Reconstructing America Our Next Big Job the Latest Word On the Vital Subjects

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The gold standard, it is said, has been put in jeopardy because of the insufficient supply of gold, and heroic measures must therefore, it is said, be taken to stimulate the production of gold. The particular measures sug- gested for this purpose are the exemption of gold mining from taxation, the granting of bounties to gold producers, and as a much more radical proceeding, the diminution of the gold content of coins.
Gold has fallen in its purchasing power because it has shared the fate of pa
...per from rising prices. Prices at wholesale are up about 100 per cent or more in lead- ing markets in countries where the gold standard still obtains.
Why are prices up, and arc they destined to stay up? These are obviously questions that must be answered in undertaking to estimate the prospect of gold.
Constructive Finance 121 FACTORS IN HIGH PRICES Not until much patient and exhaustive investigation has been made can it be determined with anything like satisfactory accuracy to what extent the great rise of prices which has taken place in the last four years is to be explained by relative shortage of leading materials and commodities, and to what extent it is due to the artificial abundance of money.


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