66 MUTUAL BANKI:NG. 



of a Mutual Bank are not measures of value, but mere instruments 

 of exchange; and, as the value of the mutual money is determined, 

 not by the demand and supply of the mutual money, but by the de- 

 mand and supply of the precious metals, the Mutual Bank may is- 

 sue bills to any extent, and those bills will not be liable to any de- 

 preciation from excess of supply. And for like reasons, the mutual 

 money will not be liable to rise in value if it happens at any time to 

 be scarce in the market. The issues of said mutual money are 

 therefore susceptible of any contraction or expansion which may be 

 necessary to meet the wants of the community; and such contrac- 

 tion or expansion cannot, by any possibility, be attended with any 

 evil consequence whatever; for the silver dollar, which is the 

 standard of value, will remain throughout at the natural valuation 

 determined for it by the general demand and supply of gold and 

 silver throughout the whole world. 



In order that the silver dollar, which is the standard and meas- 

 ure of value, may not be driven out of circulation, the Mutual 

 Bank— which has no vault for specie other than the pockets of the 

 people — ought to issue no bill of a denomination less than tive 

 dollars. 



THE KXD. 



