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... id not trust the paper money itself.

They had been using metal coins, mainly silver and bronze, for so long that they could not believe in anything else.

Why would they exchange gold for paper?

The bank guaranteed that the paper had the same value as the coins, but to the people, it looked like nothing but numbers and designs.

And they only had unlimited exchange for one year, after which they would have to pay extra taxes. So they had even less reason to switch. ...

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