JB/003/142/001

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Paper Mischief

On the face of this account† † By preventing wealth the hoarding prevents encrease of prices that would have been effected by the addition to the mass of vendible commodities. the result of a
defalcation the hoarding every year a quantity
of money to a given amount is a defalcation
from the addition that would thence to the amount of about loss to productive capital to the amount of about
1/6th part of the money hoarded: to which may be
added interest loss of th the addition that would have been
in the way of interest, in each succeeding year.

The effects of hoarding metallic have very little resemblance
to the effects of sudden those to
which paper the stock of paper money is subject,
though defalcation be the result in both cases.
In the case of hoarding the defalcation is gradual
and comparatively inconsiderable: too much as to
have any perceptible effect it may well be supposed
in respect of the lowering of prices. The effects of
a shock to paper credit, though the defalcation
may be very copious and sudden may also be
incapable of producing any sensible effect in the
way of lowering prices. But in this case it is from
a very different cause. The same cause state
of things which raised the stock of paper money
to the height from which it fell upon was beaten
down by the force of the supposed shock would in
no great length of time be sufficient to raise it up
again to that same level: and as this restitution would naturally
take place before the time when prices might
have adjusted themselves back of the reduced mass to the stock of money remaining
any determinate fall
of prices does not appear
to be among the consequences
naturally to be
effected from shocks
to which paper money
in a country circumstanced like Britain is exposed.

Identifier: | JB/003/142/001 "JB/" can not be assigned to a declared number type with value 3.
Date_1		Marginal Summary Numbering
Box	003	Main Headings	manual of political economy
Folio number	142	Info in main headings field	paper mischief
Image	001	Titles
Category	text sheet	Number of Pages	1
Recto/Verso	recto	Page Numbering	f5
Penner	jeremy bentham	Watermarks	<…>m 1798
Marginals		Paper Producer
Corrections	jeremy bentham	Paper Produced in Year	1798
Notes public		ID Number	1552
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