VALUE OF A LIMITED COIN 33 
First, what would have happened if at some period 
the demand had fallen off, and that faster than the 
coin is consumed by abrasion and loss? Suppose a 
plague which carried off half the population, or an 
ingenious improvement which led to the substitution 
of some system of making small payments without 
the use of coin. In that case some persons or institu- 
tions, probably the banks, would have found them- 
selves in possession of inconvenient amounts of silver 
and bronze coins more than they could pay out 
without annoying the persons with whom they did 
business. The probability is that they would insist 
on the Mint taking back some of the coins at the 
ratio at which thev vere issued, but if the Government 
obdurately refuc.c, 1c the falling off in demand 
was large and er: >!’ ‘5 continue, the coins would 
go to a discoun! .¢ “or .h~ sake of exchanging them 
for more convzni.©  17=~ neople would be willing 
to submit “a ~~m heir nominal value, and 
they would ~~ the more convenient 
gold coin - ~omething below the 
official ratic 
Secondly, suppose excessive supply. In order to 
placate some school of currency “heorists, or in order 
simply to make more profit, Government is not 
content with issuing silver hronze coins when 
they are asked for hv persons rc “y to pay the price, 
but proceeds t~ Hut nwch larger ~+rntities out by the 
device of ord~“+ Govern~ -~ wages and postal 
money-order~ : “~ ~*d entirely 
in silver. 
The same rec '*s wi" 
off of deme: : 
somew.1er¢ 
the Mii. 
discount. 
coinage v 
f~llow as in case of a falling 
“20 ~~ ° ailver coin 
CL .. ~d to 
TW, sh to a 
Ta. . dlicit 
he se .o effects 
- _ 
are Sh. 
. ~ 
TLE Conn