Commission Votes Against Revival Of Gold Standard: Return to Gold Standard Is Voted Down
After seven months of deliberation, the federal Gold Commission tentatively voted yesterday against a return to the gold standard, a move some of President ReaganÛªs supply-side supporters insist is the only way to bring down interest rates and inflation.</br></br>The commission's preliminary vote came just days after the Reagan administration, in the presidentÛªs economic report to Congress, said ÛÏThe evidence does not suggest that [the gold standard| achieved greater stability in price levels or growth." Most economists oppose a return to a gold-backed dollar.</br></br>However, the commission did agree tentatively that Congress and the Federal Reserve should study the merits of some kind of money ruleÛÓalbeit	not	gold-linkedÛÓin</br></br>It also voted in favor of creating a new gold coinÛÓperhaps called an American RagleÛÓto be sold by the Treasury Department at a small markup over the gold price.</br></br>The commission, in its draft proposal, recommended that the gold coin be exempt from capital gains tax and sales taxes, but not be legal tender and have no dollar denomination.