Front Page Titles (by Subject) 14. Inconvertible Paper Money. - Money and the Mechanism of Exchange
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14. Inconvertible Paper Money. - 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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14. Inconvertible Paper Money.
Finally we come to the undisguised paper money issued by government and ordered to be received as legal tender. Such inconvertible paper notes have in all instances been put in circulation as convertible ones, or in the place of such, and they are always expressed in terms of money. The French mandats of 100 francs, for instance, bear the ambiguous phrase "Bon pour cent francs." The wretched scraps of paper which circulate in Buenos Ayres, are marked "Un Peso, Moneda Corriente," reminding one of the time when the peso was a heavy standard coin. After the promise of payment in coin is found to be illusory the notes still circulate, partly from habit, partly because the people must have some currency, and have no coin to use for the purpose, or if they have, carefully hoard it for profit or future use. There is plenty of evidence to prove that an inconvertible paper money, if carefully limited in quantity, can retain its full value. Such was the case with the Bank of England notes for several years after the suspension of specie payments in 1797, and such is the case with the present notes of the Bank of France.
The principal objections to an inconvertible paper currency are two in number.