Gold Standard Dbq

Returning to the Gold Standard: A Smart Move? The Gold Standard, formally instituted in the United States in 1834, was a way to secure the prices of domestic currency in terms of a tangible, valuable commodity–gold. With a single ounce worth $20.67 ($384.35 in today’s money), people freely converted their earnings into gold and vise versa. Originally on a bimetallic system, that is a silver and gold standard, the United States followed the British in their transition to a strictly gold standard. During this time, a great number of countries adopted this system to varying degrees, leading to a groundbreaking period of free trade and economic growth. This period was limited, however, and was dismantled during World War II due to aggressive inflation.