Letters Of Malachi Malagrowther PDF Download

In 1826 the famous novelist and poet Sir Walter Scott entered an economic policy debate. Adopting a pseudonym, his Letters ... from Malachi Malagrowther, Esq., on the Proposed Change of Currency fiercely defended the Scottish banking system from a British government proposal to ban banknotes under five pounds. Scholars have noted the Letters' appeal to Scottish nationalism, but have little examined their economic arguments. After providing background on Scott, the government's proposal, and Scott's motivation, I spell out and evaluate the pamphlets' main economic arguments. Malagrowther built cogently on Adam Smith's explanation of how the voluntary substitution of paper banknotes for specie in circulation enhances an economy's stock of productive capital. The Letters ignited Scottish public opinion, and the government decided to exempt Scotland from the small note ban. The present essay was prepared as an introduction to a new edition of the Letters to be published by the American Institute for Economic Research.