in　the　meantime　bore　no　interest。　Such　a　paper　money　would；　no
  doubt；　fall　more　or　less　below　the　value　of　gold　and　silver；
  according　as　the　difficulty　or　uncertainty　of　obtaining　immediate
  payment　was　supposed　to　be　greater　or　less；　or　according　to　the
  greater　or　less　distance　of　time　at　which　payment　was　exigible。
  Some　years　ago　the　different　banking　companies　of　Scotland
  were　in　the　practice　of　inserting　into　their　bank　notes；　what
  they　called　an　Optional　Clause；　by　which　they　promised　payment　to
  the　bearer；　either　as　soon　as　the　note　should　be　presented；　or；
  in　the　option　of　the　directors；　six　months　after　such
  presentment；　together　with　the　legal　interest　for　the　said　six
  months。　The　directors　of　some　of　those　banks　sometimes　took
  advantage　of　this　optional　clause；　and　sometimes　threatened　those
  who　demanded　gold　and　silver　in　exchange　for　a　considerable
  number　of　their　notes　that　they　Would　take　advantage　of　it；
  unless　such　demanders　would　content　themselves　with　a　part　of
  what　they　demanded。　The　promissory　notes　of　those　banking
  companies　constituted　at　that　time　the　far　greater　part　of　the
  currency　of　Scotland；　which　this　uncertainty　of　payment
  necessarily　degraded　below　the　value　of　gold　and　silver　money。
  During　the　continuance　of　this　abuse　（which　prevailed　chiefly　in
  1762；　1763；　and　1764）；　while　the　exchange　between　London　and
  Carlisle　was　at　par；　that　between　London　and　Dumfries　would
  sometimes　be　four　per　cent　against　Dumfries；　though　this　town　is
  not　thirty　miles　distant　from　Carlisle。　But　at　Carlisle；　bills
  were　paid　in　gold　and　silver；　whereas　at　Dumfries　they　were　paid
  in　Scotch　bank　notes；　and　the　uncertainty　of　getting　those　bank
  notes　exchanged　for　gold　and　silver　coin　had　thus　degraded　them
  four　per　cent　below　the　value　of　that　coin。　The　same　Act　of
  Parliament　which　suppressed　ten　and　five　shilling　bank　notes
  suppressed　likewise　this　optional　clause；　and　thereby　restored
  the　exchange　between　England　and　Scotland　to　its　natural　rate；　or
  to　what　the　course　of　trade　and　remittances　might　happen　to　make
  it。
  In　the　paper　currencies　of　Yorkshire；　the　payment　of　so
  small　a　sum　as　a　sixpence　sometimes　depended　upon　the　condition
  that　the　holder　of　the　note　should　bring　the　change　of　a　guinea
  to　the　person　who　issued　it；　a　condition　which　the　holders　of
  such　notes　might　frequently　find　it　very　difficult　to　fulfil；　and
  which　must　have　degraded　this　currency　below　the　value　of　gold
  and　silver　money。　An　Act　of　Parliament　accordingly　declared　all
  such　clauses　unlawful；　and　suppressed；　in　the　same　manner　as　in
  Scotland；　all　promissory　notes；　payable　to　the　bearer；　under
  twenty　shillings　value。
  The　paper　currencies　of　North　America　consisted；　not　in　bank
  notes　payable　to　the　bearer　on　demand；　but　in　government　paper；
  of　which　the　payment　was　not　exigible　till　several　years　after　it
  was　issued；　and　though　the　colony　governments　paid　no　interest　to
  the　holders　of　this　paper；　they　declared　it　to　be；　and　in　fact
  rendered　it；　a　legal　tender　of　payment　for　the　full　value　for
  which　it　was　issued。　But　allowing　the　colony　security　to　be
  perfectly　good；　a　hundred　pounds　payable　fifteen　years　hence；　for
  example；　in　a　country　where　interest　at　six　per　cent；　is　worth
  little　more　than　forty　pounds　ready　money。　To　oblige　a　creditor；
  therefore；　to　accept　of　this　as　full　payment　for　a　debt　of　a
  hundred　pounds　actually　paid　down　in　ready　money　was　an　act　of
  such　violent　injustice　as　has　scarce；　perhaps；　been　attempted　by
  the　government　of　any　other　country　which　pretended　to　be　free。
  It　bears　the　evident　marks　of　having　originally　been；　what　the
  honest　and　downright　Doctor　Douglas　assures　us　it　was；　a　scheme
  of　fraudulent　debtors　to　cheat　their　creditors。　The　government　of
  Pennsylvania；　indeed；　pretended；　upon　their　first　emission　of
  paper　money；　in　1722；　to　render　their　paper　of　equal　value　with
  gold　and　silver　by　enacting　penalties　against　all　those　who　made
  any　difference　in　the　price　of　their　goods　when　they　sold　them
  for　a　colony　paper；　and　when　they　sold　them　for　gold　and　silver；
  a　regulation　equally　tyrannical；　but　much　less　effectual　than
  that　which　it　was　meant　to　support。　A　positive　law　may　render　a
  shilling　a　legal　tender　for　guinea；　because　it　may　direct　the
  courts　of　justice　to　discharge　the　debtor　who　has　made　that
  tender。　But　no　positive　law　can　oblige　a　person　who　sells　goods；
  and　who　is　at　liberty　to　sell　or　not　to　sell　as　he　pleases；　to
  accept　of　a　shilling　as　equivalent　to　a　guinea　in　the　price　of
  them。　Notwithstanding　any　regulation　of　this　kind；　it　appeared　by
  the　course　of　exchange　with　Great　Britain；　that　a　hundred　pounds
  sterling　was　occasionally　considered　as　equivalent；　in　some　of
  the　colonies；　to　a　hundred　and　thirty　pounds；　and　in　others　to　so
  great　a　sum　as　eleven　hundred　pounds　currency；　this　difference　in
  the　value　arising　from　the　difference　in　the　quantity　of　paper
  emitted　in　the　different　colonies；　and　in　the　distance　and
  probability　of　the　term　of　its　final　discharge　and　redemption。
  No　law；　therefore；　could　be　more　equitable　than　the　Act　of
  Parliament；　so　unjustly　complained　of　in　the　colonies；　which
  declared　that　no　paper　currency　to　be　emitted　there　in　time
  coming　should　be　a　legal　tender　of　payment。
  Pennsylvania　was　always　more　moderate　in　its　emissions　of
  paper　money　than　any　other　of　our　colonies。　Its　paper　currency；
  accordingly；　is　said　never　to　have　sunk　below　the　value　of　the
  gold　and　silver　which　was　current　in　the　colony　before　the　first
  emission　of　its　paper　money。　Before　that　emission；　the　colony　had
  raised　the　denomination　of　its　coin；　and　had；　by　act　of　assembly；
  ordered　five　shillings　sterling　to　pass　in　the　colony　for　six　and
  threepence；　and　afterwards　for　six　and　eightpence。　A　pound　colony
  currency；　therefore；　even　when　that　currency　was　gold　and　silver；
  was　more　than　thirty　per　cent　below　the　value　of　a　pound
  sterling；　and　when　that　currency　was　turned　into　paper　it　was
  seldom　much　more　than　thirty　per　cent　below　that　value。　The
  pretence　for　raising　the　denomination　of　the　coin；　was　to　prevent
  the　exportation　of　gold　and　silver；　by　making　equal　quantities　of
  those　metals　pass　for　greater　sums　in　the　colony　than　they　did　in
  the　mother　country。　It　was　found；　however；　that　the　price　of　all
  goods　from　the　mother　country　rose　exactly　in　proportion　as　they
  raised　the　denomination　of　their　coin；　so　that　their　gold　and
  silver　were　exported　as　fast　as　ever。
  The　paper　of　each　colony　being　received　in　the　payment　of
  the　provincial　taxes；　for　the　full　value　for　which　it　had　been
  issued；　it　necessarily　derived　from　this　use　some　additional
  value　over　and　above　what　it　would　have　had　from　the　real　or
  supposed　distance　of　the　term　of　its　final　discharge　and
  redemption。　This　additional　value　was　greater　or　less；　according
  as　the　quantity　of　paper　issued　was　more　or　less　above　what　could
  be　employed　in　the　payment　of　the　taxes　of　the　particular　colony
  which　issued　it。　It　was　in　all　the　colonies　very　much　above　what
  could　be　employed　in　this　manner。
  A　prince　who　should　enact　that　a　certain　proportion　of　his
  taxes　should　be　paid　in　a　paper　money　of　a　certain　kind　might
  thereby　give　a　certain　value　to　this　paper　money；　even　though　the
  term　of　its　final　discharge　and　redemption　should　depend
  altogether　upon　the　will　of　the　prince。　If　the　bank　which　issued
  this　paper　was　careful　to　keep　the　quantity　of　it　always　somewhat
  below　what　could　easily　be　employed　in　this　manner；　the　demand
  for　it　might　be　such　as　to　make　it　even　bear　a　premium；　or　sell
  for　somewhat　more　in　the　market　than　the　quantity　of　gold　or
  silver　currency　for　which　it　was　issued。　Some　people　account　in
  this　manner　for　what　is　called　the　Agio　of　the　bank　of　Amsterdam；
  or　for　the　superiority　of　bank　money　over　current　money；　though
  this　bank　money；　as　they　pretend；　cannot　be　taken　out　of　the　bank
  at　the　will　of　the　owner。　The　greater　part　of　foreign　bills　of
  exchange　must　be　paid　in　bank　money；　that　is；　by　a　transfer　in
  the　books　of　the　bank；　and　the　directors　of　the　bank；　they
  allege；　are　careful　to　keep　the　whole　quantity　of　bank　money
  always　below　what　this　use　occasions　a　demand　for。　It　is　upon
  this　account；　they　say；　that　bank　money　sells　for　a　premium；　or
  bears　an　agio　of　four　or　five　per　cent　above　the　same　nominal　sum
  of　the　gold　and　silver　currency　of　the　country。　This　account　of
  the　bank　of　Amsterdam；　however；　it　will　appear　hereafter；　is　in　a
  great　measure　chimerical。
  A　paper　currency　which　falls　below　the　value　of　gold　and
  silver　coin　does　not　thereby　sink　the　value　of　those　metals；　or
  occasion　equal　quantities　of　them　to　exchange　for　a　smaller
  quantity　of　goods　of　any　other　kind。　The　proportion　between　the
  value　of　gold　and　silver　and　that　of　goods　of　any　other　kind
  depends　in　all　cases　not　upon　the　nature　or　quantity　of　any
  particular　paper　money；　which　may　be　current　in　any　particular
  country；　but　upon　the　richness　or　poverty　of　the　mines；　which
  happen　at　any　particular　time　to　supply　the　great　market　of　the
  commerc