xml:lang="en" lang="en" dir="ltr">

Transcribe Bentham: A Collaborative Initiative

From Transcribe Bentham: Transcription Desk

Keep up to date with the latest news - subscribe to the Transcribe Bentham newsletter; Find a new page to transcribe in our list of Untranscribed Manuscripts

JB/002/242/001

Jump to: navigation, search
Completed

Click Here To Edit

3 Oct. 1800 + 3d 151

Ch. XII 3 In regard to ordinary paper income, there is no safe side. Deficiency is as full of danger as excess.
That property in point of security, commercial wealth is liable to suffer
in point of security from an excess in respect of the in
the comparative quantity of paper money (in comparison of relation of the quantity
habitually in circulation
] is a truth but too
often felt and sufficiently understood. That in point
of quantity it is liable to suffer [+] [+] a kind of negative
by from a deficiency
in the quantity of paper money that from [+]2. [+]2 is a truth rather understood than felt, but is a matter equally
out of doubt: because, that inasmuch as every
fresh £100 worth of paper money is so much added to the
mass of circulating capital, so long as it is
to the amount of the value at which it paper is received, +
+ See Ch. 11
the national capital is of course so must the loss,
for every £100 worth of the money accession of this kind which it
might have received, consistently with commercial
security, and fails to receive. — That, by a deficiency
in the quantity of paper money, commercial
wealth is liable to suffer — not in point of quantity only,
but even in point of security, is a sort of discovery in
political economy, seemingly of very recent (a)(++)
Note (a) to p. 151 (a) (+) The source at to which I am indebted for it, is the evidence of Mr Henry Thornton as printed in the Reports several unpublished Reports of the Committee of Lords and Commons in the Affairs of the Bank, in the month March and April 1797 and reprinted in Mr Allardyce's published Address to the Bank Proprietors in the same year. In the form of a Note the substance of that evidence would form a valuable addition to they future editions of Adam Smith
For the purpose upon the Bank of England in 1797,
it seems to have been generally understood, that, in
the article of paper money, deficiency was the safe
side: but it on that occasion it became apparent,
that where in regard to paper money of the kind in view
it there is no safe side:
While


Metadata:JB/002/242/001

UCL Home » Transcribe Bentham » Transcription Desk