The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-03
BANKERS PROPOSE
TO EXTEND TRADE
Enlargement Of Foreign
Credits Recommended at
Final Session.
FISHER ASKS NEW DOLLAR
Yale Professor Would Vary
Gold Value of Coin to
Changing Conditions.

ST. LOUIS, Oct. 2.-Formation of an
organization OF bankers, business men
and manufacturers of the United
States for the creation and extension
OF foreign credits to increase foreign
trade and thereby reduce the high cost
of living was recommended in a report
presented at the concluding session of
the Bankers Association here to-day.
Such an organization, the report says,
would result in the maximum of produc-
ton in this country ain order not only
that our own people be kept we'll and
probably employed, but that they be not
subjected to Hhe payment of excess
prices for their own needs"
Disapproval Of the continuance or ex-
tension of Federal farm loans exempt
from taxation was expressed In a reso-
luton adopted by the savings bank sec
ton. The system, tine resolution states
frees from their just proportion Of the
burden of the war debt those most able
to pay it
Universal training was Endorsed with
out a dissenting vote. Other resolutions
adopted pledged aid in all ways posi-
BILE in the sale of thrift stamps and
Government savings securities.
Would Vary Dollar.
In order to stabilize the dollar and
thus secure a stable price level, DR..
Irving Fisher of Yale University sug
gested varying the weight of the dollar.
Our present dollar" he said "is con-
slant in weight. No matter what influx
of gold may take place, or how much
the value purchasing power) OF gold
Is lessened by the increase of its paper
and credit substitutes. the Government
must pay the same nominal price for it.
In other words, fluctuations in the prics
OF gold cannot show themselves in tho
altered price OF gold. They are therefore
reflected in the prices of other things.
Let us therefore vary the price OF
gold. Let us vary the weight of the dol
lar, weighing it when the index mum.
Der of prices is too high and tightening
il when the index number of prices is
too low. This can be easily managed
II We have gold circulated by means of
paper representatives, redeemable In
whatever amount of gold bullion may
be, at that date. the dollar.
in this way any change in the price
level is always In process Of being cor
rected, the gold bullion dollar is always
being Appropriated to a constant pur-
chasing power, 1. e., a constant price
level. the circulating dollar certificates
are redeemable and hence equal in pur-
chasing power to this amount OF gold,
and finally. the credit structure (assum-
ing n sound banking system)s is also
kept from fiuctuating by its relation to
this stabilized dollar.
Redeemnble Certificates.
GAS to the bankers reserves, these
would ALI be kept not in gold but In
gold certificates redeAmahIe az the sub
Treasures in gold bullion OF whatever
weight per dollar should be declared at
any time. Thus the banker would not
be concerned with fluctuations in the
price of gold, but the Government
would assume the responsibilities 1t
should under our Constitution provision
to regulate the value Of money"
Prof. Fisher said that the secret of
our high prices lies not so much in
scarcity OF goods or profteering in
trade or other conditions usually sup
posed. as In our money and banknT
conditions The great cause, he said
lay in the fact that "the worlds war
debts have been pulverized into cir
culating media" He found that the
dollar of to-day was worth only S5 cents
as compared with its purchasing power
of 100 cents In the year 1896
John Barrett, director general OF the
Pan American Union. gave warning
that unless American bankers and
financiers lend adequately to the coun-
tries of Latin America they will be sup
planted by the moneyed men and coopera-
ton of Europe and Asia. He said that
/ 81 900. 600, 900 loan or investment In the
| next five years would increase Amer
lean commerce 100000. 900 in the
same period.