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 Rh whether it is good or not good to maintain a surplus, and, therefore, that it works blindly, maintaining surpluses when they do extreme harm just as much as when they are very beneficial.

In this point the contrast of Presidential with Parliamentary Government is mixed; one of the defects of Parliamentary Government probably is the difficulty under it of maintaining a surplus revenue to discharge debt, and this defect Presidential Government escapes, though at the cost of being likely to maintain that surplus upon inexpedient occasions as well as upon expedient. But in all other respects a Parliamentary Government has in finance an unmixed advantage over the Presidential in the incessant discussion. Though in one single case it produces evil as well as good, in most cases it produces good only. And three of these cases are illustrated by recent American experience.

First, as Mr. Goldwin Smith—no unfavourable judge of anything American—justly said some years since, the capital error made by the United States Government was the “Legal Tender Act,” as it is called, by which it made inconvertible paper notes issued by the Treasury the sole circulating medium of the country. The temptation to do this was very great, because it gave at once a great war fund when it was needed, and with no pain to any one. If the notes of a Government supersede the metallic currency medium of a country to the extent of