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paper, beyond what die specie so occupied can maintain, chapter
Any attempt to advance them to a higher state, by the fur¬
ther augmentation of paper, would cause an immediate
return of the notes upon the banks, that uttered them, if
convertible at option into specie; or would reduce them
to a discount commensurate with the excess, if incon¬
vertible. The prohibition of small notes is, therefore,
indispensibly necessary to arrest the progress of the
depression.

Nor while inferior paper is permitted, will it be possi¬
ble to revert to the circulation of coin, since not only will
it be impracticable to introduce any considerable quantity
of specie, by the operation of the natural cause of its
influx, a relative deficiency of currency ; but it will be
impracticable to retain it, if introduced by the irregular
means of purchase above its mint value or capture. It has
already been shewn, that the Bank of England, from its
first institution to the present time, has uniformly main¬
tained in circulation as large a proportion of paper, as
the position of the exchange would allow. During the
period, that it pubhshed no note below the value of ten
pounds, it was necessarily circumscribed in its power of
utterance to a greater degree than it now is, as it was
compelled to leave a sufficient sum of specie for the in¬
ferior payments of the metropolis. But, since the restric¬
tion has authorized the issue of small notes, and suffered
them to supply the place of guineas, advantage is taken
cf the privilege to extend the amount of the paper the
whole value of the specie, that was previously current,
and no opening is left for the readmission of coin.    If^