Honest Money

The author examines the nature of value, distinguishing subjective (use or marginal utility) and objective (exchange or purchasing power) conceptions, then defines money, its functions, and the need for an invariable money value. He critiques existing arrangements—gold, silver, bimetallism, and paper—investigating their effects on price stability and international payments and applies these critiques to the United States. Various reform proposals are evaluated, and a specific alternative monetary framework is outlined that separates a stable standard of value from a practicable medium of exchange. The work concludes by weighing merits and objections to the proposed system.