New-York tribune., 1922-11-24
Predict Serious
Consideration OF
Currency Change
Economics Discuss Money
Standards ait tho Open
ing Meeting of Acad-
enny of Political Science

In G discussion Of the quantity and
metallist theories of money ut the
opening session of the two-day annual
meeting Of the Academy of Political
Science st tho Hotel Astor yesterday
the likelihood of change in the mo-
ney standard being brought up in
serious debate throughout the country
in the near future was openly pre-
dicted. Professor Z. Z. Agger, OF Co
lunbia University, opened the subject
with lengthy dissertation which fur
nished the foundation for argun ents
by Professor Irving Fisher, of Yale,
ard Professor John Bates Clark, Of
Columbia, the net result Of which YES
status quo ante rs far rs the opin
ions of the speakers were concerned,
and wavering allegiance 20 the two
theories on the part Of the large
audience.
A sdigression which had g remote
but tangible bearing on the subject Of
the American money standard, was
furnished by Professor Clark who, in
stead OF taking exceptions TO or agree
ing with the arguments OF Professor
Agger, de1ved into the question OF Cor
man currency imitation. In making
comparison with the condition Of
American currency he bro ght ont
some rather surprising statements.
The audience was surprised, for ex-
ample, TO hear student OF economies
affirm that imitation was greater In
America than in Germany. He stated
that it would be easier for the German
government to retire it's hugo supply
Of paper money now than it would
have been earlier In the period Of in
fation. Professor Clark is of the
opinion that the German government
could place itself on stable currency
footing and effectively check tho de-
cline in the mark by Offering TO ex-
change redeemable notes, backed by
gold, for the irredeemable paper now
flooding the world. This could be done,
he said, by offering the notes On a
definite satio and giving q slight
premium over the current market value
OF the mark. In support Of his conten-
tion that the Transformation could be
accomplished more cheaply now than
Clark stated that If the price Of marks
approaches infn:ty the cost Of redenp-
tion in notes of solid foundation would
be practically nil.
Gold is defective as money because
Of It's lack OF stability in value. This
was the substance Of the address with
which Dean Joseph French johnson of
the New York University School OF
Commerce introduced the subject OF
monetary standards at yesterdays
meeting. Following this line Of thought,
Dean Johnson said in part:
"If the yardstick had fits OF stretch
ing or contracting, endless confusion
would be introduced into our stores,
ch
lishments. And If the bushel basket
and peck measure were liable to change
in size overnight and every n .~ht, we
would be lucky if we escaped an agra
rian revolution. Yet the dollar that
tricks people by its changing value
works more mischief than would an
elastic yardstick or fckle and change
able bushels. pecks, quarts and pints.
"The problem is to find some way to
determine when q change in tie price
level is born of cred t and when it is
due TO an excess or q deficiency in the
supply OF money. If our economic en-
gineers cannot work out a, scientific
law for the purpose we should have to
adopt the Yankee "by gosh and by
guess" method and adopt rule that
the commodity index number must not,
II we can prevent it, vary more than 4
or per cent in any one year.
EDO the American people know
enough about money 60 make it safe
TO intrust them with the control and
regulation Of their money supply? II
not, can we find teachers wise and
clever enough TO enlighten ehenf
These are very important questions.
and must be most thoroughly consid-
cred before we can venture to set sail
upon the unknown sea Of ideal money.
That sea looks very placid from one's
study, but who knows how subject it
may be to typhoons and gales having
their origin in the isles OF ignorance
and suspicion?"