ABSTRACT

Now, wonderfully a.s the amount of gold necessary to do a given amount of business has been reduced by the modern development of cheques and the clearingbouse, gold or absolutely sound notes must be obtained in sufficient quantity in times of difficulty to stem the current of panic, and enable trade to go on again a.s speedily as may be. Bad as the management of the Bank of England was from certain points of view in 1825 and in 1837, it can scarcely be questioned that the issue of notes which were absolute legal tender. but were not fully represented by bullion, did circumscribe the range of the mischief occasioned by those disastrous crises. But under the Act of 1844