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To return these banknotes to their emitters. In case the bank And will receive the such

In the image of banknotes of bank In more than the bank In - banknotes of bank And, will turn out

Positive clearing balance in favour of bank And which can demand Repayments of this balance from gold reserves of bank of V.Sledovatelno, if Any bank will release excessive quantity of banknotes, at Other banks the balance in relation to it will appear positive, and

The arisen outflow of reserves will put an end to its expansion. Such control through

The clearing mechanism is based not on a presentation of banknotes the population for them

Repayments, and on interchange by banknotes between banks. Possibly, this

The mechanism would work much faster, than the mechanism based on outflow for

Border of precious metals as a result of falling of a rate of national currency.

According to Parnella, "this constant mutual demand of banks on

Metallic currency is realised completely by a principle of convertibility of banknotes, and

Surplus of paper money or their depreciation cannot occur because of Lack of timely and active demand for gold. That in England Possibility to exchange paper money for gold has not prevented education Surplus of paper money as increase of demand for gold does not occur Right after educations of such surplus, should be carried on the bill English bank system. "In the same place, with. 88.

Polemic between Parnellom and the Poppy-kullohom has got clearer outlines with

Issue of a lampoon the Poppy-kulloha "Historical Sketch of the Bank of England

with an Examination of the Question as to the prolongation of the exclusive

privileges of that Establishment ", 1831 and the answer written by Parnellom on

It A Plain Statement of the Power of the Bank of England, a Reply to the Historical Sketch of the Bank of England ", 1832. and the Use it has made of it; with a Refutation of the Objections made to the Scotch System of


In this discussion the Poppy-kulloh has put forward for the first time the important theoretical arguments

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