Inflation and Tobacco

As always, when there was more money, prices went up. At the very end of the process, prices were forty times as high in terms of tobacco as they had been at the beginning of the process. Gresham's law says that cheap money drives out dear money. And so it was tobacco. Anybody who had a debt to pay, tried to pay it in the worst quality of tobacco he had. He saved a good tobacco to sell overseas for hard money. The result was that bad money drove out good money.