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cle. Some of the money and some of the muscle would remain unused, for the amount of coin we possess makes no change in the amount of metal the world possesses, and nothing else counts.

However, we do not use gold exclusively as currency, nor even as a greater percentage of our currency. Nine-tenths of our normal business legally avoids the use, not only of money, but of public or Government credit. The circulating media are private credit instruments. When the rush of optimism comes, a lot of people overvalue their ability, and sellers and lenders do not care to take too much of their private credit. To get business done they now need public media of exchange, and the cry arises that "money is scarce." If their business is sound, productive, and helpful, and they are selling or moving goods, they can get these media in the form of Federal Reserve notes, which are really private credit guaranteed by the Federal Government.

In the old days the Government issued its own credit-greenbacks.

In both cases prices rose and rose and kept on rising until the crash came and depression settled down; and the quantity theorists claim this as proof of their creed. Here in this country are several instances-1855, 1870, 1883, 1892, and 1919-where the supply of credit circulation was enormously increased and prices went climbing. To make it even stronger, 1919 found an unprecedented quantity of gold in this country. case seems to be plainly proved. And yet


In all these years the great increase in circulating "money"-and nothing but circulation can matter much-has been credit, not gold nor gold certificates. We know that gold-and so gold certificates -derives its price from its commodity power-in-exchange. We can raise or lower the price of a gold dollar suddenly only by Professor Fisher's method, by changing the amount of gold in each dollar. In this case, not the gold, but the standard dollar has changed. Instead of saying, "Each gold dollar is worth less," it is more correct to say, "Each dollar is worth less gold."

Just as the only way suddenly to change the price of a gold dollar is to change its metal content, so the only way to change the price of a credit dollar is to change its credit content. The world's supply of credit, or a country's supply, is popularly supposed to be infinite in theory; but it is not infinite. nor even indeterminate. It is merely. so far, undetermined in dollars-and-cents language. The exact total we cannot tell; but we know that it is measured by the amount of future goods we all control, by the total of the manufactures and crops and imports for the next one hundred and twenty days. "Hindsight" can tell us exactly what our total credit volume was last year. Records of several years past and trade barometers can tell us what it should be next year. As gold is our standard-and here is our big confusion-we must measure that


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credit in terms of gold.


When we start to issue our credit dollars, however, our checks, acceptances, commercial paper, greenbacks, and Federal Reserve notes, we have, as a rule, overlooked one corner of the triangular estimate. Consequently, we have now and then got into trouble by forgetting that both credit and goods must be measured in gold, not each other. We can control supply of goods, and so affect prices; but we cannot, with a given amount of certain future production, change the price measured in gold by an abundance of credit dollars. We can change prices to you and me by too much credit money, I grant; but I submit that that has nothing to do with it, for by doing so we abandon the standard. And it is a question of standard. When the total of credit dollars exceeds the gold-dollar price of the total credit in existence, we have merely depreciated our credit standard in terms of gold. Prices are not high because a lot of credit dollars are floating about, but exactly the reverse. A lot of credit dollars appear beIcause we have first made the gold price of credit dollars low. As soon as we do that we have two standard dollars, the gold dollar and the less valuable credit dollar. Gresham's law never fails, so we immediately have to use the bad dollars, and the good dollars drop into stockings and melting-pots. I believe that we can prove this by the same historical in

stances cited above in alleged support of the quantity theory.

In 1855 people had an idea that the only thing necessary to prosperity was high prices. They argued that a dollar was a dollar, and that every extra dollar was a community gain. The State banks, therefore, issued credit dollars by the bale. They kept no account of the true volume of credit, and they did not even accept gold as a standard. Consequently, the more they overestimated their credit, the lower the actual powerin-exchange of their dollars, and the more of them were necessary. Prices rose of course. Prosperity did not. In a little while (1857) Our creditors wanted payment, dollar for dollar; but they wanted good, gold dollars. We had only credit dollars worth about 35 cents in gold; and we crashed, and a lot of the world went down with us.

In 1870 we had been building railways at a feverish rate, working off the excess energy left adrift at the end of the Civil War. Governments and States helped these roads excessively. We needed a great deal of circulating currency, and thought we needed even more; for we again overestimated the future production which our new transportation would inspire. The National Bank Act helped a little, but it was limited by the supply of gold bonds. To make up the deficit, we again poured out credit dollars. We had learned one lesson-that private or State bank credit would not hold up its own price; so we issued Federal credit-greenbacks. The same thing happened. The total gold price of our one hundred and twenty days' production remained the same. We simply called a smaller fraction of that production a dollar's worth, depreciated the standard, raised prices and had to issue more money. The smash came on settling day, as usual, but we were still stubborn. It took three failures-1873, 1884, and 1893-to teach us that gold prices rule and that we cannot control gold prices.

The year 1919 was different. In that year the gold standard was generally accepted and was supposed to be in force. This was not true in Europe, for gold had been abandoned through dire necessity; and the countries of Europe had to mortgage, not merely one hundred and twenty days, but many years, of future production. Gold as a worldwide medium of exchange had ceased to function. Gold continued, however, to be the "common denominator," the standard, while the gold price of currency was driven down. At the same time, the production of goods fell off, lowering the credit total; and demand for goods increased violently, raising prices in terms of gold. Of course a huge volume of cheap credit francs and credit pounds and credit lire appeared. They had to; but they had nothing whatever to do with making prices. Goods were measured in gold; the use of gold had fallen off and demand was low, and the demand for goods was tremendous. That is the story of 1919.

How, then, did we avoid a panic in

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8 Who Offers The Securities You Buy?"How to

Select Safe Bonds" tells why even the experienced investor must depend for safety entirely upon the reputation and length of service of the Banking House offering the investment. It tells of the conservative policy of painstaking investigation and selection which has made it possible for George M. Forman & Company to sell bonds for 37 years without loss to a customer, large or small.

MAIL THIS REQUEST BLANK Let "How to Select Safe Bonds" show you definitely how you can enjoy, with absolute safety, a larger income from your investment. Mail this request blank for your copy of this interesting booklet. No obligation.


Dept.612 105 West Monroe Street, Chicago, Il. "37 Years Without Loss To a Customer"

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Advertising Rates:

Hotels and Resorts, Apartments, Tours and Travel, Real Estate, Live Stock and Poultry, sixty cents per agate line, four columns to the page. Not less than four lines accepted. "Want" advertisements, under the various headings, "Board and Rooms," "Help Wanted," etc., ten cents for each word or initial, including the address, for each insertion. The first word of each "Want" advertise ment is set in capital letters without additional charge. If answers are to be addressed in care of The Outlook, twenty-five cents is charged for the box number named in the advertisement. Replies will be forwarded by us to the advertiser and bill for postage rendered.


Tours and Travel

Tours and Travel ΟΣ

36 Old World cities on the
that takes you to Paris-London
and the Mediterranean

From 30 to 90 days of delightful Euro-
pean travel visiting the capitals, ancient
cities and museums of fame and history,
under experienced and competent guid-
ance. Unusual travel opportunity for
those interested in seeing at moderate
cost all that the Old World offers.

Gates European Tours
$425 and up

Since 1892 Gates Tours have been
planned with the idea of giving their
patrons comfort combined with econ-
omy. Last year over 500 people took
Gates Tours to Europe and proved this
to their enthusiastic satisfaction.

Let us send you complete information
about Gates Tours to Europe next sum-
mer. Apply direct or to Raymond-
Whitcomb Company, General Agents
in New York, Chicago, Boston, Phila
delphia, Detroit, Kansas City, San
Francisco, Los Angeles, Toledo. Write
for Booklet "E-1."

GATES TOURS-Founded 1892
World Travel at Moderate Cost
225 Fifth Avenue - New York
London - Paris - Rome

Educational Tours to EUROPE,

Summer 1923. Organizer of small party will be given free trip to Europe. Educational Tours, 160 E. College St., Oberlin, O.

THE beauty, fascination, and mystery of the Orient lures visitors from all over the world to


The quaintest and most interesting of all countries. Come while the old age customs prevail. Write, mentioning Outlook" to JAPAN HOTEL ASSOCIATION Care Traffic Dept.


for full information

Rates for a single room without bath and with 3 meals. $5-6 in cities and popular resorts, $4-5 in the country

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Hotels and Resorts


Sanford Hall, est. 1841
Private Hospital
For Mental and Nervous Diseases

Comfortable, homelike surroundings; modern methods of treatment: competent nurses. 15 acres of lawn, park, flower and vegetable gardens. Food the best. Write for booklet. Sanford Hall Flushing New York VAN VALEN SANATORIUM

YONKERS, N. Y. Psycho-Therapeutic Treatment. Booklet.

Property Wanted Wanted To Rent Small house or te room for summer c 1923, in New England States, on automobil road. References exchanged. 8,375, Outlook



How to Earn

$25 Radio Set
in Spare Time


All you have to do to earn a complete Aeriola, Jr., Radio Receiving Set is to secure 25 yearly subscriptions to The Outlook. You will receive cash payment for each subscription that you obtain, even though the number may be less than 25, and the radio set, manufactured by Westinghouse, will be sent to you promptly with our compliments carriage prepaid, without any cost to you, as soon as the entire 25 subscriptions have been secured. Write to-day for full instructions, subscription blanks, and complete description of the radio set.

Radio Department

381 Fourth Avenue,
New York City

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UNUSUALLY desirable stationery for any type of correspondence. 200 sheets high grade note paper and 100 envelopes printed with your name and address postpaid $1.50. Samples on request. You can buy cheaper stationery, but do you want to? Lewis, 284 Second Ave., Troy, N. Y.

OLD Hampshire bond: 100 sheets (61⁄4%x?) and 75 envelopes, printed, $2 delivered. Franklin Printery, Warner, N. H.

150 letter sheets and 100 envelopes, $1. Samples on request. Burnett Print Shop, Box 145, Ashland, O.



1920? Demand fell off, liquidation went ahead, all the symptoms of panic were there, but no panic. Because, blindly perhaps, we have set an automatic meter upon our credit dollar which keeps it at a steady price measure in gold. When business is hustling and prices go up (i. e., when the demand for goods outstrips demand for gold and relationships are changed), we supply the gaps in our circulating media with Federal Reserve notes instead of inconvertible greenbacks or Clearing-House certificates. A Federal Reserve note cannot be issued except on visible, irrefutable evidence that the credit total, the production of the next one hundred and twenty days, has been increased by the amount of the note and a little more.

This is the gist of the quarrel. The supporters of the quantity theory represent the present borrowers and future sellers they talk in terms of credit dollars. The opponents of the theory represent the present lenders and future buyers, and they are talking of gold dollars of 23.2 grains each at the current price of gold as metal. Of course they cannot agree. As long, however, as they do not try to influence the money legis lation which affects all of us, why should we greatly care? For you and I have still a third definition for money: "A balancer of accounts-something dependable which gets our business done."


Business Situations
WOMEN. Nation-wide demand for high-
salaried men and women. Past experience
unnecessary. We train you by mail and put
you in touch with big opportunities. Big pay.
fine living, interesting work, quick advance-
ment, permanent. Write for free book,
Hotel Training Schools, Room 5842, Wash-
ington, D. C.


Companions and Domestic Helpers WANTED Working housekeeper mother's helper, small children; good home on Long Island. 3,096, Outlook.

WANTED Two competent women (or married couple) to do entire household work (washing excepted) in small private family in country town 50 miles from New York and Philadelphia. Good wages, comfortable quarters, superior environment. Answer in own handwriting, giving ages of both, nationality, and references. Address 3,099, Outlook.

WANTED-Working housekeeper (white). No washing, all cooking, some cleaning, some care two small school children. Four in family. References required. Write 28 Midland Ave., White Plains, N. Y.

WANTED-Mother's helper, active and under forty. Good wage in return for sincere and willing service. Write Box 467, Cedarhurst, Long Island.

WORKING housekeeper, 2 in family, no laundry. Box 414, Scarsdale, N. Y. Telephone 185.


Professional Situations
SISTERS wish position together. One
trained, experienced infant's nurse; other
secretary, governess, or maid-companion.
Excellent references. Would travel. Miss
Akester, 23 Murray St., Trenton, N. J.
COMPETENT nurse desires care of invalid.
Excellent references. 3,094, Outlook.

Business Situations

WANTED, by woman of refinement, ability, and experience, position as manager of tea room or assistant manager, preferably in New York City, but willing to consider other places. Address 3,085, Outlook.

REFINED Southern girl desires position as secretary to reputable party traveling abroad. Reference furnished as to ability and character. 3,084, Outlook.

SECRETARY-Refined young woman desires position with progressive business firm. Trustworthy, efficient, ten years' experience, exceptional references. New England or New York. 3,098 Outlook.

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Our best advertising is from the unsolicited statements of those who have used Vapo-Cresolene. For coughs, colds, bronchitis, influenza, whooping cough, spasmodic croup, asthma and catarrh. Send for our testimonial and descriptive booklet 31C.

Sold by Druggists THE VAPO-CRESOLENE CO. 62 Cortlandt St., New York

or Leeming-Miles Bldg., Montreal, Canada BEFORE YOU BUILD KNOW ABOUT


A double-hung window; 100% ventilation; disappearing sash and fly screens; weatherstripped, glazed, fitted, hung 100% and completely assembled. Shipped Opening ready for use; built into any wall. Write for full details.

The Lunken Window Co. 5416 Cherry Street,


Zero Tight

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SITUATIONS WANTED Business Situations YOUNG man with a wide and varied experience in child welfare work, recently superintendent of an orphanage, desires executive or sub-executive position. Conversant in French, Italian, and German. Capable grade school teacher. Best of references. 3,038, Outlook.

Companions and Domestic Helpers COMPANION-nurse or helper to semiinvalid gentleman. Refined Protestant young man. References. 3,097, Outlook.

COMPANION-secretary. Former business woman, broad experience, industrious, capable. Highest credentials. Experienced also flower, vegetable gardening, social service work. 3,100, Outlook.

LADY highly recommends working housekeeper. Scotch; excellent cook, worker, mender, entire charge bachelor apartment. New York references. 3,101, Outlook.

YOUNG French lady of culture, ability. and exceptional character, experience as teacher in the best English schools, finishing governess in England and Italy, is open to engagement for the winter as traveling companion or teacher to young lady. Being at present in Rome, she is available immediately in Europe or would return to this country. Refer for further details to Mrs. R. G. Hazard, Dial House, Santa Barbara, Cal.

CULTURED young woman desires position social secretary, companion, hostess. References. 3,082, Outlook.

REFINED middle-aged widow, managing housekeeper or companion. 3,088, Outlook. POSITION as nurse-companion to semiinvalid or elderly lady. Salary no object. Highest references. 3,091, Outlook.

YOUNG lady, adaptable, fond of children, some hospital training, can teach basketry, etc., desires position. Excellent references. 3,089, Outlook.

COMPANION to lady; travel, go South. Managing housekeeper, widower, one or two children. Christians. References. 3,105, Outlook.

Teachers and Governesses GOVERNESS wants position in kind American family. French; two and a half years' experience; good musician. References. 3,095, Outlook.


TO young women desiring training in the care of obstetrical patients a very thorough nurses' aid course of six months is offered by the Lying-In Hospital, 307 Second Ave., New York. Monthly allowance and full maintenance is furnished. For further information address Directress of Nurses.

Washington, D. C.


MISS Guthman, New York shopper, will shop for you, services free. No samples. References. 309 West 99th St.

BOYS wanted. 500 boys wanted to sell The Outlook each week. No investment necessary. Write for selling plan, Carrier Department, The Outlook Company, 381 Fourth Ave., New York City.

THE Olivia Sage School of Practical Nursing offers a one year's course in bedside nursing to a limited number of women. Pupils receive maintenance, uniform, and salary.For further information apply to Director, New York Infirmary for Women and Children, Stuyvesant Square, New York.

VERSE, original, distinctive, written for occasions-anniversary, memorial, presentation. Jolly verse for children. 3,083, Outlook.

FOR sale Hongkong camphor chest, $25; curly maple slender post bedstead, $175. Antiques, 2039 Moravian St., Philadelphia.

Help Wanted!

Are you in need of a Mother's Helper, Companion, Nurse, Governess, Teacher, Business or Professional Assistant? The Classified Want Department of The Outlook has for many years offered to subscribers a real service. A small advertisement in this department will bring results.

The rate is only ten cents per word, including address Department of Classified Advertising THE OUTLOOK

381 Fourth Avenue, New York City


"When the stormy winds do blow" goes the old sea song, and it would be good advice to add



It is warming and sustaining, for it has genuine food value, and may be safely indulged in any hour of the day, for it is stimulating only in the sense that pure food is stimulating.

008. U. 3. PAT. OFF

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NEGRO paper quotes Stephen Graham as reporting in "The Soul of John Brown" that a Negro minister had complained to him of the absurdity of making pictures of white angels for the children of the black race. "You surely would not like them black?" said the interviewer. "We give Sunday-school cards to our children with white angels on them. It's wrong," was the reply. "Black angels would be ugly." "No more ugly than white. . . . Isn't it absurd for us to be taught that the good are all white, and that sin itself is black?" "It does seem to leave you in the shade," Mr. Graham admitted. "Expressions such as 'black as sin' ought to be deleted from the language. One might as well say, 'white as sin,'" argued the Negro. It would be interesting to know how native Africans picture their ideals of goodness. It is well known that they look upon a white skin as unbeautiful. "You who are black!" is said to have been a form of reverential address uttered in presenting a petition to the Zulu kings in olden times.

Apropos of the above paragraph, it may be noted that a holiday display of colored (black) dolls is to be seen in a Brooklyn store window in a section where Negroes live, with the sign, "Colored Dolls Sold Here."

Adam Smith, author of "The Wealth of Nations," was a keen student of current events. A letter written by him in 1776 and now offered for sale by a London bookseller reads:

"... The American Campaign has begun awkwardly. I hope, I cannot say that I expect, it will end better. England, tho' in the present times it breeds men of great professional abilities in all different ways, great lawyers, great watchmakers, clockmakers, etc., etc., seems to breed neither statesmen nor generals."

The apple, according to an exchange, is the most famous of fruits, for it has figured in at least four stories of worldwide fame-the apple of the Garden of Eden, the golden apples of Atalanta, the apple of the William Tell legend, and the falling apple which was seen by Newton and which suggested to him the law of gravitation.

"Physical culture, father, is perfectly lovely!" exclaimed an enthusiastic young miss just home from college (as quoted in the "American Legion Weekly"). "Look! To develop the arms I grasp this rod in both hands and move it slowly from right to left."

"Well, well," replied dad, admiringly, "what won't science discover next? Why, if that rod had straw on the other end, you'd be sweeping."

Three battles in American history, according to a recent book, left no survivors. One took place in the Powder River country, near Fort Phil Kearney, where Captain Fetterman and eighty

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An unsolicited testimonial to a Washington physician's skill, published in the "Journal" of the American Medical Association, reads in part as follows: "I had poison oak bad. I came to you and got me relief. I will sure recomend your stuff to all the boys who are here. I believe in giving the devil whar is do him and am writing so you will know that I appreshiate the same. Very truly -. P. S. If I sell some of this stuff for 2 a dose can I figure on keeping the other 50c.?"

A champion girl typist told a newspaper reporter recently how she acquired her facility and endurance. "Typewriting," she said, "is like any other form of athletics. If you want to compete in speed contests you must go into training and cut out pie and coffee and other harmful things like that, and work, work, work!" Five years ago she wrote 88 words a minute. Now she can write 137 words and aims at 150.

"The brightest feature of the British railway situation is found in the happy relations between the companies and their men," according to "The Engineer" (London). "Never, during the hundred years of railways, has this aspect of the railway position been so good. There is, at present, a noticeable esprit de corps among the men, a greater desire to give a day's work for a day's pay, both in the operating and the manufacturing and repairing branches. . . . We believe, and will almost go as far as to affirm, that the attitude of the men is the result of the unions having been recog nized and of the men themselves having been given a greater interest in the operation of the railways."

Recently, in Switzerland, according to the "Writer," a citizen was brought before a magistrate charged with failing to return a borrowed book, and sentenced to spend two days in jail and to pay a fine of forty francs, in addition to the value of the book. The magistrate in passing sentence said: "A book is a family utensil, like furniture, and is necessary to the welfare of the family." "The Writer" adds: "A practical way to secure the return of borrowed books is to put in the place of the book taken from the library shelf a piece of cardboard about the size of the book, on which is written the title of the volume. the name of the borrower, and the date when the book was lent." And, it might be added, when it is to be returned.


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