it." J. M. CLARK, University of Chicago, Chicago, 111.: "It (the article) makes clear the nature of the plan you are now ad- vocating, with- which I have been in hearty sympathy since I first examin- ed it." WARREN B. CATLIN, Bowdoin Col- lege, Brunswick, Maine: "It certainly seems possible by means of your plan to secure the sta- bility which is so desirable, — not per- haps all at once but by a gradual pro- cess of adjustment." CHARLES A. ELL WOOD, University of Missouri, Columbia, Mo.: "It is certainly time that civilized nations should rid themselves of a fluctuating standard as a measure of values. It seems incredible, indeed, that such a thing should have persist- ed down to the present." J. E. CUTLER, Western Reserve Uni- versity, Cleveland, Ohio: "In all the discussion about the cost of living I know of no suggestion that appears to be so fundamentally sound and so thoroughly practicable as your plan for 'a compensated dollar.' " WLLLARD E. HOTCHKISS, North- western University, Dean School of Commerce, Chicago, 111.: "The logic of your exposition, as far as I can see, compels assent at every point. I have been particularly in- terested in the comparison of the plan with the procedure for establishing a stable rate of exchange with India and in the reform of the monetary system in the Philippines. "Irrespective of any government ac- tion which may follow, you have rendered a great service in presenting a plan which puts the relation of prices and monetary standards in a tangible form for discussion." Committee of the American Economic Association on the Purchasing Power of Money in War Time: "The Committee regards the stabil- izing of the value of monetary units under international agreement as de- sirable and feasible. The details of the plan, the time of its introduction, and the question whether international agreement is indispensable, should re- ceive the immediate attention of states- men and economists." B. M. Anderson, Jr. E. W. Kemmerer Royal Meeker "Wesley Clair Mitchell Warren M. Persons Irving Fisher, Chairman EDWIN CANNAN, University of Lon- don, London, England: "We have all long recognized that the use of metallic money as 'a medi- um of exchange' has been largely dis- pensed with by the help of banking machinery which substitutes a civiliz- ed system of book-keeping for the prim- itive method of exchanging counters, and most economists, I think, have expected that the material of metallic money would not permanently remain the standard of value, but that it will eventually be superseded by some- thing bearing a closer relationship to the satisfaction of ordinary wants. It has been difficult, however, to see how the transition could be effected with- out a disturbance which the commer- cial world would never face. Your scheme appears to me to provide just what was wanted — a method of mak- ing the transition insensibly without any shock to existing habits of thought and expression.'' F. ¥. EDGEWORTH, All Souls College, Oxford, England: "I entirely concur with the verdict pronounced on your standardized dol- lar by Professor Pigou in his recently published work, WEALTH AND WEL- FARE. Subject to the reservation which he has indicated, I say with him, 'I am inclined to believe that a very considerable net benefit would prob- ably result.' " L. L. PRICE, Oriel College, Oxford, England : "I consider it the most simple and effective plan which has been proposed and that it is only the conservative unreasoning instinct of . persons at- tached to the familiar established system which could stand in the way of so great an improvement." S. J. CHAPMAN, Dean of the Faculty of Commerce, Victoria University, Manchester, England: "I was very glad to read through your Memorandum. I found it most interesting. The device by which you propose to prevent speculation in gold struck me as particularly ingenious. No criticisms occur to me." C. P. SANGER, 58 Oakley St., Chelsea, London, England: "I entirely agree that it would be a great improvement on the present gold standard. I do not see any important objection to it. It is not impossible that, as a result of the present war, the gold standard in neutral countries may become even more unsatisfactory than it is at present; if so, great practical weight will be given to your scheme." ADOLPHE LANDRY, Member Chamber of Deputies, Paris : "Vous savez que pour ma part, je considere votre plan pour la stabilisa- tion de la valeur de la monnaie d'un oeil tr§s favorable." C. COLSON, Paris: "J'ai suivi avec grand interet vos etudes pour la stabilisation du dollar. Comme plusieurs de vos correspond- ants, je crois que la mesure pourrait Stre realised par un accord interna- tional." ACHILLE LOKIA, University of Torino, Torino, Italy: "Je viens de lire avec un grand charme votre interessant projet d'un dollar invariable et je m'empresse de vous dire qu'il me semble parfaitement raisonne. II presente quelque analogie avec une des nombreuses mfithodes de regularisation de la valeur de la monnaie que j'ai signaled dans mon Essai sur la valeur de la monnaie." EMANUEL SELLA, Royal University of Cagliari, Sardinia, Italy: "I content myself with observing to you that I hold it realizable." LUIGI EINAUDI, University of Torino, Torino, Italy: -"Speaking in a general way, I think that your proposals are worthy of the most serious considerations and that future progress in monetary matters shall be accomplished along the way indicated in your writings." AXEL NIELSEN, University of Copen- hagen, Denmark: "I should certainly rejoice in case your scheme should be realized. "It appears to me to be an interest- ing sign of the times showing how much the present time is in need of the execution of your scheme, that in the Danish Parliament (Rigsdag) dur- ing the discussion in the latter years of new acts relating to salaries of officials, propositions were made and supported by several parties for the nominations of a standing committee with the purpose to keep an eye on the fluctuations of the retail prices, and according to the results of the said committee the official wages should be varied." HABALD WESTERGAABD, University of Copenhagen, Denmark: "I also feel fully convinced that your ingenious plan for standardizing the dollar will influence the move- ments of the process. I am not sure that it will be able to keep the price level constant." E. HECKSCHER, Stockholm, Sweden: "I have given them a careful perusal and can only join with the rest of the world of economists in praising the ingeniousness, clearness and sim- plicity of your plan. Several points of a theoretical nature might, of course, be discussed with profit. ***However that may be, even an unchanging price level would evident- ly mean a great improvement on the present situation and may therefore very properly be considered the prop- er goal of our efforts." STEPHEN BAUER, University of Basle, Basle, Switzerland: "It is a most ingenious piece of work. Every objection moreover, which I dared to raise, is met in it in advance." G. H. ENIBBS, Commonwealth Statis- tician of Australia, Melbourne, Australia: "As regards your proposal for fix- ing the standard of value, I must con- gratulate you on the boldness of your attack, and the apparent simplicity of your proposal; but I shall be glad of your reply to certain comments which I have made while reading your val- uable articles." OTHER COLLEGE PROFESSORS H.H.SEERLEY, President, Iowa State Teachers College, Cedar Falls, Iowa: "What these persons think I most cordially endorse because I have en- tire confidence in their judgment": "We, the undersigned, serving as a committee to whom you have re- ferred Professor Irving Fisher's Memorandum describing the Mech- anism for Standardizing the Dollar, take pleasure in submitting the fol- lowing report: 1. That Professor Fisher's mono- graph has been read and discussed with much interest and benefit to ourselves. 2. That we believe his conception of what is needed to make our standard monetary unit more stable is clear and well founded, and that the plan which he has worked out for the improvement of this stan- dard unit is a meritorious one, well deserving wide spread and intelli- gent consideration as a solution of this difficult problem." Reuben McKitrick, Prof, of Economics Chas. M. Riggs, Prof, of History Sara Findlay Rice, Prof, of History H. J. Peterson, Instructor in Gov't "Perhaps as a chemist I see more plainly the serious likelihood of some invention in gold production, compar- able in scope with the discovery of the cyanide process, which by lowering the cost of production would permit the operation of the enormous gold- bearing deposits now just below the profitable grade. Such an invention might cause a cataclysmic change in the level of prices sufficient to throw society into chaos." GUIDO H. MARX, Mechanical Engin- eering, Leland Stanford Junior University, Cal.: "It gives me pleasure to add my en- dorsement to your plan for 'Standard- izing the Dollar'. It would seem as though you have proposed an expedi- ent by which a gold-obsessed world can pass to a rational commodity standard. The serious question re- mains whether the world has been sufficiently chastened and enlightened even yet by the inevitable results of privilege and pillage to take steps, such as this one which you propose, which would aid in the broad problem of rationalized human relations." GILBERT Jf. LEWIS, Chemistry, Uni- versity of California, Berkeley, Cal.: "Allow me to express my apprecia- tion of the extremely important work in which you are engaged and which, I hope, will lead in the near future to the stabilization of our monetary stan- dards through direct legislation of the type you propose. "In the great crisis through which the world is passing the question you raise may seem to many too academic for immediate discussion, but they cannot realize the grave menace to the very foundations of society inher- ent in the present standard of currency. ARTHUR B. CLARK, Graphic Art, Le- land Stanford Junior University, Cal. (Also President of the Palo Alto Mutual Building and Loan Association.) : "I have the greatest interest in your plan for 'Standardizing the Dollar'. It appeals to me to be entirely sound and practical, also inevitable of adop- tion as soon as it is generally under- stood. I should like to see it adopted at once by the United States Govern- ment, as the present world conditions not only afford the opportunity but also the urgent necessity for the use of all the stabilizing forces possible." W. E. HOTCHKISS, Director of Busi- ness Education, University of Minnesota: "There are few students of econom- ics who would be willing to prophesy anything definite with respect to con- ditions after the war, hut it is quite clear that we shall need to safeguard the situation then with every element of stability that can be devised and put in operation. It is also clear that fluctuations in the monetary standard similar to those which have occurred in the past may very well take on the aspects of disaster at the time when the world will be facing the stupend- ous problems of re-adjustment. These circumstances surely emphasize the need for a stabilized dollar and com- pel attention to any measure which seems to promise relief." FREDERICK S. JONES, Dean of the Academic Department, Yale Uni- versity, New Haven, Conn.: "I have read your proposal for standardizing the gold dollar and have talked with a number of people about it. All agree that your plan is certain- ly one which seems to offer a solution of the serious problem which con- fronts us. In my own judgment it would correct many of the troubles of the present generation and would avoid the fluctuation of priGes which always affects the salaries of laboring men, since their incomes do not re- spond to changes in values." C. H. SMITH, American History, Yale University, New Haven, Conn.: "When I taught political economy at Bowdoin I used to point out the great advantage of a composite unit for the measurement of values, but always concluded that no way had been dis- covered to make it acceptable for gen- eral use. It seems to me that you have made the discovery, and that it is- really the most important one of recent years in its bearing upon hu- man welfare, as far as that depends upon stable conditions of business. It certainly has the mark of simplicity which characterizes a fundamental in- vention — like that of Howe which consisted in putting the eye of a needle near its point and so made the sewing machine possible. "A campaign in behalf of your plan will be a useful education in' that di- rection, and therefore well worth while even if the plan be not adopted. But I hope it will be adopted, for I believe in it and admire it." ELLSWORTH HUNTINGTON, Geogra- pher, Yale University, New Haven, Conn. : "As I have read further and discuss- ed the matter with others, I have be- come growingly convinced that the method should be tried. I am glad, however, that you emphasize the fact that this is not the sole possible meth- od and that it cannot correct all the evils of which we complain. The more clearly this is realized by the world at large, the more chance there is that your method will receive a fair trial and will not be blamed because it does not produce results which cannot be expected of it." H. A. BUMSTEAB, Physics, Yale Uni- versity, New Haven, Conn.: "I have for a long time been con- vinced that your plan was a most promising' one and ought to be tried. Your last paper has, it seems to me, successfully answered a great many more possible objections than I should ever have been able to think of. I am ignorant of economics, but the plan appeals to my mathematical sense, and its analogy to certain physical com- pensations makes me think that it will work well. I am quite ready to vote for it if I ever have a chance." D. A. STRAW, Wheaton College, Wheaton, Illinois: "Your plan of standardizing our gold dollar is the first rational solu- tion of the fluctuation in money value that has yet been proposed, so far as my information extends. It is of so large import that I am impelled to write you my endorsement of it and to hope that I may be of some use in bringing it to public attention." MAYNARD M. METCALF, Zoology, Oberlin College, Oberlin, Ohio: "It seems to me that the attempt to carry the world's commerce on the basis of gold money, whose value is allowed to fluctuate according to the supply is probably the most absurd financial error that society ever made." A. G. FRADENBURGH, History and Politics, Adelphi ' College, Brook- lyn, N. Y.: "It meets with my most hearty ap- proval. You are doubtless right in your contention that one of the chief causes for the high cost of living is the decrease in price of gold, and your remedy seems to me to be adequate. "I have always favored, theoreti- cally, a multiple standard, but, of course, have recognized the impossi- bility of putting such a thing in opera- tion. Your plan is a feasible one and will have the advantages which we have always thought belonged to the multiple standard." MAURICE PARMELEE, Sociology, University of Missouri, Columbia, Mo.: "I believe your suggestion is one which would work if put into practice and would eliminate one of the im- portant factors which cause fluctuat- ing prices." FRANCIS W. KELSEY, University of Michigan, Ann Arbor, Mich.: "I am glad to say as a layman that your plan seems to me clear-cut, simple and elastic enough to be ap- plicable not only under varied condi- tions but under all possible conditions of rapid variation in the annual pro- duction of gold under new processes of mining." J. L. GILLIN, University of Wisconsin, Madison, Wis.: "It seems to me that your plan is a most ingenious and suggestive one for the solution of a very great practical difficulty. For years I have been con- vinced of the theoretical soundness of the multiple standard, but it was not clear to me untii I read your Memo- randum how the theory could be worked out in a practical fashion. It seems to me that every objection that can be raised against it is foreseen and answered by your plan." F. A. GOOCH, Chemistry, Yale Univer- sity, New Haven, Conn.: "To me, a layman in such matters, the scheme appears to be simple, scientific and practical. I hope that I may live to see it tried." W. H. LOUGH, Secretary, Alexander Hamilton Institute, New York City: "So far as I can see, your plan for stabilizing the gold dollar is workable and is certain to bring great benefits." OFFICIALS HENRY GANNETT, late President Na- tional Geographic Society, Wash- ington, D. C. : "Study of the papers which you were good enough to send me has convinc- ed me that your plan is a good and a feasible one; I wish it could be put in- to immediate operation." LEO. S. ROWE, now Assistant Secre- tary of the Treasury, Washington, D.C.: "I have examined your Memorandum on 'Standardizing the Dollar' and feel convinced that this plan, if adopted, will accomplish the purpose that you have in mind, namely, to make the purchasing power of money more stable than it is at the present time. I sincerely hope, therefore, that it will be possible to secure the acceptance of the plan." THE LATE SENATOR NEWLANDS: "Your plan of stabilizing the dollar by so adjusting the amount of gold in it from time to time as* to make it at all times purchase approximately the same quantity of a number of things which constitute the necessaries of life, is an excellent one, and will make the dollar as real a standard of value as the yardstick is of measure. Nothing better could be done to establish justice between debtor and creditor, producer and consumer, employer and wage earner, and to avert the economic crises arising in all these relations be- cause of the uncertainty of the value of the dollar. "I wish you great success in the propaganda which you are urging." SENATOR ROBERT L. OWEN: "The plan is feasible and meritori- DAVID J. LEWIS, United States Tariff Commission, Washington, D. C. : "Having carefully gone over your proposal to stabilize the gold standard and giving it the best consideration I could, I have reached the conclusion that you have found the method in your 'Compensated Dollar', a method, moreover, so simple and easy of ap- plication as to command admiration. Next to the economic havoc of war itself there is probably no more de- vastating agent at work than the rud- derless and ballastless unit of value which has resulted in the prices anar- chy of the past generation. I think of a depositor at three per cent in his savings bank, who has allowed his savings to accumulate, along with the principal, for the last fifteen years. He has actually less money in the virtual sense than when he made his deposit. Our dollar has become Mex- icanized, and it seems high time that thoughtful men should be looking out for a remedy. I think they will find it in your brilliant and well considered proposal." C. A. STEWART, Office of the Comp- troller of the Currency, Washing- ton, D. C. : "I have read a number of your arti- cles upon this subject which you were kind enough to send me from time to time and I am very much impressed with your plan for remedying exist- ing economic conditions. I believe you have the problem solved in your plan for the standardization of the gold dollar, which appears to me to be feasible and I heartily endorse it." WILLIAM W. RENO, M.D., Major Med- ical Corps, U. S. Army, Fort D. A. Russell, Wyoming: "I believe entirely in the standard you propose and hope that the idea will find wide acceptance. I advocate it whenever the opportunity presents itself." PAUL HAGEMANS, Consul General of Belgium, Philadelphia, Pa.: "It seems to me that your scientific plan for standardizing the dollar auto- matically as explained in your Mem- orandum, is feasible, practical and de- void of the objectionable points other methods present." CHARLES E. EDGERTON, Special Ex- aminer Bureau of Corporations, Washington, D. C. : "Your plan appears to me admirable, and admirably worked out. I hope we may see it tried." II BANKERS \/ -JOHN PERRIN, U. S. Federal Reserve Agent, San Francisco, Cal.: "Your plan for standardizing the dol- lar seems to me a fine conception, "having the merit of extreme simplicity- like most great .ideas. Even if put into •effect for this country alone upon the basis of one of our present imperfect- ly constructed index numbers, it would ■obviously eliminate largely the fluctu- ating value of the dollar which now in- jects such uncertainty into all our -dealings. "The direct and collateral benefits from such a result are almost beyond ■conception. There is abundant proof that your plan would operate success- fully in the successful working of the gold exchange standard, the principle -of which seems substantially the •same." V v CLARENCE H. KELSEY, President Title Guarantee and Trust Com- pany, New York: "I think it would be more desirable, -of course, if the plan could be adopted generally by international agreement, %ut I agree with you that it would be possible to adopt it in this country ;and gain advantage from it, even if other countries did not adopt it." 3PAUL WARBURG, Former member Federal Reserve Board, Washing- ton, D. C.: "In theory I quite agree with you -that your plan would work out a solu- tion and in practice I believe it can 'be done provided that all important -gold countries would join in such an agreement of standardizing the gold -coin." •GEORGE FOSTER PEABODY, Direc- tor Federal Reserve Bank, New York: "I think you have laid all under -obligation to you by your practical .suggestion." HENRY L. HIGGINSON, Boston Banker: "The more I think of your plan, the better I like it. Of course there would be plenty of difficulty about it as about everything else in this world which is worth having or doing. That is what we are here for — to meet these difficulties. * "To get some footrule, by which peo- ple could know what they were earn- ing — whether it were the coal-heaver or the cotton-spinner — would be good. . It seems to me that at first the difficul- ty would be considerable; and before the first we have to convince people that your scheme is right. Naturally, it would not be thoroughly effective until the world adopted it, but we could begin, and let the world follow us or not as it chose. It would be vastly better to have four or five great na- tions adopt it at the same time Let me repeat that because it is dif- ficult is nothing" against it. It was difficult to get rid of slavery, but it was essential." W. F. BURDETT, of the Merchants National Bank of Boston: "I am glad to stand up and be count- ed as favoring your plan for standard- izing the dollar." A. E. ADAMS, President of the Dollar Savings and Trust Company, Youngstown, Ohio: "I have examined your plan with much interest and can see no reasbn why it should not work out satisfac- torily under any of the gold market conditions that are at all likely to ob- tain within several centuries." EVANS WOOLEN, Fletcher Savings and Trust Company, of Indianap- olis, Ind. . "I have been unable to pick any weak spots. My feeling in this regard has changed, however, since I have observed the lamentable failure of the Journal to punch any holes in 1/ f 11 ' you. I really believe you have one of those big ideas about which the won- der is that they were overlooked so long." GEORGE WENDT, The Mechanics Bank, Rochester, N. Y.: "Referring to the 'Standardized Dol- lar' it seems to me a very logical proposition and if your facts are cor- rect it ought to be workable." F. A. DRCRY, Merchants National Bank, Worcester, Mass.: "I believe in the principle of your method of standardizing the dollar." F. H. GOFF, President Cleveland Trust Company, Cleveland, Ohio: "Your suggestion of a compensated dollar, in my opinion, if adopted by the leading nations of the world, would go far to give stability to our cur- rency." GEORGE F. CARY, Treasurer, Union Safe Deposit and Trust Company, Portland, Maine: "It seems inevitable that this, or some other scientific plan, must short- ly be tried in order to avert the market changes in values." y GENERAL BUSINESS JOHN Y. FARWFLL, Chicago: "Your conception of a compensated dollar is a very ingenious one, and, although I do not claim to be an ex- pert on such matters, it seems to me you have followed it out to a logical Conclusion." ROGER W. BABSON, Babson's Statis- tical Organization, Wellesley Hills: "I have read over with pleasure the material which you have sent me. I am thoroughly in accord with your . plan and believe you are entitled to the greatest praise for making a start along these new lines. In fact, your only critics are those who misunder- stand you and who assume that you believe the increased production of gold is the only problem involved in the cost of living. ."I am with you heart and soul in the scheme of standardizing the dol- lar. I agree perfectly with your plans and your work." JAMES H. BROOKMIRE, Broker, St. Louis, Mo.: "Undoubtedly it would be of great benefit to the industrial world." JOHN HAYS HAMMOND, Mining En- gineer, New York: "Many suggestions have been made to remedy the effect of advancing prices or to insure the stability of price level, the most feasible of which, so regarded by Prof. Fisher and other authorities, is that the par value of gold, which is now the monetary basis of the great nations of the world, be periodically and, in a degree, auto 1 - matically changed by an international agreement to conform with the estab- lished price level of the index number of commodities in general consump- tion." R. G. HAZARD, late President, Peace Dale Manufacturing Company of R. I.: "I have read your Memorandum with care and intense interest. If your so- lution is not the ideal one, it seems to me it is a thoroughly practicable and workable suggestion which will provide a relief for a situation becom- ing steadily more serious." SIR DAYID M. BARBOUR, Tilton, Crawley Down, Sussex, England: (Largely responsible for introducing the gold exchange standard into India, one Qf the greatest steps forward in practical monetary science.) I have read your Memorandum and have no doubt that by such a system as you propose it would be possible to keep the purchasing power of the gold dollar, or pound sterling, fairly- constant with reference to a previous- ly chosen system of index numbers. 12 "I also believe that this would be a gain, and think it likely that some such system may ultimately be adopted." CHARLES CHENEY, South Manches- ter, Conn.: "Undoubtedly it is a long step in the right direction, and I should take great pleasure in seeing it put into operation." S. C. DUNHAM, President Travelers Insurance Company, Hartford, Conn. : "I believe it is right and I hope it will receive the united support of many who out of their experience can offer suggestions for working out the plan in a practical way and adapting it to no end of conditions that will be known when they are encountered." A. B. FARQUHAR, President A. B. Farquhar Co., Ltd., York, Pa.: "There is a great deal to be said in favor of your idea. If the production of gold goes on increasing at present rates I believe some such system will be necessary. There is no question but it would make a halt in the advance in cost of living." JOHN F. FORBES, Rochester Business Institute, Rochester, N. Y. : "I have found the article very clear and satisfactory and it satisfies me completely* as to the value and practic- ability of your plan. I shall be glad to do anything in my power to create public opinion in its favor." LAZARD KAHN, Manufacturer, Hamil- ton, Ohio: "I regard your chief suggestions well worthy of high and international consideration." ROBERT LUCE, Chairman, Massachu- setts Commission on Cost of Liv- ing, Boston, Mass.: "Your Memorandum has cleared up my doubts by giving me a clearer un- derstanding of the program. It now seems to me wholly feasible and well worth earnest advocacy." ISAAC ADLER, Rochester, N. Y.: "In spite of the novelty of your views on standardizing the dollar 1 feel now after considerable delibera- tion, as I thought immediately at the close of your address, that your plan appears to be logical, practical and convincing, and if the nations of the world can be brought into accord the adoption of this plan would seem to assure very substantial benefits." ROBERT MATHEWS, Rochester, N. Y.: "The plan proposed by you for sta- bilizing the gold dollar, seems to me, if all the great commercial nations will adopt it, to be more likely to ac- complish this purpose than any other that I have heard of, and I hope your vision of the future will be realized." HENRY T. NO YES, Rochester, N. Y.: "Your plans for 'stabilizing the dol- lar' appeal to me as very practical. Once adopted, as I believe they surely will be in time, they will prove a real blessing to mankind." HERBERT H. WHITE, The Connecti- cut Mutual Life Insurance Comp- any, Hartford, Conn.: "The plan appeared so attractive and feasible at first hearing as to invite immediate acceptance, and a more de- liberate survey of your argument leads me to the belief that the scheme is worthy of a thorough test." JOSEPH A. DE BOER, President of National Life Insurance Company, Montpelier, Vermont: "I have been over the subject with some care and wish to advise that in my judgment the theory is sound and also that it would be wholly practical." CHARLES G. WOODWARD, B^inancial Secretary, Connecticut General Life Insurance Company, Hartford, Conn. : "After the lapse of many years since the use of the multiple or tabular standard was suggested as a remedy to overcome the varying purchasing 13 power of the dollar, your carefully evolved plan that establishes a dollar with fixed value as determined by a varying Quantity of gold, as opposed to a fixed quantity of gold with varying purchasing power, is a great contribu- tion to economic thought." M. ALBERT LINTON, Vice President and Associate Actuary, The Prov- ident Life and Trust Company of Philadelphia: "As you have so forcibly pointed out, it seems incredible that throughout a half century of standardization in every department of life, the monetary unit has been unaltered. I believe your plan will appeal to all thinking men." HENRY HEATON, Atlantic, Iowa: (Mr. Heaton had independently reached the idea of a stabilized dollar) . "The plan of exchanging the dollar on demand for a quantity of gold hav- ing a fixed value rather than for a quantity having a fixed weight seems so obvious, after the idea is once grasped, that we can only wonder why men hesitate about it. "If the mass of mankind could only realize the awful injury the varying standards have been and will continue to be and how easy it would be to adopt one that is practically invariable, the powers that be would be compelled to adopt your plan as soon as the necessary machinery could be put in motion. "Your idea of having a difference of one per cent, more or less, between the weight of bullion taken in and that given out in exchange for the dollar, for the purpose of preventing specu- lation in gold that would embarrass the government, had not occurred to me but it is certainly a good one." "IV. S. HAYDEN, Hayden, Miller and Co., Cleveland, Ohio: "The long continued and burden- some rise of prices, in general, prob- ably is not wholly due to our nominal- ly fixed but really shifting standard of value, but to establish a multiple standard by international agreement would, I think afford great and endur- ing relief," E. E. ADAMS, The Cleveland Hard- ware Co., Cleveland, Ohio: "I was very much interested in your talk and it seemed to me very logical. Personally I would be willing to throw my vote in favor in case it came to an issue." JOHN F. KELLY, Consulting Electrical Engineer, Pittsfield, Mass.: "After carefully reading your memoir I am satisfied that you have attained your ends which I take to be: 1. A substantially stable standard of value in an era with a tendency to- wards rising prices. 2. A standard that there is a fair prospect of getting accepted generally and established legally. "I think the devising of such a stan- dard is a great achievement and I heartily congratulate you on your suc- cess." F. 8. FOTJLKES, Rochester Stamping Co., Rochester, N. Y.: "I feel that I can unhesitatingly give your plan my unqualified endorse- ment." JACOB I). COX, Jr., The Cleveland Twist Drill Co., Cleveland, Ohio: "I should also be glad to have you use my name, if you wish to, in the endorsement of your theory, for I be- lieve it is an advance over the present method of doing things, and would be a great benefit to the country at large." H. BUTLER, The Butler Company, Buffalo, N.Y.: "The more I study your plan for making gold a non-fluctuating stan- dard of value the better I like it." SHIRAS MORRIS, President & Treas- urer, Hart & Hageman Mfg. Co., Hartford, Conn. : "Your talk before the Club was so completely logical and conclusive that I was in fact disappointed. My nature 14 is to take the opposite side of any ar- gument. I had read a little concern- ing your proposition before the meet- ing, but very little, and was quite pre- pared to shoot your theory full of holes at the meeting. Your argument was so complete that I did not have the pleasure of doing any shooting. "In other words, you completely won me to your proposition. I am frank to say that at the time, and since, (and I have thought about it consider- ably since), I have been unable to find any objection. "I have swallowed your idea, bait, hook and sinker, and if there is any- thing I could do to help in bringing such a condition about while you and I are still alive, let me know." E. E. RITTENROUSE, The Equitable Life Assurance Society of the United States, New York: "The principle is certainly sound and your suggestion, I feel sure, would bring the relief you claim for it, as- suming that a feasible plan can be found to apply it." WILLIAM: C. FOSTER, Real Estate Dealer, Watertown, Mass.: (Mr. Foster had independently reach- ed the idea of a stabilized dollar.) "I think your most wonderfully worked out plan for stabilizing our dollar will be of the greatest value to this country and the world, and if adopted would certainly prevent high and low commodity price levels, keep- ing them always normal." D. J. TINNES, Hunter, N. D.: (Mr. Tinnes had independently reached the idea of a stabilized dollar, calling it the "Market Gage Dollar".) "So far as we are informed our Market Gage plan is not only the earliest but it is, up to date, the only worked out plan that will closely and surely indicate changes in the market level and in the purchasing power of the dollar." BYRON W. HOLT, New York City: "At last I have reached the conclu- sion that your plan to stabilize the val- ue of the dollar is feasible and work- able. Certainly, if it is possible to standardize the dollar, it should be done without loss of time. For, as you say, not only is the shifting value of our present dollar abstracting billions of dollars a year from some and giving it to others, but it is undoubtedly one of the greatest causes of social un- rest and political disturbance. "It is hardly too much to say that the dollar of uncertain and changing value is the greatest criminal of mod- ern times. The world cannot get rid of this monster robber a minute too soon. "Even before I began to study polit- ical economy I saw how unscientific it was for the civilized world to have as a standard of value any one metal and to depend upon the uncertain pro- duction of this one metal for its measure of value. Ever since I first came across Jevons' suggestions for a commodity dollar based upon an in- dex of prices I have wondered if a practicable method of applying it would ever be devised. I now believe that you have found such a method and, by so doing, have made the world your debtor for billions of dollars." CHARLES W. MIXTER, Framingham Center, Mass.: "I am delighted with the scheme as being very simple' and most workable. So far as my comprehension goes I find no essential error." W. M. ACWORTH, The Albany, Picca- dilly, London, England: "It seems to me unanswerable from the scientific point of view. But I still have a greater belief than you in the weight of intellectual inertia More power to your elbow." R. MALCOLM, London, W. C, England: "Uncertainty as to the eventual re- sult is of the gravest disadvantage to both parties, and a general loss. The fixing of the purchasing power of the 16 unit of money should therefore be of great advantage and it would seem that your plan should go far in that direction." ACHILLE STARACE, Italian Chamber of Commerce in New York: "We believe that, if put to a practi- cal test; your plan would have far reaching and beneficial consequences. It is certainly not up to us to have an opinion concerning a plan which an authority like you has so well devised. but it strikes our minds that your Memorandum, outlining the plan in brief, embodies one of the most com- prehensive financial reforms that has been conceived in connection with the price level, under the present con- ditions of industrial and banking en- terprises." KWEEN E. TANG, Shanghai Chamber of Commerce, New York City: "I have gone very carefully through the Memorandum for standardizing the dollar. Your plan, as it seems to me, is practicable as well as scientific" LAWYERS JOSIAH QUDJCY, Counsellor at Law, Boston, Mass.: "I am fully convinced that the ad- vantages of the standardization of the dollar have been so fully worked out and demonstrated, that the only re- maining question, and that of course is a very difficult one, is how to get practical action taken in this direc- tion." EDWARD M. DAT, Attorney, Hartford, Conn. : "The theory that you advanced and the argument with which you support- ed it both carried - conviction to my mind and I feel that if the plan in some practical way .should be adopted by countries maintaining the gold standard the result would be of great b»nefit. The proposition seems to me a very sound one." ROCHESTER H. ROGERS, Rochester, N. Y.: "I wish to say that your talk before the City Lunch Club of Rochester impressed on me so forcibly the need of standardizing the unit of value that I am glad of the opportunity to ex- press my approval of the plan you sug- gest." PHILIP P. WELLS, Formerly Law Of- ficer U. S. Forest Service and Counsel National Conservation As- sociation, Washington, D. C: "I am obliged to you for a copy of your recent article in the American Economic Review 'Objections to a Compensated Dollar Answered.' I think you do answer them one and all effectively. The only real and funda- mental objection is that your proposal has never been tested fully by ex- perience, an objection that would have been equally valid against every step of human progress from the stone axe onward. I think that I have hitherto said that your compensated dollar plan is the greatest contribution of economic theory to practical finance that has been made within the time covered by my memory. "It could be carried out by slight changes in the words of the statute books and by slight changes in admin- istrative procedure at the Treasury without any change whatever in the language or customs of business or every day life, in fact without being perceptible to the average man." JOHN C. HUTCHLXS, Cleveland, Ohio: "I fancy that the reform which you seek to bring about, like many others which have been worked out in the past will, when once established cause the world to wonder why so simple, 16 scientific and reasonable a reform had not been accomplished before." G. W. MERRICK, Wellsboro, Pa.: "Your plan for 'compensating' or 'stabilizing' the gold dollar seems to me both reasonable and feasible. I hope you may have an opportunity to put it to the test." KENNER S. BOREMAN, Chicago: "I am impressed with the idea that you have found the corect solution of the problem." THEODORE F. GREEN, Providence, R.I.: "I was much impressed with your article as not only being most ingen- ious but also sound." FRANK S. BISHOP, New Haven, Conn.: "You have stated your plan with ex- ceptional clearness. I see no reason why it cannot be applied by all na- tions or one nation in such a way as to keep the unit of value constant in purchasing power. The matter is of such great importance that I hope you will succeed in making business and professional men to realize it." F. W. PETHICK LAWRENCE, London, England : "The subject which you have written about is one which I have thought very considerably upon during the past few years. The particular aspect of it which appeals to me touches the position of the proletariat, who un- der the present system are liable to be driven under the poverty line in enor- mous numbers by the mere accident of a depreciating currency. I have long realized that there is no way out of the present difficulty except along some such lines as you propose. I think that the details of the scheme put forward by you would be in the main satisfactory and I congratulate you most heartily upon them." PERIODICALS AND NEWSPAPERS MOODY'S MAGAZINE, New York City : "Probably no modern writer has studied this question more deeply than Professor Fisher, and his suggestion •of a new standard of value deserves the careful thought of every banker, investor and business man." FINANCIAL AMERICA, New York City, and Financial News, Boston, Mass. : "Prof. Fisher's recommendation is ■sane and scientific. It should commend itself to the Treasury and our mone- tary experts at large." BOSTON NEWS BUREAU: "He is eminently practical and not merely theoretical in all his work and writings. His exposition of the at- tempt to regulate the fluctuating value of the dollar as measured by commodi- ties should have very thorough hear- ing." DRY GOODS ECONOMIST, New York: "We recommend Prof. Fisher's pro- posal to the thoughtful consideration of merchants and of manufacturers. The subject is a somewhat abstract one, it is true, yet its main features can readily be grasped; and in the search for some remedy for the pres- ent condition it is the duty of business men, as it doubtless is to their interest, to lend a hand." SECURITIES REVIEW, Scranton.Pa: "We believe that the plan recently proposed by Professor Irving Fisher of Yale University before the Interna- tional Congress of Chambers of Com- merce at Boston, is the first feasible and practical solution that has been advanced." THE COMMERCE MONTHLY, St. Louis, Mo.: "After carefully examining all ob- jections which have been offered, I quite agree with Mr. Babson, the busi- ness statistician, who writes that 'only those disagree with you who misun- derstand you.' " 17 THE AMERICAN BANKER, New York: "Mr. Fisher's plan has been approv- ed and highly commended by practi- cal financiers, students and financial writers, both in America and abroad, and it appears to be the most practica- ble and promising idea yet proposed for the solution of our present diffi- culties." THE INDEPENDENT, New York City: "We have no hesitation in saying that it appears to be both scientific and feasible." THE OUTLOOK, New York City: "The measure we use in money transactions today is hardly more scientific in the light of modern civili- zation than wampum was in the early days of the Indian and pioneer trader, and scientists like Prof. Fisher ought to have public support and sympathy in their endeavor to apply principles of science to the money question." COMMERCIAL, New York City: "The Fisher proposition is one which has been received with a good deal of favor by economists and the Boston Congress of Boards of Trade gave it a very respectful consideration. There is no reason why this country could not make the beginning." THE INVESTMENT REVIEW, Los Angeles, Cal. : "The scheme seems to be a very good one if it can be satisfactorily worked out, for there is no doubt that the stabilizing or standardizing of the dollar would greatly relieve the undue pressure now made on the earnings of the masses." EVENING TRANSCRIPT, Boston, Mass!: "This remedy seems more practical and promising than any other that has been proposed. The Fisher plan is simple and unobjectionable." JOURNAL, Providence, R. I. : "The idea is not advanced simply on- the assumption that an increased out- put of gold is responsible for the pro- nounced increase in commodity prices. Professor Fisher, indeed, does not un- dertake to untangle the causes from- the effect. Confronted with the effect,, he would overcome it by the Alex- andrian stroke of increasing the value- of the purchasing medium — in . terms- of gold, to correspond with its de- crease in terms of beefsteak." EVENING POST, "Worcester, Mass.: "The fact is that Prof. Fisher's idea. is one of thei greatest of the age — all the greater for its simplicity." EVENING NEWS, Newark, N. J.: "It is the only practicable and simple- plan for putting into practice a 'tabu- lar standard' of value." NORTH AMERICAN, Philadelphia, Pa. r "We commend it as a move in the- right direction." EAGLE, Brooklyn, N. Y. : "It is worth trying." JOURNAL, Boston, Mass.: "It is certain that today (written be- fore the war) all nations could adopt the system without disturbing any ex- isting coinage, paper money or bank- ing arrangements, and all classes might get the safeguards of a stable standard of value." JOURNAL, Madison, Wisconsin: "While Professor Fisher's plan would not, as has been claimed, cure the problem of the rising cost of living, it would eliminate the important factor of a falling money standard, which is by now acknowledged pretty general- ly to be one of the primary elements in rising prices. This is not the only- effect such a plan would have if It could be put into practical operation, but it would eliminate violent fluctua- tions in price levels and operate for a fairer distribution of wealth beyond a doubt." 18 NORTH WESTERN, Oshkosh, Wis.: "It is not unlikely the time will come when something of this kind will be actually undertaken by the leading na- tions of the world." CAPITAL, Topeka, Kansas: "Some such plan has always appeal- ed to economists, but Prof. Fisher is the first to offer what purports to be a practical measure. "It had been previously submitted to economists on both sides of the Atlantic, receiving almost universal approval." ECONOMIST, London, England: "His scheme may seem at first sight a difficult one; but experience is rapid- ly being accumulated in several dif- ferent experiments of this kind." ARGUS, Albany, N. Y.: "Why is not the plan practicable? "After the war the monetary problem is one that the nations will have to grapple with. Nowhere has there ever been a scientific or satisfactory or reasonably fair system. It is time for it. Professor Fisher says a few em- ploying concerns have already put his ideas into practice for their wage standards. If it were now right in our money systems, most of the labor troubles so embarrassing Uncle Sam in his war work would be eliminated." TELEGRAM, Portland, Oregon: "It would be a great boon to the country and relieve it of much of its uncertainty if it could be adopted. Logically it ought to come as a war measure. If, after the Liberty bonds are all sold, their proceeds will buy only half as much as anticipated, more bonds will have to be floated and we may enter that vicious circle of in- flation and bond issue which England and other nations have suffered. A stable monetary unit would help greatly to avoid this and other evils. We need a fixed yardstick of commerce as truly as we need any other fixed unit measure." C. W. BARRON, Proprietor of the Wall Street Journal and the Boston News Bureau: "Regarding your plan for the stand- ardization of the dollar I think, view- ed in a broad way, it is the most highly educational work concerning finance that is being done in this country. When people understand that the gold dollar has never yet been standard- ized and that all values are simply questions of relation they will begin to put on their thinking caps and take an interest in a realignment of equities with respect to so-called standards." SAMUEL H. BARKER, Financial Ed- itor The North American, Phila- delphia, Pa.: "Your plan to bring gold, as money, into subjection to the purposes of man, to make it conform in its present dom- inant function as an expression of val- ue to the general level of prices, would, I believe, work to correct some chief evils of the gold standard and also prove an important step toward reali- zation of a world-wide scientific money system." TREADWELL CLEVELAND, Jr., New- ark, N. J.: "Your 'compensated dollar' plan is workable and desirable." OBEB C. BILLMAN, The Independent, New York City: "Reference is here made and en- dorsement given to Prof. Irving Fisher's plan for an 'international standard of value', to be fixed and reg- ulated by an international monetary commission. A. R. KIMBALL, Waterbury American, Waterbury, Conn.: "Your argument seems to me to be convincing to ordinary common sense. It also seems to me that such stand- ardizing of the gold dollar is worth while quite apart from the problem of the high cost of living." 19 CARL SNYDER, New York City: "I find myself very warmly in sym- pathy with your project for price regu- lation. In so far as I have been able to think the matter out, and after en- deavoring to explain it at times to friends, I believe that it would work, always provided that the output of gold should not suddenly become deluge. But this latter would force clear demonetisation." tion of it by one or two of the nations." F. W. KELLOGG, Owner and The Call, San Francisco, Cal. "I want to heartily endorse article on an elastic gold standaJ seems to me that your solution the high cost of living is the only| and logical remedy that I ha\ advanced." fflP BffiRl HENRY WALLACE, Editor Wallace's Farmer, Des Moines, Iowa: "On the whole, it meets my hearty approval. At first I believed it would not be practical; but it seems to me that all that is necessary is the adop- JOHN H. GERRIE, Financial The Call, San Francisco, Cal. "Professor Fisher's solution scientific as it is simple and as siS as it is unexpected. That's ^ has got everybody talking." 29 ■MM TIMES, SUNDAY. DECEMBERS, O By Prof. Irving Fisher, Of Yale University - N Saturday of this week therp will b» held >" Poston a session of the. American Economic As- sociation devoted to the dlseus- Floti complicated. In essentials the pi an is anything but complicated. Moreo\ er, the details con- templated In this o ajection could not concern the public. Ernest Solvay of Brussels, the founder of the Solvay -Process Company of Syracuse, N. Y., and the founder of' the Solvay Socio- logical Institute of Brussels, submit- ted the plan to onej of the experts of his Institute, Maurice Ansiaux, who, in reporting (favorably) said: " All the compilations which the plan presents are . Vholly confined- to the technical Goveninental bureaus; If the plan were in use the general public wouW not notice soy change in the monetary system." . 5. The plan is tip simple. There must be a flaw ii it. "Why has It never been propose! before? It is true that theplan Is, in essence, a simple combina^on of " seignior- age " with." Index lumbers." Perhaps the fundamental reaon why these two fectTs PP not°by decreasing the price of devices have never j,een used in com 3 ^but by increasing the prices of binatlon is that whjn se.gniorage was She- things- The -vast increase of the i„ vogue index nunpers had not been invented, and after index numbers were invented seigniorage was no ^longer In use. As a matter of fact, however. I find I have been anticipated in the proposal for increaesing the weight of the gold doflar. Among those who have had the Idea is the President-elect, Woodrow Wilson. Another Is William C. Foster of Watertown, Mass,, who informs me that in July, 1909, he wrote to his Sen- ator a letter, from w hich the following Is an extract: " The writer would suggest that a commission be appointed by the Gov- ernment which shall each month com- pare the exchange value of a given quantity of gold with a given quantity of staple commodities, say in London, St. Petersburg, and New York, and monthly declare the number of grains of gold that shall constitute our dol- lar for the ensuing month." 6. There would be a rush to the Treasury to redeem gold weighing 25.H grains in " virtual dollars " of bullion- No. dild coins would become " token coins." There is now no rush, to re- deem paper money 0;.- token coins. ?. The plan couiu. not work unless all the mints of the world should adopt it. This is an error. Although it would be inadvisable for one nation alone to operate the plan, this would not be im- possible. Those who hold the contra- ry are deceived by the term " mint price." They reason that our mint price ($18.60 a^ ounce of gold nine- tenths fine) r.ad England's mint price (£3 17s, lO'Ad. for gold eleven- twelfths fine) are now " the same," and consequently, if our price was low- ered 1 per cent., to $18.41, while the English price remained unchanged, all our .gold wculd be taken to England to take advantage of the " higher " price there. But these comparisons be- tween English and American prices are based on the present " par of ex- change," ($4.86 2-3 of American money for the English sovereign,) which par of exchange is in turn based on the relative weights of the dollar and the sovereign. As soon as our dollar is made \ per cent, heavier, not only would the new American mint price go dowjj. 1 per cent., but the par of exchange would also go down 1 per cent, to $4.82. Consequently, the new mint price of $18.41, although in fig- ures it is lower than the old, yet, being in heavier dullars, would still be " the same " as the .English mint price of £3 17s. lO'^d. This sameness of mint price as between the two coun- tries merely means that an ounce of gold in America is Equivalent to an ounce of gold in England. , It is true that each Increase In the, weight of the virtual dollar in Amer- ica, in other words each fall in the official American price of gold, would at 'first discourage the minting of gold In America. The miner would at first send his gold to London, where the mint price was the sattis as formerly and realize by selling exchange dn the Lon- don credit thus Obtained. But these very -operations, by Which he attempt- ed to profit, would soor profit to zero; for the ex to England would increas of bills of exchange in An on London and lower the change until there would any profit in sending gc United States to England exchange against it. Wh pened it would be as prof gold to American mints £ ounce as to ship it abroad in America would be the alent at the new par ($4.82) of the English ir £3 17s. 10Ud. 8. Would not the adop plan by the United States havoc with our foreign ti Tes, most certainly, change would become ur variable. While the pla worked if adopted by one out the concurrence of otn< fits would be best secured adoption by a number of 1 9. The plan would nt prices were falling.- It Is true that, under t weight of the virtual dollai be permitted to sink below coined dollar. Otherwise could make indefinitely gr> the expense of the Goverv by melting the coins, sellin to the mint, melting agaii If the weight of the virtua let us say, first increasing return to this lower limit, tendency of prices -to fall prevented, for further weight of the virtual doli inadmissible, unless the v coin dollar were itself red coins were withdrawn fror If the prognostications w made (in the Septembc Economic Revie'w and tl North American Review) z is' unlikely that we shall ter the limitation thus im shrinkage in weight of th( lar. For this reason it dc necessary to recall or redu In advance, against a which will probably never only necessary to provide the lir-it should ever be prices should then fall ap low par — say 10 per cen coin shall i>e withdrawn J tion ' in return for oertif ic new -gold coins of lighter this way the obstacle In tl ducing the weight of the ■ would be removed. 10. The Government tempted to coin the seign If the Government shou coin the seigniorage for 1 no harm could result s< maintained redemption. 1 circulation gold coin tav seigniorage would soon c flow of redundant currei certificates wljjcb. would tc thss Government for r gold bullion. There woul profit in coining the sei UNDAT. BECEMBEft 22, 1912. Queries, Answers Criticisms of the ns the Effect It Would Have nomic Problems. er index numbers were rage was no Nlongcr In '. fact, however, I find jipated in the proposal he weight of the gold hose who have had the sident-elect, Woodnpw • Is William C. Foster lass., who informs me 3, he wrote to his Sen- m which the following would suggest that a ippointed by the Gov- ;hall each month com- age value of a given with a given quantity idities, say in London, and New York, and the number of grains ill constitute our doi- ng month." Id be a rush to the ;deem gold weighing " virtual dollars " of i wo\}ld become " token s now no rush to re- ey of token coins. oultl? not work unless of the world should or. Although it would or oiie nation alone to this would not be im- who hold the contra- by the term " mint 3ason that our mint i ounce of gold nine- Engiand's mint price i. for gold eleven- ire now " the same," y, if our price was low- ., to $1S.41, while the mained unchanged, all be 'taken to England age of the " higher " these comparisons be- id American prices are present " par of ex- !-3 of American money sovereign,) which par in turn based on the of the dollar and the soon as our dollar is nt, heavier, not only American mint price cent., but the par of also go down 1 per Donsequently, the new 18.41, although in fig- r than the old, yet, r dollars, -Would still as the English mint 10 ] id. This sameness between the two coun- ans that an ounce of l is, e'quivalsnt to an 1 England. . eac.h increase *n the, irrual dollar 'in Amer- orda each fall in the i price of gold, would jetfea minting or gold 3 miner would at first jOnfion, where the mint a.ni£ as formerly and exchange