Page:Stabilizing the dollar, Fisher, 1920.djvu/44

xl '''11. Comparison with Other Plans'''. Attempts to increase production are commendable, but neither these nor price fixing can greatly affect the price level. They require repressive force, while stabilizing the dollar would be effortless.

1. Summary of the Plan. Abolish gold coin, redeeming certificates in bullion only; establish an index number; adjust the dollar's weight by the deviation of this index number from par; charge a "brassage" fee and never at any one time alter the dollar's weight more than that; keep the gold standard system of unrestricted deposit and redemption and keep a sound banking system.

2. The Crux of the Plan is to keep the dollar from shrinking in value by making it grow in weight, or vice versa.

3. Artificiality of a Fixed-Weight Dollar. At present the weight of the dollar, and so the price of gold, is fixed. We cannot mark the price of gold up or down when its value goes up or down. The result is that the prices of other things rise when the price of gold ought to fall and vice versa.

4. Transition Would Cause No Shock. If the price level chosen as the par is near the level existing when the system starts, the ordinary man would never notice the change. The few, like miners and jewelers, who handle gold bullion would simply notice that the price of gold was no longer fixed.

5. Contract-Keeping Would Cease to Be Virtual Pocket-Picking, and the discontent, jealousy, and suspicion resulting therefrom would also cease; crises and depressions would be abated.