8 



and continues to afford accommodation, without having cost 

 a farthing in taxes to any inhabitant."* 



Can it be doubted that as this able writer infers the 

 system which enabled the States of Guernsey to build their 

 Market, would, if the restrictions on the issue of Represen- 

 tative Money were removed, reclaim the bogs of Ireland ? 



These facts prove that either on a small scale, as in the in- 

 stance of the GUERNSEY STATES, or on a large one, as in the 

 case of the AMERICAN COLONIES, the judicious application of 

 representative money PAPER CURRENCY is attended with 

 the most beneficial effects to the community. 



The American Colonies grew great and prospered, not only 

 with Paper Money, but in consequence of it. Their Paper 

 Currency was withdrawn distress, ruin, and revolt followed. 

 Again, in recent times, an attempt was made to establish, to 

 a great extent, a Metalic Currency. Commercial depression, 

 stagnation of trade, and panic, were the results. " The 

 Americans, "s&ys an experienced Liverpool merchant, Alexander 

 Henry Wylie, Esq. who was examined before the Committee of 

 the House of Lords on the Commercial Distress of 1847," have 

 paid for their experience, and profited by it ; and so far as I 

 have been able to compare different systems of Banking, and 

 to look into the subject, I believe that in no part of the world 

 whatever, is there a system of Banking more perfect than that 

 now working under the General Banking Law of New York. 

 It has now been in operation ten years, and it is found to an- 

 swer securely and profitably : that is, profitably to the pro- 

 prietary, and usefully to the public. The great peculiarity of 

 the] General Banking Law is, that it enables any party or 

 parties desiring to form a Banking Association to do so, on 

 complying with certain provisions of the Law, the principal of 

 which is the deposit with the State Comptroller, of an amount of 

 state stock equal to the amount the projected Banking Associa- 

 tion intends to issue." 



Here is a return to the system of Paper Bills of Credit, 

 under which the American Colonies originally flourished, and 

 under which we may expect to see the United States rapidly 

 advancing in prosperity. Great Britain has paid for her ex- 

 perience, but has not yet profited by it. The Americans will 

 * Letters on Monetary Science by Jonathan Duncan, Esq. 



