ABSTRACT
Numerous experiences in the United States and elsewhere have shown that monetary instability, accompanied by widespread fear as to the future value of the monetary unit, is a serious obstacle to economic prosperity. The moral argument in favour of a return to the old gold parity is particularly strong. From this it is argued that the depreciation of the dollar up to the present time has been largely in terms of gold and has been due chiefly to the flight of American capital abroad. Under any plan that may be adopted for reducing the gold content of the dollar in the United States, it is clear that all the profits that are realized should go to the Government as the representative of the entire people. The gold would not be demanded by Americans for hoarding in their own country or for investment abroad because the stabilization policy of the Government would inspire the public with confidence in its currency.
