Page 181 - clra62_0019-(GIPE)

FANCY MONETARY STANDARDS 173
In a daily index number, either the prices would not
be those of actual sales, for often there woulCl be no
transactions, or the basis would be so narrow as to
give speculators an opportunity of making profit by
sales and purchases ad hoc, a practical danger of a very
serious kind, and which was felt practically when the
Corn Returns were made the basis of the sliding scale
of corn duties, even upon a six weeks' average,
And if the prices are not to be the average of actual
sales, what are they to be? The quotations of dealers
in the market of the rates at which they are willing to
do business; or what? Such quotations under present
conditions are oft~ good enough for statistical purposes
whenjtidiciously nandled; but an official index number
on which transactions are tobe based, and on which a
great deal of money will depend, is a very different
thing. Before. talking of a daily or weekly, or even
monthly index number, Mr. Williams should give some
thought to the construction of index numbers in their
practical aspect. If an index number, such as he con-
templates, is impossible in practice, as I believe it to
be, there is clearly no use in discussing" a value of
bullion standard" as a substitute for our present gold
standard ~n t~ daily business of the country. The
construction of the index number is the first step.
Fourth.-A "value of bullion standard," though it
might have some effect in mitigating the fluctuations
in the unit of purchasing power as measured by com-
modities, might not really be so stable a standard for
all purposes, as that which we now have in gold alone.
The reason is fhat in using a monetary standard we
have to measure" incomes" as well as commodities.
It is just as important for many purposes that the
average money incomes of a community per head, and
still ntore the average-money wages of the wages-
earning part of the community per head, should not
fluctuate greatly over short periods, as it is that the
average prices of commodities should not fluctuate.
But as real incomes and real wages are liable to in-