Gilbert K. Chesterton Quotes
Silver is sometimes more valuable than gold, that is, in large quantities.
Economists they world over have differed as to how critical it was to have a money supply that is based on a gold standard or other precious metal. United States history has had a dispute over whether the money should be backed by gold or silver. Finally, under the Richard M. Nixon administration, the United States went off the gold standard and American money ever since is only backed by the ‘full faith and credit’ of the United States. Some politicians like Paul believe this is a poor policy since it allows governments to control their own money supply irrespective of their gold or silver holdings. Paul goes further than most and sees freedom itself dependent on a precious metal standard. Most politicians disagree.
There has always been a fear of inflation and currency debasement by governments. Since ancient times, rulers issued coins and when they were made of cheap metals like copper or iron, the ruler could mint as much as he wanted and when he did so the value went down. By using only precious metals, gold and silver, for coins, there would be a natural restraint on government. Garfield was one of those who believed that we should always have money of gold and silver. The United States would use that principle for the next century even backing its paper money with gold and silver. In the Nixon administration the United States abandoned the gold standard. Today, it is the ability of a country to produce things that maintains value of paper money which has been supplanted in many cases by electronic money.
He was asking for permission to issue more paper currency.
Harvey was one of those who argued that silver and not gold should be the basis of American money. The country was growing and the amount of gold was relatively fixed; therefore money was scarce and many believed the English and American financiers were hording gold deliberately. The final solution was not a gold standard or a silver standard but what we have today—a currency backed only by the full faith and credit of the U. S.
When gold and silver were used to make coins, there were dozens of schemes to cheat people. Many of these would be implemented by the official mints (makers of coins) often with the connivance of the ruler who would often get a cut. Davanzati warned princes against debasing the coins on moral as well as pragmatic grounds.
This is an excellent historical example of how damaging it can be for a country if its leaders do not understand the technicalities of economics and currency manipulation.
Gilbert Keith Chesterton KC*SG was an English writer, philosopher, lay theologian, and literary and art critic. He has been referred to as the "prince of paradox". Time magazine observed of his writing style: "Whenever possible Chesterton made his points with popular sayings, proverbs, allegories—first carefully turning them inside out."
