VALUE OF NOTES 
43 
commonly called, is not essential in order to make 
notes circulate is shown by the fact that notes which 
the issuers will not in fact redeem and which are 
therefore called *“ inconvertible ”” notes will circulate, 
and an inquiry for the cause of their circulation 
shows it to be a demand, although often what is 
called “an artificially created demand,” for notes. 
In order to be able to put convertible notes into 
circulation an individual, or company of individuals, 
must have a considerable reputation for solvency. 
Notes not payable on demand but only payable at 
some future date without interest will not be accepted 
even from a solvent person or institution at their face 
value, and if issued at a discount so that they bring 
interest, they will not pass from hand to hand like 
coin and ordinar - notes, because the discount at 
which they must be taken is always diminishing. 
Notes not bearing interest and not payable either on 
demand or at anv “-*ure time, if offered by an indivi- 
dual or comr:—~ . +*he most undoubted solvency 
as somethin~ ne~ 1d fresh, would only be laughed 
at. 
But when notes have got into circulation as con- 
vertible notes and people have become thoroughly 
accustomed to accept them and to find them accept- 
able by others, their convertibility may sometimes 
be taken away without destroying this general 
acceptability of the notes and the consequent demand 
for them. Of course, if the public receive a rude 
shock by being told that such and such a bank is 
insolvent and its assets will not be sufficient to pay 
its notes in full, the notes will cease to be acceptable. 
But some less Jisquieting explanation may be given 
for “ thecuc--  -- cf convertibility. If the Bank 
of Engl. . . A -aken pains to make it known 
all over tie cuunury that it could not continue to pay 
geld cein for its notes on account of the insufficiency