Indian Journal of Economics October 1936

The idea underlying the scheme is that a raising of the gold content of the dollar or a lowering of it would correspondingly diminish or increase the volume of money in circulation to cause EP corrective to the rising tendency in the one case and the falling.tendency in the other of the price-level from the ideal. [...] That is to say the currency authority must as certainly as under the tabular standard introduce more money into circulation to effect the announced rise in the gold value of the dollar (lower the general price-level to normal) in the first case and withdraw from circulation a part of the money to effect a fall in the gold value of the dollar (rise in the general price-level to normal) in th [...] Thus the announcement from time to time of variations in the gold value of the dollar under the stabilised money standard and the absence of such an announcement under the tabular standard makes no difference in the processes involved in keeping the price-level stable. [...] After 1850 following the unexampled output of gold from the mines of Australia and California the gold price of silver rose and the market ratio between the two metals fell below the mint ratio and as a consequence gold the over-valued metal of the two was alone presented to mint in the bimetallist countries. [...] During the latter part of the 19th century forces gathered strength against bimetallism and by 1878 all the 7 The term mint ratio refers to the ratio between the weights of fine gold and fine silver contained in the gold and the silver coins of the same denomination produced at the mint.