ABSTRACT
After 1828 McCulloch abandoned his bullion plan and with it the idea of a managed currency, apparently on the grounds that forgery was impossible to prevent. 3 It is the development of his views on coin convertibility that is central to the next phase of his thought, to 1844. Although he sometimes wrote as if convertibility was sufficient to ensure itself* and stressed that under convertibility both the public and the Bank had the same interest in maintaining the Currency at par,5 he firmly restated his principle of 'metallic' regulation of the note issue which as we have seen dated from 1826.6 He seems to have regarded the Palmer Rule as a good approximation to this, 7 being perfectly well
J Scotsman, June 5, 1819, p. 177, 'Historical Sketch of the Principal Banking Companies of Europe*. At the same time, as seen above, government had a role to play in regulating the quality of issues through demanding security - see Scotsman, 1819, loc. cit.: ibid., September 15, 1821, p. 389; ibid., August 3, 1825, P* 4^95 ibid., December 17, 1825, P-801; ibid., June 6, 1827, P* 353 J Edinburgh Review, 1818, loc. cit., p. 64; ibid., February 1826, loc. cit., pp. 293-4; EB6 Money, p. 514.
