BOOK THE SECOND. OF THE LAWS WHICH REGULATE A MIXED CURRENCY COMPOSED OF THE PRECIOUS METALS, AND OF PAPER CONVERTIBLE INTO COIN ON DEMAND.

IN the former part of this work I pointed out the principles by which a currency composed entirely of the precious metals is regulated. I come now to speak of the laws which regulate a currency composed of coin and convertible paper, and here I wish it to be distinctly understood, that by convertible paper, I mean notes issued by banks, payable to bearer in coin on demand. Paper money issued by governments, like the paper of the North American colonies before the revolution, or like the continental money of a subsequent period, or like the assignats of France, or the actual paper money of some of the nations of Europe, not being payable in coin by the issuers at the pleasure of the holder, belongs to another category, and is governed by laws peculiar to itself.