In A Gold Standard, How Are Interest Rates Set?

``Under a proper gold standard, the rate of interest is kept in a band that is not only narrow, but which is also stable over long periods of time.  This is the principle virtue of the gold standard.  It does not fix the level of prices, which would be neither possible nor desirable.  It keeps the rate of interest consistent, which serves the interests of wage earners, pensioners, and other savers, and of entrepreneurs whose work provides the goods, services, jobs, and interest payments that on which everyone else depends (and which they take for granted).''