There is one further measure which might well be
adopted at the present conjuncture, namely, the alteration
of the Bank Act so as to allow of the issue from the Bank
of one pound notes. Now that Parliament has authorized
the circulation in England under very questionable conditions
of a fractional paper currency, the last shadow of reason
has disappeared why one pound notes, so long current in
Scotland and Ireland, should be unknown in England. If
we could suppose that thirty millions of such notes were
put into circulation eventually, about twenty millions might
be issued on Securities, giving a profit to the Government
of nearly half a million a year. The margin of ten millions



14

more or less of gold added to the specie reserve of the Issue
Department would be ample to meet any conceivable
demand for payment of such notes, the circulation of which
would probably be more constant than that of the larger,
notes. Thus a supply of twenty miUions of sovereigns
would be opportunely thrown upon the markets of the world,
which might be scrambled for by the various nations now
wanting gold currencies.
