ABSTRACT
Money has its rivals and competitors. The most powerful, in our advanced economic system, is the bill of exchange. Statistics will prove that the number of the various forms of bills grows as the rate of interest and discount goes up. Mr. Keynes proposes to reduce the supply of credit by raising its price; he also proposes to reduce the supply while raising its price. While the Bank is allowed to interfere actively—to manage the currency—there is no safeguard against arbitrary action on its part. One method for regulating the currency the American and English reformers have not yet discovered, it seems. Gesell's third line of action has recourse to taxation to distribute the means of exchange needed to maintain the level of prices. The creation of currency cannot keep pace with credit while credit continues to expand.
