Currency Reserve Quotes
President Richard Nixon, a conservative Republican did not agree with this view as it was he who led America to abandon the gold standard to back its money.
This was a very astute prediction. At the time, the United States gold mining production was second only to South Africa and American currency was based on the gold standard which seemed to all to be permanent. Half a century later, the U. S went off the gold standard.
Most modern economists argue just the opposite. The monetary supply for a growing world population would be insufficient for growth since the supply of gold is extremely limited. The United States was plagued by this problem from its earliest times as its growth was very strong, but there was not enough gold to support the growth. So silver was added, and then during the Civil War where growth rates were very large in the North, paper currency evaded the problem, which returned over the next century until the Nixon Administration—a very conservative one—shocked many conservatives by abandoning the Gold Standard and the U. S. has never returned to it.
“Laid up” means “saved”. “Commutable”means fungible—gold and silver can buy anything else.
