ntry collectively, by
whom it was issued; and I have now shewn that the public would have a
direct interest that the issuers should be the state, and not a company
of merchants or bankers. The danger, however, is, that this power would
be more likely to be abused, if in the hands of Government, than if in
the hands of a banking company. A company would, it is said, be more
under the control of law, and although it might be their interest to
extend their issues beyond the bounds of discretion, they would be
limited and checked by the power which individuals would have of calling
for bullion or specie. It is argued that the same check would not be
long respected, if Government had the privilege of issuing money; that
they would be too apt to consider present convenience, rather than
future security, and might, therefore, on the alleged grounds of
expediency, be too much inclined to remove the checks, by which the
amount of their issues was controlled.

Under an arbitrary government this objection would have great force, but
in a free country, with an enlightened legislature, the power of issuing
paper money, under the requisite checks of convertibility at the will of
the holder, might be safely lodged in the hands of commissioners
appointed for that special purpose, and they might be made totally
independent of the control of ministers.

The sinking fund is managed by commissioners, responsible only to
parliament, and the investment of the money entrusted to their charge,
proceeds with the utmost regularity; what reason can there be to doubt
that the issues of paper money might be regulated with equal fidelity,
if placed under similar management?

It may be said, that although the advantage accruing to the state, and,
therefore, to the public, from issuing paper money, is sufficiently
manifest, as it would exchange a portion of the national debt, on which
interest is paid by the public, into a debt bearing no interest, yet it
would be disadvantageous to commerce, as it would preclude the
merchants from borrowing money, and getting their bills discounted, the
method in which bank paper is partly issued.

This, however, is to suppose that money could not be borrowed, if the
Bank did not lend it, and that the market rate of interest and profit
depends on the amounts of the issues of money, and on the channel
through which it is issued. But as a country would have no deficiency of
cloth, of wine, or any other commodity, i