During  the  time  of  the  restriction,  in  spite  of  a  depreciation  in
their  paper  which  caused  the  exchanges  to  be  unfavourable  to
the  extent,  at  their  utmost  point,  of  32  per  cent,,  they  neverthe-
less contended,  that  the  notes  were  of  sterling  value.  But  without
further  raking  up  the  disastrous  errors  of  by-gone  times,  let  us
come  to  more  recent  instances.     Within  the  last  twenty  years,


ON   BANKS.  479

questions  of  currency  have  been  better  understood  than  at  an
earlier  period,  and  yet  during  that  time  there  have  been  three
or  four  oscillations  in  the  value  of  money.  At  one  time  an  ex-
tension of  circulation,  inducing  unlooked-for  commercial  prospe-
rity and  unwarrantable  speculation;  and  at  another  a  contraction
of  issues,  stopping  production,  and  scattering  ruin  on  every  side.
And  what  is  the  system  of  the  Bank  at  this  moment  ?  When  its
coffers  are  full  of  gold,  it  extends  its  issues.  And  when  its  gold  is
drained  low,  it  contracts  them.  In  the  first  instance,  it  assumes
that  the  currency  is  not  full,  and  in  the  other  that  it  is  in  excess.
