Argues that the Bank of England may issue paper money of any denomination in Scotland. Discusses basic difference between paper and metallic currency; Scotland prefers paper to gold because each gold piece must be valued. But paper must be backed by reputation to be universal tender; the government should therefore control the issue of paper and allow the Bank of England to issue it. Bankers' notes and the Stamp Act. Historical privilege of issuing "legal tender."

Suppression of all small-note issue in England (not Scotland) in 1817; Peel's 1844 statute limits Scottish banks; but does not cover the Bank of England in Scotland.