Front Page Titles (by Subject) 11. The Gold Par Method. - Money and the Mechanism of Exchange
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11. The Gold Par Method. - William Stanley Jevons, Money and the Mechanism of Exchange 
Money and the Mechanism of Exchange (New York: D. Appleton and Co. 1876).
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11. The Gold Par Method.
Assuming an inconvertible paper currency to be issued, and to be entirely in the hands of government, many of the evils of such a system might be avoided if the issue were limited or reduced the moment that the price of gold in paper rose above par. As long as the notes and the gold coins which they pretend to represent circulate on a footing of equality, they are as good as if convertible. Since the beginning of the Franco-Prussian war, the Bank of France appears to have acted successfully on this principle, and the inconvertible notes were never depreciated more than about ½ or 1 per cent. in spite of the vast political and financial troubles of France. But this is one of the very few cases in which inconvertible paper currency has not been seriously depreciated. During the restriction of specie payments in England, gold was bought and sold at a premium varying up to 25 per cent., yet Fox, Vansittart, and other leading men of the time, declared it to be absurd to suppose that paper was depreciated. So unaccountable are the prejudices of men on the subject of currency that it is not well to leave anything to discretionary management.