Moreover, I wish to confine myself to our own fiduciary currency since the Bank Charter Act of 1844. Prior to then the banks of this country were permitted to issue their own notes, and to issue them in unlimited quantities, with the provision that they were payable in gold on demand. There were people who attributed the various crises that occurred in different periods prior to 1844 to the over-issue of these notes. It was contended that this alleged over-issue brought about an inflation of the currency and encouraged gambling and speculation. Diverse views were held then, and diverse views are likely always to be held, as to the true origins and causes of financial crises. But whatever the views or causes may be there can be little doubt, human nature being what it is, that many joint stock banks abused the powers with which they were endowed. This privilege of issuing notes to an unlimited amount is a dangerous privilege to give to irresponsible institutions, and if the power be given it must be given to responsible institutions or one responsible institution. This view probably was chiefly responsible for the Bank Charter Act of 1844. This Act provided that the Issue Department of the Bank of England should be separated forthwith from the Banking Department. Securities to the value of £14,000,000, which included the Government’s debt to the Bank, were to be transferred to the Issue Department, together with so much coin and bullion that the total so transferred should equal the amount of notes then outstanding. Notes could be demanded from the Issue Department by any person in exchange for gold at the rate of £3 17_s._ 9_d._ per standard ounce. It was further enacted that if any banker, having the power of issue on May 6, 1844, should relinquish such issue, the Issue Department should be authorized to increase its issue of notes against securities to the extent of two-thirds of the relinquished issue. Bankers having the right to issue their own notes on May 6, 1844, were allowed to continue the issue under certain conditions, and to an agreed amount; but no provision was made compelling them to keep any reserve against their issues either in cash or securities. Should any issue lapse from any cause, it could not be restored, and no institutions were allowed to acquire the right of issue in the future.