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<p>[QUOTE=&quot;fatima, post: 1178383, member: 22143&quot;]Answers to your questions:</p><ol> <li>How do you explain the tens of thousands of different bank notes printed?&nbsp; Plenty of banks would issue notes for people that deposited their gold &amp; silver coins into banks for safety reasons.&nbsp; &nbsp;&nbsp; The banks would then loan out the gold many times over.&nbsp; These banks would often fail and the people holding the notes lost out.&nbsp;&nbsp; This is why people preferred having coins over being paid in bank notes.&nbsp; Contracts often stipulated payment in silver or gold coin.&nbsp; i.e.&nbsp; no paper.&nbsp;&nbsp; </li> <li>Why did they accept paper money?&nbsp; Answered above.&nbsp; Most times they didn&#039;t, and the currency was worthless if people traveled.&nbsp;&nbsp; It was like trying to cash an out of town check.&nbsp; </li> <li>On the period during and after the Civil War.&nbsp; During the last year or so of the Civil War, people began to panic because those who were holding paper money issued by the losing side realized the money would be worthless.&nbsp; This caused a run on the available gold and a gold coin became worth far far more than the paper, especially on the Confederate side.&nbsp;&nbsp; It should also be noted that a lot of this gold ended up in Europe because merchants supplying the war effort would not accept paper money from either side. After the war, people went back to gold and silver coins.&nbsp;&nbsp; However this was the trigger that started the plans for the Federal Reserve.&nbsp; </li> <li>Give people a choice between silver and gold and they will choose gold.&nbsp; Well not when gold is 16 times the cost of silver.&nbsp;&nbsp; How do you buy a pack of bubble gum?&nbsp; Any currency has to be divisible.&nbsp; Silver works well for this purpose with gold. </li> <li>Paper money (fiat money) has been forced on people by legislation.&nbsp; Exactly what else are you allowed to use in the United States?&nbsp; Legal Tender laws are pretty clear that the Federal Reserve now has the complete monopoly on US currency.&nbsp; It&#039;s enforcement is via the IRS and US Treasury and the FBI.&nbsp; &nbsp; </li> </ol><p>[/QUOTE]</p><p><br /></p>

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