A Short History of Paper Money and Banking by William Gouge (1835)

By William Gouge (1835)

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Example text

This lasted till September 1825. gan, and in December there was a convulsion which threatened all interests with destruction. \rIr. hitherto been adopted. When the withdrawal of the small notes was enacted in 1819, all the arguments were in favor of paper payable in gold. they fully agreed with Dr. Adam Smith, and all the most able writers and statesmen of this country, in considering a paper circulation constantly convertible into specie as one of the greatest practical improvements which can be made in the political and domestic economy of any State, and that such convertibility was a complete check against over issue.

Ord Liverpool took a similar view of the subject, and the Chancellor of the Exchequer, for the first time, impugned the doctrine of the regulating power of the Bank of England. " PREFACE. Huskisson, in descanting on the merits of a metallic medium. The latter observed, that, " It was the natural course, that, in such a fluctuating state of our currency, all classes of society must, in their turn, be afflicted by it, and, therefore, the sooner we get rid of that fluctuation, and returned to a sound, and healthy, and permanent, circulating me-diuID, the better for the community at large.

If the labor of a man, for a day, or for a year, produces more than is necessary for his immediate support, he can, by exchanging the surplus product for gold or silver, secure the means of supplying his wants in future days or years. Time will not corrupt his treasure or lessen its value. If he should not require it all for his personal wants, he may, at the end of fifty years, endow his children with a portion. The use of money renders it unnecessary for families to keep on hand a large stock of provisions and other necessaries, and thus saves them from the risk of loss from provisions spoiling, and from various accidents.

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