THEORY AND PRACTICE

OF

BANKING.

THE

THEORY AND PRACTICE

OF

BANKING

BY

HENRY DUNNING MACLEOD, M.A.

OF TRINITY COLLEGE, CAMBRIDGE, AND THE INNER TEMPLE, BARRISTER-AT-LAW

SELECTED BY THE ROYAL COMMISSIONERS FOR THE DIGEST OF THE LAW TO PREPARE
THE DIGEST OF THE LAW OF BILLS, NOTES, ETC.

HONORARY MEMBER OF THE JURIDICAL SOCIETY OF PALERMO, AND OF THE SICILIAN
SOCIETY OF POLITICAL ECONOMY

CORRESPONDING MEMBER OF THE SOCIÉTÉ D'ÉCONOMIE POLITIQUE OF PARIS, AND OF
THE ROYAL ACADEMY OF JURISPRUDENCE AND LEGISLATION OF MADRID

LELAND STANFORD JUNIOR

LIPAARY

* UNIVERSITY :

A22823

CONTENTS

THE SECOND VOLUME

CHAPTER X

FROM THE RENEWAL OF THE BANK CHARTER IN 1800,

TO THE ACT FOR THE RESUMPTION OF CASH PAY.

MENTS IN 1819

§ 1. Great failure of the harvest in 1800

2. Opinions held in 1696, respecting the depreciation of paper.

3. Opinion of Adam Smith respecting the market price of

Bullion.

4. After the restriction prices estimated in Bank paper

5. Sudden rise in the market price of Gold in 1801

6. Discovery of the truth that a rise in the market price of gold

Bullion was a proof of the depreciation of the paper cur-

rency

ton

7. This discovery due to Mr. Boyd, Lord King, and Mr. Thorn-

3. Peace of Amiens-continuation of the restriction

9. Mr. Fox first declares the cause of the adverse exchange in

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the House of Commons

5

10. Declaration of War in 1803-Lord King's principles of a

paper currency

7

11. The issues of country banks based upon Bank paper

8

12. Par of Exchange between England and Ireland

8

13. The Bank of Ireland directed to suspend payments in cash

14. Extraordinary depression of the Exchange between London

9

and Dublin

9

15. Appointment of a Committee to inquire into the state of the

16. First investigation into the theory of the paper currency by

Parliament

10

17. Opinions of the Directors of the Bank of Ireland :