A System of Political Economy

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It is true that banking is no branch of productive industry, but this is equally true of corn dealing, ^\hich is simply a distribution of corn already produced, and Tooke gives no reason why an argument which is applicable to productive should not equally apply to other kinds of industry. Englishmen have now been convinced that the supply of corn can be best maintained by allowing corn dealers to buy such quantities as they require at whatever time they choose, from any producer, whether native... or foreign. Why then should we suppose that the supply of paper substitutes for coin would not be best maintained by allowing bankers and their customers to bring them into circulation in whatever quantities, and at whatever times, they find to be mutually convenient. It is no answer to say that it is a mere matter of police, for this is begging the very question in dispute, and not telling us why it is a fit subject for State control. Tooke goes on to expatiate on the inconvenience of a circulation consisting of very small notes, and asks why, if nothing FREE TRADE IN BAXKIXG.

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