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Bank: (Airline Transport Pilot) Airman Knowledge Test Question Bank

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Bank-Notes had been introduced into Great Britain, and furnished a considerable portion of the circulating medium of the country; but the theory of their operation was not understood. As these notes were observed to take the place of coin, and to per- form all its offices, it was thence concluded that they were essentially the same thing as coin. Now, according to the mercantile theory of po- litical economy, at that time universally prevalent, coin is the only sub- stantial, actual wealth; and as, according to that theory, the great object of the trade of a country, is, or ought to be, to increase the quantity of coin, bank-notes.