A NEW SPECIES OF CURRENCY, BY WHICH A COMMERCIAL CRISIS ARISING FROM THE WANT OF GOLD MAY BE AT ALL TIMES PREVENTED
Year: 1864

page_text: PROVISIONAL SPECIFICATION left by Alexander Alison at the Office of
the Commissioners of Patents, with his Petition, on the 22nd December
1864.
I, ALEXANDER ALISON, of Queen Street Place, in the City of London,
Gentleman, do hereby declare the nature of the said Invention for "A NEW
SPECIES OF CURRENCY, BY WHICH A COMMERCIAL CRISIS ARISING FROM THE WANT
OF GOLD MAY BE AT ALL TIMES PREVENTED," to be as follows:-
My Invention relates to a new bank note which may be issued by Her
Majesty's Exchequer, which may be called an Exchequer bank note, or by any
other appropriate name.
The following are the leading features of this
Invention:-
Firstly, the Exchequer note may be for any amount.
Secondly, the full sum for which it is drawn must be paid to the Exchequer
in sovereigns or Bank of England notes.
Thirdly, the Exchequer note must contain no promise of payment, nor must
it bear interest.
Fourthly, the Legislaturo must authorize the issue of these notes, as a
legal tender for the payment of all debts and liabilities between one person or
corporation and another, throughout the kingdom.
Fifthly, the Exchequer must bind itself to receive their Exchequer bank
notes at the Custom Houses and Inland Revenue Offices in payment of
duties and taxes.

page_text: The following is a draught of an Exchequer note that would fulfil these
conditions:-
66
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"£100 sterling. This Exchequer bank note, for which the full sum of
"One hundred pounds sterling has been paid to Her Majesty's Treasury, is a
legal tender within the United Kingdom, and is hereby declared to be
"available for the payment of all debts and liabilities between one person or
corporation and another, and shall rank of equal value with One hundred
sovereigns of the current coin of the realm. It is further declared that
"this note of Her Majesty's Exchequer shall be received at the Custom
"Houses and Inland Revenue Offices throughout the United Kingdom in
68 payment of duties and taxes."
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Any other form which embraces the conditions set forth in this Specification
will answer the purpose equally as well as the above.
The benefits which will accrue to the public and the Exchequer by the
adoption of my Invention are great, of which the following may be named:-
First, the Exchequer notes will enable the Legislature to make it imperative
on all the banks throughout the kingdom to retain gold and Exchequer bank
notes against their own issues of notes, which cannot be done at present,
owing to the want of gold. This will be a great security to the public, by
preventing the risk of runs on the banks for gold.
Second, the holders of the Exchequer notes will be secured against their
ever being depreciated in value, as they will always be able to obtain payment
of them by paying them away for duties and taxes. Another security
against depreciation is that it will not be lawful for the Exchequer to issue any
notes unless the full price has been paid for them.
Third, the benefit to Her Majesty's Exchequer will be great, as they will be
enabled by it to place a large amount of their notes permanently in the hands
of the banks; and, as the Exchequer will have no interest to pay on the
notes, they will be great gainers by the adoption of my Invention. Another
benefit to the Government will be, that as there will be fewer bankruptcies
than heretofore, trade will be allowed to go on increasing without monetary
disturbances, and thus the national revenue will be increased.
The above is a general description of my Invention and of the benefits it
will confer upon the country.