Gold standard. Technically, the gold standard exists where it is by law enacted that gold shall be
the measure of value. Practically, gold is the universal measure of value, for in countries where a
double standard of value prevails by law silver coinage is limited and silver is used in the capacity
of representative money. It is a legal tender for debts, but does not pass current at its bullion
value, being sustained at par with gold by the limitation on its use and the fiat of the government
which coins it. In silver standard countries domestic trade is based on silver at its bullion value, but
that value in turn is based on the outside commerce of the country which is estimated in gold. So,
it may be said that gold is the standard of the world, having been adopted as such by law as well
as by custom in all the leading commercial nations and being accepted in fact by every other
country.