some definite point with basic census-area value, so that there may be no further inflation except with measurable increase of population or area?
Now this is not an easy problem, for the moment of change is going to be displeasing to some, no matter what moment we decide upon. If we are prepared to admit that our present empirical method of economic measurement is on an entirely different basis from any other scientific attempt to measure dynamic value; and if, in the abstract, we are willing to admit mentally that some plan, more rational, should be devised if possible, we then face the very difficult problem of converting arbitrary “value,” which is only good at a given moment into true, or measurable, value. This involves two acts: one rational; the other arbitrary. The rational act is the devising of the unit which involves a just conception of basic national economic value: the other, the arbitrary act, even though we hope it may be the last, is our choice as to the moment of conversion. We may look back at our vanishing gold coinage for an example of this, for it is well known that the last innocent holder of a worn gold coin suffers the loss due to wear and tear over a long period of use in which he was in no way involved. The major equity imposed by the duty of keeping the weight of the coinage uniform, under our present system, involves us in a palpable inequity at the moment of readjustment. In the same way, if for the sake of general equity we decide to convert our so-called gold-standard of value into a scientific census-area standard of value, an arbitrary point has to be chosen. Essentially the problem is very similar to that which governs a sailor who is deciding at what point to make his jump from a storm-tossed raft to a wharf. He knows that the wharf is safer than the raft, but the change requires judgment as well as courage. It is not wise to await the moment of sheer desperation. There is no element of judgment in desperation.
Shall we make our conversion at the peak “value” levels of 1919 or the depression “value” levels of 1921? If gold itself had any scientific relationship to value, the question would not arise: there is no problem involved in converting gallons into