ABSTRACT
'The encrease of Bank of England paper' 'is the effect and not the cause of an advanced price of commodities. 'The depreciation of paper,' it may be added, 'is apt to arise not so much from an extension of its quantity, as from a want of sufficient confidence in it. Bank of England notes are exactly the converse to assignats in the points which have been mentioned; and their value will be found to depend not so properly on their credit as on their quantity. Bank of England paper is not apt to vary in its value in consequence of the fluctuations of the public confidence in it; but essentially differs in this respect from the late assignats of France. In speaking formerly of the reduction of bank paper, much pains were taken to point out the important difference between that limitation of loans which leads to a diminution of paper.
