Front Page Titles (by Subject) The Free-banking School. - Money and the Mechanism of Exchange
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The Free-banking School. - 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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The Free-banking School.
What the currency theorists want, then, is not more gold, but more promises to pay gold. The Free-banking School especially argue that it is among the elementary rights of an individual to make promises, and that each banker should be allowed to issue as many notes as he can get his customers to take, keeping such a reserve of metallic money, as he thinks, in his own private discretion, sufficient to enable him to redeem his promises. But this free issue of paper representative money does not at all meet the difficulty of the money market, which is a want of gold, not of paper; an the contrary, an unlimited issue of paper would tend to reduce the already narrow margin of gold upon which we erect an enormous system of trade. Here we reach the critical point of the whole theory of currency. There is also a school of currency writers, formerly represented in England by Ricardo and Tooke, who hold that it is impossible to over-issue convertible paper money. Arguments to this effect have been recently urged with great ability by Mr. R. H. Inglis Palgrave, in his work entitled "Notes on Banking," and his wide acquaintance with the subject should lend much force to his opinions. But there is, to my mind, an evident flaw in their position.