A comparison

Voluntaryist, The, 4th Quarter 2002

Real Money

1. A coin of gold or silver

2. Each coin contains a specific weight of precious metal

3. Made of one of the metallic elements found in nature

4. Has intrinsic value which may pass from person to person

5. Multiples contain a greater weight 6f the same metal

6. Historically a medium of exchange

7. Exchange value varies little with increased number minted

8. Accepted by nearly everyone since it has intrinsic value

9. Will exchange for a counterfeit only through force, fraud, or mistaken acceptance

Counterfeit Note

Piece of paper

Each note is a piece of paper

Fabricated from a man-made product (readily available)

Paper has little intrinsic value

Multiples contain the same amount of paper as the lowest denomination

May function as a medium of exchange until its false nature is discovered

Presumed exchange value decreases with amount printed

Accepted by some until its counterfeit nature is discovered

Cannot be exchanged for anything if its true nature is known

Federal Reserve Note

Piece of paper

Each note is a piece of paper

Fabricated from a man-made product (readily available)

Paper has little intrinsic value

Multiples obtained by adding zeros to increase the denomination

Functions as a medium of exchange by government edict (legal tender laws)

Presumed exchange value decreases with amount printed

Accepted by some until confidence in the issuing government evaporates

Cannot be distinguished from a perfect counterfeit

[Source: Taken and edited from Tables 3, 4 and 5 on pages 84 - 86 of Gordon Leitch, Jr.'s book, FROM DOLLAR TO COUNTERFEIT: The Path of American Government Dishonesty (Scappoose: Bicentennial Era Enterprises, 1981).]