Ikiwa faida za kiwango cha dhahabu zingelinganishwa na kiwango cha fiat (sarafu ya karatasi) na viwango vingine, ingekuwa lazima kwamba kiwango cha sarafu cha dhahabu kingekuwa kiwango cha kimataifa. Faida hizi hazingeruhusu kiwango kingine chochote cha fedha kuanzishwa. Katika historia yote ya fedha na hadi Vita vya Kwanza vya Dunia, dunia nzima ilifanya kazi kwa viwango vya dhahabu na fedha. Hakuna viwango vingine vilivyojulikana duniani hadi wakati huo. Hata hivyo, wakoloni walipobobea katika mitindo mbalimbali ya ubeberu wa kiuchumi na kifedha, wakaanza kutumia sarafu kama njia ya ukoloni, wakaanzisha viwango tofauti vya fedha. Walizichukulia amana za benki na noti za benki zisizobadilishwa, ambazo hazikuwa na akiba ya dhahabu wala fedha, kuwa fedha, pamoja na dhahabu na fedha. Kwa hiyo, ni lazima kueleza faida za kiwango cha dhahabu, muhimu zaidi kati ya hizo ni:

If the benefits of the gold standard were to be compared with the fiat (paper currency) standard and other standards, it would be inevitable that the monetary gold standard would become a global standard. These benefits would not allow any other monetary standard to become established. Throughout the history of money and up until the First World War, the whole world operated the gold and silver standards. No other standards were known to the world until then. However, when the colonialists mastered the various styles of economic and financial imperialism, and began using currency as a means of colonialism, they established different monetary standards. They considered bank deposits and non exchangeable banknotes, which had no reserve of gold or silver, as money, along with gold and silver. Therefore, it is necessary to explain the benefits of the gold standard, the most important of which are:

1. Msingi wa dhahabu unalazimu mzunguko huru, uagizaji na usafirishaji wa dhahabu, jambo linalopelekea utulivu wa kifedha, wa fedha na wa kiuchumi. Katika hali hii, miamala ya kubadilishana fedha ingetokana tu na malipo ya kigeni ili kukidhi gharama za bidhaa na mishahara ya wafanyakazi.

1. The gold basis necessitates the free circulation, import and export of gold, which leads to monetary, financial and economic stability. In this case, transactions of exchange would only originate from foreign payments to meet the cost of commodities and the salaries of workers.

2. Kiwango cha dhahabu huhakikisha utulivu wa viwango vya ubadilishaji wa fedha kati ya nchi mbalimbali, na utulivu wa viwango vya ubadilishaji nao huleta ongezeko kubwa la biashara ya kimataifa, kwa kuwa wafanyabiashara hawangeogopa tena upanuzi wa biashara ya nje, wala kutokuwa na uhakika wa kuyumba kwa viwango vya ubadilishaji wa fedha.

2. The gold standard ensures the stability of exchange rates between various countries, and the stability of the exchange rates in turn leads to a boom in international trade, for traders would no longer fear the expansion of foreign trade, and the uncertainty of exchange rate instability.

3. Ikiwa kiwango cha dhahabu kingetumika, benki kuu na serikali zisingeweza kupanua utoaji wa noti za benki, kwa kuwa mradi noti hiyo isiweze kubadilishwa kuwa dhahabu kwa kiwango kilichowekwa, mamlaka husika zingeogopa kwamba zikizidi kiwango katika kutoa noti za benki, mahitaji ya dhahabu yangeongezeka nao zisingeweza kukidhi mahitaji hayo. Kwa hiyo, daima zingeelekea kudumisha uwiano wa busara kati ya kiasi wanachotoa kwa njia ya noti za benki na akiba ya dhahabu.

3. If the gold standard was employed, central banks and governments would not be able to expand the issuance of banknotes, for as long as the banknote remains non exchangeable with gold at a fixed rate, the authorities concerned would fear that if they exceeded limits in issuing banknotes, the demand for gold would increase and they would not be able to meet this demand. Therefore, they would always tend to maintain a reasonable ratio between what they issue in terms of banknotes and gold reserves.

4. Kila sarafu inayotumika duniani kote ingewekwa kwa kiasi maalum cha dhahabu. Matokeo yake, usafirishaji wa bidhaa, fedha na watu kutoka nchi moja hadi nyingine ungekuwa rahisi, na matatizo ya sarafu ngumu yangetoweka.

4. Each of the currencies used, all over the world would be fixed by a specific amount of gold. As a result, the movements of commodities, money and people from one country to another would be easier, and the problems of hard currency would disappear.

5. Kiwango cha dhahabu kingesaidia kila nchi kuhifadhi dhahabu yake, kwa kuwa hakungekuwa na magendo ya dhahabu kutoka nchi moja kwenda nyingine, na nchi zisingehitaji kutumia udhibiti ili kulinda utajiri wao, kwani dhahabu ingetoka nchini humo tu kwa sababu halali, yaani kama malipo ya bidhaa au mishahara ya wafanyakazi.

5. The gold standard would help each country preserve her gold, for there would be no gold smuggling from one country to another, and countries would not need to exercise control in order to protect their wealth, for gold would only leave the country for legitimate reasons i.e. as prices for commodities or salaries for workers.

Hizi ni baadhi ya faida za kiwango cha dhahabu, na zote hizi zinafanya iwe muhimu kwa dunia nzima kufanya kazi kwa kiwango hiki. Kwa hiyo, haishangazi kujua kwamba dunia nzima hadi Vita vya Kwanza vya Dunia ilikuwa kweli inafanya kazi kwa kiwango cha dhahabu.

These are some of the benefits of the gold standard, and they all make it necessary that the world operates this standard. Therefore, it comes as no surprise to learn that the whole world up until the First World War was indeed operating the gold standard.

Mwanzoni mwa Vita vya Kwanza vya Dunia, mfumo wa fedha uliokuwa ukitawala zaidi duniani ulikuwa ule uliojengwa juu ya kiwango cha dhahabu, na fedha zilizokuwa zikizunguka wakati huo zilikuwa kwa kweli sarafu za dhahabu na noti za karatasi ambazo zingeweza kubadilishwa kwa urahisi kwa thamani yake sawa ya dhahabu. Kiwango cha fedha pia kilifanya kazi pamoja na kiwango cha dhahabu. Utekelezaji wa kiwango hiki ulisababisha kuanzishwa kwa mahusiano ya kiuchumi yenye tija zaidi. Hata hivyo, Vita vya Kwanza vya Dunia vilipotangazwa mwaka 1914, nchi zilizokuwa vitani zilichukua hatua fulani zilizosababisha machafuko katika kiwango cha dhahabu. Baadhi ya nchi zilifuta wajibu wa kubadilisha sarafu zao kuwa dhahabu. Nchi nyingine ziliweka vizuizi vikali juu ya usafirishaji wa dhahabu nje ya nchi, nyingine nazo ziliweka vikwazo katika uingizaji wake. Hali hii iliendelea hadi mwaka 1971, Marekani ilipotangaza kwamba imekomesha utendaji wa kiwango cha dhahabu na kwamba ilikusudia kukata uhusiano kati ya dhahabu na dola. Tangu hapo, dhahabu haikuwa tena na uhusiano wowote na sarafu, bali ikawa kama bidhaa nyingine yoyote. Lengo la Marekani lilikuwa kuifanya dola kuwa msingi wa fedha duniani kote, ili iweze kudhibiti na kutawala soko la fedha la kimataifa. Kwa hiyo, kiwango cha dhahabu hakikufanya kazi tena duniani kote, jambo lililovuruga mfumo wa fedha, na viwango vya ubadilishaji wa fedha vikabadilika-badilika. Tangu wakati huo, vikwazo na matatizo katika uhamishaji wa sarafu, bidhaa na huduma vimejitokeza.

At the start of the first world war, the most prevailing monetary system in the world was that based on the gold standard, and money in circulation at the time was in fact gold coins and paper money readily exchangeable for their equivalent value in gold. The silver standard also operated alongside the gold standard. The implementation of this standard led to the establishment of the most productive economic relations. However, when the First World War was declared in 1914, the warring countries undertook certain measures which led to disorder in the gold standard. Some countries cancelled the liability of exchanging their currencies to gold. Other countries imposed harsh restrictions on the export of gold, while others put obstacles in the face of importing it. This continued until 1971 when America declared that she had put an end to the operation of the gold standard and that she intended to sever the link between gold and the dollar. Since then, gold has had no relation with the currency, but rather has become like any other commodity. America’s intention was to establish the dollar as the monetary basis world-wide so that it could control and dominate the international money market. Therefore, the gold standard no longer operated throughout the world and this disturbed the monetary system and the rates of exchange fluctuated. Since then, obstacles and difficulties in the transfer of currencies, goods and services have appeared.