SIR JOHN SINCLAIR'S 
 R E xM A R K S 
 
 ON 
 
 MR. HUSKISSON'S PAMPHLET. 
 
 wixri 
 AN EXPLANATION 
 
 OF 
 
 The real natuue, 
 
 AND 
 
 advantages, 
 
 OF 
 
 THE PRESENT SYSTEM 
 
 OF 
 
 CIRCULATION. 
 
 " Mad matters been lefr without jtny cliar.g3 at ;;11, vo hid 
 "* consequences woulil hive {b.luwe;!. 'i'hcsc existed onli- in ths 
 *' 'leads ofThcoriJ.s." (Sir James Steuart'b Pui. lizon. Book iS^j 
 cap, 31).
 
 REMARKS 
 
 ON A 
 
 PAMPHLET INTITLED, 
 
 " TJie Question concerning the Depreciation of the 
 " Currency Stated and Examined." By William 
 HusKissoN^, Esq. M. P. 
 
 TOGETHER WITH 
 
 SEVERAL POLITICAL MAXIMS 
 
 REGARDING 
 
 COIN AND PAPER CURRENCY, 
 
 INTENDED TO EXPLAIN THE REAL NATURE, AND 
 ADVANTAGES, OF THE PRESENT SYSTEM. 
 
 BY 
 
 THE RIGHT HONOURABLE 
 SIR JOHN SINCLAIR, BART. M. P. 
 
 AUTHOR OF THE HISTORY OF THE PUBUC REVENUE OF 
 THE BRITISH EMPIRE. 
 
 LONDON: 
 
 PRINTED BY W. BULMER AND CO. CLEVELAND-ROXV, 
 
 ST. James's; 
 
 AND SOLD BY T. CADELL AND W. DAVIES, STRANDJ 
 
 i. STOCKDALE, PICCADILLY; AND 
 
 J. M. lUCHARDSON, CORNHILL. 
 
 1810. 
 
 [Price Tko Shillings and Sixpence..]
 
 SRif 
 URl 
 
 U 
 
 ADDRESS TO THE READER. 
 
 jboME facts have recently come to my know- 
 ledge regarding, i. A fall in the price of gold ; 
 and, 2. The rate of exchange with Ireland, 
 which, I trust, will put an end to any pro- 
 longed discussion respecting the propriety of 
 altering our present system of circulation : I 
 thought it right, therefore, to lose no. time in lay- 
 ing: them before the Public. It seemed to me 
 also necessary, to state seme observations, on 
 the proposed measure of compelling the Bank of 
 England to purchase bullion at any price, and 
 to add a statement of that fall in the value of 
 funded property, which has taken place, in con- 
 sequence of the alarm occasioned by the pro- 
 ceedings of the Bullion Committee. 
 
 1. 'Fall in the Price of Gold, 
 
 The foundation of the whole proceedings of 
 the Bullion Committee rested upon this fact, that 
 the market price of gold, when the Report was 
 ordered to be printed, (8th June, i8io), was 
 £^. iQs. per oz. or i^j- per cent, above the Mint 
 price. (Rep. p. i). This was attributed to an 
 excess in the paper circulatioa of the country : 
 
 j^-
 
 C e ] 
 
 (Rep. p. 30). It was therefore contended, " that 
 *' a rise in the market price of gold, was the 
 " eiiect of an excessive quantity of circulating 
 " medium ir. a country, which has adopted a 
 " currency, net exportable to other countries, 
 " or not convertible at v;iil into a coin which is 
 "exportable." (Report, p. 8). 
 
 All these specuhtiono, however, are now for- 
 tunately overturned by one plain fact, cf w;.ich 
 I have just been informed frojii most unexcep- 
 tionable authority (Mr. a.^uu). Restates, that 
 according to the last prices, geld bullion has al- 
 ready lallen in ])rice 7 per cent, and consequently 
 that the price <. f t;old, instead of bemg 15^, is 
 only 84- per cent, above the Mint price * There is 
 reason also, to hope that, notwithstanding the 
 
 * The Committee mack tlic dirfjren.ce [5^ per cent, in 
 the followhg manner : 
 
 Foreirn bra--; -lloz. 4 10 a 90/100 o o 
 
 Ears .t ti.e coin- | ^^ j. 10 a 77 86 10 5 
 
 ^g-i^ricc - i ■ 
 
 pC'.I 9 7 
 
 >viiicli on £86 JOS ^J. is at the rate of 15,^ per cent.. 
 The pr.--'.ii(, dilferetice is thus cidculaied : 
 
 Forei;nM>- (^'^ »!'- \22^-. a loaQo Tioo o o 
 
 \,rwc ;!.ju:-.c loIC;, j 
 The {.leser.t juice 22 4 10 a 81 6 Q, 17 7 
 
 6-25 
 uliich i.por, the surr, of />i'^ 17?. 7'^- i? ^i= nearly a^ possible 
 7 per ecu. ; and v, i.'.e:; deducted (rum 15 V leaves t!ie dif- 
 fer J!,:;e LctAtcii :h'' pr^^ent n^.^rke; pricj, and tt\e Mmt 
 price, only Si percent, which h.as otteu been the case beiore.
 
 C73 
 
 alledged excess of Bank notes, and the conse- 
 quent alledged depreciation of our currency, 
 (neither of which assertions have any just foun- 
 dation), that it will be still lower; but at any 
 rate, if there were any good grounds for the 
 doctrines of the Committee, regarding the 
 effect of paper currency on the price of gold, 
 how could it have fallen even 'p per cent, in so 
 short a period ? ' 
 
 2. Exchange zvith Ireland. 
 
 Another favourite doctrine is, that any great 
 fall in the rate of excliange, is owing to excess 
 of currency : let us see how far such an idea is 
 justified by fact. 
 
 In tlie yejr 1804, an alarm was created re- 
 garding the state of exchunge between this 
 country and Ireland, whicii it was contended, 
 was altogether owing to the excess of paper 
 issued by the Bank of Ireland ;* and inj^enicus 
 men amused themselves with speculatioiis re- 
 garding the alarming state of Ireland, and trie 
 necessity o^ r;dro^::i;:g iiS peciiniary grievances. 
 The Directors cf the Bank of Ireland took 
 
 • This doctrine was verv r.'-]y r-naintained by Lord Laii- 
 dei('ale, ii; a pan-pilet i;,iit!vd " Thot^ght'; on the Alarming 
 " State cf tiic Cir;-,i;lj.iion, and on the means of redressing 
 '' tile Pecuniary Grievances in Ireland." Pnntcd Anno 
 
 TOOC.
 
 I 8 3 
 
 fright at the inquiry, and actually reduced their 
 cirtulation frcm A5.0c0.000. to ^2410,000. 
 It appears, however, irom the Report of the 
 BuiUon Committee, (-. 19), thai the Directors 
 of that Dank, had ai^ain, most wisely, increased 
 their issue to -moo,ooo. \Vhat ha<^ been the 
 consequence of a greater issue than ever? Not an 
 exehanre of 18 per cent., against Ireland, as was 
 the case in the year 1804, but an exchange 
 of 91, wliicii is only if per cent, above par; 
 and about two years ago, it was under 8 per 
 cent, whilst the par is 8^, Is not thatf^iet a de^ 
 cisive proof, that abundance of currency has 
 nothing to do with the rate of exchange, and 
 that the Directors of tlie Bank of England, ^^/^ 
 not Jail into a great practical error, when they 
 regulated their issues, neither by the price of 
 biillion, nor the rate of exchange ? 
 
 3. On the Bank of England being compelled Ij 
 purchase Gold at any Price, to carry on its 
 
 Circulation. 
 
 It is recommended by the Bahion Committee, 
 that two years hence, the Ihmkof England^siiail 
 be compehed to exch:nige its notes^ f^r gohh m 
 which case, it must pureliase bullion at any 
 price. This pbn was reconnnended by the Com- 
 mittee, \-, hen the price of gckl was r^.ic.v. per oz. 
 -vA rs the Mint price i:. Ciily £3, 17^. ^^V^- '^
 
 is evident, that the Bank must lose 15I per cent. 
 by all such transactions. The Bank of England 
 maintains its credit and character, bv Ccirryini^ 
 on a profitable business, under a most judicious 
 system ;"* but if it were to engage in great trans- 
 actions, by which it was to lose i,5|- per cent. 
 I sliould be glad to know, what would be thought 
 of the wisdom of its Directors. In fact, the 
 Bank, with such a burden, must give up issuing 
 paper. Indeed, no one would take the notes of 
 a corporation, tlmt would persevere in carrying 
 on so ruinous a business. 
 
 Mr. Huskisson having, hovvever, proved to 
 his own conviction, that a light guinea is more 
 valuable than a heavy one, he will next, I sup- 
 pose, undeiiake to persuade the Directors of 
 the Bank of England, that purchasing bullion, 
 with a loss of only 10 or 15 per cent, is a most 
 proiitable transaction. 
 
 * The rules of the Bank of England are highly judiciou?, 
 :,nd I believe strictly observed. They never issue a note 
 rut, I. Oa mercantile paper, that i-cems to tliem per- 
 icctly unexceptionable ; (and I believe the losses they sustain 
 by discounting such paper, considering the extent of their 
 transactions, are very inconsiderable ;) or, 2. On Parlia- 
 mentary security. And here it is proper <o observe, that 
 lliey never advance any money on public stcuritieL-, unless 
 a Bill has not only gone through both Houses, but has 
 actually received the Royal A:sent ; the Votes of the House 
 of Commons, tho.gh sanctioned by the Lords, not being 
 ccnsicl.rcd as sufficient.
 
 4, upon the Fall in the Value of the Funded 
 "" Property of the Country, in consequenee of the 
 Proceedings oj the Bullion Committee. 
 
 It is admitted by the Bullion Committee, 
 that the country was in a high stute of mer- 
 cantile, and of public credit, when its inquiries 
 commenced. The numerous bankruptcies, 
 which have since happened, may have been 
 principally occasioned by other causes, but 
 the fall which has taken place in the value of 
 stocks, must be greatly owing to the attack that 
 has most unfortunately been made on our cir- 
 culation. Its effects abroad have been so great, 
 that, I understand, there never was so much 
 stock belonging to foreigners, in proportion to 
 the extent of foreign property, sold, as since the 
 Report of the Buhion Committee has been in 
 circulation. The re-nitting of the vakie of the 
 stock thus sold, has rendered ilu- exchange, (if 
 any exchange can he ;^aid to exist at such a time], 
 less l^ivourli)le than olhcr^^ise wuuUl havebcen 
 the case. In order to ascertain to w.i.t extent 
 that f^ili lias sone, I thought it necessary to pro- 
 cure, a statement of tiie prices oF the different 
 stocks, on the -ed Icbruar}', an'l ist Decem- 
 ber i3io, to ^^hich the reader^ attention is 
 earnestly rcq'uested.
 
 [11 3 
 
 
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 Thus it appears, that the value of funded 
 property, has already fallen to the enormous 
 amount of 17,182,492/. It is to be hoped that 
 such a statement will awaken the attention of 
 tlie proprietors of the stocks in general, to the 
 necessity of preserving our present system of 
 circulation unimpaired, and to the danger of 
 tampering with our paper currency at such a 
 time as this. 
 
 From th.e preceding statement it is evident, 
 that the proprietors of Bank stock, have already 
 sufiereJ, in the value of their property, to the 
 amouiit of nearly four millions sterling, 
 (3.7V J. 508/.) It is farther suggested, that they 
 shall carry on a commerce, by one branch of 
 WiKU tiicy are to lose at the rate of from 8 to 
 1^-^- percent.; yet when these proprietors are 
 akjseinbku, it is c-onsidered to be indecorous 
 In ihau, lo raise an}' clamour agciinst pro- 
 cecJini^'s, bv which their most substantial in- 
 tcrests are so deeply aflected. 
 
 On the wiiole, whoever will take the trouble 
 of considcrini; the facts above detaileJ, and the 
 observations arising therefrom, iriust sec the 
 danger of permitting visionary sperukitions, to 
 intevicre wit'i the practical concerns of Govern- 
 ment ; more especially, regarding measures, 
 on which depend the interests and the comfort*
 
 [ 13] 
 
 of all classes of society. In the words of St 
 James Steiiart, " if matters are left without any 
 " change at all, no bad consequences will 
 " follow. These exist only in the heads of 
 " theorists/'
 
 ADVERTISEMENT. 
 
 It is much to be lamented, that any contro- 
 versy regarding the circulation of the country, 
 should have arisen at a moment, when we have 
 so many other important questions to distract 
 our attention. Those who wish for an altera- 
 tion in the established system, admit, that the 
 nation, immediately prior to the publication 
 of the Bullion Report, « was in a high state 
 " of mercantile, and of public credit;" the 
 friends of the existing system, therefore, are 
 extremely apprehensive, that any change in 
 our circulation, might completely overthrow 
 that proud situation which we have so long 
 maintained. The opponents of the present sys- 
 tem, on the other hand, contend, that an unre-
 
 stricted issue of paper, has occasioned the high 
 price of Bullion, and an unfavourable rate of 
 exchange; and instead of exercising their inge- 
 nuity, to discover other modes by which the ex- 
 cess might be h'mited, there is none, they affirm, 
 but the power of converting our paper currency 
 into coin. If the issue of Paper, however, be too 
 extensive, various modes might be thought of, 
 that v^'OLiid answer that purpose, without run- 
 ning the risk of destroying a system, under 
 which, ahhough it may have been attended v. ;t!i 
 som.e disadvantages, the nation h.as flourishcJ. 
 
 All tliat the friends to the present systcri 
 seem to wish for is, that matters should be siir- 
 fercd to remain as they are, during the couio.^ 
 of the rrcsent v/ar, resting th.e responsibility of 
 any mischief that can possibly result thcj^efruin, 
 on tlie Ministers of the Crov.^n, on the one iiard, 
 and on the Bank Directors on ti}c other. If tlie 
 power vested in tlie latter, should be reckoned 
 too great, restrict tlieir power, but do not destroy 
 the system. When tlicv.arsliall be over, thcsub- 
 ject may then be resumed v.'ithout puMicdanger; 
 and Parliament, with more leisure to discu-is
 
 i: 17 1 
 
 tlie subject, and with some additional experience, 
 will be enabled to devise such regulations, re- 
 garding the circulation of the country, as may 
 contribute to, and, I trust, confirm, its prosperity. 
 
 Comparison of the years iSog and 1796, in 
 regard to Co?nme?re, Public Credit and 
 
 Revenue. 
 
 In order that the reader may be fully aware 
 of the importance of the subject novv under 
 discussion, how much the nation has flourished, 
 In a variety of important particulars, since 
 tlie Restriction Bill took place, and what its 
 state would be, if the former system was re- 
 established, his attention to the following 
 'Statements is earnestly requested. 
 
 It may be proper to add, that the year 1809, 
 was the one immediately prior to the appoint- 
 ment of the Bullion Committee ; and the year 
 1796, was the one immediately prior to the 
 restriction on paymiCnts in cash at the Bank of 
 England. 
 
 Exports, An, 1809 - - Z^S^'3^i»7^3 
 
 Ditto, An, 1796 - - 30,518,913 
 
 Difference, ;^i9,782,85o 
 
 B
 
 c 18 :i 
 
 Imports, An. 1809 . 3^36,255.209* 
 
 Ditto, An. 1796 - 23,187,319 
 
 Difference, j^i3>o67,89o 
 
 Average price of 3 per cent, i 68 i o 
 
 consols. An. 1809 / 
 
 Ditto, An. 1796 - - 58 18 7 
 
 Diticrcnce, £q 3 2t 
 
 Rat^c cf Interer^ton Loan, An. 1809 - 442^ 
 
 Ditto, - An. 1796 4 13 3 
 
 Difference, ^T o 9 o| 
 
 Public Revenue, An. 1809 - ^^59,031,84^ J 
 
 Ditto, - An. 1796 - 19,051,589 
 
 Difference, ^^39, 080, 259 
 
 Is it possible that any individual can ir-eriously 
 
 * Escinnatlig the East India and the China trade as in 
 l8c8, the account not being yet made up. 
 
 t Tnisis th" avcva^t^c price of the 3 per cent, consols. :'.s 
 puichased by the Commi5;sioiK:is ior reducing the na- 
 tional debt. 
 
 If the value of the intcre'^t palti to the public creditor be 
 depreciated, what an object it is, to have such an increased 
 price for the cnpiial i 
 
 t Hi.vv cnr, !d s\ic]) a re\'jnuc, and the immense trade, 
 ^nd more cxiciided a^i (culture of this country be carried 
 on, if the circilatinn of Bank notes -were reduced to eleven 
 miliiuns, in ivjpcndcnt 0^' Go\t.rnmcnt paper, and com- 
 rrsercial discount, a? rccoinmendcd by Sir Francis Baring •'
 
 resolve to tamper with the situation of a country, 
 which the preceding statements represent to be 
 so uncommonly flourishing ? Is it not fair to 
 reason, that if our circulation were reduced to 
 its amount in 170)0, (which would necessarily 
 result from the £u^2:estions of the Bullion 
 Committee), that our commerce and revenue 
 would not differ materially from what they 
 were at that time ? That our stocks would be 
 reduced to the same price, which then was the 
 case? whilst the interest on our public loans 
 would be increased to the same standard ? — 
 Above alL how would it be possible, with a cir- 
 culation diminished to at least one half of its 
 present amount, to furnish the same revenue ? I 
 question much, whether in that case, we should 
 be able to pay even the nineteen millions which 
 were raised in the year 1796; and if more 
 were attempted to be exacted, can it be 
 doubted, that every individual in the country 
 would i>e placed in a situation of the utmost 
 difficulty and distress ? 
 
 I earnestly, therefore, intreat those, who 
 have any stake in the country, of v»'hatever
 
 C 20 3 
 
 descnptio'i, to unite in maintai'iin^ a systciu^ 
 v/hx'' in th'"" present .:ircum:-:M;^i':cs oi Pjiropc, 
 can ai : ; icserve il^e nation fi'o-i destruclioii. 
 
 It IS un old an.c; ri true sa}"ii-!;r, " F^;,': t\s-'^ et 
 ah hocJ:e doceri :'' Let us enooavc^ir, th-.rorore, 
 to ascertain, wk.t are the \vi:^hc3 of ti^o en^r'-iy 
 in rcc^arcl to tlie rv-'newai of ca^ii pavr.ien^s at 
 the Bank ; tor we nidy be well as^ureci, that 
 the nieasin-es that France would recommend, 
 it is not for our interc-i to fbllow, 
 
 Fortunate'v, tlie wislies of France, hi this 
 respect, have been j^ublici}^ anno;,aiced froin 
 official authority.* Napoleon has net been 
 able to dis.senjble his joy, at the prG:,pcct, of 
 seeing the greatest obstacle to his air.bitious 
 views, (the credit and circulation of tliis 
 country), as he vainly fialtLrv^d iuinseli, on the 
 eve of being destroyed ; iv.vX lie had already 
 antieipated the glorious cr^, wheii one half of 
 the merchants of En::;Iand .sould be compelled 
 to stop payment, and wdien his favourite 
 measures of commercial hostilities aaainst us, 
 (his decices of Berlin and of AJilan), would be 
 
 * The Journal de 1' Empire is a Government papcrJ
 
 C 21 3 
 
 felt in their full force. He believes us so 
 infatuated, that his warning voice will not 
 awake?! us to a sense of our danger. The 
 measure of opening the Bank, however, fortu- 
 nately has not yet been resolved on, by any 
 authority capable of carrying it into effect ; and 
 I trust, when its mischievous consequ-'^nces are 
 duly considered, it will not, till the times are 
 materially altered, be seriously attempted. 
 
 I cannot conclude without stating my full con- 
 viction, if it Vvcre to be enacted that the Bank 
 should resume its payments in cash, that it would 
 be utterly impossible to procure coin sufficient, 
 to carry on our immense commerce, and our 
 improving and more extended agriculture ; to 
 maintain our great fleets, and our numerous 
 armies ; to collect our increasing revenue ; to 
 defray our vast expenditure ; and, in short, to 
 carry on the multiplied daily and hourly tran- 
 sactions of common life. All these would in a 
 great measure be brought to a stand, if our 
 paper currency were to be anniiiilated. It 
 would be much the sam.e thing, in these unheard 
 i)f times, if the Bank were aeain corn,>ellcd to
 
 resume its payments in casii ; Jor, in thai case, 
 it could hardlv ve?iture to issue a note, zvithout 
 having specie ready to exchange for it. We 
 have lately heard much of the miserable state 
 to which numbers in Salisbury were reduced, 
 where, for want of a circulating medium that 
 zuould pass, they could hardly procure a morsel 
 of bread. If those who have excited a clamour 
 against bank-notes, were to be successful, the 
 public at large, would soon experience the same 
 difficulties. Men, from distress and despair, 
 would then become ripe for revolution, and 
 ready to involve themselves and their country, 
 in all the horrors attending it. 
 
 If our present system therefore were unfor- 
 tunately to be overturned, whoever might live 
 to miake the comparison, would probably find, 
 that the year i8cg, and the ccmmcncement of 
 the year iSio, were the most flourishing periods 
 in our history, in regard to coinip.erce, revenue, 
 finance, and every species of agricullural and m- 
 ternal imp?ovc?nent, the best and most substan- 
 tial sources of public pro.^~]>erity. 
 
 Lo7:duii,
 
 [^3] 
 
 PRELIMINARY OBSERVATIONS. 
 
 Iri AviNG already stated, in the Hi.^^tory of the 
 Public Revenue ofthe British Empire,* my sen- 
 timents on the circulation and paper currency 
 ofthe country; and having so lately published 
 my thouglits on the Report of the Bullion 
 Committee ; I had resolved to re.serve, what 
 fiirtlicr observations hid either occurred to my- 
 self, or had been coinmunicated to me by 
 
 * See Hist, of the Revenue, printed, An. i8o'^. Vol. II. 
 p. 318 and 319, Sec. It is therein stated, about seven years 
 ago, " that it is hardly possible to suppose, that the Bank 
 ** ot England, as at pre-ent constituted, can ever again open 
 *' to any effective purpose, as the least rumour of war, 
 *' or any continuance of an iinfavourable stite of exchange, 
 ** must compel it to shut again its cotters, and to suspc!>d its 
 »* payn-icnts in cash." Nothing can b'^ more unfair there- 
 fore than to attribute any change of opinions in the autlior 
 of that vi ork, though, where there are grour:ds for :l, why 
 should an erroneous opinion be pcrtinaceously persevered 
 in, bccaiisf it happened once, pcrliaps hastily, to h? taken up. 
 In regard to coin and paper currency, tiie author of this 
 work, wished to maintain, as long as possible', the credit of 
 the Bark of England on its original fuoling : he now sees 
 cleaily tre ad\autagcs of the new s\ stem, and is bound,, 
 «s n friend to the public welf?.rc, to d.-Tcrul \U
 
 C H '2 
 
 others, regarding these imjiortaiit; subjccir,, 
 until the question came to be discussed in Par- 
 liament, where the sohdity of the ar2;umcnts to 
 be adduced on cither side must ultimately be 
 determined ; but having been led to peruse 
 a work, entitled, " The Question concerning the 
 " Depreciation of our Currency, stated and ex- 
 *' amined, by W. Huskisson, Esq/' I found 
 myself therein so pointedly called upon, to ex- 
 plain, and vindicate the opinions I entertain,* 
 that, hovv'ever unwillincr to enter the lists of 
 political conlroversy, I could hardlv avoid 
 accepting of a challenge tliiis publicly a!i- 
 nounced. It seems to me, independently of these 
 personal considerations, incumbent upon those, 
 
 * Mr. Huskisson says in his Preface, p. ir. ** I am 
 " anxious to meet upon a fair and equal footinT, those pcr- 
 ^' sor.s ivh have fv.hl'ic'kly attached the Rtpcrt cf the Com- 
 " mlitce. J wish to draw trom thcai either an r.drnission oi 
 ** the prh'iciples whJch I state ; or a clear and explicit ext:- 
 ** sillon of thtir oiv: . If they aJniit tiic principles stated 
 '* by n;e, it is n.r tiit.ii to reconcile their own dcduciions to 
 *' tho;.; principles ^o;:d!!^iited : a!:d to difnynve mine. If the 
 '• ihli^r.v::ce bttwec!-; us he as to principle?, let them lav 
 •^ iah'y beiu;c th.e public tii.ose on v.liich their theory i.- 
 •' bnii', ..: d :i•.e^\ th.c practical conseoucnces to whicli thicir 
 '•o'.vn p-.incip'cs vvuuid, in their c)\vn opinion, lead/' I 
 h.ve thcicK-.c ;;;":,--\cJ i; ^Icar and expdcit exposition of tlie 
 i::i..iip^e i inaititain. It mi-h; ca-ily Inivc been spun on* 
 into a p..: ,p!:ie' as 1;. :- . •> Mr. Hu^kisson's, had I judged i; 
 nf-cc-^i.iV.
 
 [ =5 ] 
 
 \vhose attention has been directed to such in- 
 qinrie^, to lay before the public, a clear and 
 explicii; dcelaration of their sentiments on 
 the subjects of coin and paper currency, and 
 that with as little delay as possible, on two 
 <irounds, recognized by Mr. Huskisson ; i. the 
 importance of the question ; and, 3. the neces- 
 sity of having it thoroughly considered, pre- 
 viously to its discussion in Parliament. 
 
 In regard to the first point, the importance 
 of tlie question, mv ideas go far beyond those 
 which the Honourable Gentleman seems to en- 
 tertain. He aduiits '' that it airccts,in itsprac- 
 *' tical consequences, the interests and the com- 
 " forts of every class of society,*' (Preface 
 p. 13) ; but that is nothing to the viev/ in 
 w hich the question ought, in my apprehension, 
 to be considered. On the decision of that question, 
 derenu,not only tlie interests and the comforts 
 of t ve: V cia'js of society, b.it the very safety and 
 exi'^tence o'^this great Empire ; in other words, 
 it:> security against fbrei,m conquect, or internal 
 cor vub-ion 1 c-iuU'r, or both, of v;ijich must 
 ncc'rssarilv f^il-^v, if tiic ciirrcncv t-f the coun- 
 try be rashlv tainpercd 'Aitl., or its established 
 j>vstoiTi of circulation overtiirown. 
 
 A. to i-ie proprieiv of having the subject 
 thor'.L- ;jily d)^^u^^;ed, prev;o.:siy to its being
 
 20 J 
 
 brought uhder ri.e corj-;lderation of Pariiameiil, 
 I perltctly concur vvith ^ir. Huskis^on in the 
 observation he make?, (Prerace^p. ii^,), *'that 
 " it is a subject u-noii Vv-hich iiiaiw persoiis 
 " would rather collect their ideas, anci form 
 *' their decision, in the leisure of the closet, than 
 *' in the warmth of debate/' 
 
 These grounds have induced me, hiowever 
 reluctantly, to undertake tlie unpleasant ta^k of 
 examining); the lucubrations of a gentleman, 
 who having held offices of considerable moment, 
 and whcse character, as a person of business, 
 intelligence and ability, being well known, it 
 was natural to expect nmch important infor- 
 mation from anv observations which he mi zlit 
 be dispo -ed to publish. 
 
 I certainly laii^cnt, as mucii as he docs, that 
 the subject should at all be considered as a 
 party question ; but, most unfortu:"ial:'y, the 
 motion lor theappomtment of the BuUioxi Com- 
 mittee was made by a c:entlema}i connected 
 with the 0[)position party ; the majority of liie 
 members who coiK;titiited the Committee, are 
 supposed to be liostile to tlie ministers who 
 governed the courtry at th'.e time wlien the 
 liepori v/as presented ; the doctrines cf lliat 
 Report l^ave been applauded by all th.ose who, 
 in nev/spapers or other pubiications, supper-,
 
 C 273 
 
 the claims of a particular party to the govern- 
 ment of the Empire ; — and any person, who 
 presumed to controvert the opinions of the 
 Committee, became the object of their most 
 virulent abuse. These circumstances tend to 
 indicate, that a number of individuals have 
 formed an idea, that maintaining the doctrines 
 of the Bullion Committee, may serve the pur- 
 poses of the party to v^hich they are attached. 
 As to the clamour raised on the other side, 
 ( which is greatly inferior to what might have 
 been expected regarding a question which affects 
 the interests and comforts of every class of 
 society ), it is impossible for those, who see such 
 a subject unnecessarily pressed forward, and the 
 discussion persevered in, to abstain from loudly 
 proclaiming their horror at such proceedings . 
 More especially when the bare suggestion 
 of such measures as the Committee has recom- 
 mended, has already proved the source of infinite 
 mischief, and when, to the best of their judg- 
 ment, such measures, if they were reallv to be 
 acted upon, would terminate in the destruction 
 of the country. 
 
 ¥/e are told, however, " that it was for the 
 " House of Commons to consider whether 
 " they .should appoint a Committee at all, or 
 " refer such a su^^ject to such a raode of
 
 i: 2S J 
 
 "examination; and that nothing can be more 
 " unjust than to impute blame to the Members 
 " of a Committee, acting under tlie orders of 
 *' the House, in the due discharge of a dut}^ 
 " which the House had thought proper to im- 
 " pose upon them." There never was, in my 
 apprehension, a more unjust attack on the 
 House of Commons, upon whom all the odium 
 of any mischief that may arise from the Report, 
 is thus attempted to be thrown. On a motion 
 made by a learned Member of the H.use^ 
 a Committee W'as appointed " to enquire Inio 
 '* the cause of the high price of Geld iVjii-on, 
 " and to take into consideration, the state of tiic 
 *' circulating medium, and of the exchange be- 
 *' twcen Great Eritj.iii and Foieign; Parts, i::''l 
 '' to report tiie same, with their observati ns 
 " thereupon, from time to time, to theiIc:j;-o." 
 The Conin:.irtce were certainly thus au:hoiised, 
 not only to report tlie evidence, b'jt Vj r::a;:e 
 tn^ir observaiions upon it, if tiiov ;udp:j'J it 
 necessary. They migi^t, even, with pi rfecr 
 proprietv, have reportt d the evidence alone, re- 
 qiiesirgtlie House itself toform tlie conckisioto ; 
 or, if t!!e subject appeared to them of great 
 dilhculty and importance, they might have post- 
 poned presenting the Report altogether unlH 
 lu-oib/er session, instead of hastily throv. iri^- to- 
 getlicr so defective a performance, Vvlii' ;i ih/ey
 
 had not leisure thoroughly to digest ;* above all, 
 it is questionable, whether it was proper to pre- 
 sent a Report, on such a subject, involving in it, 
 as the Honourable Gentleman admits, *' the 
 *' intcn'sis and the comjorts of every class of 
 *' society, at the very close of a session, wiien it 
 was impossible for the Flouse to iviiow its con- 
 tents, or to judge whether it was fit to be printed 
 and circulated as a parlianicn arv document. 
 Here again, I supoose, the H juse is to be blanied, 
 for having recoived the Report at such a 
 time, and, havi'-.g orde^^ed it to be printed, 
 from the confidence it placed in the judgment 
 and the patriotism of its Committee. 
 
 This leads me to allude to a circumstance, 
 connected with the appointment of the BuiHon 
 Committee, winch it is impossible to contemi- 
 plate for a nv.nir'nt, without infinite regret. 
 
 The appoir.iiiient of Select Committees, to 
 collect useful information, — to digest the in- 
 formiation tiius collected, — to suggest, v/hen 
 specially authorised to that effect, what pro- 
 ceedings it might be proper for Parliament to 
 adopt, regarding a subject thus investigated, — 
 and afterwards to bring in such Bills as might 
 be necessary to carry the measures proposed 
 by them, if approved of by the House, into 
 effect, is a system, which has been productive of 
 
 * The last evidence was examined on the 25th of May, 
 and the Report presented on the 8th of June.
 
 C30 3 
 
 many useful regulations : but the proceedings of 
 the BuUion Committee will make future minis- 
 ter*, and future parliaments, extremely cau- 
 tious in sanctioning such appointments ; it is 
 impossible therefore to foresee the public mis- 
 chief which may thence arise. A Committee 
 may be appointed on very plausible pretences, 
 it may unnecessarily postjx)ne bringing its pro- 
 ceedings to a close, and, at the very last day of 
 a session, it may present a Report, in the pre- 
 paring of which, the Committee have gone far 
 beyond the powers with which they were in- 
 trusted. The Report however is printed, and is 
 circulated during a long recess, under the sanc- 
 tion of Parliament; and after much mischief has 
 been done, when the Committee are asked, how 
 all this came to pass ? it is gravely answered, — 
 «' The House of Commons, and not we, are to 
 " blame — the House appointed us, and we have 
 " done but our duty/' I mention a possible 
 case, the very idea of which may prevent many 
 useful inquiries. Indeed respectable members 
 of the House will, in future, become extremely 
 unwiliini^^ to take any share in such invcstiL^a- 
 lions, vsincc they may inadvertently be led, to 
 concur in the recommendation of measurer, 
 which may ultimately prove destructive to tlie 
 public interest. 
 However miich these circumstances are to
 
 C30 
 
 be lamented, I beg to have it understood, that, 
 though now under the necessity of controvert- 
 ing th2 doctrines of the Committee, yet that I 
 feci no want of respect for the gentlemen who 
 const itu'ed it, nor any alteration in that personal 
 regard wliich I have long entertained for some 
 of its nieiTibors. They were placed indeed, as 
 many Committees are, in a very awkward situa- 
 tion. Greatthing;; were expected from them, and 
 they were o^" course perpetuahy teased to bring 
 forward their Report, from an anxiety to know 
 v;hat they intended. The variety of important 
 business discussed in the course of the last ses- 
 sion, prevented the^n from paying that u?iceas'^ 
 ing attentiofi to the subject, which its intricacy 
 and importance demanded ; and probably, they 
 thought, that it v/as of less consequence what 
 doctrines were contained in the Report, as they 
 were aitt-rwards to be fully discussed in the 
 House, before tliey could possibly be acted 
 upon. Besides, the subjects of coin and paper 
 currency, are questions of great difficulty, re- 
 garding which much rnay be said on bath side», 
 and in the deciding of v/hich, persons may, I 
 trust, fairly and conscientiously, entertain dis- 
 cordant opinbns. 
 
 I must ncsv take the liberty of cxplaininir 
 the circumstances wh.cli have induced me to 
 take so active a pavt in ihis investigation^'
 
 C 32 D 
 
 Some years have elapsed since I originally 
 published the " History of the Public Revenu:.' 
 " of the Britisli Empire/' in the second volume 
 of the third edition of whicii, printed Anno 
 1803, I fully explained the ideas v/hich had 
 occurred to me, on the subjects qi Circulation 
 and Paper Currency, and v/hich are GXRctly .'si- 
 milar to those vvliicli I have lately maintained. 
 
 Being fully convinced that the power and 
 prosperity of this country, entirely depended on 
 supportin^^ its established S3\steni of circuhtion. 
 as soon as it v/as surmised that the Bullion 
 Coinrnittee had proposed to open the f^arikj 
 and consequently to ovciturn that system, I 
 took the libert^^ <A addressing a Letter to the 
 Cliairnian, of which th;e follov, i?ig is a copy. 
 
 Copy of a Letter from Sir John Sinclair, io the 
 Cbairrddii of the Bullion Com?niltee. 
 
 Sir, 
 
 I RF.GRET much to understand, that come 
 ideas are entertained, 01 restricting the number 
 of "Notes issued by the Bank of England, which 
 I am persuaded v;ould be attended with the 
 most injurious consequences totlie agriculture, 
 tlie commerce, aPid tlie revenue o^ ti^e country. 
 I liave thought it piccessary therefore, to submit 
 to the consideration of the Bullien Committee, 
 some thoughts upon the subject, in the enclosed
 
 paper. Some clieck to the unllmite.l circulation 
 of piiviite Banks, would, f am persuaded be 
 
 highly ex:>^iie^*-; but hi regiirJ to Corporations, 
 esta;ji!shed tor rlie purpo-^e of issuhi?: either 
 large or siiiaU n3t^^ any restriction cai hardly 
 be politic or nd^-i ^ahie, if rhe ^^ecurity is a- ^- 
 ceptionahlo; for any real !.i.:!ncce?^<^a.'v surplus 
 of Kotes, will soon return upon those who 
 issue them. 
 
 I beg to concl nd?, with exprer-.hj ; n\y fall 
 conviction, that if the paper circu! ■t:o:i of the 
 kingdom is put on a proper {'ooting, m rev;;ard 
 to the followin.': particulars: i. Suff^'rinp" none 
 to be issued, but on t!ic most uiidoubred secii- 
 ritv : 2. Takin<>; care that as much p oer cur- 
 rency is in circulation, as the increashij; wcaldi, 
 population, and revenue of t!ie co^-i ntry do- 
 raands : and 3. Issuing small notes, as weli as 
 larre ones, without which the system is not 
 ccnipletc ; — If these ])rinciples are acted upon, 
 there will be no difficulty, in finding pecuniary 
 resources, for carrying on the war in wliich we 
 are at present engaged, for twenty 3 ears more, 
 iiiid longer if it should be neccssarj/. 
 
 I have the honour to be, 
 Year faithful and obedient S^Tvant, 
 
 l^-iik J-iirlL 1810. 
 
 c
 
 L 34 3 
 
 No notice was taken of this communication. 
 Whoevcx^ \\ill give tlieniselves the trouble of 
 readini( it, will p-obably admit, that if any mis- 
 cliief shall an:.c fro-:!:: the Report of the Ballion 
 
 Curn'riit^ec, th(-y were tali' v warn'\', on the 19th 
 cf Anr'! ]^:.\, Ot" the dan.^eroas consequences 
 \7hi;h .>r.;i^d rc^uU from the measures they in- 
 
 T.c T.e-DK, ihou'/Ii orJercd to be printed on 
 the 8^h Ju::3, d"'i ncr i\:ach mc in Edinburgh 
 tin aL;;i;t li'e iGih of Auj^ust. I h.^puened then 
 to be O'j tie e\e of betting (-ut lor London, and 
 resi'vc;.: to i^:e the Report witii nie, as a com- 
 |\ii':cn '''■;i^:g the journey. It is imposiibie to 
 c^"pre3.> i.^e a;itonishment and y;^;:;,ret which I 
 ^"■■it en u\e perusal of that perf .r;.iance. On 
 ji';/ Lwrivcl in Loiidon, I iciind the whole mer- 
 c?"itiie world in the uii::03L !.:l3ire:;s, which was 
 greatly aggravated by i\ -j ^:ka, th"t rhe Report 
 would be acleci i:po:j a^ soon as rarlia.neat re- 
 ;i^semblcd. Not a person seemed resolved, either 
 to maintain the aciv.integes, or to vindicate the 
 f>oli'ii'y of the established currency of the coun- 
 try. 1 could nor therefore resist the inclination 
 which i tUr, •':> co're fciuvard at such a crisis; 
 bc!::^^ Cj'prchee.^1^ e that the Bank Directors 
 lihwht \)r uelerred (cla:} .xting with suflicieiit 
 ciwiiiy -n ciie(.k:!iy 'be ine-iorcunes of the com- 
 j.er.hd V':crh.\ at I'lat time, uidess they were
 
 convinced, that the doctrines of the Committee^ 
 were not so universal ly admitted, as they had 
 been led to imagine, and conscqueiv.lv might not 
 be ultimately adopted. I was tliencc led to 
 pubTish some observations on the Report of the 
 Cojiniittee, v/hich have been for some time be- 
 fore the Piihlic. 
 
 I sho.U now procr^cic], to uidkQ some observa.- 
 tions on M'\ Hunkissonn pampnlt^t, in so fiiras 
 it seems toiiie o:-se:'?tial to remark upozi it, stat- 
 ing, first h^5 scntiii.cirs in the words he has 
 made use of, and next t! e Remarks wiiicli have 
 occurred to nie on the doctrines he has pro- 
 mulgated. I shall then conclude, v/ith explaining 
 the principles on whicn I conceive the paper 
 currency of this couniry fs now established ; any 
 tapipering with winch, in the present moment, 
 would, I am persuaded, bea'-'^^^ndod w t:* infiaiie, 
 and endless mischief. 
 
 In the K)l!owingOuocrvaunn?,the third eaiL;j»ii 
 of the pnmphlet is rc'i^rrcd to. 
 
 OBSERVATIONS ON MR. HUSKISSON'S 
 
 PAMPHLFT, 
 
 Preface, ^>uge g. 
 
 " l"he necessary informatioii (regarding th.e 
 *' doctrines of coin and raper cuireiicy) is to 
 " be easily obtained, hv le-orting 'O rht- history 
 " of cur currency in for:uer p^nods, v.ud to 
 
 C 2
 
 
 i'o 
 
 •■• lihysc J Jb.ors, in our o\wn language, who arc 
 .. :.,; ...J u;) to, as of the iiighest authority in 
 ,)..;iiiCal econoir-y." 
 
 Cb:erv:^tion. 
 
 T\:r. pp"Ty\--^h exilajis the cngin of all 
 ^hc^c cToncoLi- ivleas regaraing coin and paper 
 cuTi etiwV. .. Ixich ti;c H r^cura'-Ic Gcntlema:i has 
 !.i;:jrtunate]y iiiiblh?:?. Instead of resting on 
 thi: bhff'. ■ i ex.:.' ■:■■€€ ofjiiodcrn iunes, he has 
 siif:"::vd hi:; jiid^;iiA;nt to he 'varpcd, fri' ihe bis- 
 i':r\ (f f :.-::Kr perhyls, :A\Ci hv a;i;h;r:; whose 
 suvrc::!C autlr^u'lty, ii: qac:.!:.:..::; Si p.-liii'^al ceo- 
 
 /. Lock \ a: ' oth.. .a'h.;:~:s of :lr:::cr periods, 
 
 coLiid or''.' rc.\: 1^ f. ::;;:•.;■ v; to the circuin- 
 
 sl:;: :c:: .f i:;c h :: .; hi v,h;ch ti.,c:y hvod, and 
 
 on ''^ f-;.-..; *^j '.'■h'-'.i the;" /.; \ ':cc-?"; hut t!ic 
 
 ^,v c -,:;.. n:.].-: -..n.:. -..\'. o.j ar ..::ca:KCi to 
 . -v- ,-- , :• . . ■ ^ ;. <- '.■•'•-■, -,. •:->,, r->- ' ' 
 
 thjv have f:.ri.:ri a.a h:--, !;F t]:a 'vl-h? h'-.,t'- 
 i:cn: ca '[J:i'X-y"j. ':;;in;^ ;n ;d? sii:);cct io die 
 doiuhhon -a on-j ni.ai r h :;a4d diey liav j Tare- 
 
 ,^^ 
 
 ».) --■^^^^ v^'--'-^ '.■<-^^oq 
 
 ! anoa-'h to
 
 applica':k; to a state so lorced and ii?-!^^itural, 
 as to t!^^: irore fbrtL]n:'.tG i^crin:!, when Europe 
 was divide:; aiDong a i;urnb:T of mil'^D-ndcn'i: 
 states, I-;' !cr f':^^vcrn::^ents cither free, or n;t 
 tyrannically cxcrci.-:;:.!; v-h:j''Q, in iha a^id-i- of 
 war. no idea was cuiii^:uv::::d o? ■ . ■ prnaral 
 Stop to coaimiToiai iriti-rcon^sa: -.vhere, for 
 
 the sake of aiutiial convaaiana :. .aricn'; raa:a- 
 latcd tiieir condact, accorai'^^^ to princip'a^, to 
 which the cinphatic name of " T!;2 aoaa of 
 nations" ^vas r:ivan, the authoritv d: v/aich 
 unfortunately is no iorgerreco;raized, BasideG^ 
 new diixcvcries are constantly n^aking in coa- 
 K^erre, in manukicturcs, in medicine, in a ^li- 
 calture, in ma::::an'Ca, and in all t'le (^ther ar?3 
 and iciei^ccj^: and wh'^ slioidd not some be alsj 
 made in p.aiiicrl ecanoir^v ? 
 
 I Hills: here t.dse the hbertv of remark; 'e 
 th::!:, \\l;atcvcr respect we mav entertain, f r 
 the celebr;aeci I.ecke, as a mctapiivsieian, and as 
 a zealous and uide friend to liberty and morals, 
 yet no one, at ah acquainted v/ir:i the p-^ii^iiui 
 history ed \\:i\-:'~ coan'rvatta o; /iaie'aro, wdi L-ver 
 be ciisposed to naote hi. a, a:- d./^i:rve audioriiy, 
 by whicf] any practical v?x:'x: :':i^ of (-overna.eej: 
 oujdit to be re-.;uiaieci.^ L is v/v^il knovvn aictt 
 
 * 1': ^\\s:\ of govcriiU.;;:af'jr th;< nc.<" coicny, (C^iwlin-j,
 
 C s8 3 
 
 Mr. T/rke wa^ d sired to draw up a Co^^*"t'i- 
 tion fc-r the province of Carclin.i. He exc: vir.ed, 
 on tint occasijn, all the politic-;! ■!'■;. i'v )f 
 Vv^hich he V. .,^: r-p'ii'l-': h :^ S3 dillc.ent i '> -y 
 from pra?t-c:',tik.tt!H3 const i: Li ■ir>r - ,:«. f , n .. y 
 experience, t.^t"ahv :'n1t *b''*^o ^';..v.. ,■.• "'0:it o^ i 
 c^^Li'.try. Thvthcorie'- o['..ir. L'j- k.) or. c mi " 'i 
 paper Cu;i'C:i;'.:y, iir.^ ^o.;.i:'v -Heppliee' i.? 1-) t.re 
 circj ;:::.t:; _.r j;; oi' the.^e tii: -c.:. Wcr:; A'.:,riciu; l; ■ ^ 
 the t^iv'i-jci -.r f:;~c;::'sio;i, Jl v/uiil-J b^^^kileto rest 
 oa i;'..'' Li.:C!-.'n*. doy:n:i:; of a CoiUin: o ■, o::' the 
 iTO^.;:^:ee (;f Vi^-jii. More iisei'iil inlor^iiution 
 is to b-. i;bi.eoec], iVoin ::n experienced mriocr 
 oy' //;.; hr.: .wed -jyiiklfrfi scboo', than fro^n all the 
 anci.o: eullior;; who have wrilien on husban- 
 kh^V'* I- 'he j^aoiv; n].!woer, inteili'^ent incr- 
 
 u;,s(ir:.\v:: up by tlic famous Lccke j a philosopher, who 
 'vas ■:. ii'iciiu to lu^nkird, aiid to th.^t moderatian and juslice 
 V. 1 ich i:!!ou!J be tlie c:;ly ruk; ci th^:r ac;iuns. Being more 
 < i a incoip'^-Mci-ia t'.:tn a Svtalcsm;:!:, it i:? certain that the 
 ran:^ !;,;;), '/. '.o l-.jii dissipated ^nd dc^t:oved so many errors 
 in ills ;;.■ ():j miiCCiinug the ori-.in ot id....^-, made / ut very 
 jlcLie a.tvinues in the puti.s c-j' L^]sh:liou. Raynal's Hist, 
 of the; li.dics, ir..n:;„:i;d by joscuinond, Vol. VIP p. 34.1, 
 
 * St [pose ih.;t an au'Iior ^es dLter:rdncd to write a book 
 on Agriciihurc, :.o;l wishc.; to c'-Ojioin to his readers, the 
 bc;>^t mode <'f oO'orati..^ i:.z g^-oia from the straw. He 
 might, '0 cor.so to j^ anoi :0l ^i:tbori:i£s ioiciy, collect much 
 intonu.uiu.i, as to tliw diflbrc.t :-cit- ^f iuui's, their lcnr'h>
 
 r S9 1 
 
 chants, well-informc:' bankers, cr o^'cn the 
 reprobated Directors of the Bank of England, 
 who are guiltv, according to the R *;:'ort o^ 'lie 
 Bullion Committee, of fp-eat f-rarticul errors In 
 the manas^ement of tnpt vast coir^e^'n,* would 
 have giv'jn tlie Hvicrir^ble Gentle. nnn, mcv^ 
 vahiable information rei'^ardin^ coin D.nd pai^cv 
 currency, than he has been ab'e to d^^rlve, :;Toiri 
 all tliose a!icient ai!:':ors by who. i --e ap^^cars 
 to h'lve been misled. 
 
 Preface, page i tvid 2. 
 
 " 1 committed to paper, th,e suJ-stance of 
 " my opinions, in part before, and tlie remairi- 
 *' der very soon aft'er, tl.e pnhl; cation of the 
 '' Report. — I trust that I shall be justified in 
 *' submitting, \\"hat was ori^ijinaliy prenarea f ;r 
 *' an indidgent, and limited circle cy.lv, to the 
 " examin^ition and judgn^cnt of a more ex- 
 " tended and inipardal tribuna;/' 
 
 their weight, ihe varices sorts of wooc! of which they 
 might be ;na('e, the nvdc of tp !"■•::.■ i'-;j the stle^vo^, and 
 a iiuHibcr cS oihc-r ni:,;;:.':v', ;':^' ...ii^v r.!^, he w^uld fiziJ, 
 on consuhJMg a nu^dcr-i pt. . '-[c .' h!':'>..;-;hi: 'n, tba': hh l-:.~ 
 hours were ahcgi'thev th'vV-:i a'-v ', i^'/, T^;■^ v.ht!Ci'':r 
 arr;cu!tuie was wcil u'nl^i-iood, 1;;>. thr,:';- a:;.' rniil h::d ^n- 
 tiicly superseded the weci ;i:r fi ': 
 
 * Sec Re_\ of the Ihjl, Ci^ir.. .:■< t -t/:.-^ by iha licj:;0 of 
 Coainana, ^^ ';,o
 
 i 4^ 1 
 
 Ohserraiion. 
 
 The IIo;; H^'.^biL^ C^cn ici)!a'i, after I i'.^ retire- 
 men'. h'O'ii cjiiicc, hax'iiu?, ci. reeled his alicnticn 
 to \hc suijiccis oi C(.';n c.ful p-ipcr <.:u;. rev, und 
 h;iviii::, ''(/rniccl a ^vsleln un tile • :Li!idaii':.-i of 
 v.YiC ■■ Vil ajt'iorities liic-.-i/, \,:is\jd 'o g.^in as 
 nunv prusilylc^ lo lis creed as possihic. lie 
 th.rj.Gvc i^reparcs tiie SLibst_.nceol ins o )in;ons> 
 com ;;:. icrf rs that £iii;3tanco 11 an indidgcjit 
 a)id ///;■''■ t/.. ei.tlc, ])c:-h i:s to sor,^2 ix.rti- 
 v.'i'.ii 'Lciiiocl :'- Oi tiiC Jju..^K>n v^o. Tj iTiittee, 
 anu I : . ..:h a :;^ark or' conriience, induces 
 thcni to i;Lc:^v.o (0:A'tr!s to bis jdiib. Ba^, 
 T i^hoai ■ i,c cl-id to koow, if tiie comiarni- 
 c:.:.-.r.o. iaeso opinions wore restrictaa to par- 
 t;Cii..r die., djrs of i!ie Co..ao;ittee, why it Nvas 
 i'.o: ^ronerid : and if i; \\.a:; pcncaaij vdiy tl:e 
 d.;-^;/!nes C'f v.;:~- I doa Ui'able G-at:e nan were 
 -^■L ■a.o:', o;\:te.* wid: die ILp;.rtr '_da IIoiiGe 
 '.' -ij iadiled to kOv/A' a// liM- '^rwand., on '. Oiiah 
 t .e vd:.aaa.^,o e.'j.\ oianea its oyd:a!,". cO'.d it 
 "■/... s i.uX ai'da I o \\i:!d.o!i: ird-rniad:.:! diaaii i!ie 
 ' 1 '^.^c, in ( i'.: a- liiat a JoaiaaLr ,A d.::L C :ri- 
 aa::e.. adijil c.p/ca:, in :aie ca-.,e of .aw faiare 
 conic, t, -.itii a. -re :.d\ • ....ipc, a:.f, a.s t'le 
 Ciatnijaon or Co.i.ai ^; tiij ano-eaa s\-;\z:'i,
 
 [ 41 ] 
 
 niigl'.t. acquire all the crclit, and carry ofF all 
 
 the r'lorv. oi:' Use exDectcd victUxV. 
 
 Pnf ^'c, -^n'^^ 1. 
 ^' p-o-or^ioncteto the general interest excited 
 '' I'V ^i^-' u:::ort, held been the cL.mour raised 
 a[(.jnst il." 
 
 GI sen'. it ion. 
 
 It is to nie a r^itt;r of astonishment, that 
 the clamciir ':a;i not iiicreascd ten-fold, consi- 
 dering the nh:.chief it lias ah'eady done, and 
 how much it is hkely to ahect, " in its 
 '' pr^ictical cc'i;':e.:uences, the interests andcom- 
 " forts cfevcrv cL.ss oi society.'" The Honour- 
 able Gc^iilenuin, (Pafnphlei, p. ii.) talks of 
 "i;e rcstr :ot;.;n ■' ha^'iii;:: vvrought so much niis- 
 '' chief, aiul laid t'le foundation of so much 
 " confiisiv;!! in ail the deahng, and transactions 
 '^ oftbecornniUnitv ;'' I should beglad to know, 
 '^.here \vas the misclhef, cind wliere the confu- 
 ^^ici-^, piior to the Report of the Bullion Com- 
 nii'tje? Tiie ndschief and the confusion has 
 iince boen greot; and will bo fata! ir: Je^d, ii'ihat 
 ;L port si;a!i beac'ed upcn. Is it lO be wondered 
 a:, d:..t a c:aa;ours:U)uld bernifcd, when a fire 
 ':as !jcen kindled, which niPV sorond di:\asta:icn 
 a!^d rain over a whole ki'i:pi.-;u ? The stocks 
 ;iave cdready fallen laatciduh., ^aaeJ tiiat inau- 
 .^p.,.^Lis iicport iius oeen j;iau\.u a^iuCa'cuiaLCci,
 
 ■^ 42 "1 
 
 baiil-.ruptcic.: i'av. i. > e.v:,:;:] bcycnd all fl'micr 
 ]j:ecc:;c:;.; a?:d .ixt' u :1c coniidence has been 
 j,:::'i:cn tc an c.;..;';:, c . or befL/re experienced. 
 A I tbis iT/d; ;;ir:!-' b.. o\'. ; ^f^ to other circum- 
 staiicoy : but a consi.lcr. bb;^ s;^'retb the mischief 
 cu.,bt ccrt.biily to bj <.:.b:'..:cd to the Report 
 of tbt' Buibjn C'-*^ ^^b: ■':, 'Tl. c'inioiir, hov> 
 eve. , is i:ob b;;; o ■■/':: b ^ b' be, if any at- 
 te;:"ip'. sliad b:- liv/b: '. ■ ^a. .' ,'.j ipr-^esnons cf 
 the Ccni nitt^c l:::* Ci.e. ::, '-bfaa: v;:i t;:e pi'b- 
 Vc :ce!,\vhcn a. a s ''aa 'aa; n ,■_ ,- b ma- ch-d fru'n 
 thca^ Wibi ba' lia.f of t;ar Ci.\ a.- -aa^g mcJiam, 
 cai liia aLa.a.;..;:L^- c-i \'. /aca.iis ai^iav :o pay 
 \ba3e taxc^ cnt;;-a,v dep:nd'a A caiaaair would 
 then bcoTak-d, ?\ von.iaav tbi:i4 kiU)\'-n in the 
 bf.ajrv a^ tbi . eo.ai'rv: — bi-f.jd a convulsion 
 \\;:A!bi t.ds 2 pb'Ca, "\\ b.aii aiUot tarow every ibin^: 
 iiiX) coi itii ■aoi. 
 
 " bir Jcbn S;a: baa djdncs Mo}:cy to be, 
 " a •:-// rc-::\:..lL.: p^l^ir :::y, cihy 'iviib a certain 
 •' pr- p^jrii'.iL (/f aa.a. Sa.b an aaiom seenis 
 '' to ina \v!ad'y uaaUabiaible, aad must cf 
 " coua-e be whbb/ aa-a.^v-ciaaiie." 
 
 ' ':\a"rra'/o;?. 
 
 Tba bb;!,- -M!)b.; C.a-dama?! a-pc.rs to have 
 soceai:a-:v^'vi:i.mar:adb;aiseifinant;enti:ie:a-
 
 10 1 
 
 ture, tlvru he cannot conii^rehend the common 
 lac'^tiF'^e of iTirdern limes. IF lie has to pay any 
 indiViJi'-\l5..chasum as ic/. ia^'^.H^JJ/j ?no/!ey,l 
 ftlicuV' he ;/:::i(l to know, whether it would not be 
 ])av]T)en I ^^'/;z^:■/7<^',accordin2^ to the modern meaii- 
 ii''^ ofiiiatword, ifhe were to de-ivcr to his credi- 
 tor a ten pnund Bank note, half a guinea in gold, 
 fbi3r;:hiili:i^]^sin silver, and tvvo-pence halfpenny 
 in Cwi^pcr; Does not iliat cxeinpliiy the defi- 
 nition ol" :-r^j/j'!v <;!ven by me, niimelv, " Paper 
 " Currency, intb a certain proportion of coin*' 
 In f:ict, coin is of no rocd use in a country, 
 except as sninll money, or change for Notes. 
 A moderate proportion of silver, and of the 
 smaller pieces of gold, therefore, is ail that is 
 necessary. 
 
 PdmphJet, pjge i. 
 
 " It is of the essence of money to possess 
 
 '^ intrinsic valae/' 
 
 Ob-erjalion. 
 If the Honourable Gentleman hy Mo^wy, 
 .::can:i C;;o:,it certainly poj~5e.;es inlrin;.ic value; 
 h\iL !i; > n -^eerehes have not been vciV deep or 
 cxtcn-ivc, ir he di-es not know, that vari^.ais ar- 
 ticles iiive passed for money, \\iueli ere without 
 .my naiterial intrinsic vahu?. Anio*ng ihu ancient 
 Ihitons, iron rin-!s cr id .tvs were used as 
 meney. The Srartans or^ferred iion ears,
 
 [4i] 
 
 q i:::ch?.i '.■■■f--' v"iv— r^ tliat they might not 
 Lcrvc Ibr ;.;:7 oL.rc ^:-':\.0::?. Seneca observes, 
 tl..:.': I nLic^iidv, iha J v;.:.< stamped money of 
 leaiher llie liv :.: ::-\;'.', *n 1,574., coined great 
 quantuL:: kA' ik;:.te^:;.A.r L Co'vries, a kind of 
 sheli, arc ;:;.::i-j a:::j o:'u:- ;noney on th.? co.:st of 
 Airica, and in ti)e !..:.?:.« ::-iV(:^3. All these sorts 
 of niunoy h.ivc ii:tlo or r o ii^trinsic value. 
 
 *' PjrCr Ciir.-::::y iiao oLvkju:,ly n:> intrinsic 
 value." 
 
 The t:onour.n)le Centle:nan cannot have 
 studied thn sul^ects of coin, and Paper Cur- 
 rency, vrid; chat 'ntellignice and ability v^hich 
 mirht be ex?:!ected from him, when he states 
 that circumstance as an objection to paper cur- 
 re;]cy, whicli is in fact its greatest advanta^rc, 
 namely, tiiar it has no intrinsic value, i he c.oi(T 
 objection to coin is, that vou must purcha e it: 
 at a rrcat cxnense fi'om f(n"oirn countric". and 
 after all, it is only a transfer^^bie cctnmodit7; or 
 a median] of barter; wliercc.:. h^d.'^^ currency 
 ans\v:ro tlie same ]}urpose, '.-d.:;! many addi- 
 ticnal advanta_;es, and hui::..: of n; intrinsic 
 value, the nade:! i-as it i.n' m ■; \v:\. From iifiy 
 tf; sivtv nid. .,as, ca'rvi:'^ cm ou:^ am'icuitin'.'. 
 c'.;r connn,:ee, and our manu acturf^, and ]'■:.-
 
 c 45 : 
 
 ducing a revenue, (and consequiently a national 
 force), altogether incredible, are created by 
 paper money. It is a species of circulation, ob- 
 tained at little or no expense, and which has 
 saved the exportation of many millions of 
 property, bv the loss of whicli the nation would 
 have been impoverished. 
 
 Pamphlet^ page 2. 
 
 " Tlie money, or coin ^ of a country is so much 
 '• of its capital." 
 
 Gbseivation. 
 
 Here money, mid coin, are consideied as sy- 
 noiiiniciis term?, a '.id in ilvsx point of view it 
 may be admitted, tliat it is '- of the essence of 
 
 '- liioney, or coin, to possess intrinsic value." 
 it is astcni^liing to me, that cither tlic Hcnoiir- 
 ablc Gentleman hiinceifl or the ind:u:;ent and 
 limited circle to wiioni his (opinions were origi- 
 nally coinn]L:nicatcd, cc'dd sufier themselves 
 to be deceived by such ialiiicies. They seem 
 to h:iv2 considered mviiey, ^ojnctimcs as diiicrent 
 ■Torn, bul at Gt!.;Cr Limc;, -ci sync.iymous wit!], 
 coin. 
 
 c.'ir Ljrccs Steuart h:.s well olFerved, 
 CB-ci: III. cap. i.' t!;at the meUu .. ''ave s ^lu':/^' 
 perrj:ni::d the i;sc of m^/'.?-', tirv; rn-v-n- v rni 
 coin i'iive bccoir-C ale.:..; :'V;:;;:^7 r.-:;--. J:c-'-'fj
 
 in their principles ihey be qiiilc drff^crent. This 
 dilTerence he afterwards thus explains. — 
 " jNfoney is the scale for reckonin;:^ value; nud 
 *' coin, cer'ain dencninati'^ns of money, re- 
 " alized in a proportional wci^^ht of tiie precious 
 " metals.'* (Book IV. ch. 19.) Bank notes are 
 as j-.:st a scale :..': reckoning v'lliie a? coin, and 
 con~ora;cni"ly, ccuiJ^y as well cnlil'cd to be 
 ci^cT^ckcnded i^ndort'ie <^cncra] tcr.n -if i^^oney. 
 In ree'ard to iho idea, that the circ-datinr^ 
 coin cf a coun'ry, is to i-e co::cidcrcd as par:: 
 (jf its capi'cd, in cvi'ry sen;:c lI ti^at v^ov';, 
 (and if not, wliy doc^ not t'^e ^lono-rabh 
 Genrk-man pc'nt out \hi: r'i.tinc'k^n), it i^- 
 totallv inadnr^-iide ; aod i? is as'oidsinna- 
 how anv oi:c, \vi,o ii.;s undertaken the task of 
 teachi?^' ethers tlie ekincn'ary ivincipies and 
 doctrine^ cf finance, shouid have lailen int..' 
 s'.::h a nd'^take. The capital of a country, c^ 
 Dr. Sn^ith justly ob::cryes, is of three sort-, 
 1. consumable, which yields no revenue or profiy 
 as food, clothes, liou-^ehoid furniture, cxc. : 
 ^. fixed, ?s useful inacidires, profitable build- 
 ings, improvements of land, cce. the character- 
 istics uf whicli is,ti;at it aiibrds i: V2\i:nu2 or profit 
 without circuletine; oi" clicn;. jo^r i^r^stcrs ; 3. the 
 iirn:L:ti'ri, coi^sistio':!- of in^ncy, stock of nrovj- 
 idon^. rack r:e'c:d-' ; h^r ]n:umk-tjre, d::^\ 
 
 ' ■ .1 ',,, .-, r- ,..'-. _i.,., ,.,-•, - 
 
 a ver-/
 
 L 47 3 
 
 valuable part of the capital, makes no part of ths 
 revenue of the society to wliich it belongs ; 
 to vhich a 4th might be added, namely, 
 the disposable, or property which a community 
 caii export or part with, \vlthcLit any luaterial 
 injury, as bullic^n and plaie. Ti:e coin, or 
 specie of a country, tlierelbre, forms no part of 
 its consURiable, lixed, or disposable capital ; It 
 is included in Its circidatin^; capital, which 
 produces no revenue ; an i which cannot be 
 parted with, without injury to ^he public pros- 
 perity. The coin of a country may be cor pared 
 to its roads, for neither the roads, nor •:he ci:/- 
 rency of a country, produce any thing : tiiey are 
 only indirectly tn.e sources of national wealth, 
 or the instruments by which it can be obtained. 
 
 Pamphlet, p. 2. 
 
 •' Whoever buys, gives — \7hoever sells, rc- 
 •■'•' ceives,— sucli a quantity of pure gol-d or silver, 
 " as is equivalent to the article bouglit or sold : 
 " or, if he gives or receives paper instead of 
 "■'' ?:iont'y, he gives or receives that Vvhich is va- 
 '' luable, only as it stipulates the payment of a 
 ^' given quantity of gold or silver/' 
 
 Observation . 
 I'iicre never w;:s a more erroneous idea, and 
 it could 01 dy originate fi-on^ a oLnd deference 
 
 to ancient authority, wIkcIi cannot possibly be
 
 C 48 3 
 
 admitted. There is not one transaction in a 
 million, wiiere tiie ol^ect of the sale is to > ro- 
 ture com, except i:)ierelv for the purpose of 
 emplo3nnp: th :t c. in to purchase some other 
 article. If. ■■^ercfore, tiiat arli le ca.i be pur- 
 cha ;e:l bv ^vpcip h:sread of c-iii, the object of 
 tile seher i.> cp'.: b; well answered, bv the '.nie 
 as bv ^be oibcr: a/ic' tliere is not the least occa- 
 sion, either icr cuic i^-ckl or niire silver. 
 
 7~» L '' 1 J. I '^ 
 
 P,i.-poiet, p. o. 
 
 " I assu;ne,a > ajcb;'ccb \K:X :;: C/ca- braUbn, 
 " gold i^ tiie scbe '. .^ v-ibcb all r.'icc:: are re- 
 '• fcrrerb and. ; :nc :i:c ^otb ct" ibe Kiiv-. the 
 " onlv legal ttuder. except b";r pav.i^ix'c ;a..br 
 
 Cbscrva!:3;i, 
 
 T- a I".. nciirable Gentleman dcc.^;lot seca; to 
 be aware of the origin of tiiose laws wbicii 
 v/ere enacted, for tbie purpose of regubating our 
 coin. The ^reat oljjc-t was, the preservatio;i 
 of the Kine;'s revenue.-'^ It was thoia-ht hard, 
 
 *- See articiila c'c moiicta. 20 E',;vv. I. 5;-r. vi, Ces sount 
 les ar;ic!-^s cj^,' .s .u-.i dcla la )v.ci.r, ^t cic cca, a graunt 
 fh:f!i-'^-€ -;;.-'r^ SJ^^nur Ic R::, ct c!c ?f^;t p',';:'c, c: a :;rau!U 
 corri!oti')M ('0 ;::i irorro'.c D!:::::'^!^:-;/. Ff r ;';:' proiijcaMn 
 of ti- Ki; -'. Rrv:;v;,-, J:- 7": ''^ "r^ -ii ;::c fLv.ipt r/' ;!:.
 
 however, that individuals should be compelled to 
 receive a species of money, which would not be 
 accepted of at the Exchequer, in payment of those 
 taxes to which they were liable. But since the 
 Exchequer has received Bank notes in payment 
 of taxes, all those ancient regulations are 
 virtually abrogated ; and whilst bank paper is 
 received at the Exchequer, as readily as gold, and 
 will purchase with as much facility, every article 
 he wishes for, no man can justly complain of 
 any defect in our circulation. 
 
 Pamphlet, p. 13. 
 
 " It follows that the difference between 5^/. 
 ^' and 46/. 14,5. 6d» or between 12 and loj 
 " ounces of gold, arises from the depreciation of 
 " the paper ; and is the measure of that depre- 
 *' ciation, as w^ell with respect to gold, the 
 *' universal equivalent ^ as to every other com- 
 ** modity." 
 
 receive no money, but good and true ; and, by the ancient 
 course of the receipt of the Exchequer, all money ought to 
 be received there, by weight as well as by tale ; See Pre- 
 amble 9 and 10, Will. III. c. 21. By the Gold Act in 
 1 7 '.■3, the Tellers of the Exchequer, their deputies and clerks, 
 v/ere rtquircd to weigh all gold money tendered to them, 
 and to Cut. break or deface all pieces thereof, which, by the 
 weight, or otherwise, shall appear to be counteifeit, ordimi- 
 nhhed o;htrv,!>:e than by reasonable weighing. 
 
 D
 
 L 
 
 Ghservdilon. 
 
 It is VvcU observed by a witness before tlie 
 Bullion Committee (Mr. GreiTulhe, Ap. p. 71), 
 that thj clearness of gold and silver cannot be 
 called a d::icoLint on bank not-e-^, or, in other 
 words, a depreciation of paper.* From a variely 
 of circumstances, unnecessary here to dwell 
 upon, the price of bullion has become high ; an 
 event of a temporary nature merely, and which 
 will be restored to its ancient standard so soon 
 as Europe shall be settled, and general tran- 
 quillity restored. A pound of gold it is said is 
 excliangeable fer ,567. in paper currency ; but 
 can any one seriously niaintain, that that is a?i 
 argumeiit for the convertibility of paper into 
 coin. Is it not demonstrable, that no m.an i^: 
 his senses would issue 46/. 145. 6d. in paper, 
 when the very next moment, ^61. migiit be de- 
 manded from liim. It puts an end at once to all 
 paper currency; and the Haiik of England could 
 no niore issue paper, wiiii the risk of such a de- 
 mar.d, tlian it cuuld convert its iron chests into 
 
 * It }:.vi bcjn -vvell observed, that if IVank notes are at a 
 c!i::C0iir.!, V. lien i!oId rises in value above ilieniint price, tli.it 
 ^; -si i~ ■■w-i is CL;ri■J;:;^,■ at u cii>ccui;t, when bul'ioji is below 
 the rnifit fucz^ •,s\\\c\\ h.us been tiie case. Can a: y thir.g l-i 
 xrL<.,xi :b;.uid ?
 
 [51 ] 
 
 ingots. Wearegravely told, however, that though 
 the Bank must pay 56/. for 46/. 14,9. 6W., '' yet, 
 " as a trading: company there is very little, 
 " or perhaps no inducement, to make a sudden 
 " and violent reduction of its issues.'* Pamphlety 
 page 111. 
 
 Preface, page 17. 
 
 " Every month our exchano;es were !:Trowing 
 *' worse, and the price of gold rising,^ notwith- 
 " Standing that our expedition to the Conti- 
 *•' nent was terminated, and our pecuniary aid 
 " to Austria was discontinued." 
 
 Observation. 
 Were there no other causes for the unfavour- 
 able State of tlie Exchange, and the high price of 
 Bullion, tlian those which the Honourable Gen- 
 tleman has enumerated :^ By the expedition to 
 the Continent, I suppose he means the attack on 
 tlie Isle of Walcheren. But had the expenses 
 of that expedition been winded up ? Were there 
 no expeditions to Spain and Portugal ^ Have we 
 not an army to maintain in Sicily ; andfleets and 
 armies to support in various other quarters of the 
 2'icbe r TliC great defect liowever, in the inquiries 
 
 ■■' Tlie pr^jfc of galJ h:is Av.cc fallen considerably. Sec 
 A ''!r :■> prefixed. 
 
 ■f- III M v observations on the Report of the Bnllion Com- 
 ini'itc. J 1 huve tudcu'.oiutd to eniinicratc idieni
 
 of the Committee is, that after having ascer- 
 tained the fact '' that the price of bullion was 
 high, and the excliatige unfavourable;" and 
 haviniij also inquired into the causes thereof, 
 that they did not investigate tlic possibility of 
 diminishing the price of bullion, and rendering 
 the exchange more favourable, without disturb- 
 ing the established system of circulation? Why 
 did they not inquire, whether new channels 
 of export trade might not have been disco- 
 vered; and above all, whether we could not 
 have supplied ourselves at borne, or from our 
 own colonies, with a variety of articles, such as 
 corn, naval stores, and timber, the price of 
 which, with the enormous freights for their con- 
 veyance, were in fact the sole causes of those 
 evils, which the Honourable Gentleman, and the 
 Bullion Conmiittee have so loudly deplored. 
 That would have been an investigation w^orthy 
 of statesmen. The Committee w^ould then 
 have proved themselves real benefactors to their 
 country; and the tide of exchange would soon 
 have become favourable to the British merchant. 
 
 Pcunpbletjpage ig. 
 
 " Creditors, annuitants, and all who possess 
 '^ incomes fixed in their amount by a contract
 
 C 53 3 
 
 " of any description, would be able to measure 
 ** the extent of their loss/' 
 
 Observation. 
 
 The loss which annuitants sustain by the 
 progressive increase of paner currency ^ has long 
 been a subject of complaint, but without any 
 just foundation ; for any great iiicreasc of me- 
 tallic money would have exactly the same ef- 
 fect, that of diminishing the relative value of all 
 such payments; nor can it be admitted,that a na- 
 tion is to be kept in an insecure or impoverished 
 state, merely that annuitants, and other persons 
 having money to receive by contract, may be com- 
 paratively riclier. Indeed the money received by 
 annuitants is nol'c'epreciated by an excess of paper. 
 It will not go so far as it is used to do, because taxes 
 have been necessarily augn^ented. The price of 
 provisions also lias been considerably increased, 
 because the harvests have been unfavourable. 
 Someimported articles must lil'ewise sell higher, 
 from the hitherto unheard of restrictions under 
 which our commerce vvith the continent has been 
 placed. Besides^ the peculiar circiwistances of 
 of these times ought v.ever to he lost sight of, in 
 the course of the discussi^^n. When the state of 
 Europe is as much ch:m:;ed, as if a volcano had 
 suddenly burst forth, threatening to cover one
 
 half of the kingdoin with ruin, we vaust not 
 act or reabon, as if nature liad rcinainc'd ia Uo 
 ancient quiescent slate. Inclecj i' )Lir jxip.r 
 circulation had not C;iven uy ^hc v^<:) .i-r:a:;:l cf 
 forty iiiiliiuns sterling, Nvnic i or her.'..- we 
 niust have i::iporled in bullicn from orh^ r rr .'• - 
 tries, sending tl:em propert? to lii-.t a •■•.)L:ni n 
 return, we could not have gone c:^ at all; and 
 had we not been thereby enable:' to resist the 
 power of France, the payments to annuitants, 
 and others entitled to receive money by con- 
 tract, would not have been very regularly iiqui- 
 dated. How can tiiey expect to e: cape a yhare 
 of that pressurj, to whicii every o-he>^ branch of 
 the community lias been subjected ?^ 
 
 I have thus gone thrc-ugh tlie preface, and 
 the hrst nineteen p^.g-^ of the parnpiilet of the 
 Honourable Gentleman ; and I trust it will he 
 evide: :, ^■oni these observations, tliat the doc- 
 tii]~es in:i'i;tained bv Mr. Mu^k;ss: n ;.-e 
 foun.!c J upon principles, inconsisv-u --ii-i 'ho^e 
 which are S"ncuon^^d b'; t;;e i ur ro:.. -^-.ii^ts 
 };rogresM\oi\' ii.aue i.; the sc];;rjCe (Y ^^.Jii'cal 
 ccoiiomy. T.,e Honourable Gent. eu an, noiccd, 
 lias v^ry candidly, aiid very jus:ly auui i?cd, 
 (Pivh.cc, ]). 8), t:iat Ids eb; c-rwjions ' cntaiii 
 iKAiiiug -ii-jitb lo r.cii : :uk1 it were to be wi^i 'Crl,
 
 [ 55 ] 
 
 that from the old matter, so anxiously and la- 
 boriously searched into, he had made a happier, 
 and more judicious selection. Instead of per- 
 severing tiierefos^e in the task of commenting 
 on sucii a publication, which, after the remarks I 
 have already m.ade upon it, and the want of 
 novelty in it.s contents, seems to me perfectly 
 unnecessary, I shall proceed to the n-incipal 
 object I had in view in publishing this work, 
 namely, to state those Political Maxim-, which 
 explain the ideas v^hich have occurred to me 
 upon the subjects of coin and paper currency, 
 the meaning of w^hich, I hope, that any author, 
 of even common penetration, will find little dif- 
 ficulty in comprehending^. 
 
 It may be proper to add, to prevent any idea 
 being entertained, that tliese Observations are 
 publisiied at the instigation of any party in the 
 country, that they have not beencomnumicated 
 to a single member of eitiier House of Parlia- 
 merit ; and tliat the individual who writes them, 
 is alone either imjplicated in, or responsible for, 
 their conter.ts. It v;o Id^.ive him infinite plea- 
 sure, if his anx:ous cudeavours, in conjunction 
 Withtriose of many others, by whom the cau'-e, 
 he trusts, will be advocateci, should be the means 
 of nrc^ervin^r iromLl-i'sirdcnou.thatconimon bond, 
 Jthc establisiied currency of the country), by tiie
 
 [ 56 J 
 
 interchange of which, numbers of insulated in- 
 dividuals, are combined into one whole; each, 
 in various ways, promoting his own interest, 
 and thereby increasing the wealth, securing the 
 safety, and augmenting the happiness, of a great 
 community.
 
 C 57 3 
 
 POLITICAL MAXIMS 
 
 HEGARDING 
 
 COIN AND PAPER CURRENCY, 
 
 INTENDED TO EXPLAIN, THE REAL NATURE, AND 
 ADVANTAGES, OF THE PRESENT SYS lEM. 
 
 1- 1 HAT it is of the utmost importance, in a^r 
 early period of society, to have m.etals, or any 
 other substance of a similar nature, fixed upon 
 by common consent, by means of which, 
 individuals may receive the reward of their 
 labour, and the puWic its revenue, in an 
 article equal in value, when sold, to that for 
 which it has been exchanged, and w-Iiicii will 
 answer as a medium for transferring property 
 in goods, without the necessity of acti?^ 
 barter ; and that the precious metals, from 
 their intrinsic value, and other advantc- ;es, are 
 peculiarly calculated for such useful purpo es, 
 in periods of society, when property is insecure, 
 payments few, credit unknown, ana tne 
 population inconsiderable. 
 
 2. That when a society become ^ more nume- 
 rous, property more secure, and payments
 
 [58 ] 
 
 larger, and more frequent, it is a most essential 
 improvement in llie poiilicai circumstances 
 of a country, to have some m jans of paviiij^ tlie 
 wages of li<bo::r, raisi^ig a revcn'i:^, and cr;.:.;:t- 
 ingthen-a;;:,;er ofgoods, with .:nch a circ^IaU.:,:; 
 medium as ]-^?^^Ci" ciuT'oncy, beiijg of" \ n-ituvc 
 less cumbrous t'lti'i coin or b'lllion. and not 
 liable to the various disadvaiUag./^, to be a;V:r- 
 wards ex!:bained, aLtending a jjietaiiic circula- 
 ting mediu;n: aiia tiiat in couu'ries vd; :re n.> 
 inines of tlie precious metais exi:-.o d:c neces- 
 sity of orocLuins: ^heui fiom forciifii coun'rie;;. 
 at an enormous <. xnence.vbr no ot!;:er puruos: ., 
 but merelv vo sll as the iuediuin of circuiatiou, 
 is thereby :^reve:.ted. 
 
 3, Ti^at ti.e estabiishiuent of a paper cur- 
 rency is O] grc.L iuipoataucj to a i^ation, were 
 it only fc;r the purpose of saving tiie expence 
 of purchxasirig budlion to be converted into 
 coiii ; but ti^a; such a currency does not answer 
 the obi ^Cl ci,'':cuid!lv, Uiore csj)eciallv in tiu.^s 
 
 r ■ r : ^ ■ ■ • ■! ' ■ ■ 
 
 01 war, //" 1:13 pu'Ji t., Lw/llC; i.ui'J /.'UO Culil On 
 
 diiu.u'icl, as, i;i Mat case, a large quaiitity of 
 specie is uselesorr hoard .d u]?, to be ready for 
 a::y ]:ro;;able, lv crc^i p:):.s!b!e d:'^,..:nd, and 
 hence tiiat, in times oi aiarju, liie Ciecuhition 
 of a coieitry is juosl duuiuiehed, wnen its 
 abundance is most required.
 
 [.'■,9 1 
 
 4- That coin, though highly useful when 
 no other rncdiu'ri of transfer can well be es- 
 tablished, yet is attended with great disadvan- 
 tci;_: \s. — 1. It is perfectly unfit for making 
 lar^^'., payments, in so much, that neither the 
 ccriiui^rcc of this countr}^ to its present ex- 
 tei'f, cjuld b;j carriei on, nor its great revenue 
 col'coce:], if ccin were the s::\q imdiLim of cir- 
 cui^.tlcn. — -i. It can never be procured in suf- 
 ficient quantities for the demands of an indus- 
 trious, iind a prosperous nation. — 3. It is con- 
 stantly diminishing in its value hy wear, which 
 diminution must be made good, either by the 
 public or by the individual.* — 4. It is liable to 
 various operations, as hiing, clippin.g, svv'eating, 
 ^c. by v/hich its weight may be so much re- 
 duced, as to render it unfit for passing. — 5. It 
 is apt to be hoarded up when it is most v/anted, 
 namely, in times of alarm, and the hoards 
 being generally seer: t, t'^':^y arc frequently 
 t'-rtally lost : — and, 6'. Private individuals pos- 
 sessing a quantity of specie, are mere li:;b.e to 
 lose tiieir right of property in itjtiian in paper; 
 
 *■■ In the reign of King William alone, the recoinage 
 cost the public ^^3, 170,480. — History of the Rtvenue, 
 Vol. II. p. 4.5. The average expence of the Revolution 
 war was only about three millions per annum.
 
 [6o] 
 
 and when nations possess it in great abundance 
 it is a temptation to invasion.* 
 
 5. That paper currency, on the other hand, 
 ztJun properly regulated, is not hable to any one 
 of these objections, whilst it possesses many 
 advantages of peculiar im}}ortance. — 1. A na- 
 tion has the advantage of this currency at little 
 or no expence, instead of exporting milhons 
 worth of goods to purchase buUion to be con- 
 verted into coin, which after ail could only 
 answer the same purpose as paper currency, 
 but not so well.— 2. This currency need never 
 be diminished in its amount, which uniformly 
 occasions infinite misery to a country ; on the 
 contrary, it may be augmented whenever the 
 wants of agriculture, to carry on its improve- 
 ments, or of an increasing commerce or 
 revenue, render it necessary. — 3. Where 
 paper currency is the medium of circulation, 
 
 • When an individual is pluiidered of coin, there are no 
 means of distinguishing it from the other specie in circula- 
 tion ; but notes may be JTiurked, or the payment stopped, and 
 any loss thereby prevented. In regard to nat'oiis, abundance 
 of coin or bullion becomes thcimmediateobject of t'lc plunder 
 of an invading enemy ; whereas the paper currency peculiar 
 to a country, if he succeeds in his views of conquest, is of 
 no use to him ; whilst it circulates among those who place 
 confidence in the government, under whose sanciion it had 
 been issued.
 
 [61 ] 
 
 either coin or bullion, instead of being use- 
 lessly hoarded np, may be exported, for the 
 purpose of carrying on necessary wars, or of 
 purchasing grain in times of scarcity, which 
 could not otherwise be hazarded, without the 
 risk of throwing the whole country into con- 
 fusion. — 4. With an abundant circulation, the 
 necessary result of a paper currency, a nation 
 prospers to a degree beyond all possible con- 
 ception : Thousands of people are employed, 
 who, under a different system, might either 
 have been almost entirely idle, or a burden on 
 the community ; and money, whether bor- 
 rowed by individuals or by the public, is pro- 
 curable, (a point of the most essential 
 importance), at a moderate rate of interest. 
 With such facilities, the payment of taxes, 
 however great, is accompanied with much less 
 difficulty ; industry does not languish for want 
 of employment, and every species of improve- 
 ment is carried on with spirit. The mischiefs 
 of a cramped circulation, on the other hand, 
 are incalculable ; agriculture decays, — com- 
 merce fades, — public credit is annihilated, — 
 the public revenue becomes unproductive, — 
 and men, from distress and despair, are ready 
 to involve themselves and their country in all 
 the horrors of revolution.
 
 [ S3 ] 
 
 G. That th: slate ci' Great Britain, for 2 
 
 ^C 41 
 
 pcrioQ Gi tl'jirleen yc:irs, (iiinng \v;:;cli, a r"P-r 
 currency, not conveaijic hito cuin, v,a> ihe 
 
 ;?.-/ /;';.v 7^: 
 
 f p . \*^. 
 
 medium of circLilatioii, \:rov-:::S, l.cyo 
 hilily of cIj:^'')!, tlie advantages of the i^ew 
 system. During that wliole period, our 
 exertions in foreign war, and do'nestic im- 
 provement, have been great beyo id all 
 example. We have at least occasionally fought 
 France single-handed, v.hich her Emperor had 
 boldly declared to be impossible; we iiave con- 
 firmed our empire of ihe sea; we have every 
 wiiere defended our friends ; we have every 
 where combated our enemies ; and yet, during 
 all that period, the Bank of England vv-as not 
 compelled to issue gold; — the whole zvas effected 
 by papcr^ ;:oi couvertihle into coin. Would it be 
 w ise to overturn a system capable of accom- 
 pli:;! 'ng sucli astonishing efiects .? 
 
 7. Tiiat there is a most essential difference 
 betv;cen a Pnpcr Currency, acting merely as 
 t!;e representation, not of coin, but of mar- 
 kcta'oie property in general, and issu':-d by a 
 respect-'^Dle, opulent, and well cc:' ducted 
 Corporation ; and State notes, or Government 
 paper, circulated by com'^ulsion, issued v/itliout 
 limits, and founded on no security ; :^nd. 
 tiiougi'i .'uch G')Vernment papf may have Ijc-
 
 LSsn 
 
 come dcnreciatcd in other countries, v/hen 
 multiplied beyond all bounds, that is no reason 
 V. liy a Paper Currency, of a description com- 
 [^Ktely diuerent, namely, jncrcaniik paper, 
 wiiich is never issued but on the most unques- 
 tionable security, may not, under proper regu- 
 lations, be perfectly unexceptionable. 
 
 8. That c(un or bullion, as a species of mer- 
 cliandise merely, may be of service in the 
 transacti^jns ^:;tween coinmercial nations, and 
 is a ready means oi making remittances from 
 one country to another ; but that unless where 
 the balance is unuivcurable, (in which case the 
 exportation of goods is much more expedient), 
 the exchange between one country and another 
 is best arranged, by means of bills of exchange, 
 v/hich are always at the command of an active 
 and industricus nation, when wars, and ob- 
 ,':tacies arising fi'omi commercial jealousy, or 
 political rancour, do not intervene. 
 
 o. Tliat even where the exchanr^e is unfa- 
 vcLirable, It is much better to be subjected to 
 i^ny loss tliereby occasioned, than for a nation 
 to deprive itself of the advantages of Paper 
 Ciirrency, even if thai; currency were the 
 cause of the lowness of the exchange; for 
 t!-at a pa;^er currency, by promoting industry, 
 a!id evcry^ fpecics of agricultural and coin-
 
 rnerclal iiii.M'cveinent, will soon bring about a 
 frfV(~.urablc state of exchange, either by the 
 solid exportable wealth whicii it would be the 
 means of producing, or by raising articles 
 at Iionic, witli vvb.ich we are now supplied by 
 foreign countries, 
 
 10 That the Bank of England cannot well 
 ey.cced in the amount of its circulation, whilst 
 it issues it3 notes, on Ihe seciiniy of good mar^ 
 ke table property of any description , and that to 
 comi^el the Bank to pay in gold, an article 
 which, from the failure of the mines, or a ge- 
 neral disposition to hoard, it may be impossible 
 to obtain, and which, after all, is itself nothing 
 but a s|)ecies of marketable property, would 
 infallibly shake and subvert, not only the 
 credit of our circulating medium as it is now 
 establisl.ed, but also the whole fabric of the 
 commircial and public credit of the kingdom, 
 on the miaintenance of which its prosperi:y so 
 essentially depends. 
 
 11. 'i'ix!'. :r is hi^^hly desirable, that the cir- 
 culation and con-cicrce, not only of any par- 
 ticular ccuntty, b:'i of society in general, should 
 be carried oii wii'; as small a proportioi; ofllic 
 precious metals as possible, the extracting of 
 wlfich from the bowels oi the eartli, renuiree 
 ^o much labour and cxpence, aiHi ibr ihs-i pro.
 
 L ^5 3 
 
 curing of wliich, tlio lives of so many millions 
 of human beings have been unnecessarily, and 
 it may be s-ifely cnniendcd in a great measure, 
 even wantonly, sacrificed ; and, 
 
 12. That the price of bullion rising in the 
 market, mucli above the mint price, is a cir- 
 cumstance attaching to gold merely as mer-' 
 diandize, and Vvduch rni'.st vary vv^ith the 
 demand fi)r tiiat merchandize, as in ever}' other 
 similar case; and that we miLrht as x^eil institute 
 an inquiry into tlie price of diamonds, of 
 cochineal, of sugar, or of any oti^ier commo- 
 dity, as into tliat of bullion. 
 
 CONCLUSION. 
 
 The conclusion of the wliole is this, that Par- 
 liament csn fip-^ '-^ • :''f-T'^'.dtv. in rectifying any 
 abuses, ('f an^ ....v, ... .. c-:is:), which 
 
 may have arisen, in our paper c . 'aticn, as 
 it is now esttiblls]ici,j^6!/- iL is unly the ahu:^. that 
 can be J usily objected tu ; but that wholly to over, 
 turn a system, whic;-; has proved such a source 
 of national prosperity, v. liich has stood llie test 
 of the experience of 13 years, the i^:osi' e\'ENT- 
 
 FUL IN THE Hl^lORY OF AIANKf NO, and U ;. \ ^teiUj 
 
 E
 
 [6-6 1 
 
 .vhicb.if maintained, ^vill enable us to resht 
 he utmost efforts of all our enem.es would be 
 a species of political suicide, altogether unp.v- 
 
 donahle. ^^^^^ SINCLAIR. 
 
 5, Terrace, Palace-yard, 
 London, No'cember 2*, 1810.
 
 [67] 
 
 POSTSCRIPT. 
 
 After these PoMtical JVIixlms had been 
 drawn up, I resolved to as< e tain, how far 
 they were consistent with the principles laid 
 down in a work of great merit, Si'' Jan:es 
 Stenart's Inquiry into the principles of Poli- 
 tical Fxononiy. Not having had any occasion 
 to consider that work for several vears, I 
 found, with peculiar satisfaction, that ih^: sys- 
 tem which seemed to roe the best calculated 
 for the prosptrilv of this country, was sane- 
 lioiii-d by the authority of that most intelii- 
 uent and resnectal)! .: writer. Everv word he 
 says i-egardiiig C')in and ciu'reiicy, merits the 
 attention of tsiose who wis!) to be master of 
 those intric.ilc subjects. I siiaJl subjoin, for 
 the consic'eri.iion cd the reader, those passages 
 which secai to ine tlie most cssenuai ; with 
 such obser\ ations as have occurred to me on 
 the perusal uf tiicm. 
 
 i. Oil tJie Oj'igin of the Obligaiion to paij Bank 
 Paper in Coin. 
 
 '• The obligation to pay Bank paper in 
 " coin, owes its origin to the low stale of
 
 C68 ] 
 
 *' credit in Europe, at the time v/lien Banks First 
 " bef;an to be introduced ; :ind it is not likely 
 *' that any other cx|)C(Iicnt will soon be fallen 
 *' upon, to reniovc ilie incoiivcnieneics whicli 
 *' result from it, in dorneslic circulation, as 
 "long as soti'c persons of the inost acute un- 
 *' derslaiuhii'^ i:i nianv thiiri-s, co ^a^ier all 
 " money, except coin, to be ialse and iicti- 
 '' licus." Book iV, ch..p. 7. 
 
 Ohscrvalioii. 
 
 Cue vovild iniip^bi^ that this distin- 
 j^uiohed v/rl.cr, had lorseen the appointment 
 eJ a i-:.!;^: n vv;iniiiittee, in the course oi" whose 
 pro. -..-d: .1.^), pci^^ons of liie most acute un- 
 dci^ta:iC;L':; m inany thiaa;s, seem to have 
 betii li'"';aevs-Ll \vi"h most erroneous opinions 
 en liiC biihje^is oi' coin and paper ciirrency. 
 
 £>. Gil tfic J.;. on fit of Gold Coin, nccessanj to 
 ci/ii.Udc ([:.!j i^iven quaiiuij oj Bank p. '.per. 
 
 It is r-p::o-.'d ihit the Hank of Kn;d:uid 
 \- ;.s ..v.\i\^\\^' (j;dl':cd lo kcLO in '.-Jiii one 
 
 <^^ f!i- ^■ 
 
 vj. i.:^ : ......^ wi all its ir^lci; in c:r- 
 
 ciil.'iv;:). (jn (.In-!, sal^jv-ct Sirja:!!:.; ^Icuart 
 o';^er^ cs, '' Llu the consLC|i!cncc a:' tiiC ohii- 
 *' •;alion lo pa\' in ccin is, djat v,h: a the na- 
 ^' LLun CO: .^.: lO owe a '(ac!;.';n ';.Jaacc, liic 
 '' notes wiiieii the baa:; \:dd is:uea to s:;p- 
 '' port doiii^oLic circulaiiOii ciut^ coiiic upon
 
 169 1 
 
 *' it for the payment of this balance; and 
 *' (hereby il c coin, wljich it had provided 
 *' for home demand only, is drawn out." 
 Book ly. chaD. 7. 
 
 Obse/vciliofi. 
 
 Tlic ju'^tDess of these remarks can hardly 
 be questioned ; it is evident, therefore, that 
 it would require ^{^7,000.000. in specie, to cir- 
 culate ^'i! LOGO, 000. of Bank Notes, the a- 
 mount neccsiiiiy for the demands of the coun- 
 try at this time, if the Bank were compelled 
 to have always £7 ,000,000. m its coffers, which 
 it mnst novv^ purchase at a loss of f8^ per 
 cent., and which, from any (fieat additional 
 demand, would scon ri -e to 15 or 20 per cent. 
 ajKi v,'hicJi it must be constantlij replacing; I 
 should be glad to know, in wiiat the protit of 
 the B?.nk would consist, and whether it ^vould 
 be wortli its wlnie to issue a single note, with 
 the risk of its b'-ing converted, at such an ex- 
 pence, into specie. 
 
 3. Oil the Advuniages oj Paper Cnrrencij, 
 
 "• In countries where nothin'> ci culates but 
 '* the metals, wlten coin becomes scarce, it is 
 '• iiardiy [)Gs^tule to iind any credit at aU in 
 " ti.e icinoie p:'i)vincts; aiui even in ihe cen- 
 " Ire oi' circuiat'on, tiiC interest paid for the 
 *' bic of it, mustii^e vei v cen^nuciabiy, and
 
 [ 70] 
 
 *' ini!.st staud high lor sowe lime, before Bul- 
 *•■ hoL, lor the puii'^se of e^; In age, can be iin- 
 " poried. Pc.per oiiev. oii tlic oihtr hand, 
 *• AvLen BauL's lukI jade :: ; weil estabhshed, 
 *• is a]\va)'S to be ioiiiifL So j>a)-t ol" it hcs 
 " dead — not even i'ov a (..iv, wlicn employed 
 *' in tr;;de ; it is not l- (4' dAU^' Steuart's 
 Poiit. Econ. Bo;k i V. c -ap !^- 
 
 "' 'i'o the Baiilcs oi" r^; jtiai.J, the i;r;prove- 
 *■' ment of th::t cMir;tiy 
 Ditto, Vol. 111. p. IJl/ 
 
 entirely owni^. 
 
 Olservaiion. 
 
 These remarks arj j^rrcetly just. The 
 T3rosperitv both oi Ei:i;,]ai:d ai;d of Seotland, 
 cu 'ht riircipallvto be aUrii)i:ted to t!:e Bank- 
 ii,;-; estabhshrncnts in these two countries, 
 and ti-e judiciou'-. principfcs by which they 
 are rciin hued. Any at ten -j)! ilicrefore, caj- 
 cnhitcd lor the pnrpcse of din^inishing their 
 jK.wer, i'V rehirictn.g their ciicLduiion, cannot 
 Ic ts^o \ i!.;(;roL!^ly oppobcd. 
 
 4, Oil the ::cc(ssi!!j of luivia^r Ban!: Aoles con- 
 vci iibk into ^puic. 
 
 " It i^ Sciid tijat ban!: nctes can never be re- 
 '' cchce as ':.i;ccie, ivUt ficun a peibLiabion that 
 '• ihe"\ niav ! e cxchtUificct ;o!' ii on demand. " 
 
 '■• 'I'o this d^ie aiisv,'. r is o'^vions ; liiat it 
 " is ' I'icieni that iyank :.etes be rece/^xd a:<
 
 [71] 
 
 *' value, and that they answer every purpose 
 " in carry uig on aHcnation. The use of paper 
 " money is, to keep the reckonin:^ between 
 " parties who are solvent ; the use of specie 
 " or coin, is, to avoid the inconvenience of 
 *' giving eredit to persons wlio perhaps may 
 " not be so." 
 
 " Again it is said, that if I have coin, I 
 *' may pay any where within the commercial 
 *' world, at the expense oftraiisportatiou and 
 '' insurance." 
 
 " To this it may be answered, that the 
 " principal use of coin i^. not to send it out 
 " of the country, but to keep accounts clear 
 *' among the inhabitants within the country ; 
 " and that the only complaints against paper 
 " money, and regrets for want of coin, issue 
 *' from those who wish t() profit froin tlic rising 
 " value of the metal contaiaed in tiic coiii, 
 " and vrho endeavour to persuade ihc public, 
 *' that its interest, and not their ov/n, is tlieu^ 
 " object ; but let us not say, that because 
 *' some of our money may be made of the prc- 
 " cious metals, that all oar money should be 
 " made of them, in order that those, v,ho 
 *' carry on transactions in mOiicy, may ?.i.u e 
 " an opportunity of sending our rnclids away 
 ^' with lireater ease, and thereby of dcpnvinff 
 '' us of the means of canvin"; on aiicnaiioiii 
 '• among oui selves." (Sleuart's Poiii. f co;s.. 
 Book JV. chap, :^0,
 
 CrO 
 
 Ohservatioiu 
 
 Those who arc not convinced by these 
 judicious reiiiaiks, nriust he cither war])ed 
 by interest, as jo!>bers in money often are, 
 (who j)erh;;])s liavc been at the bottom 
 of all lii^:; ii-isc'iicr), or they inust be im- 
 pressed with picjidices iioi to be surmcunt- 
 ed. It is astoiiiht ing ho^.' any doubt of the 
 utihity of our i;rcscp.t s}>tcn/of circulation, 
 should remain \- ilie breast c f any one, after 
 we have witnessed the bcntucia] efiects wbicii 
 
 nave resulted iiuin i[, ciuiii-^, tiie coiir:^e of 
 
 tliC last 13 VLais. 
 
 •' 
 
 J. Oil [lie Aeci.-Ui/ of Maittidiidnn Banks. 
 
 " IF a stateF:;^a-i do not support his banks by 
 *' a systemalicai chain of condiRt, he will 
 *' ch^ain the inn.! of circrJatic-n bv ins remit- 
 *' tanccs, his credit will fail, his taxes will no 
 ''' n Oic !>c paid, and his people will be op- 
 " pi'cssed. l]:uif he pnr^-ic^ins phm svste- 
 *' maticall}-, cj-c'ilaLion ^vill i^c ]:c*)t flilf, his 
 *• credit will be snpp'.ricd. ids taxes will be 
 *' paid, and his peiHjl:: ^viii be easy, because 
 "no check wjil be put either to their indus- 
 " try or consumption foj' vrant oi' money." 
 Steuart's Pol. Econ. liook. IV. cJi:ip. JO. 
 
 Observation. 
 
 The t!oclrincs contaiiicvi \n t!i;s }>-UUgrapib 
 cemplcLcly justi') the ob:^ci vatioji. euutai^'ica
 
 [ 73 1 
 
 in the fir?h political maxim. It were to be 
 v/ished thai those, w'io arc anxlons to Kirai a 
 ]Mst opiiiion regarding coin and paper cnr- 
 
 Ycyirv, vroiilJ si.idv the works of an author, 
 vAi-ij'-' " I'-^q'-ay into 'he j^ririciplcs of Poli- 
 '° uc::l Kconoi ;','' 7vas the labcnir of \ S years 
 dilic^cnc research, :..;d '-'lojc works cannot be 
 '■•■V':Zi:id hv thojc o'" any oiler poli^Tc-d au- 
 ::: or. f r r :u:;cn';i:'' cfihoirvht, jnstucjs oi" rea- 
 
 u. 0-7 Fu''lic Loans, 
 
 '■' As the c!)jccL orihc Ijorro'vcr is, to have 
 -' intercut low, ilic ss^".:'m::n who intends to 
 '■ hornvv, liinM: use :;,ii uo:-sib'o nieaii5 to ia- 
 " crease thec|uani.ii7o['i:;.oncy incirciihition." 
 
 " BnL il'coin alo;ie be (ised in ;none}% and if 
 " this coin be scut cnt of the co:;:ntry, when 
 '-' bori-owcri, an-i ifwiiat is sent away ca-niot be 
 " I'epiacefb at wHI, ihe scheme Oibui^'ncaiinf; 
 *• inonev hec;;)mc^ ininri-ciicible : it wid daily 
 '- !}e(,oi::e mere scaree, moic di'ncuit to pro- 
 ^' vn:ej and interest mnst rise !n her every 
 '- day. bvinbe'i':a;,or puper rnon^;}',ibat is ere- 
 '' v:;;, :nu'.t tiiea l^e e^la. dished auioine, upon 
 ^' the sii:::c-.Ll)d-..-: : t!;:s will encd^le every one 
 '^ to ;n.y -v.. a I ;■•: nwes, ennscciucMiii, v ihe taxes 
 " v:id i.c paid, the cre(ht'.)rs will ree ,.ve what 
 ^' )-•:-> d-(: ;/) d;'.;:n i. gidar;\', nie;..,' l -'cry year 
 '' wid. an:nieni in jiron-n-iioji as .;l}t:% arc 
 '' c ^>n!.r:::(;i,cd, vkI ii'horrewiiw do net .^n^ment 
 
 F
 
 c 7J :] 
 
 '• bevcnd this pi oportiou, interest will not rise, 
 *^ and if borroving should Fall below lliis pro- 
 " portion, inierest will sink." Slcuait's Polit. 
 Eton. Book iV. chap. 10. 
 
 Observation, 
 
 These doctrii es arc invaluable, and are 
 completely justiiicd by the rectnt cxperieiicc 
 oi this country. Those Vv-!^o caiiivot 1 el their 
 iniporlante, do not mciii the name oi bluUs- 
 men. 
 
 -*^
 
 UC SOUTHERN REG 
 
 AA 000