JB/002/331/001

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Exchequer Note Cause of

Causes. Paper Money - why not circulated by
Government without Interest
as well as by Individuals.

The contract between the terms on which Bank 1

Cases of the disadvantage,
what.
It can not be any
inferiority of government
in respect
of credit
Paper is Notes are received and those on which Government
Paper is received has been already broughtnoticed. underto
view. The inferiority of the latter can never be owing
to any inferiority in print of credit. The credit
of the Bank of England can never be greater than
that of the Government of Great Britain. One reason
that may save the looking out for others is this,
that the capital of the Bank having been the greatest
part of it laid out in the purchase of Government
Annuities the Bank Dealers in that company as to so much can never pay distribute
over those annuities in the shape of its dividends to amongst the Stock holders any further than as
they have received them from Government. A man too would trust Government with his whole fortune
to the amount pershaps of £100,000, will
not give<add>more than a few shillings</add>any thing above par fortake an Exchequer Bill withoutfor £100 for which he
will receive interest at the rate 41/2 per Cent
at the same time that he will give £100 for a
Bank note to that amount for which he can receive
no interest. The same only take a promissary note upon three terms of that amount from that great company the Bank of
of whose opulence the opinion is so universal and so high <add>for the value</add> England payable to Bearer to the amount of £100
at par and without but perhaps even the note of
some Country Banker of whom except his being aof such as has not
Banker he has no knowledge. The cause of the disadvantage
Government paper has is under in this respect in
comparison of Bank paper can never therefore count in any
inferiority in point of credit. It must be looked for therefore in some other circumstance.

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