Adam Smith's Criticism of James Steuart's Theory of Banking

This paper considered why and how Adam Smith criticized James Steuart's theory of Banking. In Lectures on Jurisprudence Adam Smith had a quite optimistic view about the stableness of banking system. But after the financial crisis in Scotland in 1760s and 1770s, especially the bankrupt of the Ayr Bank in 1772, Smith changed his early optimistic view of banking system. In Wealth of Nations Smith criticized Steuart's theory of banking, because Smith thought that its influence might be one of the major causes of the bankrupt of the Ayr Bank and the financial crisis in Scotland in 1772