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Alternative systems which, saving advantages automatic The international standard, would be free from specific defects Gold. In particular, one such system has been recently developed in Practical details competent experts in monetary problems and

It is capable to involve those who in the past protected the gold standard, - not therefore,

That they have considered its ideal but because it has seemed to them surpassing all

Other variants lying in the field of a practical policy.

Before to describe this new offer, it is necessary to consider is short The valid defects of the gold standard which we wish to avoid. On - parts they differ from the conventional. It is a lot of discussed "Whims" in gold production should not be exaggerated. Significant - gold offers in the past actually occurred when Prolonged shortage created real requirement for them. Really,

The serious objection consists without delay in the slow adaptation of the offer

Gold to real changes in demand. Time increase of the general demand on

Caused significant changes in value of gold, whereas the offer Adapted to it slowly. Owing to the original mechanism Delays the increased volumes of the offer of gold often appeared only

When the need in them already passed. These additional volumes did not facilitate

Position, and began, without delay to hinder it. Furthermore increase Gold offers in reply to time increase of demand it appeared Irreversible, creating soil for overwork credit expansion, as soon as Demand again fell.

The last moment closely related with one really paradoxical line The gold standard: that aspiration of all individuals to it liquidities

At all did not conduct to increase of liquidity for all company as a whole. Happen,

Certainly, times, when desire of individuals to have more liquid assets

Reflects real public requirement. Always there will be periods, when because of

The increased uncertainty of the future begins desirable to give it Parts of our assets the form at which they can be paid in advantage

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