171. What are inconvertible notes? What objections are there to currency of this description?
172. Can an inconvertible currency be made to maintain the same value as a convertible currency, and, if so, how? Supposing that it can, what objections are there, nevertheless, to it?
173. “Nothing is subject to more variation than paper money, even when it is limited, and has no guarantees; for this simple reason, that, having no value of its own, it depends on the idea that each person forms of those guarantees.” Comment on this passage.
174. How is it that a bad dollar does the work of buying as well as a good one until it is found out? Is it that it makes no difference whether it is made of gold or not?
175. To what extent is a government capable of giving fictitious value to a paper or a metallic currency?
176. In a country with an inconvertible paper currency, how can it be determined whether the issues are excessive or not, and why?
177. What will be the effect if the circulating medium of a country is increased beyond its natural amount—
| (1) when the medium is coin? | |
|---|---|
| (2) when it is coin and convertible paper? | |
| (3) when it is inconvertible paper? |
178. What is the error involved in the assumption, frequently made by writers and public speakers, that the currency of a country ought to increase in like ratio with its wealth and population?
179. On what does the desire to use credit depend? What connection exists between the amount of notes and coin in circulation and the use of credit?