Yup, a gold standard is bad news. From the transcript of Bill Still's "The Money Masters" film:
For those who believe that a gold standard is the answer for America's current monetary problems, look what happened to
America after the Currency Act of 1764 was passed. Writing in his autobiography, Franklin said:
"In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that
the streets of the Colonies were filled with unemployed."
Franklin claims that this was even the basic cause for the American Revolution. As Franklin put it in his autobiography:
"The Colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the
Colonies their money, which created unemployment and dissatisfaction."
Ben Franklin claimed that this was the real cause of the American Revolution. Most of the founding
fathers realized the potential dangers of banking, and feared bankers' accumulation of wealth and power. Jefferson put it this
"I sincerely believe that banking institutions are more dangerous to our liberties than standing armies. Already they have
raised up a money aristocracy that has set the government at defiance. The issuing power should be taken from the banks
and restored to the people to whom it properly belongs. "
Benjamin Franklin was a big supporter of the colonies printing their own money. In 1757, Franklin was sent to London to fight
for colonial paper money. He ended up staying for the next 18 years - nearly until the start of the American Revolution.
During this period, ignoring Parliament, more American colonies began to issue their own money.
Called Colonial Scrip, the endeavor was successful, with notable exceptions. It provided a reliable medium of exchange, and it
also helped to provide a feeling of unity between the colonies. Remember, most Colonial Scrip was just paper money - debt-
free money - printed in the public interest and not really backed by gold or silver coin. In other words, it was a fiat currency.
Officials of the Bank of England asked Franklin how he would account for the new-found prosperity of the colonies. Without
hesitation he replied:
"That is simple. In the colonies we issue our own money. It is called Colonial Scrip. We issue it in proper proportion to the
demands of trade and industry to make the products pass easily from the producers to the consumers... In this manner,
creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one."
https://archive.org/stream/TheMoneyMast ... s_djvu.txt
The film https://www.youtube.com/watch?v=YFDKr9SnTBg