VALUE OF NOTES 
Rl 
pound-note which it issued, or private individuals 
might have been so pleased with the picture of the 
Houses of Parliament on the back of the notes, or so 
patriotic, that every pound-note issued was promptly 
framed and hung on front parlour walls. Then no 
additional buying cf things would have taken place 
or been attempted in consequence of the issue. In 
the first of these two examples neither the British 
Government nor the people would have had a penny 
more to spend than Sefore : in the second the Govern- 
ment certain! - wou!’ have more to spend, but the 
people woul® have that much less, and the two 
together would have no more to spend than before. 
But this is for “rom usual. A great part of almost 
every issue and sometimes the whole of it goes to 
increase the aggregate amount of money which 
people anc ~ve-nment *ogether can and do spend 
on things =~ --rvices. The notes are exchanged 
for somethin "le issuers buy things and services 
with them ++ 1d or give them to others who do. 
They may . “~vunment, go through the farce 
of giving the~ = exchange for other money 
and then spending :hat other money instead of 
spending them directly, but however the process may 
be disguised, .: results in more money to spend and 
more money spent. The perfectly natural consequence 
is a rise of prices. Where the notes are convertible 
into coin and the coin is convertible into free bullion, 
this rise of prices will not include a rise in the price 
of bullion, since the value of the coin and bullion 
must stand on a level. The convertible notes cannot 
be issued in large enough quantities to cause a gap to 
appear betwen “heir value : ad that of the bullion 
to whic:  -- Coin Ther ee =r equal. 
For ex:r me cr nts free 
bullion, . ww... .. Le ole LLL us many 
convertible notes as: would bring iv the amount of 
x.