The Gold Standard
Lisa Kuehn, Phillip Washburn, Breanna Sibley
The Gold Standard act of 1900
This act made the dollar worth 1/20.67 of an ounce of gold. People could exchange greenbacks, gold certificates, silver certificates, and national bank notes for gold at the Treasury.
- People feel more secure about their currency.
- It keeps paper currency scarce, because gold is a limited resource.
- Gold is a limited resource, therefore economic growth may slow.
- If a large number of people decide to convert their currency at the same time, it may drain the gold reserves.
DEATH OF THE GOLD STANDARD