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To: JF Quinnelly who wrote (122)	3/30/2001 12:41:36 AM
From: Ilaine	Read Replies (1) \| Respond to of 443

It seems like you are saying "credit money" as if it's not money. Adam Smith thought it was, if the collateral for the loans were good. At $20.67 an ounce, there wasn't enough gold in 1929-1930 for every dollar to be 100% backed. You can see it in the New York Times - every time a big shipment of gold had to be sent from one country to another, the stock market crumbled and the call money interest rates went up. If it's not 100% backed then what sustains it during a bank panic is faith. I still haven't started reading Friedman & Schwartz - but they seem to be antithetical to the Austrians when it comes to the gold standard. But fixing the price of gold to $20.67 seems really dumb.