INFLA TlON AND DEFLATION 959worth more than the other, a principle no different than the use of precious met-
als like gold and silver along with silk and copper cash. A large coin could be
made larger and thicker along the edge with a different design on its face than
the ordinary coin and given a value equivalent to five orten common coins. There
was no reason to fear that the common people would refuse to use the new coins,
or that small coins would disappear from the market and bring the sale of small
and cheap goods to a halt. Minting a large coin would not require that the older,
cheaper coins be withdrawn from circulation (i.e., that nickels, dimes, and quar-
ters could easily circulate with pennies). In fact, the smaller coins could be used
for items of low cost while the larger ones for more expensive items like land
and houses, or the state could use the larger coins and leave the small coins for
use among the people in the marketplace. And if any change took place in con-
ditions and a coin went out of use, the government could always make changes
in the denominations of coins.
For that matter. there had never been any fixed rule about the weight of a coin
because it had always varied according to the times. Contrary to what some peo-
ple thought, there was no reason why gold had to be dearer than silver. or sil-
ver dearer than cash. or why it would be improper for a I o-cash coin (dime) to
be worth more than a silver one. Every item was worth more or less than another,
and there was no fixed rule as to the order of precedence. Silk was supposed to
be worth more than cotton, but some varieties of finely woven cotton could in
fact be worth more than silk. There was no reason that any new coin would be
free from some sort of difficulty, but in planning the currency system of a coun-
try, one should simply choose the best alternative among many and then change
whatever problems emerged after it was adopted, rather than expect perfection
before one adopted a plan,
It was obvious, however, from the subsequent discussion at court, that only
a few officials shared Song Chinmyong's views about the utility of multiple-
denomination cash, let alone paper money. Second State Councilor Song
Inmyong and Third Minister of Personnel Yi Chong song both mentioned that
Yi Kwangdo had previously proposed printing paper money. but even though it
had been used in Sung and Yuan times, contemporary Koreans were too easily
confused or deluded and would not place any trust in it.
Yongjo also expressed his skepticism about the utility of multiple-denomi-
nation cash because the common people were too devoted to small coins to appre-
ciate large ones. If large or multiple-denomination coins were introduced, he
was certain that the smaller coins would disappear and the larger ones would
all end up in the hands of the rich. Like Yi Ik, Yongjo did not understand Gre-
sham's law that the smaller coins would be drawn off the market by rich and
poor alike because they would retain their value while the depreciated large coins
would be left alone in the market.
Sixth Royal Secretary Yi I1che confirmed Yongjo" fears when he said that
even though King Ching of the Chou dynasty approved the use of multiple-
denomination cash "to benefit the people," Duke Mu (Mu-kung) did not approve