1. Fifth Book: Of Money: 10. Of Paper Money.
- Author
-
Simonde de Sismondi, J.-C.-L.
- Subjects
BANK notes ,PAPER money ,MONEY ,FINANCE ,ECONOMICS - Abstract
This chapter of the fifth book of the New Principles of Political Economy, Of Money, discusses several aspects of paper money. What distinguishes paper money fundamentally from bank notes is that the circulation of the former is by fiat, while that of the latter is voluntary. All paper in forced circulation must be regarded as paper money, though it be cashed on demand, since such a payment is really illusory from the moment that the forced acceptance of such paper was seen as necessary, and it was declared by law as equivalent specie. Every new issue of paper money renders superfluous an equal quantity of specie, until all specie has been driven from the country. Furthermore, the circulation of paper money is always equivalent to a general bankruptcy.
- Published
- 1991