The New Gold Standard 
95 
which not only is conscious of its leading position 
in regard to the regulation of the value of money, 
but also fully recognizes the responsibility which 
that position entails. 
In February, 1928, the discount rates of the 
Federal Reserve System were again raised to 4 
per cent. The reason for this measure can hardly 
have been to stop the rise of the general level of 
commodity prices and force it down again. The 
price index figures did not suggest any need for 
such a policy. In the interest of the stabilization 
of the purchasing power of the dollar, no altera- 
tion in the discount rates was required. It is per- 
haps too early as yet to discuss the reasons for and 
effects of this measure. But in so far as it may 
have been dictated by a desire to check an undis- 
ciplined stock exchange speculation, it should once 
more remind us of the desirability of finding other 
means to that end and of not letting the measures 
adopted for checking such speculation affect the 
very stability of the monetary unit of the country. 
We may now turn to the question of how the 
Federal Reserve System ought to meet the scar- 
city in the world’s supply of gold that, according 
to our investigations, must be expected to make 
itself more and more acutely felt in the future. It 
is clear enough that America must accustom itself 
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