Page 184 - clra62_0019-(GIPE)

176 ECONOMIC INQUIRIES AND STUDIES
are credit instruments only, payable on demand by the
issuers. I believe that, if in the past such a plan had
been fairly tried, we should now in England have a
better monetary system than we have, excellent and
nearly perfect as I believe that system to be for all the
great ends of a monetary system; and we should be
free of a great deal of the dismal discussion that has
arisen in consequence of paper being made legal tender
and being supposed to be money in some peculiar sense
that cheques and the like credit instruments are not.
Our whole-banking system would also have been better
than it is, because more naturally arranged. It is con-
ceivable, again, that in an ideal world one pound notes
would be advantageous, especially if the system of
issuing them had grown up naturally. But I should
not dream of suggesting or defending any of these
theoretical improvements practically. They are not
great enough to excuse a disturbance of the existing
system. The use of discussing them at all is that ex-
perts may be prepared for emergencies and for dealing
with monetary systems in disorder, when reasons of
overwhelming necessity can be given for change.
Always, however, in the discussion of such points, if it
is to be profitable at all, its necessarily theoretical
character should be kept in mind; and the very different
points that must be considered in dealing with a
practical proposal, such as I have explained above,
should be equally remembered. If a monetary system
is of such a character that it can hardly be meddled
with at all, even for the best objects, without great
risks and inconvenience, then the advantages to be
gained must always be weighed against such risks, or
apprehended risks, whenever we come to business, and
this question of relative advantage, supposing the
theoretical case for improvement to be made out, is very
often the main matter in the practical discussion. I
hardly think· that of late years the enormous practical
dangers of meddling with a settled monetary system,
which hardly any theoretical gain would compensate,