Tuesday, March 31, 2009
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The Note Transformation
At each country's past notes, there was a certificate that the note could have been traded with a respective quantity of gold or silver which was kept at the national treasury of the country.
As an example, the past American one dollar note.
In his upper side it has been declared; "This certifies that there has been deposited in the treasury of the United States of America". In his lower side it has been also declared; "Pay to the carrier on demand". Moreover the value of the note had been declared as "One Silver Dollar".
These declarations explain that anyone who possessed the particular note was able to go to the bank and demand a trade with its respective value in silver. However the modern dollar note declares ONLY; "This note is legal tender for all debts, public and private".
The actual meaning of this change in the notes is that gold and silver are kept locked in the treasuries and people are given instead inflationary valueless piece of paper.
As an example, the past American one dollar note.
In his upper side it has been declared; "This certifies that there has been deposited in the treasury of the United States of America". In his lower side it has been also declared; "Pay to the carrier on demand". Moreover the value of the note had been declared as "One Silver Dollar".
These declarations explain that anyone who possessed the particular note was able to go to the bank and demand a trade with its respective value in silver. However the modern dollar note declares ONLY; "This note is legal tender for all debts, public and private".
