It then seemed a minor step for the colonial government to issue paper notes promising eventual payment in gold or silver; for two decades thereafter the paper circulated side by side and at par with the metals on the basis of this promise. Here a seemingly innovative and wonderful financial instrument and here again the special wonder of leverage. This was debt in the form of the paper notes backed by markedly fewer solid assets, meaning hard money, than were available should all the notes be presented at once for payment.
