332'

CHAPTER the next fifty years, as has been permitted during the
-^^^^' last, t^here can be no doubt but that the powerful incentive,
by which the banking companies are actuated to push
their paper to the greatest possible extent, will augment
the amount as much above the present proportion, as
the present proportion is superior to the amount in cir¬
culation half a century since; and no check whatever
will be opposed to the depression of money. In order,
therefore, to erect a more effectual barrier against the
extension of paper, it is necessary not only to deprive a
certain proportion of the banks of the privilege of utter¬
ing paper, but to restrict those, invested with the power,
from publishing any note below a given value.

But this regulation, though pow^erfully restrictive,
w^ould still be incomplete, unless the amount of the paper
of the privileged banks were from time to time disclosed
to the public; for though the prohibition of small notes
would greatly tend to obstruct the augmentation, yet, as
no auxiliary check w^ould be brought into co-operation,
but the state of the exchange, which is inefficient as a
general control, the circulation of Europe might still be
extended beyond its proper hmits, and still continue,
though by slower steps, the depreciation of money. For
a complete prevention of the depression, therefore, it is
necessary, in addition to the limitation of the privilege of
utterance, and the limitation of the value of the paper,
that the banks should communicate to the public, at
stated periods, the amount of their notes. By this dis-
<:losure, their paper would be exposed to the eye of
government,  and   subjected  to the  animadversions  of