Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-01-14

years, even in the countries which are strong
est financially, such as the United States.
Every one knows that dollar which he saved
in 1913 is only worth about 70 cents to him
now, and the fact that this dollar is backed
by all the gold in the United States treasury
does not nelp him He also knows that il he
increased his earning capacity in money by
40 per cent since 1918, he is really getting
just about as much now as he was then, for
the purchasing power of the dollar has de-
clined about or nearly, 40 per cent in the
past six years.
These things show clearly that the gold dol"
lar is no real or reliable standard of value,
and that it works to the detriment Of those
who earn wages or salaries in money, and to
the benefit of those who have the real wealth
in the shape of land, mines and commodities.
The decline in the {" value of money is
ascribed by some economists wholly to the
increase in the worlds supply of gold, while
others maintain that other causes have been
equally or moro important. Certain it is that
the value Of money has declined steadily as
the amount OF gold in the world has in
creased. In Shakespeare's time, couple of
centuries before the great gold discoveries,
money had about eight times the purchasing
power that it has now.
These doubts as to the value of gold as q.
standard of value have led to the agitation
for a compensated dollar" or goods dollar"
which would have as it's standard of value,
not a certain amount of gold, but certain
amount of all the commodities used in daily
life An elaborate and brain-wracking plan
for such a system of currency has been worked
out by Prof. Irving Fisher, and has been pro-
nounced theoretically sound by many wise
men. 1t probably is sound, too, but the diff
Guilty is to get it started Gold is a despot
which has saddled itself upon civilization, and
is so bound up in all our institutions and
transactions that it seems almost impossible
to throw it off. 1t would require an interna-
tiOnal agreement.
Meantime the great powers are busy with
other things, and there are great national
debts to be settled, great national credits to
be foated, which make a standard of value
more necessary than ever. VIRTUALLY all
economists are agreed, therefore," says the
committee report, that some form of gold
standard should be maintained. Employment
and prosperity after the war are dependent
upon confidence and good understanding in
industry, and attack upon the standard of
value would do inestimable injury to all
classes.
From all this it seems that the despot, gold,
is with us for an indefinite stay. The gold
standard is like many other institutions in
that it's faults are easily seen, but practicable
method of changing it is difficult to find.
An interesting item of the committee report
is to the effect that the future production of
gold is problematical but that it seems likely
that the worlds output has reached a maxi
num- and gradual decline is apt to continue
in spite of ali the stimuli that may be applied.
If this is the case, and the opponents of the
quantity theory of money are right, there will
come gradual decline in prices, similar to
the gradual rise which has taken place in the
past few centuries.
About the only recommendation made by
the committee for stimulating the production
of gold is the removal of the excess profits tax
on gold mining.