THE NOTION OF MONEY 179 
international standard in the same way as gold, since 
the latter only plays the part of an international currency 
because it is convertible in a large number of countries 
at a constant rate into legal tender currency. 
These theoretical considerations do not prevent us 
from recognising all the practical difficulties and dangers 
of an international fiduciary currency, nor the advantages 
of a metal currency, which no doubt has become, by tacit 
but almost universal agreement, by far the most important 
international instrument of exchange owing to its physical 
properties, its possible commercial value, and the circum- 
stance that it can only be put into circulation in limited 
quantities.l 
coinage under conditions which are different from those governing 
commodities, so that the “commodity” basis has become theoretically 
superfluous. The only function of gold in the future is to maintain a fixed 
exchange ratio between different monetary units, a ratio which might 
be obtained as easily by establishing direct convertibility at the same rate 
between one paper currency and another, or by substituting a universal 
currency for such national currencies. 
! The ideas developed in this chapter are the direct result of an inquiry 
by the same author entitled “L’expérience bimétalliste du XIXe siecle et 
la théorie de la monnaie,” published in 1908 in the Revue &’ économie 
politique, several passages of which have been reproduced here. The author 
thought that at that time it was right to mention, for purposes of com- 
parison, G. F. Knapp’s “Staatliche Theorie des Geldes,” which he had 
only read when correcting the proofs of the above-mentioned article. It is 
for the reader to compare the theories set forth in the author’s works with 
others which are more or less similar, but he will observe that the 
theoretical considerations here presented are the result of all the author’s 
previous work.