PAPER CURRENCY 193

the rights of circulation is either the property of the state
or has some or all of its most responsible officials appointed
by the government. Such is the case in France and in
Germany, as also in Sweden, to refer to illustrations already
employed. In England, the bank which is entrusted with
the care of the circulation is the government’s banker,
but it is owned and managed in independence of the
government,
Even where a single bank of issue is not under political
domination in its policy, its contact with the trade for which
it supplies the exchange-medium is less intimate, almost of
Necessity, than is desirable for the adaptation of its action
to the wants of remote localities. Its offices are likely
to be, mainly or entirely, in the larger trade centres, and,
however numerous they may be, they cannot procure such
widespread contact with all branches of trade, and all
districts, as the network of banks of deposit and discount
which is tolerably certain to exist, in spite of the lack
of the privilege of issuing circulating notes, and the
growth of which would be encouraged by the grant of that
privilege.
Thus bank issues present a balance of advantage over
state issues ; and issues by numerous authorities, if duly safe-Juarded,
 present important advantages over a centralised
issue. For multiple issues, however, ample safeguards are
required, in order that all notes alike may circulate freely,
and the labour of discriminating between trustworthy and
Intrustworthy notes may not be incumbent on recipients of
‘he notes, Such safeguards can be, and are. simply and
effectually provided.
Where the safeguards are so rigid as in the case of the
National Bank currency of the United States, we have, in
Practice, an example of an issue guaranteed by the national
SOvernment, but emitted by numerous banks, scattered over
the country, acting as agents of the government for this
Purpose, and permitted to retain enough of the profits of
'SSue to make it worth while to act as issuing and redeeming
gents, The lack of elasticity is characteristic of state issues
father than of bank issues.