By fiduciary money we mean money that has not a commodity value equal to its money value, but which is generally accepted because each receiver has faith that others in turn will take it in the same way.[2] Sec.2.

#Present monetary system of the United States.# Here is given a summary of the main features marking the present monetary system of the United States (in 1915).
Not all this variety is essential to an efficient monetary system and several of the kinds survive as the result of historical accidents (political and legislative).

But all are now kept in accord with the value of the gold coin which, it will be observed, is the only kind the amount of which is not artificially limited.

Silver dollars are no longer coined, subsidiary silver and minor coins are issued only in exchange for other money, as are gold and silver certificates in exchange for gold or for silver, which they merely represent while in circulation.
Sec.3.

#Saturation point of fractional money.# Fiduciary money is that on which regularly the issuer makes a seigniorage charge.[3] Let us consider now the effect of seigniorage on the value of money.
Fractional coins are those of smaller denominations than the standard unit of money, as shillings and pence in England, and half dollars, quarter dollars, dimes, nickels, and cents in America.