This work may have little direct effect in bringing about an improvement in our money system, but it is the hope of the writer that it may have at least an indirect effect by helping to spread a better knowledge of the requirements of such a system and of the principles involved. Much of the current discussion of the subject of money betrays ignorance of those fundamental principles of the science which are agreed upon by all economists, if it does not wholly disregard them. I have endeavoured in this work to avoid such errors by a painstaking analysis of the subject, and by a careful comparison of the opinions of authorities on the principles involved. Starting from this foundation I have deduced the requirements for an honest money, shown the faults of our present system in the light of these requirements, as well as the merits and defects of various changes that have been proposed for its betterment, and, in conclusion, have outlined a system that seems to meet the requirements and to correct existing faults. I desire to acknowledge my indebtedness, not only to the many works mentioned and quoted from herein, but to others, neither mentioned nor quoted, which have been of material assistance in corroborating the opinions I have ventured to advance. A. I. F. DENVER, COLO. CONTENTS. CHAPTER I. PAGE VALUE AND THE STANDARD OF VALUE 1 Definition of Value 1 Supply and Demand 8 The Standard of Value 12 CHAPTER II. MONEY 21 Definition of Money 21 The Functions and Requirements of Money 25 Money Value 29 Money Demand and Supply 36 Necessity for Invariable Money Value 40 CHAPTER III. EXISTING MONETARY SYSTEMS 51 The Gold Standard 54 Gresham's Law 57 The Silver Standard 65 Bi-metallism 67 Paper Money 71 CHAPTER IV. STABILITY OF GOLD AND SILVER VALUES 81 Gold-Standard Prices 81 Silver-Standard Prices 94 CHAPTER V. CRITICISM OF SOME GOLD-STANDARD ARGUMENTS 98 CHAPTER VI. FOREIGN COMMERCE 112 CHAPTER VII. MONEY IN THE UNITED STATES 125 CHAPTER VIII. SOME PROPOSED CHANGES IN OUR MONEY SYSTEM 137 CHAPTER IX.