Front Page Titles (by Subject) Representative Money. - Money and the Mechanism of Exchange
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Representative 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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Metallic money, as we have seen, immensely facilitates and, so to speak, lubricates the operation of exchange. But nations employing gold and silver money have usually discovered, in the course of time, that tokens of small metallic value, or even pieces of leather and paper of nominal value, might be passed from hand to hand as signs of the ownership of coins. That which replaces gold, or silver, or copper money, is at first of a purely representative character. But, when a community has become thoroughly habituated to the circulation of a currency of this character, it is often found possible to remove the basis of valuable metal, which it is supposed to represent, and yet to maintain the valueless bits of leather or paper in circulation as before. Thus arises the abnormal phenomenon known as an inconvertible paper money. Such a currency is, however, never accepted beyond the frontiers of the state recognizing it.
Merchants conducting large international transactions soon found out that great loss of interest and risk of loss of the whole money would arise, if they were to trade with actual specie. Hence they introduced the use, many centuries since, of bills of exchange, which are signs or certificates of debt, passed from hand to hand almost like representative money, and often accomplishing many acts of exchange by a single transfer of specie.