402 Jones—Relation of Economic Crises to Legislation. 
Torrens, to be to bring the effect of sudden withdrawals of gold, 
whether for foreign shipment, (which alone was considered) or 
otherwise, to immediate bearing upon the money in circulation 
through a like withdrawal of bank notes. 1 Through this, the 
depreciation of the notes and commercial fluctuations were to be 
prevented. After 1847, when the impossibility of always re¬ 
ducing the amount of notes to correspond with the bullion was 
proven, the assumption was made, that the chief object of the 
act had never been other than to secure the convertability of 
notes, and prevent their depreciation. 2 Thus the suspension of 
the act was held to be in strict harmony with the spirit of the 
same. 3 
Convertibility had, however, never been endangered by the 
crises occuring between the resumption of 1819 and the act of 
1844. 4 The period of most danger was obviously in times of 
crises, but precisely at such times were the provisions of the 
act suspended, and the issue of notes left to the discretion of 
the bank, the rate of discount being fixed. 5 
1 Col. Torrens “Letter to Lord Melbourne,” pp. 29-30. See note, ante. 
2 In regard to the contraction of the note issue Wagner says: “Dieser 
Zweck der Acte wird nicht immer klar genug in Erinnerung behalten, 
und besonders von den Anhangern der Acte, als sich spaterhin zeigte, 
wie wenig jener eigentliche Zweck erreicht worden sei, die Aufrecht- 
haltung der Einlosbarkeit der Noten als Hauptzweck hingestellt. Das 
ist aber entschieden Unrecht.” “Lehre” p. 7. All did not lose sight of 
this fundamential “currency” school doctrine however; as for example, 
Morris, Governor of the Bank. Commons Rep. on Comm. Distress 1847- 
48, N. 3624. 
3 John Mills, “The Bank Charter Act,” etc., p. 11; R, Torrens “Prin. of 
Robt. Peel’s Act,” pp. 105-106; J. S. Mill, op. cit. Bk. III., ch. 24, §.4; 
Lubbock, op. cit. p. 35, and many others. 
4 Mill, after the quotation already given (see ante), says: “I think my¬ 
self justified in affirming that the mitigation of commercial convulsions 
is the real, and oniy serious purpose of the act of 1844.” “I am quite aware 
that its supporters insist (especially since 1847) on its supreme efficacy 
in ‘maintaining the convertibility of the bank note,’ but I must be ex¬ 
cused for not attaching any serious importance to this one among its 
alleged merits. The convertibility of the bank note was maintained, and 
would have continued to be maintained at whatever cost under the old 
system.” Bk. Ill, ch. 24, § 3 note. 
5 The regular recurrence of crises under the new law showed the error 
