Gold and the Gold Standard.pdf

GOLD 'AND THE GOLD STANDARD
years people nearly everywhere found themselves on
widely fluctuating paper-money standards. After
peace was restored and the world again tu:rned longingly
to the gold standard'as the only monetary
standard in which it had confidence, the gold.;.
exchange standard came forward with a strong
appeal. It was the least expensive form of ,the gold
standard known, and this was an important consideration
in a war-bankrupt world. It was also the
form that was most economical in the use of gold.
This likewise was important, because gold production
had greatly declined from 1915 to 1922, and there was
much public concern about the adequacy of the
world's'futuresupply of gold to meet the requirements
of a world-wide return ,to ,the yellow metal.
The 'Genoa International Conference
and the Gold-exchange Standard
The Genoa International Conference in 1922 took
a strong stand in favor of the gold-exchange stand....
ard. 1 Its principal recommendations relating to this
subject are these: 2
Measures of currency reform will be facilitated if the practice
of continuous cooperation among central banks of issue
. . . in the several countries can be developed. . . . In countries
where there is no central bank of issue, one should be
established.... It is desirable that all European currencies
should be based upon a common standard. . . . Gold is the
, 1 Genoa Conference, Papers Relating to International Economic Conference,
Genoa, April-May, 1922.
2 Ibid.,pp. 60-63.
I 164 ]