The Principles of Currency, 6 Lects. with a Letter [In Fr. and Engl.] from M. Chevalier on the History of the Treaty of Commerce with France

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1869. Excerpt: ... LECTUEE V, THE BANK CHARTER ACT OF 1844, AND MR. MILL'S DOCTRINE OF MONEY. first task to-day is to answer the question with which the last lecture terminated: What is the principle on which the special interference of the law with the particular kind of cheque called a banknote is claimed and justified? Up to the year 1844, the payment of the banknote rested simply on the general law of debt; but the disastrous losses suffered by the holders of country notes in 1825, and at other periods, created a conviction in the public mind that some action of the law for the protection of society was needed in this matter. Yet why should one form of debt demand special legislation beyond all others? Cheques are frequently not paid: the non-payment of bills is constantly bringing loss and ruin on innocent persons: yet the law is not found to be stepping forward with enactments which render the non-payment of a cheque or a bill almost impossible. A banknote is but a cheque: whence the distinction in his case compared with the failures of K his brethren They are left to take their chance. The. State considers them as matters belonging to purely private management, in which it feels no other responsibility than the general enforcement of the payment of all debts and of the fulfilment of all contracts. The mere fact that one class of debts is liable to frequent non-payment does not, of itself alone, constitute a claim for exceptional legislation. Some distinctive feature in their nature must be shown before a basis for special enactments of law can be obtained. The question, then, is, Does the banknote present any such peculiarity of nature? Is there anything in the character and functions of a banknote which calls on the State to issue exceptional ordinances for its reg...