necessaries in exchange for his duebill, which called for five dollars. That duebill was practically his promise to expend effort in the service of the mill, to balance the efforts of others expended in producing the necessities provided him, and the manager accepted it in the belief that the laborer's effort to that value would be forthcoming. That duebill was returned to the laborer the next pay day as part of his wages, its purpose having been effected without the use of coin or bullion.
It will be perceived that the duebill, the representative of value in this instance, was accepted—
1. Because the acceptor believed in the ability of the issuer to produce desired result of human effort to the value called for by it.
2. Because the acceptor believed in the intention of the issuer to produce desired result of human effort to the value called for by it.
3. Because the value of the effort called for was definitely understood between the issuer and the acceptor, the unit of the measure of that value being one dollar, and the total measure of that value five dollars.
The duebill could not have been given general circulation, because not many people would have been confident that its value would be forthcoming. This lack of confidence may have proceeded from ignorance of the ability and intention of the issuer through lack of acquaintance with him, or from doubt in the minds of those acquainted with him as to his ability and intention. If, however, the promise of the laborer had been re-enforced by the promise of the manager that he would make its value good if the laborer did not, the duebill doubtless could have been given a certain circulation among those having knowledge of the manager's honesty and resources, and believing in the genuineness of his indorsement.
In other communities, however, among persons knowing neither the laborer nor the manager, circulation for the duebill could not have been expected. A representative of value, therefore, to have wide circulation, must be issued and assured from a source widely known to be able and honest in the intention to produce the value of effort to the amount for which it calls.
As it is by transition from the use of coin that paper representatives of value come into use, they are at first usually direct representatives of coin, and are generally accepted on the assurance that they can readily be exchanged for the amount of coin for which they call. This assurance is nearly always given by a government directly or indirectly. If it be required that gold, to the full value specified by circulating notes, be held as a basis for a paper currency, such a currency will never be adequate to supply
