It must not be supposed that this plan contemplates any control of
individual prices. Such will be free to fluctuate in accordance with
the law of supply and demand, as they now and ever must do, regardless
of the monetary system used. It would not be desirable, even if it were
possible, to make individual prices constant; but what is desirable
and possible, and what it is believed this system would accomplish, is
to relieve the prices of all commodities from the fluctuations due to
changes in value of the one commodity by which all others are measured;
to make the money--the one commodity which no one wants except for
measuring the value of and exchanging for other commodities--of
constant value. The prices and values of gold and silver would then
depend on their use for other than money purposes, or for money
purposes in other countries, and if the value of either metal should
fall, or fail to continue to rise, there would be no room for complaint
that it was being discriminated against by the laws, since all
commodities would be treated alike, and the demand for none increased
over what it would otherwise be by its selection for monetary uses.
It is evident that gold could still be used as a hoard of value, if
desired, but such use would in no way interfere with the volume of
money, as it now does. Neither would the hoarding of money itself
affect prices and cause business stagnation as is the case now. The
reasons for such hoarding would be mostly done away with, but if any
should remain and the money be hoarded, the government would at once
issue as much more as was needed to supply the deficiency so created,
thus maintaining its value constant, and when the money hoarded was
again put in circulation the government would withdraw a portion of it
if it were excessive in amount.
The exchange of the new money for the existing kinds would be a matter
of practical financiering, presenting no unusual difficulties. This
need not be enlarged upon.
The gold certificates should be redeemed with the gold now held for
that purpose. This gold, as well as that now in private hands, would
thereafter take care of itself.
The silver dollars, and all forms of paper money, should be redeemed in
the new money, dollar for dollar; the paper money should be cancelled,
and the bullion--both gold and silver--sold gradually, with due
regard to the effect of such sales on the prices of gold and silver,
especially the latter. The proceeds of such sales in the new money
should also be retired from circulation.
Public-domain text, read in full here on John Shaqi.
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