2. Show the difference between convertible and inconvertible money.
3. The government of the island of Guernsey having no money, issued paper-notes to pay for the building of a market. They circulated and were gradually taken up as the market earned its cost, during ten years. When they were all redeemed and burned, the island had the market free of cost. Explain how this could be done. (This is from Sumner's Problems in Political Economy.)
Chapter 47. The Standard of Deferred Payments
1. If every piece of money should miraculously be doubled in a night, whose interests would be affected?
2. Is the fact of one man's gain and another man's loss by chance of any economic or political importance?
3. What gives rise to the belief sometimes held that money is an invariable standard of value?
4. Is there anything in the nature of mining that keeps the ratio of the supply of gold and silver nearly uniform?
5. Is the value of gold and silver due to the action of government?
6. Does the principle of the substitution of goods have any bearing on the value of metals under bimetallism?
7. Note carefully, and indicate the different meanings of bimetallism; of demonetization.