The circulation of unrepresented notes being thus disposed of, there remains for consideration the expediency of an increase in the amount of bullion notes issued by the Bank. And here, as in the case of the unrepresented notes, it is generally well understood, that it is profitable for the nation that the bullion notes should be extended as widely as possible. There are two points of difference however in the two cases. For every unrepresented note that can prudently be issued, there is a clear addition of an equal amount to the productive capital of the nation; while for every note issued on bullion, there is no other saving than the wear and tear of the metal that is lodged in the coffers of the Bank. But, on the other hand, while unrepresented notes cannot prudently be issued so far as to infringe upon the metallic reserve required for foreign and domestic purposes, there is no such limit to the prudent issue of bullion notes; but the Bank may with perfect security continue to issue notes on gold so long as the gold is presented, even though the amount so presented should comprise every sovereign that is now in the hands of the public. And the reason for this is sufficiently obvious. For if every bullion note that is issued, increases the liabilities of the Bank it likewise increases the assets available for meeting those liabilities, and if £10,000,000 of bullion are sufficient to meet a demand for the payment of £10,000,000 of notes, £40,000,000 of bullion would be equally competent to discharge £40,000,000 of notes. And if we include the £15,000,000 of unrepresented notes amongst the liabilities, it will be seen at once, that if the possession of £10,000,000 of bullion would inspire confidence in the £25,000,000 of bullion notes and unrepresented notes combined, there can be no doubt that the possession of £40,000,000 of bullion would impart a still higher confidence in a total circulation, consisting of £55,000,000 of both descriptions of notes combined. So that from this point of view, it clearly follows that every increase of the bullion notes must necessarily increase the public confidence in, and therefore the security of, the unrepresented issues.