The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1919-08-25


ship In them %clrculnies IN the form OF
hc paper 'ycliuwhackS'
"lt would therefore be litilc more
'than expressing in law an existing
custom u g1id CONS We're abolished
altogether.
rhe abolition Of gold coin would
make no material thnnEe Ia the
present situation. Cold would, just
las az prescnt, be brought by the gold
miner To he mint or the assay Of
ice. or other government depository
and he would, just ~ at present re-
rekp paper fokenN or 'N~oiloNhackn
ln return. This sule Of gold 20 the
covcrament for 'gcliowhacks that
~. this free deposit. II really tho es-
senre OF the so-chlled free coinage.
n IA thus that gold Ee's into clrculn-
tion, through it, representatives. he
'yellowincks.'
Moreover. the sold In the treasury
would serve. Just aH al present. for
the redemption OF the gold c%ertifi-
cafes. The iewelcr or gold exporter.
would. just as at present Obtain gold
for his purposes rs exchanging yell
lowbacks' Tor gold at the treasury.
H., Papa lnstCsid of Coin.
Tile essential mechanism OF our
gold standard system nay he pie
iured "a "a lake 81 gold in circulation
In the form OF 'yciiowhacks.' fed by
nee fNNf Nc OF WtINNNfN 10y MlA'NNa
and drained hy free redemption or
withdrawal by jewellers or exporters.
III gold thus circulated only IN the
form OF paper Representatives, u
would evidently he possible TO vary
ai win tho weight 81 the gold dollar
without such annoyance or COM
] pilcaflon as would arise from the eN-
would rImply vary tho quantity of
gold bullion which u would exchange
Tor "a paper dollaf-thc quantity II
would give or take at Il Given tlmc.s
as readily u.s. the grocer cun vary
the cunt OF sWur hc viii give for
Il dollar the government could vnr}
the amount OF gold u would glve foi
u dollar.
''Put. II viii De asked. what cri'
terion Us 10 cuiir the government n
making thee changes In h dollar
weight Am { proposing Tint som'
row official should be an.
thorigol Go mark tn" dollar up "'
down according to his ovu caprice
Most certainly rot. \ definite ani
siAiple criterion for the required nd
liHstmonts ~ at hanc-the now famil
lar index number ~ prices tn
bureau Of labor statistics which nov
publishes m indies number; tho hu
'renu 81 Standards. or other suitable
nverumen offices. would be rouulr
wv ~ kNN| 90" W.
stated Intervals say monthly.
'"rhat iH. each month the buroal
would calculate. from current mai
Vet pricaH. how much would huve n
be paid Ter the composite basket %
tuod. That figure would then aror'
Tho needed Official sanction 10 N
rccraiary uf the treasury to chang
the rating OF the gold dolllr-th1t 9,
to change tho % 81 gold Whic|
the mint would give or take for
gold certificate. nrd thus Increase @
diminish tho purchasing power q
that certificate
In ordur iipt tho rr0ler may f"l
r low the %rcnroning NJ The economist
b % Be- necessary 60 show how ile iudr
number ls secured. He explains
az follows;
"If one commodity Lus f.seu 9 o.
, cent since last month md another :
= per cent the average rise OF the ~
Us midway between tul lH per cen
or g per cent. 10 ls -FOUR plus ten. a.
= yiGed hF tt.o, equals seven. II w
cal tho price Lowell OF the two art
clos ilsi BOZ NTH 700 per cent then lO
+ per cent is the index number FOR M
h price of the two articles this monti
10 1hc same principle. of course, nt
T. piles 90 any number ~ comntudities
e Returning now 10 the main pue.
ton Of the standardization Of n
j gold dollar:
~ the index number representa-
y Tho Cufrent price of compost.
/ basket uf goods be- found TO be 1 pc
cent above the Ideal par-thut B
o above the 60 price that % had at hr
this fact viii indicate that the pa
, chasing puwer ~ hc dollar has gor
e down. which VIII ho tho signal nr
i. authorization Tor an increase Of
q per ccnt Ia the weight Of the go
dollar.
= "if you asl mo how 7 know III.
this I per cent increase in the we'gI
c lf the sold dollaf h just sufficient
c drive tive iudeN uuIiuer back ts pa
n answer that 3 don't know. an
o more than know why. when n
.r steeriug wheel ~ mn automobile III
~ boon turned. a. viii prove To- ha'
.r been turned just enough. MAJ
things MAJ rise In % month. hut
the correction b. not enough, or II
r. Us too much. She index number q
Ia ucrf month VIII toll the story.
suppose the iudcx number "a.
.r below par, Say I Tpr cent below. tn
Ia fu,t would Indicate that tho purchn
10 lnr power ~ the dollar has gone "
10 Accordingly. the ruli dollar VIII
it reduced iu weight 4 per cent. tn
hy ballast thrown overheard or tax
a. on. oir dollar Is Kept frutn dgit;iI
10 FAR from tho proper level The rest
sd rs that the price level would uscillii
al only slightly. Instead of there bel
H. aus great prize ruuNulsiouH. such