t a law should now be passed, prohibiting, from a
period to be therein determined, the future issue in Scotland of
notes below five pounds:--

"There are, in the opinion of your committee, sufficient grounds
in the experience of the past for permitting another trial to be
made of the compatibility of a paper circulation in Scotland with
a circulation of specie in this country.

"Looking at the amount of notes current in Scotland, below the
value of five pounds, and comparing it with the total amount of
the paper currency of that country, _it is very difficult to
foresee the consequences of a law which should prohibit the
future issue of notes constituting so large a proportion of the
whole circulation_.

"Your committee are certainly not convinced that it would affect
the cash-credits to the extent apprehended by some of the
witnesses; but they are unwilling, without stronger proof of
necessity, to incur the risk of deranging, from any cause
whatever, A SYSTEM ADMIRABLY CALCULATED, in their opinion, to
economize the use of capital, to excite and cherish a spirit of
useful enterprise, and even to promote the moral habits of the
people, by the direct inducements which it holds out to the
maintenance of a character for industry, integrity, and prudence.

"At the same time that your committee recommend that the system
of currency which has for so long a period prevailed in Scotland,
should not, under existing circumstances, be disturbed, they feel
it to be their duty to add, that they have formed their judgment
upon a reference to the past, and upon the review of a state of
things which may hereafter be considerably varied by the
increasing wealth and commerce of Scotland, by the rapid
extension of her commercial intercourse with England, and by the
new circumstances that may affect that intercourse after the
re-establishment of a metallic currency in this country.

"Apart from these general observations, bearing upon the
conclusions at which they have arrived, there are two
circumstances to which your committee must more particularly
advert.

"It is evident that if the small notes issued in Scotland should
be current beyond the Border, they would have the effect, in
proportion as their circulation should extend itself, of
d