Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1922-12-02
CONGRESSMAN
GOLDSBOROUCH
TO THE FRONT

ne new JOih NAAiN Va AeARh -
day contains the following account OF
meeting of the Academy of Politi-
cal Science at which the Money
Problem" was discussed and the plan
of Congressman 7. Alan Goldsbor-
ough, of Maryland, was considered, as
follows:
Measures TO make the acrobatic
American dollar stay still long enough
to be photographed" and to prevent
its changing value upsetting commod-
ty prices were discussed yesterday
before the Academy of Political
Science at the Hotel Astor or at the
opening session of its forty-second
annual meeting, at which the subject
is The Money Problem"
Prof Irving Fisher, of Yale, pro-
ponent of the quantity theory of
money" on which is based legislation
now before Congress providing for
the regulation Of currency according
to need. said this plan would help
solve the problem. He asserted that
experience has verified the funda-
mental soundness Of his theory and
shown that the "metallist theory" is
merely a side show.
The legislation based on Prof.
Fishers theory was explained by
Representative T. Alan Goldsborough,
Of Maryland, a member of the COM
mittee on banking and currency. Mr..
Goldsborough said the purpose of the
bill which will come up for hearing
next month, is to keep the volume of
money and credits on a parity with
the volume Of trade, thus maintaining
a stable average price level for gen.
eral commodities. He said:
The measure provides for the re-
tircment Of gold coin by the payment
Of a small premium, leaving the gold
certificate in circulation. Should the
general wholesale commodity price
.eyel rise ! per cent. in two months,
the amount Of gold dollar would be
increased arithmetically ] per cent.
leaving per cent fcwor gold dollars
in tho Treasury which would neces-
state the retirement Of ] per cent.
of yellow backs. which in turn con-
tracts the total volume of potential
money and credits by per cent. This
process is followed every two months
5ntil the price level is down 10 nor
NAL
Should the prive level fall l per
cent. below normal the amount Of gold
in the gold dollar would be decreased
per cent, increasing the number of
gold dollars in the Treasury by l
per cent. which would permit the
issuance Of per cent. more gold
certificates, which in turn would in
crease the potential money and credit
throughout the country by per
cent
"Mr. Godsborough foresaw vigor-
Gus attacks on the measure both in
the committee and on the floor of
Congress.
prof Joseph French Johnson, dean
Of the School Of Commerce Of New
York University. pointed out many
obstacles, political as well as econom-
ic, in the way of adopting an ideal
standard of value If it is TO be at
tanned, he said. it is evident that the
supply of money would be regulated
in some artificial manner. If this can
not be done, he said, regulation should
be attained by preventing the COM
modify index number varying more
than or per cent in a year"
FOR SALE-THE GRAHAM OR
Grise Property, fine residence and 10
acres in Berlin. Nd. Apply to
Franklin Upshur. Atty, Berlin, Md.
Mrs. Grace McAllister and daugh-
ter, Miss Katherine McAllister. of
Belair Md, are visiting the formers
sister. Mrs John W, Station.
Edward Bratten, who is attending
Swarthmore College, Swarthmore,
Pa. is spending the holidays with his
parents. Mr.. and Mrs William f.
Bratten.