The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-30
SUGGESTED "READJUS7MENT OF THE
GOLD STANDARD.
The Ancient Faaey Makes Its Appearance in
New Form

In ratio according to the market prics
OF each commodity. On the contrary
the producer Of gold does not in tho
first instance exchange 1t, but gets n
back with the guarantee that II I,
gold and weighs so and so much
Then he can exchange this slammed
gold metal or ITS proxy for mea,
clothing, houses, automobiles, &c. hi,
only at discount of SO per cent in
purchasing power though nominally
worth par. And his miners will only
take 1t at 80 cents, !. c.. they want
double wages.
To stimulate gold production by sub.
sides or by paying more for IT,
would be bad economies, apart from
the question of national honesty. he.
cause great amount Of productive en-.
ergy would be diverted to producing
something which Is not wealth, hu,
only a measure Of wealth. or all the
commodities In the world It is the one
with whose present production hu.
manity could most easily dispense. Its
alarming increase during the period q,
1885 to 1914 has been great menace
The accumulated supply would keep
the world of finance and commerce
going for generations and even the
total stoppage Of new production would
have no other result than falling
prices or the prevention OF further ad.
vances. But the suspension OF the out.
put OF coal, iron, wheat, corn or cotton
would be disastrous.
Instead Of stamping 25S grains 81,
to stamp say 20 grains the same
would at once raise the price OF every-
thing sharply, cause another great In
crease in the cost Of living, put add.
tional burdens on all those on salaries.
pensions, 'annuities and fixed incomes,
another strain on all corporations that
cannot proportionately increase their
charges to meet the consequent inevi-
table new advance in operating cost. II
would mean that every laborer who
has put 500 q. e., $3.50 grains Of gold
in the savings bank, when he comes 10
draw it would get 1000 grains OF gold
called 800, but with the purchasing
power OF $50. 1t would mean partial
reputation of all debts, private and
public, except those stipulated as pay
able I'm gold coin Of present weight
and fineness." And probably even this
protective clause would become void
because 1t could not be enforced or
because met with non postum.
ITO change the standard" by cutting
down the weight Of the IS gold piece
20 per cent. and still calling It IS
would be as dishonest as fradulently
to pay a creditor at so cents on
the dollar. While about it we might
as we'll reduce the length OF the yard
to 20 inches; that would greatly help
the manufacturers of textiles having
contracts; reduce the pound TO 10
ounces. 1t would make the army
rations go further and would relieve
the coal situation; reduce the bushel
to three pecks, potatoes and wheat
would last longer; call a pint a quart,
this would give twice as many quarts
Of milk for the babies; call nine a
dozen. 1t would enable the manufac-
turer to make a dozen 90 per cent.
cheaper. If we are to bleed the dollar
why not bleed other standards?
Any REIMBURSEMENT OF the gold
standard" by artificial stimulus to pro-
duction would be bad economics. The
reduction Of the weight of the coin
under the same name would he bad
economics and bad faith. The falling
production of gold is the one bright
spot, the one opposing influence TO
the attenuation Of money now going
on, and this one favorable factor il is
proposed to eliminate by subsidy or
by the tightening of the coin.
CHARLES VEIN.