ABSTRACT
(p. 183) A country will have adopted the gold system if it uses a gold currency in its internal transactions and for making payments abroad, or for making payments abroad only. It may also adopt the gold system if it uses internally a paper currency transferable to gold. Such transfer must be for a fixed rate; that is, the currency unit must be transferable to a certain amount of gold and vice versa, with a fixed price. It is natural in this case that the paper currency in that country remain tied to the value of gold; should the value of gold decrease, the value of the paper currency would decrease as well.
