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

;12 CURRENCY FALLACIES REFUTED.of the nation may be rendered more active, so asto relieve both the rich and the poor from theirrespective embarrassments, and thus promotethe general welfare of the w^hole political body." March 18, 1833."FALLACY THE FOURTH.**That the loss of interest on ]^ or 20 millions ofgold, is the only loss we sustain by adhering tothe present system of currency.''The supposition, which gives birth to thisfallacy, is, that 15 millions of gold, rapidlycirculating from hand to hand, pass threetimes a year through the Treasury, and thatthe country pays interest qu this gold alone.But the Editor forgets that the gold does notall circulate this way: that it is for thegreater part a found9,tion on which the Bankof England makes such issuesof bank notes,as will satisfy all the demands of the stateand that on all these issues the country paysinterest the same as if they were gold; Thefairest way of deciding how much we lose byadhering to our present system, is to see howmuch we should gain by taking a differentcourse. If Government were to issue ExchequerBills from One Pound upwards, and makeall its payments in this money for a year, tothe extent of the sum for which it has obtaineda vote of Parliament — gold and Banknotes would not be wanted for that purpose.