Edward Tuck '62, Author

In the January issue of Scribner's thereappeared an article, "Honest Inflation,"written by Edward Tuck '62, one of Dartmouth's oldest living graduates and thefounder of Tuck School and benefactor ofthe College for many years. At the requestof the editors of the MAGAZINE, August Maffry of the department of Economics haswritten the following review of Mr. Tuck'sbeliefs in regard to bimetallism:

It is refreshing to find someone who does not harbor a blind prejudice against the free coinage of silver and against bimetallism. It is refreshing, too, to read a forthright espousal of inflation coupled with highly pertinent distinctions between different kinds of inflation. The reviewer is personally indebted to Mr. Tuck for calling attention to the little known works of Henri Cernuschi.

The Scribner's article is prefaced and interlarded with a penetrating analysis of the nature and functions of money. Particularly significant for an understanding of the monetary problems of the past and present is the generalization that "The material of money is in principle unimportant, except so far as it is liable to affect the aggregate amount in existence—the total monetary mass." The relationship between the volume of money and its value is correctly used to show the importance of a control of the volume of the currency for tha purpose of maintaining the stability of its value. Hence, the sine qua non of the argument for a metallic monetary standard is the fact that under a metallic standard the volume of money is regulated by the "limited and measurable annual increase" in metallic money stocks. It follows that, under a metallic standard, the volume of money and therefore its value are functions of natural circumstances instead of being subject at all times to the whims of governments and legislatures. What is more, an international unit of value, necessarily a metallic one, is essential for preventing the disruption of international trade as a result of exchange fluctuations.

But, Mr. Tuck argues, a metallic monetary standard in the form of gold monometallism is not sufficient to insure the stability of the value of money. With this view there can be, in the mind of the reviewer, no serious disagreement. The history of the gold currencies reveals unmistakably the instability of their values in the face of changes in the ratio of monetary gold stocks to the volume of production and trade.

The reestablishment of bimetallism is endorsed for a very cogent reason. The remonetization of silver would presumably draw into circulation an increased amount of money and thus assist in raising prices and in stimulating commerce and business enterprise. The proposal is not, however, to be confused with measures designed to increase the amount of new money of any kind; for the increase in the currency following upon the remonetization of silver would be a limited increase, whereas the issuance of paper money would not be so limited. Furthermore, inflation through the free coinage of silver would be honest inflation, because "It will be supported by an ultimate redemption in a metal which has been recognized as precious by hundreds of millions of people throughout the ages and is now the metallic basis of the medium of exchange among hundreds of millions of people whose markets we wish to enter."

When Mr. Tuck avers that "The present generation of Americans look upon bimetallism as Bryanism, and do not take the trouble to study the history or the science of money," he is stating an evident and deplorable truth. Indeed, anyone who advocates bimetallism is likely to be regarded for that reason as a conspirator against the creditor classes, as an interested representative of the proverbially improvident agrarian class, or simply as a fool.

Mr. Tuck has no intention of claiming that bimetallism would cure every economic ill. He advances it as a specific remedy for certain clearly recognized monetary ills. "It is neither wise nor useful to attempt longer to stifle it under the weight of an intolerant dogmatism."

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