Capital, Currency, and Banking: Being a Collection of a Series of Articles Published in the "Economist" in 1845, on the Principles of the Bank Act of 1844, and in 1847, on the Recent Monetarial and Commercial Crisis; Concluding with a Plan for a Secure and Economical Currency (Google eBook)

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D. M. Aird, "Economist" Office, 1859 - Banks and banking - 303 pages
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Page 64 - England; and the whole amount of Bank of England Notes then in circulation, including those delivered to the Banking Department of the Bank of England as aforesaid, shall be deemed to be issued on the Credit of such Securities, Coin, and Bullion so appropriated and set apart to the said Issue Department...
Page 28 - The money, or coin of a country, is so much of its capital. Paper currency is no part of the .capital of a country. It is so much circulating credit.
Page 59 - That the prices of commodities do not depend upon the quantity of money indicated by the amount of bank notes, nor upon the amount of the whole of the circulating medium, but that, on the contrary, the amount of the circulating medium is the consequence of prices.
Page 54 - Landed or other property of the Corporation ..... Government Securities . . Promissory Notes or Bills of other Banks Balances due from other Banks Notes and Bills Discounted, or other Debts due to the Corporation, not included under the foregoing heads, and exclusive of Debts abandoned us bad ...., Total Average Assets Amount of Bill Income Tax 13.
Page 64 - ... Department, save as hereinafter is mentioned, but it shall be lawful for the said Governor and Company to diminish the Amount of such Securities, and again to increase the same to any Sum not exceeding in the whole the sum of Fourteen million Pounds, and so from Time to Time as they shall see Occasion . and from and after such Transfer and Appropriation to the said Issue Department as aforesaid it shall not be lawful for the said Governor and Company to issue Bank of England Notes, either into...
Page 56 - ... articles. Indeed, this is a principle upon which all the writers on Commerce, both practical and speculative, are agreed ; they have thought it so undeniable as to require no particular illustration, and have rather assumed it as an obvious truth than as a proposition that depended on inference. Upon this idea is founded Mr. Hume's well-known argument against Banks, and it is equally implied in Dr. Smith's confutation of that objection ; it forms the foundation of those presumptions from which...
Page 69 - by law there has never been any restriction against any one issuing notes in Scotland; yet, in practice, it has ever been impossible for any unsound or unsafe paper to obtain currency." * And thus the natural guarantee in the one case has been more efficient than the legislative one in the other. The gain in economy is proved by the fact that Scotland has carried on its business with a circulation of 3,500,000...
Page 53 - The immediate exchangeable value of any commodity is determined by the proportion which the supply bears to the demand...
Page 57 - Thornton admits, in the most explicit manner, that if the "quantity of circulating medium is permanently augmented, " without a corresponding augmentation of internal trade, a " rise will unavoidably take place in the price of exchange" able articles. Indeed this is a principle upon which all the " writers on Commerce, both practical and speculative, are " agreed: they have thought it so undeniable as to require " no particular illustration, and have rather assumed it as an
Page 52 - ... said Issue Department under the provisions herein contained : Provided always, that it shall be lawful for the said Governor and Company in their Banking Department to issue all such Bank of England notes as they shall at any time receive from the said Issue Department or otherwise, in the same manner in all respects as such issue would be lawful to any other person or persons.

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