From: F_GRIFFITH@CCSVAX.SFASU.EDU
Date: Wed, 20 Oct 93 10:57:45 PDT
To: cypherpunks@toad.com
Subject: Re:backing
Message-ID: <931020125339.22e1cf04@CCSVAX.SFASU.EDU>
MIME-Version: 1.0
Content-Type: text/plain


From:	CCSVAX::F_GRIFFITH   19-OCT-1993 16:06:40.42
To:	SMTP%"owner-cypherpunks@toad.com"
CC:	F_GRIFFITH
Subj:	Re: backing?

peb:if a currency loses reputation (value) people will switch to a
better reputation (value) currency (paraphrase)

Greshams law: "bad money drives out good"
i.e. where people have a choice (e.g. gold vs greenbacks post Civil
War), in making payments, they will use the lesser value money and
keep the higher value.  Thus, the lesser value money will circulate,
the higher value money will not.