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

CURRENCY FALLACI1ES REFUTED. 15porting those prices would be withdrawn, it isvery certain that there would be for some timesuch activity in every branch of business, as togive colour to the charge that a fever of speculationwas excited. When those who are almostdead for want of food are all at onceplaced at a plentiful table, there is great reasonto fear they will eat and drink to excess. Itwould be desirable if this could be guardedagainst, but if it cannot, the irregularity mustbe suffered to cure itself ; in a very short timethe fever will have worn off. In the interim,it will be some consolation to the sufferers toknow that the assertion of the Editor of theTimes, that the creation of such unreal wealthwill be followed, as in 1825, by convulsion andruin, is an utter fallacy.In 1825, the Bank ofEngland had to take up its notes in gold, thecountry bankers the same, and great was theanxiety to get possession of the gold which itwas known could not be had in sufficient quantityfor the emergency; therefore some must gowithout : but if we were to use ExchequeTbills for the collection of the revenue, nothingof this kind could take place. With these inreserve, the Bank would freely part with goldas long as it thought proper to do so, and wouldprotect itself from further demands if they proceededto an inconvenient extent, by giving inexchange for its own notes those of the government.Country bankers would do the same, if