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security or "collateral" which may back up and guarantee money.

Now as an analysis made for the purpose of arriving at a definition, this is entirely right. No exception can be taken to it. But it is seriously to be feared that nearly every person who reads it will infer that, because security or "collateral" is an accidental feature of money, it is an unimportant and well-nigh useless one. And that is where the reader will make a great mistake. It is true that money is money, with or without security, but it cannot be a perfect or reliable money in the absence of security; nay, it cannot be a money worth considering in this age. The advance from barter to unsecured money is a much shorter and less important step logically than that from unsecured money to secured money. The rude vessel in which 'primitive men first managed to float upon the water very likely had all the essentials of a boat, but it was much nearer to no boat at all than it was to the stanch, swift, and sumptuous Cunarder that now speeds its way across the Atlantic in a week. It was a boat, sure enough; but not a boat in which a very timid or even moderately cautious man would care to risk his life in more than five feet of water beyond swimming distance from the shore. It had all the essentials, but it lacked a great many accidentals. Among them, for instance, a compass. A compass is not an essential of a boat, but it is an essential of satisfactory navigation. So security is not an essential of money, but it is an essential of steady production and stable commerce. A boat without a compass is almost sure to strike upon the rocks. Likewise money without security is almost sure to precipitate the people using it into general bankruptcy. When products can be had for the writing of promises and the idea gels abroad that such promises are good money whether kept or not, the promisors are very likely to stop producing; and, if the process goes on long enough, it will be found at the end that there are plenty of promises with which to buy, but that there is nothing left to be bought, and that it will require an infinite number of promises to buy an infinitesimal amount of nothing. If, however, people find that their promises will not be accepted unless accompanied by evidence of an intention and ability to keep them, and if this evidence is kept definitely before all through some system of organized credit, the promisors will actively bestir themselves to create the means of keeping their promises; and the free circulation of these promises, far from checking production, will vastly

stimulate it, the result being, not bankruptcy, but universal wealth.