224 THE ECONOMIC CONSEQUENCES OF THE PEACE ch.

A sentiment of trust in the legal money of the Stateis so deeply implanted in the citizens of all countriesthat they cannot but believe that some day thismoney must recover a part at least of its formervalue. To their minds it appears that value isinherent in money as such, and they do not apprehendthat the real wealth, which this money might havestood for, has been dissipated once and for all. Thissentiment is supported by the various legal regula-tions with which the Governments endeavour tocontrol internal prices, and so to preserve some pur-chasing power for their legal tender. Thus the forceof law preserves a measure of immediate purchasingpower over some commodities and the force of senti-ment and custom maintains, especially amongstpeasants, a willingness to hoard paper which isreally worthless.

The preservation of a spurious value for thecurrency, by the force of law expressed in theregulation of prices, contains in itself, however, theseeds of final economic decay, and soon dries up thesources of ultimate supply. If a man is compelledto exchange the fruits of his labours for paper which,as experience soon teaches him, he cannot use topurchase what he requires at a price comparable tothat which he has received for his own products, hewill keep his produce for himself, dispose of it to hisfriends and neighbours as a favour, or relax hisefforts in producing it. A system of compelling the