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Convertibility in gold is simply way of the control over quantity of money, and
What is it also there were the real factor defining their value, governments
Have started to undertake desperate attempts to evade from discipline observance, and
Money has become, more than ever, a toy in hands of politicians. Only
Few great powers have saved for a while though any stability of money,
Having introduced it also in the colonies which were a part of their empires. But, for example,
The Eastern Europe, the South America never knew the long periods
And though the governments never exercised the power for maintenance
Stability of money for a little long time also could abstain
From rough abusings, only when they were disciplined by the gold standard,
The reason which should force to refuse us it to suffer
Irresponsibility of the governments, consists that today we know about
Possibilities to supervise quantity of money so that to prevent
Strong fluctuations of their purchasing capacity. Moreover, though there is all
The bases not to trust the government which has been not connected by the gold standard or
Something similar, there are no bases to doubt that private enterprise,
Which prosperity depends on success of its activity, can provide
Stable value of money let out by it.
Before we will show, how such system works, it is necessary to understand with
Two prejudices which can serve as objections against ours
The chapter V. Mysticism of "lawful means of payment"
The superstition denied by existence of spontaneously arising money
Private money it is more preferable
"Lawful means of payment" as an uncertainty source
Taxes and contracts
The first misunderstanding concerns concepts of "lawful means of payment" or
"legal tender". For our research it is concept has no big
Values, but it is widely used at an explanation or the justification
The governmental monopoly for release of money. The first fright called
The offer discussed here, it is usually accompanied by such reaction: "But
There should be lawful means of payment ". As though this remark
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