The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-01-09
BY HIRAM L. JOME


GREENCASTLE, Ind, Jan. o.
Money, during 1881, became more of
a controversial problem than at any
other time in American history, with
the possible exception of the period
Immediately preceding the free sill
yer campaign Of William Jennings
Bryan.
The American dollar is composed
OF 1922 grains of pure gold When
an article falls in price, such change
may be a reflection Of a fall in it's
value in relation to other goods, or
it may represent a rise in the value
of the measuring stick-gold. When
the average Of prices of all COM
modities falls, this is a reflection Of
the increased relative value of gold.
AS one end Of the see-saw goes up,
the other must come down.
Legend tells that among certain
primitive peoples the yard was equal
to the girth of the king. The sub
1ects Of a corpulent sovereign would
be dwarfs IN terms of yards, but if
The king died and was succeeded by
his infant son, they would immed-
lately become giants. 1t can readily
be appreciated what happened when
O. Taft was succeeded by Wilson.
Nations are now careful, however,
to maintain a staple measure of
length and weight. A fluctuating
dollar, or measure of price lis just
as disastrous as a fluctuating pound,
but its evils are not usually recog-
nized.
Bryan Rise Recalled
The year 1881 has again brought
into the limelight the universal
measure Of yalue-gold. The decade
climaxed by the last year has sew
eral points of close resemblance to
the period giving rise to William
Jennings Bryan. Then, as now, the
prices Of commodities had been fall
ing. Then, as now, there had been
an increase in efficiency Of labor in
agriculture and industry and a real
rise in wages, accompanied by Sc
we're unemployment. There was
pronounced combination movement
in which weaker companies, unable
to stand the competition imposed
by the increasing use of machinery
and decreasing costs, were swal-
lowed up by larger concerns.
Many railroads, as is the case to-
clay, were unable to earn interest
on their bonds, there being 155
railroads in the hands of receivers
IN 1893. Then, as now, there had
been slowing up in the rate of
gold production, coupled with an
increased demand for gold by coun-
tries DESTROYS or adopting or of re-
Stunning the gold standard. There
was increased production of silver,
with a diminishing demand for it.
Then, as now, nations were coping
with the problem of falling price
levels, which was bringing ruin to
banks, railroads, insurance compa-
MES, farmers, industrial concerns
and debtors generally.
Depressed by Tariff
Society is today feeding, clothing
and transporting itself with in
creasing ease. Meanwhile interna-
tional uncertainty and prohibitive
tariffs have deprived industry of
its anticipated outlets. An arti-
fetal sterilization of the over
expanded industries was attempted,
but efforts to conrtol the price and
supply of wheat, cotton, copper,
rubber and other industrial products
ended in failure. The year 1881
marks the realization of the flu
tility of such artificial devices.
The price of silver dropped in
1881 to the lowest point on record.
Business is off about 30 per cent
from the 1926 level Debts con-
tracted when the dollar was less
valuable must be paid back in
terms of a more valuable dollar.
Debtors are becoming FESTIVE.
Falling prices are reflection OF
an increase in the value of the
monetary unit of measure. But such
fall in the general price level is
not necessarily the result of the
rising value of the dollar. 1t is
rather the result of increased eff
ficiency in industry. History is re-
plete with instances of people max
ing lust this type of error-confus-
ing the measuring stick with the
thing measured. One way to have
a greater result is to get a smaller
measure. In short, one way to
bring about a rising price level is
to increase the amount Of money
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