CHAPTER XII 
RELIEF IN SEVEN YEARS OF STABLE MONEY 
A major reason why expected earnings of cor- 
porations should now bulk larger than they did a 
few years ago, as reflected in the high price levels of 
stocks, is that since 1922 the United States has had a 
comparatively stable level of commodity prices, that 
is, a stable dollar. 
We have had seven years of stable purchasing 
power, such as has never existed before in this coun- 
try. The influence of this factor, while potent, is 
subtle and generally overlooked. Through what I 
have called the “money illusion,” the business man 
generally does not know when the dollar does change, 
much less does he realize when the dollar does not 
change. But the harm from the change and the good 
from the lack of change are very real and powerful. 
Like the influence of peace as distinct from war, any 
stability of commodity prices which makes the calcu- 
lation of the business man, in terms of dollars and 
cents, more safe than when the purchasing power of 
the dollar is constantly changing, results in prosper- 
ous conditions, bigger earnings, better prospects, and 
a higher price level of securities. 
Qs