Front Page Titles (by Subject) 9. Regulation by the Foreign Exchanges. - Money and the Mechanism of Exchange
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9. Regulation by the Foreign Exchanges. - William Stanley Jevons, Money and the Mechanism of Exchange 
Money and the Mechanism of Exchange (New York: D. Appleton and Co. 1876).
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9. Regulation by the Foreign Exchanges.
A theory was very much in favour among bank directors at the beginning of this century that a paper currency could be regulated merely by watching the rates of the foreign exchanges, and restricting the issue when the lowness of the rates and the export of specie showed a depreciation of the paper. This was one of the methods proposed in opposition to the celebrated Bullion Report, and a summary of the interminable discussions on the subject will be found in Mr. Macleod's Treatise on Banking, Vol. II. Chapter IX.
Regulation by the foreign exchanges is much better than no regulation at all, but if perfectly carried out it would give exactly the same results as the deposit method, and is only a loose and indirect way of reaching the same end.