In 1875, the British economist William Stanley Jevons described the money made use of at enough time as "consultant money". Consultant money is money that contains token coins, paper money or other Actual physical tokens like certificates, that could be reliably exchanged for a set amount of the commodity which include gold or silver.
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The printing of paper money was also related to wars, and funding of wars, and thus thought to be Component of maintaining a standing army. For these factors, paper currency was held in suspicion and hostility in Europe and The us. It had been also addictive Considering that the speculative profits of trade and money development were pretty large. Big nations founded mints to print money and mint cash, and branches of their treasury to collect taxes and maintain gold and silver stock.
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Some places do manage two or even more currencies, especially in border cities or substantial-travel locations. Shops in these locations might record price ranges and acknowledge payment in numerous currencies.
Governments at this point could use currency as an instrument of policy, printing paper currency for example The us greenback, to pay for navy expenses. They may also established the terms at which they'd redeem notes for specie, by restricting the level of acquire, or even the minimum amount that may be redeemed.
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