THE  FUTURE

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paper  money  only  to  the  extent  and  for  the  duration
of  its  extraordinary  requirements  and  thereafter  exercise ­
  the  same  economy  in  expenditure  that  it  would
have  practiced  under  a  system  of  taxation  or  funding, ­
  the  expedient  would  be  ideal  in  its  simplicity  and
economy.  If  the  amount  so  issued  even  though  for
legitimate  purpose  were  so  large  as  to  cause  inflation ­
  and  high  prices  there  would  result  social  injustice, ­
  and  this  consideration  in  itself  might  be
enough  to  disqualify  the  whole  procedure.  But  in
so  far  as  the  Treasury  is  concerned  —  until  such
time  as  the  public  expenditure  had  felt  the  full  effect
of  inflated  prices  —  fiat  money  would  be  an  ideally
easy  and  painless  mode  of  supplying  the  exchequer.
As  a  matter  of  fact,  however,  demand  notes  if  not
utterly  discredited,  at  least  rest  under  the  gravest
doubt  as  a  fiscal  expedient  by  reason  of  the  great
likelihood,  attested  by  the  experience  of  state  after
state  that  has  lapsed  into  their  use,  that  once  resort
has  been  had  thereto  all  the  old  canons  of  economy
and  prudence  are  gradually  weakened  and  the  Treasury ­
  drifts  insensibly  into  a  course  of  unchecked  and
wasteful  expenditure.  Issue  succeeds  issue;  there
develops  unwillingness  to  resort  to  taxation  or  funding ­
  and  the  descent  to  inflation  and  depreciation  becomes ­
  swift  and  easy.  ~
Theoretically,  however,  there  need  be  no  such
lapse.  A  state  might  issue  demand  notes  within
strictly  defined  and  inviolably  maintained  limits,
might  exercise  the  most  rigid  economy  in  the  disbursement ­
  of  the  funds  so  provided,  and  might
within  a  reasonable  season  liquidate  such  issues  from
out  the  proceeds  of  loans  or  taxes.  The  historic