Plus, What Is Money

FIRST we have the "Mixt Moneys Case of 1604" as quoted from The Science of Money by Alexander Del Mar:

. . .The Mixt Moneys case [of 1604] decided that Money was a Public Measure, a measure of value, and that, like other measures, it was necessary in the public welfare that its dimensions of volume should be limited, defined and regulated by the State. The whole body of learning left us by the ancient and renascent world was invoked in this celebrated dictum: Aristotle, Paulus, Bodin and Budelius were summoned to its support; the Roman law, the common law and the statutes all upheld it; "the State alone had the right to issue money and to decide of what substances its symbols should be made, whether of gold, silver, brass, or paper. Whatever the State declared to be money, was money” . . .

NEXT, some insight provided by John Kenneth Galbraith in his classic book Money: Whence It Came, Where It Went in which he carefully details how it is that Gresham's Law applied to more than just gold or silver. Thus,

In both Britain and Germany as [World War II] proceeded, the ration coupons became the decisive currency. Everyone or almost everyone could obtain the requisite pounds or marks; it was the availability of a ration ticket that determined whether or not a purchase, almost any purchase, could be made. In contrast with the more traditional means of exchange, the ration ticket is, with privileged exceptions, available to all in equal amounts. (p254) . . .What was used as money and how much there was of it made a difference; the instinct of the men who followed [William Jennings] Bryan (and of those who opposed him) was not wrong. p311

NOW For Some Definitions from The Truth in Money Book by Theodore R. Thoren and Richard F. Warner:

MONEY: anything which is universally acceptable in terms of payment of debt and taxes. (It is not necessary for the item to be used as money to have any intrinsic value or indeed to be physically tangible. Today, money exists in the form of notes, coins, checkbook credits, electronic blips in computers.)

MONEY (or MONETARY) SYSTEM: An arrangement of closely related functions, authorities and responsibilities within a country which regulate the creation, flow and extinguishment of money for the purpose of making possible the orderly creation and distribution of goods and services.)

NOTE: A document signifying the existence of a debt or "promise to pay"; a note serves the same purpose as a bond but it usually represents a debt held for a shorter period of time.

BANK NOTE: Cash printed by authority of a bank.

FEDERAL RESERVE NOTE: Cash representing a portion of the monetary base; Federal Reserve notes are printed by the Bureau of Engraving and Printing upon receipt of orders from the regional Federal Reserve banks in response to the needs of commercial banks within given regions.

TREASURY NOTE: Cash printed by authority of the Treasury; also a short-term Treasury debt.

PRIMARY DEBT: Money which is created by the lender as a debt.

SECONDARY DEBT: Debt generated by the lending of money which does not affect the money supply. [Money created by the lender as debt WILL affect the money supply. See the "DUM" equation ]