"Nearly all the government paper issues ever made have shared the same fate as those whose history we have sketched. The phases through which they all pass is remarkably similar. The issue of paper money is generally resorted to by governments, as a resource to meet indispensable expenditures. This is contrary to the first principle of money, which is, that being an instrument made by the government at the expense and for the convenience of the individuals who use it, it should only be manufactured when demanded by the individuals. The principle which controls the issue of government paper money being false, like all other recourse to false principles, the issue cannot fail to be injurious to both government and people. No matter how despotic or popular the government issuing the paper money may be, the public soon lose confidence in it: if forced by legal enactments to accept it, they avoid holding it, and hoard the coin, in which they have confidence, and which, therefore, suddenly disappear from cirulation. The anxiety to exchange paper money, in which the community has no confidence, for commodities and other property which have an intrinsic value, soon produces a rapid rise of prices, which is the true indication and measure of the depreciation of all paper money having a forced circulation. Every rise in the prices, being in reality a fall in the value of the paper money, instead of inducing holders of commodities and property to realize, only increases their desire to retain their desire to retain them, whilst it increases the desire of the holders of paper money to exchange it for anything possessing intrinsic value. The inevitable result is a panic in regard to the paper money, and the very government that issued it is soon forced to refuse it in payment of taxes and loans, as it will no longer procure the supplies needed by the government and by its officers and employees."