The Bridgeport times and evening farmer., 1919-01-21
PRICES DOUBLE
 IN SIX YEARS
Prof. Fisher Will Talk on Stabilizing the Dollar on
 Wednesday.

Prices, rising ever since 1S96, have on the average doubled since 1913. Wages and salaries do not keep pace with the cost of living. Wages now buy only 2-3 of what they bought in 1900. Labor troubles and peace. a fall in prices is usually ex- pected. If contraction results in an actual business depression, we shall be worse off than ever. It is how ever impossible to predict with cer- tainty and uncertainty is as discour- aging to business as actual bad pros pects," says Prof. Irving Fisher who will speak at the Chamber of Com merce monday luncheon on Wednes- day.
 What is the cause of these ruin ous price fluctuations, and how can they bep revented? We have in this country a tremendous stock of gold, received from Europe in payment for military supplies and hoarded for the time of the war. The supply of cer- tificates representing this bullion and of credit currency based upon 1t as a reserve has increased (stimulated by our war loans) beyond the needs of business, with the result that the dollar has become common and has depreciated in value.
 Since our dollar Is dependent on changes in gold production and i'm portation, in the use of credit, and in business demands-all acting upon 1t to increase or decrease its purchas- ing power over commoditieS-it is evidently not now 8 standard of value. It is by definition simply a standard of weight. It's weight be- ing fixed it's purchasing power va ries. But by varying the weight the purchasing power can be kept stable. Why should we not shift the weight of the dollar periodically, say month ly, increasing 1t when the purchas- ing power falls Cor prices rise) until the new dollar bill will once more buy what the former dollar bought, and decreasing it when the value appreciates.
 ''The dollars themselves need not be tanEpered with for they are not needed in circulation. Gold dollar certificates can be used for currency ibeing convertible at the government offices in whatever amount of gold bullion is declared, at any time, to be a dollar The amount of veriation of weight would be determined auto- Q, ,matically by the index number of the price level. For example, if at any time of adjustment the index number were 101, the amount of gold bullion 4 .l.s s.i. .l-1I z be redeemed would be increased 1% If the index number were still 101 at the next time of adjustment, a further 1Ga weighing would be made. If the figure were back tC 100 it would be a sign that the ad justment had been sufficient. If the index number fell to 99, a 1&6 de. crease would be indicated, Since the gold dollar is thus always eqllivalen to certain amount of goods, the dollar certificate (thsugh calling fol an amount of gold which varies from time to time} is constant in pur. chasing power.
 'The United States Bureau of La bor Statistics prepares a monthly in dex number from wholesale prict adOUdtlOllS WHICH, WlIn SOtIle DOSSlDl' refinements, would give us the too we need for these adjustments,
 ''The price level would thus b. kept practically stable by an adjust ment which would restore it when ever it showed a tendency to vary With stable prices the great injus tice and RaiadjHstments due to pric factuati tions would be prevented. Tn evils from such fgctuatiOns are to great te be forever ignored. If tn plan which is here suggested is no the best for ths purpose, let the bes be used. The point is to stabilize, 0 standardize. the dollar whatever tn method, The dollar Is the only un standardized er incoRstant unit W have left in civilization. What nor far reaching reform is there an what simpler?
 Amy nation tflak takes the lead | adopting some plan for stabilizaio would probably soon be followed b the others for the sake of re organizing foreign exchange. Such
 reform might be considered in con aection with the League of Nation as one step in reconstruction