fredjay Wrote:
Feb 16, 2013 1:49 PM
Gold, when we were on the gold standard, was RARELY used in everyday transactions: it was too valuable. If you walked into the corner grocery store with a gold Double Eagle ($20), to buy a pack of cigarettes (ten cents) or a pound of potatoes (a nickel), the grocer could not cash it. Even a gold Quarter Eagle ($2.50) would have strained him. Silver coins (our coins were made of silver in those days) did the trick and were used with $1 silver certificates (paper money convertible to silver at any bank) in almost every daily transaction.