The Functions of Money; a Handbook Dealing With the Subject in Its Practical, Theoretical, And Historical Aspects

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For a remarkable example of history repeating itself, however, the following account of the position in Morocco received by the author while these pages were being prepared, is illuminating. The silver money in Morocco had been withdrawn from circulation and in its stead paper notes issued, with the result that the dependence of the people on paper money subject to the extraordinary and, so far as the business man is concerned, inexplicable rises and falls in value, had a demoralizing effect. A
... Morocco paper said^ " With no certainty of what the value of the paper might be to-morrow it seems useless to calculate cost with old-time precision, and prices payable in paper have in many cases been given that would scarcely have been reached if payment had to be made in something of approxi- mately stable value. Under existing conditions business has become so much of a gamble that it has attracted many without the means or experience to carry it on in ordinary times, and on these have fallen with special weight the lack of demand and fears of falling prices which have had such a disturbing effect in Morocco.

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