ABSTRACT
"The absolute necessity of international co-operation on broad lines," says Gustav Cassel, for the stabilization of the value of gold is most clearly seen if only for a moment reflects on the alternative to such co-operation. If international co-operation could be secured, on the other hand, for a universal reduction in legal reserve requirements, no "flights" from any currency would be possible, since all currencies would be equally implicated. The success of the international gold standard will tend to become increasingly dependent upon the degree of credit control exercised by Central Banks, operating in concert for the smoothing-out of international irregularities and singly for the attainment of internal stability. Under the international gold standard various factors combine to afford foreign exchange rates between the various members of the international system a fluctuation range within the so-called "gold-points."
