Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-12-29
WHEN A DOLLAR LOOKS
LIKE THIRTY CENTS
One Of the Consequences Of War Imitation
Shown by the Difficulties Of
Manufacturer

TNHE manufacturing company that made
l. the dollar famous is now in the hands
of a receiver because the war made the
dollar look like thirty cents.
A dollar watch appealed TO the popular
imagination, but when that watch had to
be sold for $3.50 the imagination ceased to
work and the watches ceased to sell in
profitable quantities.
The man who was asked to pay $3.50 for
the watch that used to sell for 81 decided
to spend little more money and buy what
he called a real watch.
The cheapening Of the dollar that fol-
lowed war imitation sent many business men
on the rocks. It affected most disastrously
those who manufactured articles Of which
the price had been standardized Nothing
that they could do served TO keep their
business running in the old way. They had
to curtail output and wait for better times
or shut down altogether. They could not
buck a thirty cent dollar. especially when
the pay of large proportion of their GUS
toners was in thirty cent dollars and these
customers had to deny themselves many Of
the things which they had been accustomed
TO buy.
When the initiation was at its worst Prof
Fisher, Of Yale University, offered
remedy in a plan for what he called stable
dollar. His dollar would always buy the
same amount. When prices went up for
any reason he would increase tho weight of
gold in the dollar OF redemption, making it
worth more, and when prices went down
he would decrease the amount Of gold
measuring the value OF the dollar, thus
making the dollar worth less, so that, no
matter what the course Of the market might
be, dollar watch would always sell for
dollar. And this professor Of economics
seriously thought his plan would work
that by juggling with the value Of a dollar
he could enable society to escape the in
cOnveniences that come from HuctuatinS
values OF other commodities. It reminds
one of the plan Of the amateur seaman TO
put q powerful electric fan on the stern OF
sailing ships to raise breeze when the ship
is becalmed at sea.
The complications arising FROM the cheap
dollar Of the war period are not going to
come to an end with q few receiverships for
manufacturing corporations. They arc
| going 10 trouble US for generation or two.
The war debts were incurred when tho
| dollar was worth little. They will have TO
be paid when the dollar returns TO its nor
nal value. The sums required to redeem
| the war bonds in twenty or twenty y-fve
| years will be worth twice as much as the
| sums which the Government received when
1t issued the bonds. Then day laborers were
receiving So for eight hours work and
skilled mechanics were getting $40 and SO
day. Steel was high and lumber costly,
and coal selling for two or three times the
normal price.
The man who bought house during the
war when he was making big wages win
know just what problem confronts the Gov
ernmeDt. He Is now finding 1t difficult to
pay the carrying charges, and it will become
increasingly difficult as the price OF the
dollar recovers Its old value.
The consequences of tho war fever cannot
be escaped There will be a long period oi
conva!escence, with a slow but gradual re-
turn Of ability to bear the burdens.