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The Pamphlet Collection of Sir Robert Stout: Volume 73

What is it to be?

What is it to be?

There may be risk of a country being flooded with paper money, based on property, for domestic circulation, if it be issued foolishly—that is to say, without security, or against inadequate security; but that is an avoidable risk, and there are complete checks if the issue is under Government control and management. No such checks can be applied to gold because of its fluctuating value, as no Government on earth can control or regulate value—in other words, supply and demand.

Sir John Lubbock, a distinguished Banker, in his work on Money, says:—

It may be doubted whether any system of convertible paper currency can be devised, consistent with profits to the issuers, which is not exposed in extreme cases to the danger of suspension; and when this danger is apprehended, all attempts fail to estimate the injury which the country suffers.

Before proceeding further, it is necessary I should ask your attention to the distinction between