Prof. Foldavy's points to an error in the way I stated Thornton's
principles, rather than an error in Thornton's logic.  One bill can
certainly pass through many hands, being endorsed (but not
re-discounted) at every stage.  Thornton's point, put correctly, is that
the same inventory, as it passes through the system, can be the basis of
multiple bills, all of which are all discounted, adding more notes to
the system.

Thornton was clear that, outside the area of London, bills were used as
currency with regularity.  He criticized Smith for not recognizing this.
But his argument that multiple bills could be based on the same
inventory is correct.

Neil Skaggs