The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1921-10-10
DISCIPLES OF THE FLOATING DOLLAR

" TE now have with us as always in times Of business troubles, those
w changing the character Of the monetary system. or the value Of
the dollar. While the proponents of bimetallism or irredeemable paper
on account of the numerous proposals to base the issue of new cur
rency On one or more crops OF commodities, and even on a days
The plan Of Prof Irving Fisher, to stabilize the dollar by
basing il on all important commodities, is being pushed aggressivey
The Fisher plan contempates the use of gold as the grand correc-
tor, BY continuing it as the basis of currency issue, but varying the
quantity in a dollar as the supply or average prices OF the eommo-
dties huctuate, the objective being TO, make 1t uniform in purchas-
OF course no dollar or other monetary unit can ever be made un-
varying in purchasing power. Professor Fishers own line Of argu-
ment proves this. The very core of his plan is his showing that while
single commodities may auetuate violently in price, the average price
of all commodities is comparatively stable, and that a dollar based on
the average would therefore also be stable. II is the admission that the
price Of no single commodity or article can remain stable that dis
s sr eyd ts Tsa < me-, q S. s6e Plan y Dn Scsn It. h It T ene T tS;ng al /. ot ti%r aSd
the price of the particular thing for which he wished to exchange
little of II The only way he could make the purchasing power of his
dollar uniform at all times would be to buy a proportonatc amount
of each of the commodities and articles ON which il was based.
Money IS a measure Of value Therefore, it must have value
must have value. Money without intrinsic value, or that is not based
frequently change the value of the unit by varying the amount Of
the substance Of which it is composed would nuIify whatever stabh-
izing quality that substance possessed.
The entire history of the development of the monetary sys-
tenn is . record of experiment, " writes w. J. Drmmond in the Agi.
cultural Review, and Of search for the substance possessing the
qualities most suitable for legal tender purposes. These qualities
were found TO be stability Of value, durability, dysblity and porta-
faTbe modern use of paper currency based on the money metal
renders the last two qualities Of less Importance, but increases the
necessity for the first two. If anything. Practically every article of
alone or together with other articles. Gold and silver were finally
selected, through a process Of elimination, and the best authorize
agree that this was for two reasons; First, of all articles they are the
most stable in value, since the existing stock is always so much great
or than the annual production that violent fluctuations in supply
are unknown. Second, they are among the most durable substances
known, their value is always in direct proportion 70 the amount IN
volved fbeng unlike the precious stones and other substances in tins
respect), while their dtviiblty without loss and their portability
make them ideal for monetary purposes
'ssinee two standards of measures Of value are unworkable il was
but natural that the next step in the elimination process was 10 dis
card the least suitable, or relegate il TO secondary place, and retain
the best, which is gold"
Occasionally the supply o. gold is increased with comparative
rnpidity. as when California, Alaska ana Australia contributed then
greatest production, and this causes measurable fan in the m
trmse or comparative value Of metal but such instances occur yery
rarely while the supplies Of commodities aud articles upon which
the stable Money Leaguers would base their dollar varies Will