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By William Gouge (1835)

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Extra resources for A Short History of Paper Money and Banking

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The word value is used to denote certain relations among these items. It always implies OF REAL MONEY. 15 comparison of two or more objects. In its strict sense, it denotes the effective power of things in exchanges; uut it is, without impropriety, sometimes used to designate that property in things which makes them effective in exchanges, and sometimes to signify the judgment the mind forms of different things, on a consideration of their effective power in exchanges. All these meanings of the word are closely connected, and grow out of one another.

With the great body of men, money, and the material of which it is composed, are always scarce: and must continue scarce, as long as they want those things which money can procure. From the durability of silver, and its other physical properties, from the steadiness and universality of the demand for it, and from the small proportion the annual supply hears to the stock on hand, it appears to unite all the qualities that can reasonably be desired in a commercial standard of value. If it is not, as has been asserted by some, "an absolutely perfect and altogether permanent standard of value," it, in this respect, resembles our standard measure of length.

Change and Promissory Notes, - 18 IV. Of Banks of Discount, • - 21 " V. Of Banks of Circulation, -23 " VI. General Effects of this System, - 26 " VII. Effects on Credit, - 34 " VIII. The same Subject continued, - 37 IX. Of Banks as Corporations, - 41 X. Ofthe Popular Arguments in favor of " Banking, - 45 XI. Of Restrictions on Banking Corporations, 50 XII. Of the Essential Qualities of Bank Notes, 53 " XIII. Of the' Convertibility' of Bank ~ledium, 58 " Of the' Elasticity' of Bank :Medium, • 62 XIV.

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A Short History of Paper Money and Banking by William Gouge (1835)


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