All these fore-mentioned evils have loceurred not because of any inherent ud Managed Currencies Answering the first question, we have pre-eminently the new stable money' as represented by the managed currencies of the British pound sterling and the United States dollar. Tg Is to be marked that these moneys are no more what they used to imaly, delivery orders or storage receipts for gold. They are still anchored to gold in a way but do perform a function which gold units of money have failed to do.
"We come now jo answer the second query as to how gold had come to fail, It falled because it fell down on one of the capital functions of ney which is to have been instrumental in, or to have brought about, a fullness in the interchange of! goods and services. Gold was not to be' a god unto itself but merely avbervant to the master and main thing: its Job was to make life more abundant both nationally and inter~ nationally.
'The trouble lay in the other tune lion of 4old hich was not any {olbe''a mensuring-rod" but aso. fore' of value, When. the circum: Manos recurred. where'" demands were: made upon gold asa store Valug only, iis wilideawat from cles tuition for various reasons" os. medium of exchange "caused. the tries oe goods und. Services Arlifelally Low Prices ince the latter constituted the true wealth of the world, low prices came crtifclally, but none the less really, to mean' deprivation. For instance, a farmer who was accus-tained {0 sell his wheat at a certain price, suddenly found he would festo produce a relatively moun-famous quantity of wheat for the same price. If she had a debt or mortgage, that figure would mean something formidable in terms of wheat, This same process, carried to its logical conclusion, would result in Jarger and larger amounts of goods for the same bits of gold unit, until the proportion was out of all reason, And this for no fault of his ym. The yardstick of worth had stick, had increased, Conversely, when there is a decrease in the value of gold, general economy suffers from the evils of in~
spiral of rising prices, rising wages, lation, and then comes, the vicious further rises in prices, diminishing. Jdemand, glut of, production, slump and, depression, 1us,-instability of prices of goods Jand services, both in depression and boom, 1s an'evil to be avoided. 'The Jgreat' thing, as authorities agree, is to achieve stability, In this regard, Jgold had failed in the post-war period.
There arose, therefor planned money, which achieved all-to-be-desired condition of stability in. the confines, att least, of a given national area.
The next step was to achieve the same stability between nations, be-[cause international trade was a growing necessity for raising the standard lof living in all parts of the world. International trade means larger and more efflient production, distribution land consumption of goods. This latter the whole alphabet of economy.
Text read from the printed page and cleaned; old type leaves the occasional error.