From: joshua geller <joshua@cae.retix.com>
Date: Thu, 5 May 94 05:41:39 PDT
To: sandfort@crl.com
Subject: Re: The Value of Money
Message-ID: <199405051241.FAA06726@sleepy.retix.com>
MIME-Version: 1.0
Content-Type: text/plain



> The idea is to create a unit of currency whose value is convenient for 
> typical transactions.  Some amount that is easily grasped by the average 
> person.  Originally the US dollar was 1/20th of an ounce of gold.  That 
> amount of gold, today, has the buying power of US$18, or so.  A bag of 
> groceries more or less.  The amount of gold determines the total value of 
> the money supply, but the number of people and transactions in which it 
> must take part determines the number and denomination of bills and coins 
> to be printed and minted.

in 1875 you could get a colt .45 for a $20 gold piece. you still can.

I am sort of confused by all these folks talking about precious metals
as if they still have something directly to do with currency. I thought
they hadn't for some decades.

josh