The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-09-13
FIXED UNIT OF VALUE.
Suggestion That 1t BE the Average
Worth of Commodities.
To the Editor of the Globe.

To the Editor of the Globe.
| read with satisfaction your article entitled
1.-THE Multiple Standard. AS l cannot ac-
cept the tenets of the faithful who believe in
the single gold standard, and cannot swallow
greenbackism, nor yet am able to see in silver
a panacea for our financial ills, I have been
without home among the regular pol teal
organ izatioDs.
A number of your recent editorials set
forth a line of reasoning with which | am in
full accord. II seems singular that, while civ
ilized people have taken the utmost precau-
ton with their units of measure as the yard
or meter, to prevent change of length, they
have neglected to provide for stable unit
of value
A varying unit of weight would be intol-
cradle. If one should have by weight today,
for illustration, 1000 bushels of wheat and
should contract to deliver LOCO bushels one
year from date, and in the meantime the
pound unit should increase n weight one
third it is quite plain that ones obligation
could not be liquidated with the wheat on
hand. This is SO apparent that the very
greatest care is taken to maintain an I'M
changeables unit of weight. Yet nothing has
been done to provide for stable value uni t,
although it would not be matter OF great
difficulty.
I have had the following plan in mind
which l would ike to see discussed: Our
money unit IS the dollar, consisting OF ~ r.;
grains of gold with 10 per cent alloy. The
value of this dollar depends upon the value
of % % grains of gold, and will buy more or
less, as gold varies in value. At the present
time
money is affected by any change in the sup
ply OF demand of gold. If through recent
discoveries in Alaska and elsewhere there
should be unparalleled additions to the world
stock of gold, its value would fall and every
money obligation could be liquidated with a
less amount of goods. On the other hand,
should more nations adopt the GOLD standard,
supply not increasing PToportio e Icy
there would be universal FALL in the price
of goods inyersely as the value of gold rises
This would make it harder for the debtor
classes to meet their obligations. 1t must De
apparent that any change in the value Oh 40 ~
Grains of gold affects every dollar in exist
ence and further reaches every agreement
where dollars are considered. IL is PRECISE
as any change in the pound weight Wouiu d;
feet everything based on pounds. Inc Dusi,
ness public does not care to speculate IN eolu
anv more than it does in wheat ana yel
every deferred payment every agreement III
terms of money, is no more nor 1855 'hah
speculation in gold.
There is nothing in the nature OF gold more
than in iron, silver or copper that especiaIi.
fits it as an invariable unit OF VaIue. "A ul !
is a basis from which to make computations
No accurate computation can be MADE from
a changing unit. The field OF political econ
omv has to do with value. How can we COM
mute values on a changing unit of va-ue? NO
where is there certainty. Every calculation
depends on the value of an unknown quantity.
Now, as no commodity on the face OF the
earth or under it, is free from fluctuations
or in the nature of things, can be Tree, II Is
not wisdom to try to measure values by any
one alone. The closest we can get to an exact
unit is one based the average value OF al
commodities. We can easily change our pres
ent money system to do this. AS 1922 grains
of gold today determines The value Of 81, let
its value today be taken as the permanent
unit.
For instance, suppose that 81 at the present
tine will buy the following commodities:
One bushel of wheat,
Six bushels of oats,
Two ounces of silver,
Twenty pounds of lard,
Six pounds of wool, etc., using all staple
commodities whose values are easily obtained
vide stability of value we must have dollar
that will, on the average, buy these same