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II 10 2d
4 Annuity Notes
Principal Sum
Small money
To learn what the addition is that the
supposed 20 millions worth of Annuity Notes would
make to the mass of national wealth, find out
the proportion which the average quantity of money
kept in a year by a Banker in notes of
£10 and upwards to answer draughts, bears to
the average of the total quantity of money for all
note stock kept by him during the same time
for the same purpose.
Suppose at any given Bankers the amount
of money of all sorts issued in payment of
draughts is £10,000 a day: and that of this
£10,000, £1,000 is issued in the shape of Bank
Notes of £10 and upwards. This being the case
£1,000 is the amount of the sum which the
Banker in question will be able to issue in their
£10 Annuity Notes in payment of draughts:
and this over and above the not £9,000 in smaller
notes and cash, but also over and above the
£1000 in large notes, provided those large notes
be reduced for a time at least to small notes.
Thus, credit being supposed to be upon the same
footing at both periods, the same a given quantity of
hard cash will serve for the support of the same
quantity of paper money promising the delivery of
such cash. But the proposed Annuities ca be
the