Rothbard Money Podcast: 100% Gold Dollar, part 1
In the pre-World War I "classical" gold standard, every currency unit, be it dollar, pound, franc, or mark, was defined as a certain unit of weight of gold. Thus, the "dollar" was defined as approximately 1/20 of an ounce of gold, while the pound sterling was defined as a little less than 1/4 of a gold ounce, thus fixing the exchange rate between the two (and between all other currencies) at the ratio of their weights.
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These government or bank moneys were redeemable on demand in gold coin, so that the general public could use gold in everyday transactions, providing a severe check upon any temptation to over-issue. The pyramiding of paper or bank credit upon gold was therefore subject to severe limits: the ability by currency holders to redeem those liabilities in gold on demand, whether by citizens of that country or by foreigners.
What would it take to return to such a standard, and why should we? Should we, in fact, go beyond the fractional-reserve gold standard of the 19th century to a 100% Gold Dollar?
Part 1 of Murray Rothbard's "The Case for the 100 Percent Gold Dollar," is now available for podcast or free download, read by Jeff Riggenbach.
The essay is included in the book What Has Government Done to Our Money? available in the Mises Store.
