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chapter the provincial banks, should, at the expiration of three
^^^^* months from a given period, call in their one pound
notes, at the expiration of three months more their two
pound notes, and at the expiration of three months more
their five pound notes; no note being eventually left in
circulation below the value of ten pounds.

By this policy, and this policy only, is it possible to
check the depreciation of money, and re-establish a circu¬
lating system of coin.

As the existing regulations of the currency of Europe
authorise the publication of small notes to any amount,
and permit their substitution for specie, in all the dealings
of retail trade, it has already been shewn, that prices may
be raised to any extent, and that no check whatever can
be opposed to the depression of money. But if the banks
were under the necessity of leaving a certain proportion
of coin for the transaction of inferior payments, it is im¬
possible, that paper could be published to such an extent
as to elevate prices above the standard, which the amount
of the specie was adequate to support. The quantity of
paper of a higher denomination must, in a great degree,
be regulated by the quantity of the inferior means of
payment; and if the inferior means be incapable of en¬
largement, a limit is necessarily assigned to the enlarge¬
ment of the superior. Specie may certainly be excluded
from all intervention in contracts of an important nature,
and confined solely to the interchanges of retail trade;
but if there be no funds, from which it can be auo^mented,
it will be impracticable to raise prices  by the issue of