superfluous　paper　was　converted　into　gold　and　silver；　they　could
  easily　find　a　use　for　it　by　sending　it　abroad；　but　they　could
  find　none　while　it　remained　in　the　shape　of　paper。　There　would
  immediately；　therefore；　be　a　run　upon　the　banks　to　the　whole
  extent　of　this　superfluous　paper；　and；　if　they　showed　any
  difficulty　or　backwardness　in　payment；　to　a　much　greater　extent；
  the　alarm　which　this　would　occasion　necessarily　increasing　the
  run。
  Over　and　above　the　expenses　which　are　common　to　every　branch
  of　trade；　such　as　the　expense　of　house…rent；　the　wages　of
  servants；　clerks；　accountants；　etc。；　the　expenses　peculiar　to　a
  bank　consist　chiefly　in　two　articles：　first；　in　the　expense　of
  keeping　at　all　times　in　its　coffers；　for　answering　the　occasional
  demands　of　the　holders　of　its　notes；　a　large　sum　of　money；　of
  which　it　loses　the　interest；　and；　secondly；　in　the　expense　of
  replenishing　those　coffers　as　fast　as　they　are　emptied　by
  answering　such　occasional　demands。
  A　banking　company；　which　issues　more　paper　than　can　be
  employed　in　the　circulation　of　the　country；　and　of　which　the
  excess　is　continually　returning　upon　them　for　payment；　ought　to
  increase　the　quantity　of　gold　and　silver；　which　they　keep　at　all
  times　in　their　coffers；　not　only　in　proportion　to　this　excessive
  increase　of　their　circulation；　but　in　a　much　greater　proportion；
  their　notes　returning　upon　them　much　faster　than　in　proportion　to
  the　excess　of　their　quantity。　Such　a　company；　therefore；　ought　to
  increase　the　first　article　of　their　expense；　not　only　in
  proportion　to　this　forced　increase　of　their　business；　but　in　a
  much　greater　proportion。
  The　coffers　of　such　a　company　too；　though　they　ought　to　be
  filled　much　fuller；　yet　must　empty　themselves　much　faster　than　if
  their　business　was　confined　within　more　reasonable　bounds；　and
  must　require；　not　only　a　more　violent；　but　a　more　constant　and
  uninterrupted　exertion　of　expense　in　order　to　replenish　them。　The
  coin　too；　which　is　thus　continually　drawn　in　such　large
  quantities　from　their　coffers；　cannot　be　employed　in　the
  circulation　of　the　country。　It　comes　in　place　of　a　paper　which　is
  over　and　above　what　can　be　employed　in　that　circulation；　and　is
  therefore　over　and　above　what　can　be　employed　in　it　too。　But　as
  that　coin　will　not　be　allowed　to　lie　idle；　it　must；　in　one　shape
  or　another；　be　sent　abroad；　in　order　to　find　that　profitable
  employment　which　it　cannot　find　at　home；　and　this　continual
  exportation　of　gold　and　silver；　by　enhancing　the　difficulty；　must
  necessarily　enhance　still　further　the　expense　of　the　bank；　in
  finding　new　gold　and　silver　in　order　to　replenish　those　coffers；
  which　empty　themselves　so　very　rapidly。　Such　a　company；
  therefore；　must；　in　proportion　to　this　forced　increase　of　their
  business；　increase　the　second　article　of　their　expense　still　more
  than　the　first。
  Let　us　suppose　that　all　the　paper　of　a　particular　bank；
  which　the　circulation　of　the　country　can　easily　absorb　and
  employ；　amounts　exactly　to　forty　thousand　pounds；　and　that　for
  answering　occasional　demands；　this　bank　is　obliged　to　keep　at　all
  times　in　its　coffers　ten　thousand　pounds　in　gold　and　silver。
  Should　this　bank　attempt　to　circulate　forty…four　thousand　pounds；
  the　four　thousand　pounds　which　are　over　and　above　what　the
  circulation　can　easily　absorb　and　employ；　will　return　upon　it
  almost　as　fast　as　they　are　issued。　For　answering　occasional
  demands；　therefore；　this　bank　ought　to　keep　at　all　times　in　its
  coffers；　not　eleven　thousand　pounds　only；　but　fourteen　thousand
  pounds。　It　will　thus　gain　nothing　by　the　interest　of　the　four
  thousand　pounds'　excessive　circulation；　and　it　will　lose　the
  whole　expense　of　continually　collecting　four　thousand　pounds　in
  gold　and　silver；　which　will　be　continually　going　out　of　its
  coffers　as　fast　as　they　are　brought　into　them。
  Had　every　particular　banking　company　always　understood　and
  attended　to　its　own　particular　interest；　the　circulation　never
  could　have　been　overstocked　with　paper　money。　But　every
  particular　banking　company　has　not　always　understood　or　attended
  to　its　own　particular　interest；　and　the　circulation　has
  frequently　been　overstocked　with　paper　money。
  By　issuing　too　great　a　quantity　of　paper；　of　which　the
  excess　was　continually　returning；　in　order　to　be　exchanged　for
  gold　and　silver；　the　Bank　of　England　was　for　many　years　together
  obliged　to　coin　gold　to　the　extent　of　between　eight　hundred
  thousand　pounds　and　a　million　a　year；　or　at　an　average；　about
  eight　hundred　and　fifty　thousand　pounds。　For　this　great　coinage
  the　bank　（in　consequence　of　the　worn　and　degraded　state　into
  which　the　gold　coin　had　fallen　a　few　years　ago）　was　frequently
  obliged　to　purchase　gold　bullion　at　the　high　price　of　four　pounds
  an　ounce；　which　it　soon　after　issued　in　coin　at　53　17s。　10　1/2d。
  an　ounce；　losing　in　this　manner　between　two　and　a　half　and　three
  per　cent　upon　the　coinage　of　so　very　large　a　sum。　Though　the　bank
  therefore　paid　no　seignorage；　though　the　government　was　properly
  at　the　expense　of　the　coinage；　this　liberality　of　government　did
  not　prevent　altogether　the　expense　of　the　bank。
  The　Scotch　banks；　in　consequence　of　an　excess　of　the　same
  kind；　were　all　obliged　to　employ　constantly　agents　at　London　to
  collect　money　for　them；　at　an　expense　which　was　seldom　below　one
  and　a　half　or　two　per　cent。　This　money　was　sent　down　by　the
  waggon；　and　insured　by　the　carriers　at　an　additional　expense　of
  three　quarters　per　cent　or　fifteen　shillings　on　the　hundred
  pounds。　Those　agents　were　not　always　able　to　replenish　the
  coffers　of　their　employers　so　fast　as　they　were　emptied。　In　this
  case　the　resource　of　the　banks　was　to　draw　upon　their
  correspondents　in　London　bills　of　exchange　to　the　extent　of　the
  sum　which　they　wanted。　When　those　correspondents　afterwards　drew
  upon　them　for　the　payment　of　this　sum；　together　with　the　interest
  and　a　commission；　sonic　of　those　banks；　from　the　distress　into
  which　their　excessive　circulation　had　thrown　them；　had　sometimes
  no　other　means　of　satisfying　this　draught　but　by　drawing　a　second
  set　of　bills　either　upon　the　same；　or　upon　some　other
  correspondents　in　London；　and　the　same　sum；　or　rather　bills　for
  the　same　sum；　would　in　this　manner　make　sometimes　more　than　two
  or　three　journeys；　the　debtor；　bank；　paying　always　the　interest
  and　commission　upon　the　whole　accumulated　sum。　Even　those　Scotch
  banks　which　never　distinguished　themselves　by　their　extreme
  imprudence；　were　sometimes　obliged　to　employ　this　ruinous
  resource。
  The　gold　coin　which　was　paid　out　either　by　the　Bank　of
  England；　or　by　the　Scotch　banks；　in　exchange　for　that　part　of
  their　paper　which　was　over　and　above　what　could　be　employed　in
  the　circulation　of　the　country；　being　likewise　over　and　above
  what　could　be　employed　in　that　circulation；　was　sometimes　sent
  abroad　in　the　shape　of　coin；　sometimes　melted　down　and　sent
  abroad　in　the　shape　of　bullion；　and　sometimes　melted　down　and
  sold　to　the　Bank　of　England　at　the　high　price　of　four　pounds　an
  ounce。　It　was　the　newest；　the　heaviest；　and　the　best　pieces　only
  which　were　carefully　picked　out　of　the　whole　coin；　and　either
  sent　abroad　or　melted　down。　At　home；　and　while　they　remained　in
  the　shape　of　coin；　those　heavy　pieces　were　of　no　more　value　than
  the　light。　But　they　were　of　more　value　abroad；　or　when　melted
  down　into　bullion；　at　home。　The　Bank　of　England；　notwithstanding
  their　great　annual　coinage；　found　to　their　astonishment　that
  there　was　every　year　the　same　scarcity　of　coin　as　there　had　been
  the　year　before；　and　that　notwithstanding　the　great　quantity　of
  good　and　new　coin　which　was　every　year　issued　from　the　bank；　the
  state　of　the　coin；　instead　of　growing　better　and　better；　became
  every　year　worse　and　worse。　Every　year　they　found　themselves
  under　the　necessity　of　coining　nearly　the　same　quantity　of　gold
  as　they　had　coined　the　year　before；　and　from　the　continual　rise
  in　the　price　of　gold　bullion；　in　consequence　of　the　continual
  wearing　and　clipping　of　the　coin；　the　expense　of　this　great
  annual　coinage　became　every　year　greater　and　greater。　The　Bank　of
  England；　it　is　to　be　observed；　by　supplying　its　own　coffers　with
  coin；　is　indirectly　obliged　to　supply　the　whole　kingdom；　into
  which　coin　is　continually　flowing　from　those　coffers　in　a　great
  variety　of　ways。　Whatever　coin　therefore　was　wanted　to　support
  this　excessive　circulation　both　of　Scotch　and　English　paper
  money；　whatever　vacuities　this　excessive　circulation　occasioned
  in　the　necessary　coin　of　the　kingdom；　the　Bank　of　England　was
  obliged　to　supply　them。　The　Scotch　banks；　no　doubt；　paid　all　of
  them　very　dearly　for　their　own　imprudence　and　inattention。　But
  the　Bank　of　England　paid　very　dearly；　not　only　for　its　own
  imprudence；　but　for　the　much　greater　imprudence　of　almost　all　the
  Scotch　banks。
  The　overtrading　of　some　bold　projectors　in　both　parts　of　the
  United　Kingdom　was　the　original　cause　of　this　excessive
  circulation　of　paper　money。
  What　a　bank　can　with　propriety　advance　to　a　merchant　or
  undertaker　of　any　kind；　is　not　eit