Page 173 - clra62_0019-(GIPE)

NOTE ON THE GRESHAM LAW
through changes of circumstances as regards the use of
it in the various ways specified.
F or instance, the habit as to hoarding itself, or as to
the use of a particular metal for hoarding, may change.
From either cause less of the underrated metal may
be hoarded than would otherwise be the case, and a
surplus may thus come into existence which will be
exported if no other use can be found for it. Much
also would depend upon the price. The offer of a
higher price might draw from the hoards what would
not otherwise be drawn.
The demand for full-weighted coins of the underrated
metal for use within the country may also vary from
time to time. The different range of transactions,
change of custom as to the use of cheques and bank-
notes, and the like causes may make a difierence.
Here again price may also make a difference, though
this is not so likely, perhaps, as with regard to hoarding.
As regards worn and deteriorated coins circulating
as token money, a surplus may arise through consider-
able changes in habits as to the use of token money.
But probably considerable changes would be necessary
to cause the stock of such coins to be drawn on for
export, as the price of the underrated metal would
have to rise to a point sufficient to make the coins
worth more as metal than as coins, before a question
of their export could arise.