chapter  Chapter X
12 Pages


ByRobert E. Wright, Richard Sylla

The considerations adduced lead many to avail themselves of the opportunities afforded throughout England, Scotland, and Ireland for obtaining paper substitutes for the more cumbrous coin or bullion. An important point of difference between them and metallic money is that they can be procured in an unlimited quantity, while coins, being intrinsically valuable, cannot. Dearly purchased would be the convenience which bank-notes afford, were the country by using them, to lose the steadiness in value which money possesses when allied to gold and silver. The non-issue of small notes preserves in England a reserve of coins ready to meet any sudden foreign expenditure. The ‘25 millions’ which issuers use have been ‘invested’ mostly in government securities, but some in bills of exchange. In both cases most of the released coins have found their way abroad through the exchanges,’ and the country has received in return materials and other commodities as imports.