ABSTRACT
The monetary systems of the past and present time have been based on a metallic foundation; the new system, rightly understood and carried to its logical perfection, has no use for gold or silver. Professor Irving Fisher and Mr. J. M. Keynes endeavour to spare the old monarch; however, an examination of the plea which they put up for the retention of gold will show that the case is not proved. From the repudiation of gold as an essential ingredient of the currency arises the necessity to dispose of the precious metal. The price of gold is determined by the supply of and demand for gold in the market. In order to restore the value of the gold in the reserve, the supply of gold must be lessened, which is achieved by gold being drawn to the reserve. Goods dollars are to be so contrived as to buy a constant quantity of commodities.
