Page:Tales in Political Economy by Millicent Garrett Fawcett.djvu/86

 possessor of the note), form virtual additions to the currency; and if they were withdrawn or ceased to be used, one of two things would happen: either prices would decline, or an addition of gold and silver would have to be made to the currency, equal in exchange power to the forms of credit withdrawn from circulation.

The changes introduced into Isle Pleasant through the use of money and credit in carrying on exchanges were very important. Division of labour prevailed much more completely than before. The risk, in the days of barter, of not being able to get immediately the things that you wanted in exchange for the things you were willing to dispose of, was so great that people did not like to be entirely dependent for their supplies of food, for instance, on the labour of others. Hence, nearly everyone, no matter what his or her regular occupation was, devoted some time to the cultivation of food stuffs. But when the use of money became general this was no longer necessary; everybody sold the product of his or her industry for money, and