The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1913-04-22

JSCt lidI WnliS money Is 8 measure VI
values. it is also itself a commodity,
f~luctuating in price like other com.
modities in conformity. with the law
of supply and demand. AS IL rule VIC
measure the values. of commodities IN
terms Of dollars. We must also meas
ure the value Of the dollar in terms Of
commodities Of other kinds.
The demand for free silver was in
substance. and at the bottom, a de-
mand for cheap money and plenty of
it. 1t vas Il demand for high prices.
and n great many people persuaded
themselves that IL we could only have
high prices VIC would necessarily have
prosperity. The fallacy of that ar
gurnent has been shown over and over
again. There is a general mean of
prices. and If We vary much from
that in either direction within a short
time. VIC invite trouble. In addition
to failure to recognize that too high
prices might be disastrous to the
country as too low prices there was
at that time in wide circulation the
fallacy that two metals could be made
to circulate side by side, without re-
gard to the commercial value Of eth
or. by the mere declaration Of the
government that this should be done.
A certain quantity: Of gold is used in
the dollar. and when a ma takes that
quantity Of gold to the mint he is CIV
en- gold coin for it. When the demand
for free silver was at Its height it was
proposed that though, compared with
the commercial value Of gold. the sill
Yer in a silver dollar was worth only
about SO cents. the government should
receive that Quantity Of silver and cx-
change a silver dollar for It. doing this
as often as silver vas offered. and
making. the, resultant coin legal ten
der Tor all debts. 1t is generally ad-
United now, though many people
found it difficult to understand then,
that the result Of this would have
been the withdrawal Of all gold from
circulation. inc the placing of the
country on an exclusive silver basis.
That danger was averted, but, with
the single gold standard. Either be-
cause of the increased production of
Golas or ct our changing commercial
because of a combination
ofNthese with a number of other cle-
mcnts, the dollar has rapidly been
losing its purchasing power. 1t is not
as valuable today as it was several
years ago. Its value has decreased to
such an extent that the situation has
caused serious anxiety, and much
study has been given to the subject
of holding in check this tendency.
One Of the effects Of the shrinkage
lin the value of money may be shown
by. considering the matter of life in
rsurance. Suppose a man bought a life
insurance policy twenty years ago of
the kind known as "ten.payment
life," that is. a policy all the pre-
miums of which were to be paid in
ten years, but the amount of which
was not to be paid until the death of
the insured. In that case all the pay
ments on that policy would have
been completed ten years ago. The in
sured person might easily have twen-
ty years to live after this time. that is,
fort3,Eears from the date Of the pol
icy. The contract was made at a time
when money values were high. that
is. when the dollar has great purchas.
ing power. The premiums were paid
with dear dollars. but the dollars
have been shrinking in value ever
since. Suppose, as an extreme case,
that the value Of the dollar should
have shrunk by half before the end
of the insured's supposed forty years
of insured life. 1t il clear that the
value Of what his family will receive
will be only half Of what it was when
he made his contract.
This applies with equal force to all
investments which have considerable
time to run. Contracts are made on
present values hi are settled in de.
preciated currency. The proposal of
Professor Fisher Is, not a double sta n
dard. but the payment Of a premium
on gold dollars. j: He suggests that
when a properly authorized commits.
fsaens4 10 de~that the prices Of 100 rem
rcsentative commodities has increased
five per n above the standard, the
man who brings gold to the mine shall
be required to deliver Ave per cent
more gold in order to receive a rold
dollar Of the present size and fineness.
He would not change the quantity of
gold in the dollar. but he would re-.
auIre the payment Of a premium for
having it minted. This. as he reasons.
n with apparent soundness, would
lower prices, because money would
be five per cent more difficult to oh.
tain. The result would be a stability
in the general range Of prices. and
fluctuations would occur in the prices
of items only in response to the law
of supply and demand. -.
1t is not likely that any change ~
this or any sort will be made imma-
dIately, but the situation Is one whied
calls for investigation. and 1t may be
that Professor Fisher has found what
Will prove to be the solution of a yerv
puzzling problem. =
A good many Of the helpful hints
are Tor sale ut more than they are
worth. "e
There are a good many important
looking letters hat have no money