Page:Stabilizing the dollar, Fisher, 1920.djvu/46

xlii finance not only here but abroad. We may feel sure the dollar will not stop fluctuating unless we stop it and thereby settle in advance what, if neglected or long delayed, may prove to be a bitter controversy.

13. Our After-War Opportunity is to take the leadership in settling price levels disturbed by the war. If we do, the world will probably follow.

14. If We Miss the Opportunity to effect a scientific remedy for our unstable dollar, we pave the way for an unscientific remedy, for charlatanism, and a great selfish class struggle.

1. The Reserve against Certificates. To increase or decrease the weight of the gold dollar decreases or increases in the inverse ratio the number of dollars in a given physical gold reserve and would therefore disturb, in one direction or the other, the present 100% ratio of gold reserve to gold certificates. The ratio may be kept at 100% or any other fixed figure by canceling or issuing certificates for that purpose.

These operations would help stabilization, i.e. would require less change in the dollar's weight than would otherwise be necessary.

They also put an item of loss or gain on the Government's books which would otherwise belong to private individuals.

Another way to treat the reserve is merely to let the ratio of reserve to certificates alone unless or until the reserve should sink to a set minimum limit of safety, say 50%, after which it could be safeguarded in the manner above described.

Still another way is to apply such a limit at the