ABSTRACT
When a metal is used for money, its price is arbitrarily fixed by law. Maintaining a fixed price of gold, regardless of the supply of or demand for it, is a very difficult matter. When nations and populations scramble for gold, and attempt to convert external and internal balances into gold, the value of gold rises, prices and wages fall and the horrible cycle of deflation, with its terrible consequences in human suffering, begin to revolve towards the abyss. The dollar immediately fell below par and prices of a large number of basic commodities immediately responded. The sound internal economic system of a nation is a greater factor in its well being than the price of its currency in changing terms of the currencies of other nations. A gradual increase in the price of gold took place in all countries, and a considerable increase occurred after the United States left the gold standard.
