The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-02-07
Cause of High Prices.

Editor The Washington Herald:
The full discussion Of food prices Is
campaign of education. From a sim
pie question between producers and con-
sumers. wholesaler and retailer the
trusts and the people. the discussion is
broadening 10 cover the whole field Of
sociology. II may be the mission Of this
awakening 10 inform the rulers and the
people upon the most vital matters Of
public concern. as 10 which they have
long been ignorant or Indifferent.
one important fact disclosed is that
the large gold output has caused general
prices to rise. This is true, because gold
has free coinage and at once enters into
the currency. increasing the number of
dollars in circulation, each Of which be-
/ comes less valuable in exchange. SO the
wage Garner. the pensiOner-all who have
fixed ipcomes-are compelled to pay more
for goods To protect themselves from
the plethora Of gold il would only be
necessary 10 have gold denied free coin
age and sell as bullion what We have on
hand But we have still other dollars
that are Of silver and paper, whose
abundance has been as potent in caus-
ing high prices as the gold dollar. We
have been adding TO the number Of these
also. and 10 restore old prices We must
restore the old volume Of currency
These superfiuous dollars could be re-
tired. as the Ereeubacks were, al a given
rate per month. The Fort bill, which
now requires the reissue OF the wornout
notes. stopped the burning Of the green
backs Repeal that law and provide for
destroying all the legal tender paper
} That would drop prices effectively. These
measures would quickly increase the pur-
chasing power of every dollar in circu-
lation All marketable products would
| decline in price and their owners would
hasten TO put them in the market, for
fear Of still further decline. This would
accelerate the falling prices, and the old
/ standard of cheaper living would soon
I be reached. All who have fixed incomes
/ wages. pensions. or annuities-would be
! benefited
As to the effect upon the general well
/ fare of this policy. let as postpone the
| llHI liScIti AlllAi NAhllrI llIllE. EAL III
/ low prices is the principal objective.
/ here is a sure way TO secure them.
/ BY the way. did not the advocates Of
| the single gold standard assure the peo-
! pie a few years ago that they held the
/ only guaranty for permanent prosperity?
I Nothing is clearer than that prosperity
and low prices cannot go together.
/ Now come the great professors OF
/ economies 10 give us the final word-that
the gold standard Of value is no standard
at all-that it is a delusion and a snare.
/ Prof. Irving Fisher OF Yale. says in
/ the last Review OF Reviews: We must
| give up our blind faith in the stability
/ Of gold. We stoutly cling TO the delusion
! that nothing else is as solid as gold.
while under our very eyes is going on a
| depreciation we are unwilling to recog-
nize What we need Is a stable monetary
standard Gold is not such a standard.
As soon as We realize that the gold
standard is not solid, but sinking. we
shall begin 10 cOntrive methods Of secur-
ing stability
Walter Clark. professor Of economies
/ Of New York College. in the same maya
zine. says: THE increasing gold supply
alone explains the general advance of
prices The rise in price is inevitable