Proposals for an Economical and Secure Currency

This work, published 1816, considers the national debt, paper money, and the possible creation of an independent national bank.

This work, published in 1816 and followed by this second edition the same year, considers the problem of the national debt, and whether paper money should in principle be exchanged for gold bullion rather than for minted coins. Ricardo also suggests here the creation of an independent national bank.David Ricardo's work on currency was published in 1816, and this second edition appeared in the same year. Enormously successful as a stockbroker, Ricardo (1772–1823) was able to lead the life of a wealthy country squire, while his intellectual interests caused him to move in the circles of Thomas Malthus and James Mill. Written at the urging of the Cornish businessman Pascoe Grenfell, MP, who shared Ricardo's interest in financial matters, this work considers the problem of the national debt, in the context of paper money and whether it should in principle be exchanged at face value for gold bullion rather than for minted coins. Ricardo was very concerned at the large profits being made by the Bank of England in its dealings with the government, and suggests here the creation of an independent central bank, a proposal to which he later returned.