All state Quote by David Ricardo
![“Experience, however, shows that neither a state nor a bank ever have [sic] had the unrestricted power of issuing paper money without abusing that power; in all states, therefore, the issue of paper money ought to be under some check and control; and none seems so proper for that purpose as that of…” quote by David Ricardo](https://sms4smile.com/quotes/img-quotes/efc/david-ricardo-9461_all-state_experience-however-shows-that-neither-a_1285424.jpg)
“Experience, however, shows that neither a state nor a bank ever have [sic] had the unrestricted power of issuing paper money without abusing that power; in all states, therefore, the issue of paper money ought to be under some check and control; and none seems so proper for that purpose as that of subjecting the issuers of paper money to the obligation of paying their notes either in gold coin or bullion.”
About This Quote
Source Treat: Principles of Political Economy and Taxation, 1817
Unrestricted paper money issuance leads to abuse; a gold or bullion backing provides necessary restraint.
In simple terms: Paper money must be backed by gold to prevent abuse.
Key Takeaway
Require gold backing for paper currency.
Themes
economics
currency
government
policy
inflation
Mood
cautious
analytical
Type
economic
policy
When to use this quote
- central bank regulation
- currency issuance
- government budgeting
- inflation control
Key Concepts
monetary policy
fiduciary standards
financial stability
Questions to Reflect On
- How can modern economies balance gold backing with monetary policy needs?
- What alternatives exist to prevent currency abuse?
A Different Perspective
Gold backing may limit monetary flexibility in crises.
![“It is a [disputed] question, whether the circulation of paper, rather than of specie [gold and silver coin], is a good or an evil I believe it to be one of those cases where mercantile clamor will bear down reason, until it is corrected by ruin.” quote by Thomas Jefferson](https://sms4smile.com/quotes/img-quotes/8ed/thomas-jefferson-43_bears_it-is-a-disputed-question-whether-the-ci_2519938.jpg)
![“We were not foolish enough to try to make a currency [backed by] gold of which we had none, but for every mark that was issued we required the equivalent of a mark's worth of work done or goods produced ... we laugh at the time our national financiers held the view that the value of a currency is…” quote by Adolf Hitler](https://sms4smile.com/quotes/img-quotes/db1/adolf-hitler-253_currency_we-were-not-foolish-enough-to-try-to-mak_791068.jpg)
