34 
MONEY 
as additions made by the Mint, and where Govern- 
ment was very weak or inefficient, they might be on 
a sufficiently large scale to replace the usual Govern- 
ment supply and exceed the appropriate amount, 
with the same result of bringing down the value of 
the coin, and this would go on until the value became 
so low that it would not pay the illicit manufacturers 
to produce enough to bring it still lower. The 
actual danger from illicit coinage does not appear to 
be great, owing to the fact that coinage on a large 
scale cannot be concealed, and concealed coinage on 
a small scaleis not a very remunerative manufacture, 
even when the cost of the raw material is very small 
compared with that of the finished article. 
In fact the system has been perfectly successful, 
not only in this country, but wherever it has been 
tried. Some countries have made a slight improve- 
ment on the English system by making the silver 
coin redeemable or ‘‘ convertible ”’ at their mints or 
Government banks. This means that the Govern- 
ment is not only ready to sell the coin at the pre- 
scribed ratio, but is also ready to buy it back at that 
ratio. Thus the possibility of a falling off of demand 
is provided for, and no doubt that is desirable. In 
this country there is little doubt that in case of a 
considerable falling off of demand the Government 
would be compelled to take back enough of the coin 
to keep up its value,land the obligation might just 
as well be acknowledged at once. 
If the value of the metallic contents of a coin of 
this kind is not originally very much below the value 
fixed for the coin, the particular arrangement made 
will perish in the event of a considerable rise in the 
market price of the metal of which the coin is made. 
"1 This was written in 1918. From 1921 to 1924 large 
withdrawals were made at the expense of Mint profits and the 
Currency Note Account.