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Needs, not definable while because of impossibility to expect the future
Circumstances. The rational organisation of our affairs would require switching
Productions during such periods from subjects of more limited use on
That are necessary constantly, like widely used raw materials.
The original irony of the gold standard consists that at its sovereignty
The general growth of aspiration to liquidity conducts to increase in production in one
The goods serving to almost unique purpose - to maintenance liquid
Reserve for individuals. These goods not only have very few other applications,
But also its offer can increase only so slowly that increase
Demand for it will influence much more strongly its value, than on it
Quantity, - in other words to cause the general fall in prices. At the same time
It is necessary to the offer of these goods to increase, and to demand again to fall, as
To get rid of the arisen redundant offer it will be possible only by
Decrease in its value, that is the general rise in price.
More rational schemes leaning against use of other goods, besides
Gold, were offered often but while general predisposition was in advantage
Gold, they seldom represented practical interest. In a present situation,
However, at least one of these offers, developed recently in
Details two American scientists, deserves steadfast attention in force
Successful combination of deep theoretical and practical dignities. Benjamin
Graham from New York and Frenk D. Graham from Princeton, come independently the friend
From the friend to very similar ideas, have presented the last years in details
The studied offers in a series of the important publications. [See, in particular:
Benjamin Graham, Storage and Stability (New York: McGraw-Hill Book Co., 1937),
And Frank D. Graham, Social Goals and Economic Institutions (Princeton:
Princeton University Press, 1942). Almost identical offer has made earlier
The Dutch economist, professor Dzh. It (J.Goudrian), in a lampoon "How To
Stop Deflation "(London, 1932) which I did not see given during a writing
Articles. Benjamin Graham has developed then the offers in the book: World
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