Should make the profit that is concerning to the Bank, but the Treasury only suggested the scheme on condition that you abstained from profit.
My objection to the plan was and is that a paper currency of so small a denomination as one dollar is objectionable in itself, and that for Banks already issuing notes of larger denomination, the Govt will either enter into competition with these Banks, or at least undertake the whole circulation & compensate these Banks for the abolition of their privileges.
That these Banks can already issue notes as low as $7 (about $1), that they cannot at present manage to issue up to the full power of circulation, & consequently that there are sufficient facilities for all purposes of legitimate trade.
That the community apparently want these notes as a subsidiary proper substitute for coinage, a function of a paper currency; that this is not as a subsidiary coinage, I don't exactly understand.
Apprehensions: the rate of exchange must fall or rise more or less in accordance with the fall or rise in the gold price of silver; but as long as they make the subsidiary coins of 8/10 fineness and declare their nominal value as if it were 9/10, the difference will always about cover the cost of coinage and exportation, and would probably give a profit except in a very peculiar state of the exchanges.
The only danger to be guarded against is putting the subsidiary coinage into circulation too rapidly; as possibly some day it might flow back to the Colony, & people...