an eminently open and teachable mind, and that when
his reason was once thoroughly convinced neither filial
respect nor political consistency nor party prepossession
could prevent his taking the course which he thought
conducive to the public welfare. He was chosen by the
committee as its chairman, and the Bill for the Resump-
tion of Cash Payments, which was based on its report,
was introduced by him and carried almost without
opposition in the House of Commons.

Before 1797 the currency had consisted either of
coin or of bank-notes payable on demand in coin.
These notes were issued both by the Bank of England
and by other banks in the country which had acquired
the right of issue. In other words, the currency consisted
of cash and of notes strictly interchangeable with cash.
The convertibility of the notes compelled the Bank of
England and all other banks of issue to keep a reserve
of cash, in the form either of gold or of bullion, sufficient
to meet the anticipated demands of their customers. If
at any time the demand exceeded the supply the banks
became insolvent; but though this catastrophe might
happen to ordinary banks of issue which had nothing but
their own credit to depend upon, it could hardly happen
to the Bank of England, because its relations with the
Government were such that the credit of the two was
practically inseparable, and the legislative power of the
Government might always be trusted to come to the
rescue of the bank. Nevertheless the association of the
bank with the Government was not an unmixed ad-
vantage to the former, nor a benefit to the country at
large. The Government might make use of the credit of
the bank, and even of its reserves of cash, and then fall

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