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By William Gouge (1835)

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This lasted till September 1825. gan, and in December there was a convulsion which threatened all interests with destruction. \rIr. hitherto been adopted. When the withdrawal of the small notes was enacted in 1819, all the arguments were in favor of paper payable in gold. they fully agreed with Dr. Adam Smith, and all the most able writers and statesmen of this country, in considering a paper circulation constantly convertible into specie as one of the greatest practical improvements which can be made in the political and domestic economy of any State, and that such convertibility was a complete check against over issue.

THE WHOLE INTENDED AS A PLAIN EXPOSITION OF THE WAY IN WnICn PAPER MONEY AND MONEY CORPORATIONS, AFFECT THE INTERESTS ')F DIFFERENT PORTIONS OF TIlE COMMUNITY. BY WILLIAM M. GOUGE. BJ\ilauelpuia : PRINTED BY T. W. U8TICK. LE, BY GRIGG & ELLIOTT, NO. 8 ~ORTIt POURTH f'TREET, l"RIAlI m'NT, NO. , lIOGAN & THOMPSON, NO. 139t MARKET ST. 1833. ] by WILLIAM M. CONTENTS. Preface, - Page!! v PART I. An Inquiry into the Principles of the American Banking System, with considerations of its Effects on Morals and Happiness.

The principle should be preventive rather than corrective. His honorable friend opposite (Mr. Smith) seemed to think, that the convertibility of paper into gold would operate as a sufficient check to arrest its progress; and in this opinion he was certainly supported by high authorities, amongst whom were some of the wisest men that composed the BulliOll Committee. They all agreed upon the necessity of the convertibility of paper into gold, in order to establish 8. sound currency. The science of currency (for it deserved the name of a science) was every day acquiring additional light; in fact, it was now in a state of experiment.

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A Short History of Paper Money and Banking by William Gouge (1835)

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