But even if good money is driven out, it may not leave the country.

It may be hoarded, or be picked out by banks and savings-institutions to retain as their reserves, or be melted for use in the arts.

Gresham's "law" becomes thus a practical precept.

As applied to the plan of recoinage it is: Withdraw the worn coins as rapidly (in equal numbers) as you put new coins into circulation.
The continued circulation of "bad" money along side of "good" money (light-weight along side of full-weight coins), so long as the total number of coins is not in excess of the money demand for full-weight coins, is explained thus on just the same principle as is the circulation at parity of a light-weight fractional coinage, in the preceding section.
Sec.6.

#A general seigniorage charge on standard money.# The fiduciary coinage problem presents itself under a some-what different guise in case a seigniorage charge is made on all coinage, even of that metal used as the standard unit.