Works by the same Author.

I

A DICTIONARY OF POLITICAL ECONOMY, Biographical, Bibliographical, Historical, and Practical.

VOL. I. Second Edition. Preparing.

VOL. II. Completing the Work. In progress.

II

THE THEORY AND PRACTICE OF BANKING.

Third Edition. VOL. I. price 12s. VOL. II. price 14s.

III

Adopted by M. MICHEL CHEVALIER at the College de France. THE PRINCIPLES OF ECONOMICAL PHILOSOPHY.

THE

ELEMENTS

OF

BANKING.

BY

HENRY DUNNING MACLEOD, M.A.

OF TRINITY COLLEGE, CAMBRIDGE,

AND THE INNER TEMPLE, BARRISTER-AT-LAW:

SELECTED BY THE ROYAL COMMISSIONERS FOR THE DIGEST OF THE LAW
TO PREPARE THE DIGEST OF THE LAW OF BILLS

LONDON: PRINTED BY

SPOTTISWOODE AND CO., NEW-STREET SQUARE AND PARLIAMENT STREET

PREFACE.

THE PURPOSE of the following work is to exhibit in the simplest language possible the mechanism of the great system of CREDIT, BANKING, and the FOREIGN EXCHANGES, and to explain the reasoning upon which is founded the Principle of Currency, which I published in 1856-THAT THE TRUE METHOD OF CONTROLLING CREDIT AND THE PAPER CURRENCY IS BY ADJUSTING THE RATE OF DISCOUNT BY THE BULLION IN THE BANK AND THE STATE OF THE FOREIGN EXCHANGES which is now universally acknowledged to be the true one, and which is now adopted by the Bank of England and by every bank in the world.

H. D. M.