ABSTRACT
Anyone that seriously considers the currency problem is bound to encounter the problem of interest. Silvio Gesell has derived from his insight into the nature of money a theory of interest quite of his own, and along with it a stupendous programme of economic and social reconstruction. Gesell expects of the currency reform a powerful influence on interest. His proposition is to this effect: A stable currency creates the very most favourable and most durable conditions for the general prospering of the economic life of a nation. Indeed, the essential condition of a successful stable currency is well regulated, unfailing, prompt consumption, with demand always exceeding and preceding supply. The stable currency standard, obtained through stability of the rate of discount, will make an end of stagnation and so an end of usury. But a depreciating currency must be guarded against at all costs. The great thing is to discover a method for combining depreciating money with a stable currency.
