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law of chance, only understood by bankers) present them at any one 

 time for redemption, or, in other words, to be exchanged for coin. 



In the first place, the system does not fulfill the requirements of 

 principle No. i, for all the gold and silver in the world is not adequate 

 to represent the balance of wealth, and would still remain without a 

 representative itself. For example, suppose the demand for money to 

 be such as to induce all owners of buildings to seek money by mort- 

 gaging the said property, it is evident the amount would not be suffi- 

 cient. But suppose the circulating medium to be increased by the is- 

 sue of more bank bills, securing the same by depositmg the mort. 

 gages. Each additional issue would render it more and more difficult 

 for the bank to "redeem on demand," until finally it would be an im- 

 possibility to meet even the ordinary demands upon the bank for coin. 



In the second place, such money is not a representative of 

 wealth, but to the extent of the metals used, it is wealth itself, and 

 therefore cannot fulfill the requirements of principle No. 2. 



In the third place, the system does not fulfill the requirements of 

 of principle No. 3, for aside from the notorious fact that the history of 

 such banks is a history of failures, these banks promise to do what 

 their managers know is an impossibility, for the history of banking 

 shows that no bank could ever redeem all its notes on demand at any 

 one time, having issued at least three dollars in paper to every silver 

 or gold dollar on deposit. Again, such banks do not afford that 

 security demanded by our principle No. 3. from the fact that the only 

 "security" is in the hands of the bankers themselves. 



It is evident from the foregoing that the specie basis system of 

 money is unscientific. It does not possess any of the qualities 

 demanded by monetary science*. 



GREr-:NI!ACKS. 



We will now consider the paper money known as the "green- 

 back." Clreenbacks are notes issued by the United States govern- 

 ment. They are promises to pay. When first issued the government 

 made the duties on imports jjayable in gold only. This action on 

 the part of the issuer of the greenback very naturally caused a premium 

 to be demanded for gold. There being a steady demand for it and 

 the supply limited and controlled, like any other comiuodity, its price 

 advanced, and the purchasing power of the greenback corre- 



