reated in the next chapter. An irredeemable paper
money may be, for a time, the standard money.]

[Footnote 2: The faith _(fides)_ is not always that the issuer of the
money (whether it be a bank or the government) will redeem the money
on demand at any future time; for fiduciary money may circulate while
irredeemable, that is, either carrying no promise of redemption in the
standard money or in fact not being redeemed. Yet undoubtedly actual
redemption on demand or a good prospect of future redemption is one
of the circumstances stimulating the faith and the readiness of each
person in turn to receive fiduciary money.]

[Footnote 3: In the broad sense as above defined, ch. 3, sec. 10.]

[Footnote 4: See next section on worn coins.]

[Footnote 5: Receipts and Expenditures of Mint Service in 1914:]

[Footnote 6: It makes no difference what may be deemed the cause of
their acceptance; whether it be habit, public opinion in business
circles, or the act of law making them a legal tender; the essential
thing is that they continue to be accepted as money.]

[Footnote 7: In this and following numerical examples no account is
taken of the possibility that the standard metal may depreciate in the
world market in terms of all other goods as a result of its diminished
use as money in one or more countries. This properly belongs in a
complete theoretical treatment of the subject.]

[Footnote 8: See "Modern Currency Reforms" (1916), by E.W. Kemmerer,
professor of Economics and Finance in Princeton University, for a
detailed treatment of this remarkable series of monetary changes,
probably unequaled in instructiveness to the student of monetary
theory.]

CHAPTER 6

THE STANDARD OF DEFERRED PAYMENTS

Sec. 1. Relative positions of gold and silver; historical. Sec. 2. Gold
production, first half of nineteenth century. Sec. 3. Concept of the general
price level. Sec. 4. Index numbers. Sec. 5. Gold production and monetary
legislation, 1850 to 1879. Sec. 6. Definition of the standard of deferred
payments. Sec. 7. Increasing importance of the standard. Sec. 8. Fluctuating
standard and the interest-rate. Sec. 9. Notable changes in prices.
Sec. 10. Nature and object of bimetallism. Sec. 11. The movement for
national bimetallism in America. Sec. 12. Rising prices after 1896. Sec. 13.
Defectiveness of the gold standard. Sec. 14. Various ideal standards
suggested. Sec. 15. The tabular standard.

Sec. 1. #