The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-02-26
PROFESSOR FISHER REJoINs

Fisher of Yale University, TO STAND
srdize" the dollar. His proposal i
to "increasc the weight OF the bullion
dollar. That is, to require 26 or % o.
2s grains Of gold bullion 10 be takcr
TO the mint to secure 23.S'Graln golt
dollar. The coined dollar would b'
made unchanged in weight (25.t
grains) but the bullion required TO Sc
cure the coined dollar-the bullion dol
lsr-would be heavier.
We objected to this as imposing the
burden OF the (sssumcdl decreased pnr
chasing power of gold upon the gold
miner. We now have from Professor
Fisher rejoinder defending his propo
sition. as follows:
Yale University. Department Of Political
Economy, February li 1918.
Editor Tribune:-An editorial in your
Issue oi February 3rd lSS come 10 my
| notice. should he glad II you Gan
spare the space 10 publish the following
answers 10 the objections wnicn you
raise.
Any injury which will come 10 NE
gold miner Is merely nominal, not rea'.
| You speak as though he were 10 nc
charged with the cost Of running the
proposed system Of stabillsing the dollar
So far as there would be any cost u
would fall on the taxpayer TO keep up
the gold reserve. The gold producer
would scarcely be affected. Although he
has a smaller price for his produce he
gets that price paid in q heavier dollar.
The truth is the gold minor who now
has an ounce OF gold cut up into twenty
pieces each of which is a dollar. would
have IL cut up into 10. Is. Il. OF a smaller
number of pieces. but stll through his
gold certificates would have title 10
tho whole ounce.
was recently discussing this subject
with John Hays Hammond (who tayors
my panl, and ne agreed that the gold
mining Industry would be very little at
fected one way or the other. feel sure
that this is true. Everybody. Including
gold miners. would reap advantage in the
stability OF tho purchasing power Of the
dollar.
Yes gold has lost one e-thIrd OF its pur-
chasing power since 1896; Il has been
losing and gaining ever since IL has been
used AS a unit Of purchasing power.
Anyone can sec at glance tina, it would
no impossible 10 attempt 10 make good
all the injustices which have been done.
The best VIC can do Is to provide against
future inJnstices. We must let bygones
be bygones. Ny plan aims only To do
the possible, 10 see that We do not con-
tinue In the future to suffer from an un-
stable monetary unit.
! agree with your editorial that there
has been a cry by certain bankers and
business men that gold Is scarce. When
ever there occurs an imitation Of any
kind, such as the present gold and credit
imitation, people always complain that
money is scarce" We always sec il
in times OF paper money imitation. as
every historian OF paper money will state.
Yet this apparent scarcity Of gold for
bank reserves, far from being sign OF
any real scarcity OF gold is a symptom
OF It's abundance. The sequence of events
which leads 10 n situation where we ap-
pear TO have scarcity ol gold are usu-
ally: % imitation, Co a consequent In
crease in PROFITS TO enterprisers. Cd
increase in borrowing by this
class 10 further increase their business
for the sake of the large profits obtaiDa-
BILE, % an increase in loans and depos-
its, (5) high rate OF interest to protect
these bank reserves, go a cry from the
enterprser and banker that gold is
scarce" In reality the whole series OF
events is a natural consequence Of the
increasing abundance OF gold. The Sc
ries OF events does. not represent sound
but ends usually in crisis.
j believe the idea that the increase OF
population has been greater than the
production OF food is not tn accordance
with facts Recent statistics show that
there is no real scarcity OF goods. The
volume OF trade in general has increased
on an average OF % per cent per an
mum, since 1896. which is more than the
Increase In population Oh per cent per
annum), showing that the average per
capita trade has increased; and trade is
fairly proportional to consumption and
Further, according to the
statistics OF Nat c. Murray OF the Bureau
Of Statistics of the Department OF La
Dor. the production OF the ten leading
crops In the United States has increa ed
per capita during the last fifteen years,
rather than decreased as has been popu-
larly supposed.
| cannot subscribe to your statement
that the theory holding that overproduc-
lion OF gold Is responsible for the in
crease In the cost OF living has been
economist l would further add that
my own plan, suggested by this theory,
has been indorsed by numerous ecouo-
Inists and pubicists. Sir David Barbour,
the man most responsible for the intro
5uction Of the gold exchange standard
in India twenty years ago: Mr.. John V.
Ferweu OF Chicago. president OF the Citi
zens League for Currency Reform, and
hundreds OF other careful and competent
men have all indorsed the plan. Baron
Sakatani, former Minister OF Finance OF
Japan. writes that he has called together
The economists Of Toxic 10 consider the
plan.
II is caricaturing the plan to say that
II would introduce fiat" money Fiat"
money as generally understood, means
money which is not redeemable. The
gold coins under my plan would be re-
deemable In gold at the Treasury Of the
called nat money
am probably to blame for your mis-
understanding OF one point. You evi
iently think I would change the weight
of the dollar only by three grains On
the contrary. | would make a5S grains |
gold coin (the present gold coin) repre- |
sent any amount OF gold bullion which |
The index number OF commodities indI-
Gated that II should represent That Is. |
| would make the g gold coin redeenable
IN times 26 or q or IS or % or 80 or ri
or 81 or 81 tand so on indehnitely) grains
OF gold-ln whatever number of grains |
Ihe virtual dollar was indicated. There
is no limit To my nerve" in this dIrec
ilon-l would have the gold dollar follow
The index number OF commodities vher-
ever that shall go.
ReSaTding what you say OF the price
OF silver, would reply that no pronf
can be gained against the theory I have
maintained By citing tho fuctuatIous of
single commodities. There arc special
causes affecting the price OF silver - E
there are special causes affecting ,be
price ot any other particular commooItv.
The theory PROFOUND has reference oniv
10 the general level CT prices, not "a
prices Of any one commodity. and ifs
proof lies IN the general level OF prices,