It is a commodity subject to great fluctuations of value, and those fluctuations are easily produced

If gold were to supplant rupees only and not notes, and were to supplant them to so great an extent that sovereigns would tend to flow out of the currency at times of depression, there might be something to be said for it. Because, being a one-reserve system, it reduces the spare cash of the Money Market to a smaller amount than any other system, and so makes that market more delicate. In all years there are great changes; some houses rise a good deal and some fall. Gold which is thus transferred is said to be “ear–marked. As far as prosperity is based on a greater quantity of production, and that of the right articles–as far as it is based on the increased rapidity with which commodities of every kind reach those who want them–its basis is good. . But a sudden trade of import like the import of foreign corn after a bad harvestor (what is much less common, though there are cases of it) the cessation of any great export, causes a balance to become due, which must be paid in cash.

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