Gold Standard

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Thomas J. DiLorenzo

The Gold Standard Act of 1890, which officially established the gold standard in America, was the culmination of a twenty-year battle between inflationists, who favored unlimited government purchase of silver (the "Free Silver" movement), and the advocates of sound money based on the gold standard. The inflationists were led by Senator John Sherman, author of the 1890 Sherman Silver Purchase Act (as well as the monopolistic Sherman Antitrust Act), brother of Gen. William Tecumseh Sherman.

Murray N. Rothbard

Mises demonstrated, as early as 1912, that no good can become a medium of exchange, much less a money, unless it has a previous non-monetary usefulness on the market. In short, money can only emerge as a commodity on the market, and cannot be imposed by the government, by social contract, or by various schemes of economists or other observers. Such plans have elsewhere been labeled correctly by Hayek himself as "constructivist." In short, media of exchange and therefore money can only arise "organically" out of market processes and cannot be imposed by outside schemers.

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