The best method to establish credit in an industrious nation, is a bank properly regulated: and the best methods to ruin it effectually, when established, are the inconsistent operations of such a bank.
CHAP. XIX.
Application of the Principles above deduced, towards forming the Policy of Circulation.
From the principles above deduced, there arise three principal objects of attention.
The first, the circulation of paper for domestic uses.
The second, the method of providing coin for that purpose.
The third, the method of paying foreign balances.
These three objects are absolutely different in their nature, and they are influenced by different principles. The consequence of blending them together, is to render the subject, which is abundantly intricate in its own nature, still more dark and perplexed. What is to follow has no relation to any plan proposed for execution; it is only intended as a farther illustration of the general principles which influence this branch of my subject.
1mo, As to the circulation of paper for domestic use.
It has been said, that the great utility of banks of circulation upon mortgage, was to facilitate the melting down of solid property; in order to enable every one who has property, to circulate the capital of it for the advancement of industry.