OBJECTIONS TO A COMPENSATED DOLLAR ANSWERED.

The author defends his economic plan for controlling the price level on standardizing the purchasing power of monetary units titled "The Purchasing Power of Money," presented before the International Congress of Chambers of Commerce on September 1912 in Boston, Massachusetts. The details were also published in the February issue of the Quarterly Journal of Economics. Critics asserts that the author have assumed the truth of the quantity theory of money. The author says that the impression that the plan is dependent on the truth of the quantity theory of money is presumably due to the fact that he have defended that theory in a modified form in his plan. Moreover, there is nothing whatever in the plan itself which could not be accepted by those who reject the quantity theory altogether. On the contrary, the plan will seem simpler, to those who believe a direct relationship exists between the purchasing power of the dollar and the bullion from which it is made without any intermediation of the quantity of money-than it will seem to quantity theorists.