Currency fallacies refuted, and paper money ... - University Library

104 APPENDIX.What is meant in the City hy an Abundance of Money.(Evidence of Thomas Tooke, Esq.)5451. Can you state what is precisely meant, in the City, byan abundance and scarcity of money in the country?— Itmeans strictly a tendency to a fall or rise in the rate of discount.When money is said to be scarce in the City, it meansthat either an advanced rate of discount is required, or thatonly the first-rate description of bills, or those which have theshortest date to run, are discounted at the previously currentrate.5452. Then it is by no means synonymous with the abundanceor scarcity of currency ?— By no means.5453. With the same amount of currency, there may be agreater or less degree of scarcity of money ?— Yes : the rateof discount may fall with a circulation, looking only to thenumerical amount, very contracted.An excessive Issue of Paper will correct itself.(Evidence of J. Horsley Palmer Esq., Governor of the Bank.)86. In times of great commercial prosperity, would not theleaving to the Public the correction of a redundant currencylead to a greater redundancy, and to excessive speculation ?—I think not.122. How do you regulate your issues according to theForeign Exchanges ?— By the notes being returned for goldor silver for export.123. Do you regulate them from the returns you have ofwhat the Foreign Exchanges are, or from the action whichtakes place upon the Bank ?— The action which takes placeupon the Bank.124. Do you find that the alteration in the action upon the