varies according to the temper of our appraisers; and we shall be urged to base it on paper backed by good-faith, or on paper backed by whimsical taxing power, or on paper backed by need, or our faculty to consume. If deflation such as is dreamed of by the holders of so-called gold obligations should be effected for any extended period we cannot avoid these supposed remedies, which are similar to the administration of stimulants to a dying man for the sake of a final flare. Only the impending dissolution of society, if sufficiently obvious, will force genuine deliberation by all those who now enjoy a false sense of security; and it is in anticipation of some such receptive state of mind that suggestions for a basic readjustment to conform to democracy have been put forward for consideration and amendment.
If we are prepared to adopt a scientific unit of value, the next question is the fairest and soundest basis of conversion. We know our population and area accurately at short intervals, but our dollar values are tossing as badly as the sailor’s raft, already mentioned (which we propose to nominate as a substitute for Crusoe’s island in economic discussion). We may have the courage to jump: where shall we conjure up the necessary judgment? The answer to this question is that we would have to select for the final arbitrary act, designed to eliminate the last undigested remnant of autocracy, a very competent board of experts—statisticians, engineers, economists and bankers—who after this final service in dealing with arbitrary
tional effort and has usually reached wise decisions when such crises have arisen.
“The financial future seems secure if these attacks upon our present efficient banking system can be warded off and if no departure from long established principles is made through unwise legislation. With its great wealth and productive powers, the United States is evidently now committed to a development of international financing similar to that long followed by Great Britain, a development which will not only aid in restoring Europe to economic health, but will also stimulate progress in Latin-America, the Orient, and many other parts of the world.”—The Guaranty Survey, page 1. Guaranty Survey Co., New York.
The italics are inserted: it is only pertinent to point out that finance has no principles, since it is involved in international policies. It has very profitable traditions. The same pamphlet confirms this when it states (page 3): “The structure of finance is essentially international…” This is only a less disturbing way of saying that the structure of finance is, today, essentially imperial.
