business of such banks. It admits the notes of the banks into the State currency only on the condition that they are convertible, which in the last resort means convertible into valuta money. There is no danger that bank-notes, when they have become and continue to be accessory money, will be piled up in the coffers of the State. The State will present for conversion at the place of issue all the pieces it considers superfluous, and will be sure to get valuta money for them. Such notes do not drive the valuta money out of the coffers of the State. Hence the State can, without hesitation, accept the notes of such banks at its own pay-offices; it secures itself against a “piling up” by imposing on the banks the duty to convert. But, if the banks should nob be in a position to do this, the watchful State would observe the coming danger and make it known in good time that in future such notes will not be received at the State pay-offices; they would then cease to be State money. It is not essential that the note issues of a bank should be limited. Such limitation is made for greater security; but the convertibility of the notes alone already gives a sufficient security.
In more recent times another kind of accessory money with negative agio has frequently arisen, not through the issue of it, bub through delay in calling it in. Such are the thaler in Germany, the five-franc piece in France, the silver gulden in Austria and the silver rouble in Russia.
