INDEX
Act to stabilize the dollar, tentative draft of an, 205-213.
Adjustment of salaries and wages after an upward price movement,55-56.
Alternative plans for stabilization of dollar, 252-261.
American Economic Association, report of Committee of, on purchasing power of money, 33; Committee of, quoted on plan for stabilizing the dollar, 275-276.
American Federation of Labor, resolution of, in favor of a dollar of stabilized purchasing power, 277.
Anderson, B. M., Jr., approval by, of proposal to stabilize value of dollar, 90 n.; governmental control of gold production suggested by, 260; member of committee in favor of stabilization plan, 275.
Approval by economists, financiers, and others of plan for stabilizing the dollar, 274-278.
Argument from probability, regarding relation between monetary inflation and price fluctuation, 17-19; from statistics, 19-23.
Artificiality of a fixed-weight dollar, 106-107.
Assignats of French Revolution, 6, 259.
Austin, O. P., address on "Prices, Yesterday, Today, and Tomorrow," quoted, 22-23; quoted on inflation, 35.
Australia, use of index numbers of prices for adjusting wages in, 283.
Austria, effect of Great War on prices in, 8.
Babson, Roger, cited on losses of street railways, 57; in favor of stabilization plan, 275.
Bank credit, effect on, of proposed plan for stabilizing the dollar, 168-172.
Bank discount, regulative function of rate of, 170-172.
Barbour, Sir David, The Standard of Value, quoted, 43; approval by, of plan for stabilizing the dollar, 275.
Barron, C. W., example supplied by, of contract in terms of a commodity, 280.
Bell, Chas. A., calculation of a special index number by, 151-152.
Bengal, rate of assessment of, 57.
Bibliography of literature relating to stabilization plans, 286-296.
Bimetallism, literature on, 288-289.
Bland-Allison Act, causes leading up to, 265-266.
Bolshevist Government, paper money inflation by, 30.
Bondholders, position of, under rising and under falling prices. 58; plight of, at present time, 61; position of, in period of falling prices, 77.
Brassage fee, for deposit of gold bullion, 100, 104; as a means of preventing speculation in gold, 139-142, 147; as a factor in determining stabilization process, 183 ff.; the ideal, 197.
Bryan campaign, downward price movement resulting in, 7, 68.
Bullock, C. J., Monetary History of United States, cited, 35, 61.
Bureau of Labor Statistics, United States, index number of, 4-5; figures from, 56; commodities used by, in making up index number, 86-87; index number of, to be a guide in making proposed changes in dollar's weight, 95-96.
Canada, price movement in, from 1896 to 1914, 8; effect of Great War on prices in, 9; chief index numbers current in, 286.
Cassel, Gustav, cited on correspondence between money supply and price level, 30.
Chambers of Commerce in favor of stabilization plan, 276.
China, similarity of price movements in India and, 25; fixed rate of import duties of, 57 n.
Circular reasoning in regard to price movements, 14-15.
Clark, J. M., paper by, on "Possible Complications of the Compensated Dollar," 198 n.
Class hatred traceable to muckraking, 67-68.
Cleveland, Treadwell, quoted on aim of stabilization plan, 217.
"Coin's Financial School," quack remedy for price convulsions contained in, 75; remarkable vogue of, 267.
Cold storage, as a stabilizer of prices, 13.
Conservatism, as an obstacle to plan for stabilizing the dollar, 114, 231-240; lessening of, as the one great obstacle, by Great War, 239.
Continental paper money, effects of, 6.
Contracts, upsetting of, by price movements, 54-55; advantages to, of proposed plan for stabilizing dollar, 108-109; made in terms of a commodity, as an attempt at monetary stabilization, 279-280.
Cost of living, high. See High cost of living.
Credit inflation, during Great War, 30-34; subtle and enticing qualities of, 264. See Inflation.
Crime of '73, the, 68, 75.
Crises resulting from price fluctuations, 66.
Cycles in trade caused by price fluctuations, 65-66.
D'Abernon, Lord, quoted on advancing prices in England, 23; cited on labor discontent due to high prices, profiteering, and grafting, 69-70; cited on rate of fall in value of money, 270.
Debtor and creditor, opposition of interest between, a supposed obstacle to stabilization of dollar, 240-248.
Deposit currency, price level affected by, 51-52.
Discontent, caused by upward price movement, 66-68; caused by falling prices, 68-69; as a result of war prices, 69-71; examples of, growing out of instability of monetary standards, 265-267.
Dollar, the only unit unstandardized, 81-84; suggestion of an imaginary composite goods-dollar, 84-87; artificiality of a fixed-weight, 106—107. See Gold dollar.
England, price movements in, as measured by index numbers from 1789 forward, 6; price movements in India and, under different monetary standards, 27; ratio between price levels of America and, compared with ratio of American to English money, 28; correspondence in, between money supply and price level, 30; chief index numbers current in, 287.
European war, effect of, on price movements, 8-9; effect of, on bank credit, 169-170.
Exports and imports, effect on, of plan for stabilizing dollar, 177—179.
Farmer-and-buggy illustration, 73.
Favorable opinions of proposed plan for stabilizing dollar, 273-278.
Ferguson, Professor, quoted on contracts made in terms of a commodity, 279.
Fiat money system, charge that stabilization plan is a, 224.
Finished products and raw materials, reasoning in a circle regarding, 15.
Fischer, L. A., History of Standards of Weights and Measures of United States, cited, 238.
Fisher, Irving, Why Is the Dollar Shrinking, cited, 11; The New Price Revolution, cited, 11, 65, 119; articles by, on price fluctuations, cited, 20; article on "The 'Scarcity' of Gold," cited, 35; Purchasing Power of Money, cited, 51 n., 154, 260, 262; articles on "Equation of Exchange for 1914, and the War," cited, 52; The Rate of Interest, cited, 64; article on "Adjusting Wages to the Cost of Living," cited, 261; member of American Economic Association Committee on Purchasing Power of Money, 275.
Fisher, Willard, account by, of early experiments with tabular standard, 281.
Fixed incomes, mockery made of, by money inflation, 63.
Fixity of value of money, illusion in regard to, 36-39.
Foxwell, H. S., Papers on Current Finance, cited, 33.
France, effect of Great War on prices in, 9; index numbers current in, 287.
Franklin, Fabian, Cost of Living, cited, 13.
Fraser, Drummond, advocate of "Continuous borrowing," 33.
Free trade, idea of, stimulated by rising prices, 78 n.
Free-trade countries, prices in, 12.
George, Henry, single-tax propaganda of, 74.
Germany, effect of Great War on prices in, 8, 9; war finance in, 32.
Gold, illusion concerning fixity of value of, 36-39; comparative instability of, as standard, 39-41; results of sudden increase in supply of, 45-49; method of changing weight of, 91-94; prevention of speculation in, 139-147; a fetish that is erratic and tricky, 237; suggestion for governmental control of, 260.
Gold certificates, reserve against, 125 ff.
Gold clause in existing contracts, treatment of, under plan for stabilizing the dollar, 163-168.
Gold coins, proposed circulation of, in form of paper only, 91-94; disposal of existing, under plan for stabilizing the dollar, 161-163.
Gold dollar, to be retained, under use of proposed goods-dollar, 87-90; merely the weight of, to be varied, 90-91; method of conforming, to goods-dollar, 95-100.
Gold exchange standard, correction of current money units by, 284; writings on, 289-290.
Gold inflation, 30, 32; method of transforming into credit inflation during Great War, 33.
Gold points of exchange, effect of stabilization plan on, 179-180.
Gold producers, possible objection of, to stabilization of dollar, 248-250.
Gold reserves, international relation between price levels and, 175-177.
Gold Standard, price movements in countries using, 7; similarity of price movements in countries having, 23-25; effect of a country changing from, to silver standard, 26; the essentials of a, 94-95.
Gold theory, so-called, not implied in stabilization plan, 215.
Goods-dollar, an imaginary, 84-87; machinery for conforming our gold dollar to the, 95-100; argument that it is not ideal, 224-225; unrestricted deposit of goods-dollars, as an alternative plan for stabilization of monetary unit, 255-256.
Governmental control of gold production, proposal for, 260.
Governmental interference, requiring of, not a valid objection to stabilization plan, 233-234.
Greenback inflation during Civil War, 7.
Hadley, President Arthur T., in favor of stabilization plan, 274; quoted, 275.
Hammond, John Hays, stabilization plan approved by, 275.
Hepburn, A. B., History of Currency in the United States, cited, 84.
Higginson, Henry L., in favor of stabilization plan, 274.
High cost of living, various remedies proposed for, 79-81; effect of public interest in, 263-272; proposals for international conference on, 273-274.
High prices, causes of, found to be of monetary origin, 10-52; evils of, 53; result of, not general impoverishment, 53-54; chief evil of, in unequal effect on individual incomes, 54; effects on contracts, 54-55; adjustments of salaries and wages made necessary by, 55-56; disadvantageous results of, on rates fixed by law or custom, 56-57; results of, in the way of social injustice, 61-63.
Holland, attempt of, dvu-ing Great War, to safeguard its money, 285.
House of Representatives, resolution by, looking toward a stabilized dollar, 277.
Ignorance, an obstacle to plan for stabilizing the dollar, 115.
Illusions, popular, in regard to money, 35-39; methods of emancipation from, 41-44.
Index numbers, a device to measure movement of prices, 1-2; method of determining, 2; effect of weighted averages on, 2-3; various systems of, 4; index number of United States Bureau of Labor Statistics, 4; history of, 5; price movements since 1780 as measured by, 6-8; to be a guide in making proposed changes in dollar's weight, 95-96; lack of, a reason for overlooking plan for stabilizing the dollar, 113-114; how to select right type of, to carry out stabilization plan, 147-154; calculation of stabilized, 201-203; diagram of, with and without stabilization, 204; adjustment of wage payments by, since Great War, 281; instances of modern use of, 282-284; bibliography of, 286-288.
Index Visible, Inc., plan of adjustment of, 283.
India, similarity of price movements in China and, 25; price movements in England and, under different monetary standards, 27.
Indian Gold Exchange System, an innovation no greater than stabilization plan, 231.
Industrial companies, increase in earnings of, due to upward price movement, 70-71.
Inelasticity, charge of, brought against stabilization plan, 229.
Inflation, paper money, gold, and credit, 30; war finance a prolific source of, 30; in Russia before and during Bolshevist regime, 30, 32; in Germany during the war, 32; in United States by means of Liberty Bonds, 32-33; gold, transformed into credit inflation, 33; viewed as legal counterfeiting, 36; Santa Claus illustration of, 45-49 ; how prices are raised by, 49-52; the last resource of war finance, 226; incompatibility of stabilization and, 226-227.
International aspects of plan for stabilizing the dollar, 172-182.
International conference on high cost of living, proposals for, 273-274.
International governmental control of gold mining suggested, 260.
International Trade Union Conference at Berne (1919), resolution by, to prevent depreciation of purchasing power of wages, 277.
Irish land agitation, stimulated by falling prices, 74, 78 n.
I. W. W., causes of growth and bitterness of, 67; could have been avoided by standardizing monetary units, 117.
Jevons, W. Stanley, responsible for index numbers, 5; price movements as measured by index number of, 6-7, 113; popular interest in stability of money leading to devising of index number by, 265; quoted concerning use of precious metals as standard of value in long-lasting contracts, 280; work by, dealing with principles of index numbers, 288; an enthusiastic advocate of the tabular standard, 292-293.
Kansas, land problem in, accentuated by falling prices, 74.
Kelsey, Clarence H., approves, 274.
Kemmerer, E. W., article on "Inflation," cited, 20; member of committee in favor of stabilization plan, 275.
King, W. I., Wealth and Income of People of United States, cited, 20; statistics by, 54.
Labor, proposal for a money based on, 259-260.
Labor troubles caused by high cost of living, 69-71.
Land problem, produced during period of falling prices, 74.
Landry, Adolphe, in favor of stabilization plan, 275.
Latin Union for maintaining bimetallism, 181.
Lewis, Gilbert N., alternative stabilization plan suggested by, 252.
Liberty Bonds, inflation by means of, 32-33.
Loria, Achille, an advocate of stabilization plan, 275.
McAdoo, W. G., railway rates raised by, 72.
McKechnie, Major W. E., quoted on assessment of Bengal, 57.
Marshall, Alfred, article by, anticipating stabilization plan, 293.
Massachusetts, use of tabular standard in Colonial, 280-281.
Meade, Professor, cited on stability in price of trust-made products, 12 n.
Meeker, Dr. Royal, index number of Bureau of Labor Statistics perfected by, 4-5; in favor of stabilization plan, 274; quoted, 275.
Menger, Carl, a writer on irredeemable paper money, 291.
Middle Ages, price levels in the, 5-6.
Middlemen, rise of prices not due to, 13.
Miller, Dr. A. C quoted, 34, 119.
Mint price, fallacy of the, 172-175.
Mitchell, Wesley Clair, diagrams adapted from, 3, 4, 14; statistics by, 20-21, 25 n.; member of committee in favor of stabilization plan, 275; publication by, showing application of index numbers to war prices in different countries, 287.
Monetary inflation as cause of fluctuations in prices of commodities, 19.
Money, popular ideas of, as affected by price movements, 263-272.
Money illusions, discussion of, 35-39.
Money-lenders, different effects on, of rising and of falling prices, 58-59.
Money standards, relation of price levels to, 23-29.
Money supply, how price levels follow the, 29-30.
Money unit, attempts at correcting the, 284-285.
Muckraking, reason for and ill effects of, 67; avoidance of, possible by standardizing monetary units, 117.
Murray, Nat C, statistics by, 20.
Newcomb, Simon, article by, anticipating plan to stabilize the dollar, 293.
New England Association of Purchasing Agents, in favor of stabilization plan, 276.
Newlands, Senator, stabilization plan approved by, 274.
New Zealand, labor troubles in, due to high cost of living, 70.
Nicholson, J. S., War Finance, quoted, 21 n., 30; cited on quickness of response of index number to change in money supply, 152.
Norton, J. Pease, "Stocks as an Investment When Prices Are Rising," quoted, 6l.
Ogburn, W. F., index numbers for use of Seattle flouring mills calculated by, 283.
"One Way Out," solution proposed in, for high cost of living, 79.
Overnight speculation in gold, prevention of, 139-142.
Owen, Senator Robert L., in favor of stabilization plan, 274.
Panaceas, attitude of devotees of, toward stabilization plan, 250-251.
Panics, traceable to price fluctuations, 65-66.
Paper money, fluctuations of price level from use of irredeemable, 5-6; literature on irredeemable, 290-291.
Paper money inflation, enormity of evils of, 61.
Par, selection of the, in carrying out plan for stabilizing the dollar, 154-161.
Parker, Carleton, on results of public muckraking, 67.
Peabody, George Foster, favorable opinion held by, of stabilization plan, 274.
Perrin, John, stabilization plan approved by, 274; quoted, 275.
Persons, Warren M., member of committee in favor of stabilization plan, 275.
Polish Engineers and Merchants in America, stabilization plan favored by Society of, 276.
Populism, reason for rise and cessation of, 68-69.
Precedents for plan of stabilizing the dollar, 116, 279-285.
Price, Theodore H., article on "The Index Number Wage," cited, 72.
Price control, impracticability of, as remedy for high cost of living, 102.
Price levels, medieval, 5-6; follow money standards, 23-29.
Price movements, index numbers a device for measuring, 1-5; general upward trend of, 5-6; history of, during past century and a quarter, 6-8; effect of the Great War on, 8-9; causes of, 10 ff.; various reasons assigned for, 10-12 ; effect on, of profiteers, speculators, and middlemen, 13-14; tendency to reason in a circle in regard to, 14-15; fallacy of accounting for, by selected cases, 16-17; argument from probability, pointing to monetary inflation as cause of, 17-19; argument from statistics regarding, 19-23; similarity of, in countries having like monetary standards, 23-25; difference in, in countries with unlike monetary standards, 25—28; correspondence of, with money supply, 29-30; other causes of, than quantity of money, 51-52; conclusion as to, that they are due to monetary causes, 52; evils of, 53 ff.; chief evil in unequal effect on individual incomes, 54; hardships worked in regard to contracts, 54-55; evils as to salaries and wages, 55-56; effects of, on rates fixed by law or custom, 56-57; periods before and after 1896 contrasted, 58-59; social injustice wrought by, 61-63; trade cycles due to, 65-66; bad remedies for evils of, 74-76; loss resulting from, is general, 76-78; a remedy for, 79-103; effects of, on popular ideas of money, 263-272; proposed special international study of, 273-274.
Profiteering, effect of, on price movements, 13; rising prices responsible for, rather than the result of, 14; rise of, in period of rising prices, 58-59 ; remedy for, 60; justification of so-called, in rents, 72.
Protective tariffs, idea of, stimulated by falling prices, 78 n.
Quack remedies for price convulsions, 74-76.
Quantity theory of money, exposition of, 29 ff.; not accepted by all students of money, 51 n.; assumption of, not implied in stabilization plan, 215-216; the objection that stabilization plan contradicts, 216-217.
Railroads, hardships of, from upward price movement, 56-57; why rise in rates of, is necessary, 71-72.
Rapidity of circulation, price level affected by, 51-52.
Rates fixed by law or custom, effects of upward price movement on, 56-57.
Raw materials and finished products, circular reasoning in regard to, 15.
Redemption via warrants, alternative plan of, 254-255.
Redemption warrants, an alternative stabilization plan, 253-254.
Redfield, Secretary, effort of, to stabilize prices by price fixing, 267.
Reformers, objections of, to stabilization of dollar, 250-251.
Remedies, bad, for evils resulting from price fluctuations, 74-76; variety of, good and bad, 79-81.
Rent profiteers, so-called, 72.
Resentment as one evil resulting from redistribution of wealth through price fluctuations, 66-68.
Reserve against gold certificates, effect on, of stabilizing the dollar, 125-126; restabilizing the, 126-128; definite and indefinite system of, contrasted, 129-131.
Retail prices, movements of, compared with those of wholesale prices, 13-14.
Ricardo, abolition of gold coins proposed by, 92 n.
Rist, Charles, article by, cited, 61 n.
Rooke, John, work by, anticipating plan to stabilize the dollar, 293. Rowe, Leo S., approves, 275.
Russell, H. B., book by, on "International Monetary Conferences," 182.
Russia, price movements in, during Great War, 8-9; methods of war finance in, 30; correspondence in, between money supply and price level, 30.
Salaries, adjustment of, after upward price movement, 55-56.
Santa Claus illustration, to show results of addition to total circulation, 45-49.
Sauerbeck, index number of, 6.
Scarcity of money, illusions regarding, 16, 35-36.
Scotch Fiars prices, 243, 245; an example of contract made in terms of a commodity, 279-280.
Shakespeare, an economic truth as stated by, 59.
Sherman Act, causes leading to passage of, 265-266.
Silver standard, price movements in countries using, 7, 25.
Single taxers, as objectors to stabilization of dollar, 250.
Sixteen-to-one remedy for falling-price movement, 75; campaign of 1896, 266.
Smith, J. Allen, plans of, for stabilizing monetary units, 294.
Social injustice resulting from changing price level, 61-63.
Socialism, cue taken by, from high cost of living, 68; growth of, due to rising costs of living, before the war, 69.
Socialists, objections of, to stabilization plan, 250-251.
Spain, safeguarding of money by, during Great War, 285.
Spanish paper money, counterfeit, issued by Bolshevist Government, 30, 32.
Special interests, an obstacle to stabilization of the dollar, 240-251.
Speculation, evening-up of price fluctuations by, 13; activity of, in period of changing price levels, 64.
Speculation in gold, methods of dealing with, 139-147.
Speculators, objection of, to stabilization plan, 251.
Stabilizing the dollar, need for, 81-84; proposed method of, 84-87; adjustment of machinery for, 95-100; advantages of proposed method, over other remedies, 101-103; summary of plan for, 104-105; crux of plan, 105; advantages of, in case of contracts, 108-109; not a cure-all for all financial complaints, 110-112; reason for previous overlooking of remedy, 113-114; obstacles in way of plan, 114-116; precedents for plan, 116, 279-285; troubles that might have been avoided by, 116-118; technical details of plan, 125 ff.; effect of, on present 100% reserve, 125-126; operation of, in small and in large nations, 131-132; selection of the index number, 147-154; selection of the par or price level, 154-161; disposal of existing gold coins, 161-163; the gold clause in existing contracts, 163-168; bank credit and the plan, 168-172; international aspects of plan, 172-182; illustrative numerical examples to show operation of stabilizing process, 183-205; tentative draft of an act for, 205-213; discussion of disapproval of plan, 214 ff.; disapproval due to misunderstandings, 214-224; alleged defects in, 224-231; conclusion on alleged defects of plan, 230-231; the obstacle of conservatism, 231-240; the obstacle of special interests, 240-251; alternative plans, 252-262; origin and growth of present plan, 272-274; approval of plan, 274-278; literature of remote and direct anticipations of plan, 288-294; list of recent writings on, 294-296.
Standard hypothetical case, to show operation of stabilizing process, 183-187.
Standardizing of monetary units. See Stabilizing the dollar.
Standard of value, effect of stabilization plan on, 220-221.
Statistics concerning relation between monetary inflation and price fluctuation, 19-23.
Stockholders, position of, under rising and under falling prices, 58.
Street railways, losses of, from upward price movement, 57; reason for raising fares on, 72.
Sumner, History of American Currency, cited, 61.
Supply and demand, relation of stabilization plan to, 219-220.
Surplus, employment of, under plan for a 50% minimum reserve, 133-137; saving in taxes by interest on, 137.
Sweden, prohibition of import of gold by, in 1916, 285.
Tabular standard, as an alternative for stabilization plan, 260-262; examples of use of, 280-284; question of origin of idea of, 281 n.; writings on, 291-293.
Tinnes, D. J., proposals in writings of, anticipating present stabilization plan, 294.
Tithe averages, in England, made to vary with value of grain, 279.
Trade cycles, caused by price fluctuations, 65-66.
Trust-made products, price of, more stable than that of competitive products, 12 n.
Uncertainty, as an evil resulting from price fluctuations, 63-65.
Underwood tariff, adopted in period of rising prices, 78 n.
United States, price movements in, as measured by index numbers, 7-8; effect of Great War on prices in, 8-9; rise in prices in, due to gold inflation and to credit inflation, 23; ratio of English price level to that of, compared with ratio of American to English money, 28; correspondence between price levels and money supply in, 29-30; credit inflation in, during the war, 32-33; extent of war inflation in, 34; chief index numbers current in, 286.
Violence caused by redistribution of wealth through price fluctuations, 67-68.
Volume of trade, as an element in fluctuation of price levels, 52.
Wages, circular reasoning in regard to prices and, 14-15; adjustment of, after an upward price movement, 55-56; actual lowering of, since 1913, 56; effect on, of period of falling prices, 77-78.
War, effects of, on stabilization plan, 226-228.
Warburg, Paul, suggestion by, concerning use of index number of prices, 172.
War inflation, discussion of, 30-34; extent of, 34-35.
War Labor Board, use of index numbers by, 283.
War prices, discontent caused by, 69-71.
Wars, business crises following, 66.
Weighted average, explanation of, 2-3.
Wholesale prices, faster movement of, than of retail prices, 13-14.
Wicksell, Knut, advocate of regulative use of rate of bank discount, 172.
Williams, Aneurin, proposal in writings of, anticipating stabilization plan, 294.
Wilson, President, address on High Cost of Living by (August 8, 1919), 21.
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