Page:Coin's Financial School.djvu/94

 76 "Silver and gold would be treated as any other merchandise, and would be purchased at their market value, and exported to other countries, where they might be used as money, or for use in this or other countries in the arts and sciences."

"Then," said Mr. Ridgeley, "what objection is there to such a system?"

"The objection which is urged," said "is this: So long as there was confidence in the government, it would be a sound, stable money. But so soon as confidence in the government was shaken it would depreciate in exchangeable value.

When the danger became imminent that the government was not able to enforce its legal tender character, having no commercial value, it would become more or less worthless.

"The paper or substance out of which it is made, would have no exchangeable value, unlike money made from a valuable commodity; when much disturbed a lack of confidence it would in value; and if the government went down it would be entirely worthless.

"Money with a commercial value makes a medium of exchange with the balance of the world, and facilitates our trade."

"But," said Mr. Ridgeley, who was still standing: "Isn't it a fact, that when war, and great disturbances come, that redemption money disappears, and paper money takes its place anyhow? So are not the