Gold and the Gold Standard.pdf

GOLD· AND THE GOLD STANDARD·
years later, the International Economic Conference
held at Genoa declared:
An essential requisite for the economic reconstruction of
Europe is the achievement by each country of stability in the
value of its currency. . . . Measures of currency reform will
be facilitated if the practice of continuous cooperation among
central banks can be developed..•. It is desirable that all
European currencies should be based upon a common standard.
.. . . Gold is the only. common standard which all
European countries could at present agree to adopt.•.. In
a number of countries it will not be possible for some years to
restore an effective' gold standard; but it is in the general
interest that the European Governments should declare now
that this is their ultimate object, and should agree on the
programme by way of which they intend to achieve it.
Such, in a few words, was the situation when the
postwar world began its trek back to the gold
standard.
THE RETURN TO GOLD
With the removal of the gold-export embargo in
June, 1919, the United States became the first
country, after the war, to return to the gold standard.
Inasmuch as its ,departure from gold had been
not only brief but also slight, and inasmuch as
during that period considerable gold coin had
continued to circulate within the country, at parity
with other money, the return was without disturbing
consequences. 1 During the next 8 years most of the
1 There was no coinage of gold (except a few memorial dollar pieces) at
American mints during the 3 years, 1917-1919.
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