The Money Problem (Paperback)

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1903 edition. Excerpt: ...hit upon this plan: they fixed upon a certain material substance which they agreed to make always exchangeable among themselves, to represent the amount of debt." The substance selected was one which Professor Jevons says, "seems designed by nature for the very purpose," viz., gold. "Since it can be melted, divided and sub-divided, is homogeneous, portable, cognizable, indestructible and stable, it appears the most appropriate substance for this purpose." ' Theory of Credit.' The various merchants, farmers, sheep-raisers, etc., would, therefore, have to go to the goldsmith and arrange with him as best they may for a supply of gold pieces. Having first agreed among themselves to accept these pieces in exchange for their several products in certain ratios, the business of the community would at once proceed, and obstacles previously encountered would be removed--providing always that these traders had power at all times to command gold with their commodities. Failure on the part of the goldsmith to part with any more pieces, would simply throw the community back into its original barbaric state. Were the inventor of such a scheme a nineteenth century operator, he would, prior to propounding such a plan for facilitating exchange, proceed to get control of all the gold and gold mines of the community. He would then persuade the government of the community to pass a law making gold the legal tender, and fixing as an arbitrary standard of value a certain weight of gold. Having accomplished these things, he could consider himself as rich "beyond the dreams of avarice." Having safely established the system for facilitating exchange, and assisted the community, by loaning them gold, he need only close his mines...