Bailiff. He
reiterated the principle of the States being the sovereign power in
issuing currency, claimed that the Cour Royale had the right of stopping
the private issue of notes, and pointed to the example of England, where
only L5 notes were permitted in the country, and these under a heavy
tax, while only the Bank of England might issue notes in and around
London. He showed that it was a choice between notes issued for the
benefit of individuals and notes issued for the public good. He defended
the improvements carried out by the States, and once again declared that
they had been advantageous in giving employment to the poor, security to
the rich and encouragement to commerce.

CHAPTER VIII

THE END

One can imagine the enthusiasm and the satisfaction with which the
majority returned home. One anticipates a triumphant report in the
Bailiff's best vein; and expects that the banks will in future have to
confine themselves to the operations permitted to English banks, while
the States restore equilibrium by causing the withdrawal of superfluous
notes and confining future issues, once again entirely in their own
hands, to quantities proportioned to the needs of the island.

With surprise, the subsequent proceedings are found to be on quite
different lines. Truth is stranger than fiction. The prosaic facts are
as follows:--

The Bailiff in presenting his _Billet d'Etat_ to the States Meeting,
29th March, 1837, reported on the arrangement made by the Committee with
the two Banks. He brought forward no proposition on the matter on which
the States should deliberate. He simply states that:--

"After some preliminary conferences the Committee received the following
letter:--

'To D. De Lisle Brock, Esq.,
Bailiff, etc., etc., etc.,
Guernsey, 8th Oct., 1836.

Sir,

To settle the differences now existing between the States and the Banks,
and to promote an amicable adjustment between them, we propose:

That the States should withdraw immediately L15,000 of their Notes, nor
have at any time more than L40,000 in circulation, give up all Banking
transactions, and cease to collect the notes of the Banks.

In consideration thereof the Banks engage whenever they draw bills
either on London or Paris, to take States' Notes for one half at least
of their amount and to pass them to the public as their own.

The Banks further engage to supply the States annually with L10,000 in
cash, each bank to provide for on