Serikali ingekuwa inafuata kiwango cha dhahabu (gold standard) endapo ingetumia sarafu ya dhahabu katika miamala yake ya ndani na ya nje, au endapo ingetumia ndani ya nchi noti ya karatasi ambayo inaweza kubadilishwa kuwa dhahabu. Noti hiyo ya karatasi inaweza kuwa kwa matumizi ya ndani na kwa kulipa nje ya nchi, au kwa kulipa nje ya nchi pekee, kwa sharti kwamba ubadilishaji huo uwe na bei maalum isiyobadilika. Kwa maneno mengine, serikali bado ingekuwa inafuata kiwango cha dhahabu kwa sharti kwamba kitengo cha karatasi kinaweza kubadilishwa kwa kiasi maalum cha dhahabu, kwa bei isiyobadilika, na kinyume chake. Katika hali hii, ingekuwa jambo la kawaida kwa thamani ya sarafu ya nchi kubaki imefungamana kwa nguvu na thamani ya dhahabu. Kwa hiyo, endapo thamani ya dhahabu ingepanda ikilinganishwa na bidhaa nyingine, thamani ya sarafu ikilinganishwa na bidhaa nyingine nayo ingepanda. Endapo thamani ya bidhaa ingepungua ikilinganishwa na bidhaa nyingine, thamani ya sarafu nayo ingepungua.

A State would be following the gold standard if it used gold currency in its foreign and domestic transactions, or if it used domestically a paper money which could be exchanged for gold. This paper money could either be for domestic use and for making payments abroad or solely for making payments abroad, on condition that this exchange for has a fixed price. In other words, it would still be following the gold standard on condition that the paper unit can be exchanged for a specific quantity of gold, at a fixed price and vice-versa. It would be natural in this case for the value of the currency in the country to remain solidly linked to the value of gold. Therefore, if the value of gold rose in comparison with other commodities, the value of the currency in comparison with other commodities would rise as well. If the value of goods decreased in comparison with commodities, the value of the currency would also decrease.

Pesa zenye msingi wa dhahabu zina sifa maalum, inayodhihirika katika ukweli kwamba kitengo cha fedha kimeunganishwa na dhahabu kwa kiasi maalum. Kwa maneno mengine, kwa mujibu wa sheria, kingekuwa na uzito maalum wa dhahabu. Uingizaji na usafirishaji wa dhahabu ungefanyika kwa uhuru, na watu wangeweza kununua kwa uhuru sarafu, dhahabu ya baa, au vumbi la dhahabu, na kuweza kuvisafirisha nje ya nchi.

Money based on gold has a special characteristic, reflected in the fact that the monetary unit is linked to gold in a specific amount. In other words it would, by law, consist of a specific weight of gold. The import and export of gold would be freely conducted, and people would be able to freely acquire currencies, gold bullion, or gold dust and be able to export them.

Kwa kuwa dhahabu katika hali hii ingeweza kuhama kwa uhuru kati ya nchi mbalimbali, kila mtu ana chaguo la kununua sarafu ya kigeni, au kuhamisha dhahabu (yaani kulipa kwa dhahabu); lakini mtu atachagua njia iliyo nafuu zaidi. Hivyo, kwa kuwa gharama ya dhahabu pamoja na gharama ya kuihamisha ingekuwa kubwa kuliko bei ya sarafu za kigeni sokoni, basi itakuwa busara kutumia sarafu ya kigeni badala yake. Hata hivyo, iwapo kiwango cha ubadilishaji kitazidi takwimu hiyo, itakuwa bora kuiondoa dhahabu katika mzunguko na kulipa kwa dhahabu hiyo.

Since gold in this instance would move freely between various countries, every person has the choice of either buying foreign currency, or transferring (i.e. settling in) gold; a person would however opt for the cheaper method. Therefore, since gold and the cost of its transfer would cost more than the price of the foreign currencies in the market, it would then be sensible to use foreign currency instead. However, if the exchange rate exceed that figure, it would be best to take the gold out of circulation and settle with it.