ABSTRACT
Professor Fisher endeavours to solve the problem as to how gold might be made to serve the currency without at the same time undoing it, as he believes it to have done in the past. Also Mr. Keynes takes it for granted that the price of gold will shift about. Gold can never be severed from the currency long. For men will never cease to deal in gold and use it as a means of exchange. A thing that becomes dearer ceases to be supplied; most of all when the material is as easy to store as gold is. Late experience have taught economists that the safe way to get rid of a ware, not excluding gold, is to make it—not cheaper, but dearer. The price of gold is a very modern notion. Gold escapes when goods begin to fail and prices to rise: when people squander their substance. It sticks to its ground so long as goods are plentiful.
