& Merchants accepted gold receipts as a means of payment even though the receipts were issued by goldsmiths, not the gov

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Merchants Accepted Gold Receipts As A Means Of Payment Even Though The Receipts Were Issued By Goldsmiths Not The Gov 1 (19.48 KiB) Viewed 25 times

& Merchants accepted gold receipts as a means of payment even though the receipts were issued by goldsmiths, not the government This is because goldsmiths issued a gold receipt to the depositor. Othey knew that the gold receipts could be exchanged for gold. goid receipts were the only type of payment offered. the government's currency could not be trusted. b. By issuing loans in the form of gold receipts, there was additional risk because the government could demand all the gold. goldsmiths could issue more receipts than they had in gold and this could create a panic. Oreceipts could be copied. gold could be stolen.