Front Page Titles (by Subject) 10. Free Issue System. - Money and the Mechanism of Exchange
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10. Free Issue System. - 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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10. Free Issue System.
There is a school of economists, both in this country and America, who uphold the expediency of allowing all persons to issue as many promissory notes payable on demand as they can get other persons to accept. They call this system the Free Banking system, but incorrectly, because it is no necessary function of a banker to issue promissory notes, and a great many banks exist in England without any power of issue. This subject will be further discussed in a subsequent chapter, and I will only add here that under the system of unrestricted issue, a banker is bound by law to pay a note issued by him, but is left entirely at his own discretion to keep such balance of specie for the purpose as he may think proper. As a general rule, no doubt, notes thus issued will be paid; but, having regard to the great fluctuations of commerce, which are becoming more, rather than less marked, there will occur periods when a pressure for payment of notes will be made. Experience abundantly shows that a certain number of individuals will calculate too confidently on their good fortune, and fail to carry out their promises and intention when the critical time arrives.