I have been recently following with deep interest the discussion between Mike Sproul and economist Scott Sumner on whether the backing theory of money is correct or the quantity theory of money (see also David Glasner’s comments). The first being that liabilities on the market (a bond issued by the government) or future income streams are assets against which you can back money. The second being that such assets can hardly be used to issue money. Both sides seem theoretically consistent, but the practical evidence offered by Sproul seems less convincing.
In this debate, Sproul (on a guest blog post at freebanking.org) has come out with an interesting argument with regards to the backing theory using the case of New France (modern day Quebec at the time of French rule, 1608-1760). At the time of New France, the colony was hard-pressed for hard species to pay its troops…
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Utopia, you are standing in it! 
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