If further proof were required of the absurdity of the notion, that a paper circulation has a necessary tendency to over-issue, the following fact is conclusive. The banking capital in Scotland has _more than doubled_ between the years 1825 and 1840--a triumphant proof of their increased stability; whilst the circulation has been nearly stationary, but, if any thing, _rather diminished than otherwise_. We quote from a report to the Glasgow Chamber of Commerce. "The first return of the circulation was made in Scotland in 1825. Every one knows the extraordinary advance which Scotland has made between that period and 1840; for instance, in the former of these years, she manufactured 55,000 bales of cotton, in the latter, 120,000 bales. In 1826, the produce of the iron furnaces was 33,500 tons; in 1840, about 250,000 tons. In 1826, the banking capital of Scotland was £4,900,000; in 1840, it was about £10,000,000; yet with all this progress in industry and wealth, the circulation of notes, which in 1825 varied from £3,400,000 to £4,700,000, was in 1839 from £2,960,000 to £3,670,000, and in the first three months of 1840, £2,940,000." We are induced to dwell the more strongly upon these facts, because we have strong suspicions that our opponents will endeavour to get at our monetary system by raising the senseless cry of over-issue--senseless at any time as a political maxim, it being the grossest fallacy to maintain that an increased issue is the cause of national distress, unless, indeed, it were possible to suppose that bankers were madmen enough to dispense their paper without receiving a proper equivalent--not only senseless, but positively nefarious, when the clear broad fact stares them in the face, that Scotland has in fifteen years thrown double the amount of capital into its banking establishments, increased its productions in a threefold, and in some cases a sevenfold ratio, augmented its population by nearly half a million, (one-fifth part of the whole,) and yet kept its circulation so low as to exhibit an actual decrease. If we were called upon to state the cause of this certainly singular fact, we should, without any hesitation, attribute it to the great increase of the bank branches. The establishment of a branch in a remote locality, has invariably, from the thrifty habits of the Scottish people, absorbed all the paper which otherwise would have been hoarded for a time, and left in the hands of the holders without any interest. It would thus seem, from practice, that the doctrines of the political economists upon this head are absolutely fallacious; that the increase of banks, supposing these banks to issue paper and to give interest on deposits, has a direct tendency to check over-circulation, and in fact does partially supersede it.