backing

[F_GRIFFITH at CCSVAX.SFASU.EDU]

From:	CCSVAX::F_GRIFFITH   19-OCT-1993 16:06:40.42
To:	SMTP%"owner-cypherpunks at 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.