204 POPULAR SCIENCE MONTHLY. 



necessaries in exchange for his duebill, which called for five 

 dollars. That duebill was practically his promise to expend 

 effort in the service of the mill, to balance the efforts of others 

 expended in producing the necessities provided him, and the 

 manager accepted it in the belief that the laborer's effort to that 

 value would be forthcoming. That duebill was returned to the 

 laborer the next pay day as part of his wages, its purpose having 

 been effected without the use of coin or bullion. 



It will be perceived that the duebill, the representative of 

 value in this instance, was accepted — 



1. Because the acceptor believed in the ability of the issuer 

 to produce desired result of human effort to the value called for 

 by it. 



2. Because the acceptor believed in the intention of the issuer 

 to produce desired result of human effort to the value called for 

 by it. 



3. Because the value of the effort called for was definitely 

 understood between the issuer and the acceptor, the unit of the 

 measure of that value being one dollar, and the total measure of 

 that value five dollars. 



The duebill could not have been given general circulation, 

 because not many people would have been confident that its 

 value would be forthcoming. This lack of confidence may 

 have proceeded from ignorance of the ability and intention 

 of the issuer through lack of acquaintance with him, or from 

 doubt in the minds of those acquainted with him as to his ability 

 and intention. If, however, the promise of the laborer had been 

 re-enforced by the promise of the manager that he would make its 

 value good if the laborer did not, the duebill doubtless could 

 have been given a certain circulation among those having knowl- 

 edge of the manager's honesty and resources, and believing in the 

 genuineness of his indorsement. 



In other communities, however, among persons knowing 

 neither the laborer nor the manager, circulation for the duebill 

 could not have been expected. A representative of value, there- 

 fore, to have wide circulation, must be issued and assured from a 

 source widely known to be able and honest in the intention to 

 produce the value of effort to the amount for which it calls. 



As it is by transition from the use of coin that paper repre- 

 sentatives of value come into use, they are at first usually direct 

 representatives of coin, and are generally accepted on the assur- 

 ance that they can readily be exchanged for the amount of coin 

 for which they call. This assurance is nearly always given by a 

 government directly or indirectly. If it be required that gold, to 

 the full value specified by circulating notes, be held as a basis for 

 a paper currency, such a currency will never be adequate to supply 



