ABSTRACT
The instruments which were formerly relied upon to guarantee the smooth operation of the system have been blunted and rendered ineffective by a set of new phenomena for which the orthodox gold standard made no allowance. The hoped-for automatic self-regulation of the distribution of the world's gold supply has inevitably weakened under the growth of the new philosophy of Central Banking. In the light experience it seems undeniable that any attempt to adhere to the international gold standard involves the subordination of the credit policies of Central Banks to contemporary world factors over which the individual Banks may have no control. "The gold standard has emerged triumphantly from the welter of disordered currencies of the World War period and gold has become more universally than ever before the foundation of the structure of credit throughout the world.
