yt;i 'r:,^^_, THE UNIVERSITY OF ILLINOIS LIBRARY D875 t^>^ Return this book on or before the Latest Date stamped below. University of Illinois L ibrary L ^K^^^^ 11 np ») / 'OTf' w iOiSS? Ijf,l_H41 A s»i!>i^;^ FOR THK REDEMPTION OP THE PUBLIC DEBT, &c. By Mr. W. A. KENTISH. 1. THAT in the reign of William and Mary, to enable the Govern- ment, to raise Loans with facilify, and thus anticipate the Revenue; (the greatest misfortune that can befall a State;) an exclusive Privilege was granted, to a number of Individuals, to form a Company called the Bank OF England. 2. That the said Bank commenced with a Capital, of one million two HUNDRED THOUSAND POUNDS; and good Land was then let at little more than ONE SHILLING PER ACRE ! of that period. 3. That, on turning to the Financial part of the History of this Country, it is remarkable, that previously to the introduction of the present system of Banking, the laboring classes had at all times full occupation — enjoyed a superabundance of the necessaries of existence : saleable Commodities of every description seldom varied to any serious extent in price ; — and there was lilfle or no fluctuation in the circulating medium, whenever the currency was of its full standard value ; every thing on which the ivelfare of the state depended, continued fixed, stable, and determinable. 4. That, shortly after the establishment of the Bank of England, and more particularly after the adoption of Country Banks, the Currency aiid every saleable Article continued varying and fluctuating in value up to the present period, to the great deterioration of all kinds of real Property, and to the injury and uncertainty of all commercial, and other transactions, generally. 5. That the Bank of England was authorized to issue paper, intrinsically of no value, which the Government received as Loans ; engaging the Nation to pay a Perpetual interest of 5 per cent., in real money, on all Sums so borrowed. 6. That from time to time, it became expedient to form such amounts so borrowed, into a Stock, or Public Fund; which Persons eagerly bought up, in order to secure a perpetual Income upon the Country's Revenue ; an act of severe Injustice towards after Generations; as we are now experiencing. 7. That the first Amount, so purchased, was the foundation of the Coxxnixy?, future Impoverishment ; and the commencement of a Ruin, Avhich would subsequently overwhelm and destroy its Prosperity. 8. That every £100, invested at the period of the said Bank's commence- ment, whose yearly Interest has been regularly added, up to a little beyond the present time, would now cost the Public, even upon so trifling a Loan, the enormous sum of £409,600 : as is evident, by the annexed scale of Compound Interest. This amount will actually have grown out of the afore- said One Hundred Pounds; which shews how inevitable is the ruin of the most opulent Nation ultimately, where so Iniquitons a system, as that of Funding on Perpetual interest is allowed.* •In 14 years 28 42 56 70 84 08 112 126 £100 £200 £400 £800 £1,600 £3,200 £6,400 £12,800 £25,600 £^j1,200 140 l.')4 and in 168 years £102,400 £204,800 £409,600 9. That the Bank of Eu^laml was institiitccl in 1093; and as a proof how soon that system began to preij upon the Public Prosperili/, the year follow- ing, the Nation was burdened with the Sfamp Duties ; one of the heaviest Taxes upon Commerce ever contemplated: as well as one of the most Tyrannical Vexations ; from the innumerable Prosecutions, with all their ruinous Consequences, which it has ever since encouraged. — And as a further proof of its progress, an Income Tax was imposed in 1709. 10. That the Bank being repaid, in real Money, upon all occasions, on the funding of the said Loans, it was enabled, at any moment, to Lend the Govern- ment to any Arnoimt ; because such amount, could be at all times again Ftmded, and disposed of as before ; and thus rapidly grew the Debt. 11. That the Bank has, from its infancy, been more the medium of supply- ing the Government extravagances, than in assisting Commerce, by Dis- counts, &c. — has therefore been the sole Instrument of the State's existing burdens and distress : and as such, a steady, unrelenting enemy to the Country's welfare ! 12. That the Government was no longer restrained in its Expenditure, nor kept within the limits of the Revenue ; but being placed by the Bank in a state of Unnatural Affluence, it fell into unbounded Extravagance ; (the aim of each Administration being, to provide for its friends and dependents, as long as its Influence lasted;) and thus arose Sinecures, Peaces, Pen- sions, &c. 13. That these facilities of raising a fictitious Capital, had the efl!ect of auymenting the price of every saleable Article ; by bringing Paper intrin- sically oi no value, into competition with real Capital; and Land soon became many times its previous value. 14. That every thing growing upon the Land, advanced in proportion ; and to secure its sale, at its increased price, a prohibition from importing similar Articles was determined on, as the only Protection. — Out of this grew the Corn Laws ; the greatest source of distress, to four-fifths of the present Population of the Country. 15. That this prohibition occasioned, in return, excessive Duties on all Our Articles of Manufacture, in other Countries; or their entire exclusion ; and thus laid the foundation of all the jealousies, disputes, wars," and blood- shed, we have since been involved in. 16. That the Country's Revenue being thus anticipated, and the Debt daily increasing, it became every year necessary to impose additional Tax- ation, for paying the interest of the said Debt; until every article, both need- ful, and su])erfluous, was advanced in price, to many times its real value. 17. That the daily exertions of the labouring Classes, were soon found in- sufficient to purchase the Necessaries of Life ; so that, no other means were now left, to save thomands yearly from perishing, than the imposition of Poor Rate^!. 18. That this Tax has not been confined to the Opulent, and such as are exclusively benefited by the Funding System, but levied upon all House- keepers indiscriminately, however Poor, or numerous in Family; and great numbers have been, in consequence, yearly driven into a state of absolute Destitution, by being obliged by law to provide for the Poor, at a time, when they were actually proper objects to receive relief, often themselves in a posi- tive state of want, and destitution : — a most unreasonable, unjust, oppressive, and unnatural system. To be forced to gic for the sustenance of others, one should at least possess so/HP little superabundance; but to ta/:e by force any 3 thing fVoni a Man with a large family, and an insufficienl Income to provide lor them, merely because he is under the necessity of taking a small House to shelter them in, is tyranny and cruelty in the extreme. — Indeed for any one -with such a family, unless he be decidedly very rich, to be forced to support the poor at all, whilst so many are altogether dependent on him, is very unjust. This burden ought to fall upon those who have no such responsibility. 19. That the said Company's Paper in circulation, at length amounted to 50 Millions, and upwards: and the State's expenses to 100 Millions, and upwards; by which period, erery plan that could be devised, for raising money, had been carried into effect ; until the lohole Circulating Medium, every 6 months, passed into the possession of Government, and was there ABSORBED. 20. That the whole of the Public resources, in consequence, went through the hands of Money Raisers : in the shape of Bankers, Loan Contractors, &c. ; who all became enormously tvealthy at the State's expense. 21. That the extravagant Interest of 5 per cent., has at all times been al- lowed the said Company, upon its overgrown Paper Capital ; although, in itself, of NO VALUE ; as well as 5 per cent, upon all the Debt created through its medium ; and now amounting to 800 millions and upwards. 22. That several Hundred Thousand Pounds yearly, are paid to the said Company, for keeping, as it were, its Own Accounts. 23. That as Paper, and not real Capital, was received in Loan from the said Company, One per cent, would have been too large a Commission, upon such enormous Amounts, where there was no Risk. 24. That one quarter per cent, is the usual Brokerage, or Bank Com- mission, in all Commercial transactions; and Thousands of Commercial men, would gladly have furnished the same Paper at this Rate ; whereas, the Commission allowed to the said Company, is Twenty times this amount; which, independently of paying their enormous Establishment, has enabled them to divide, besides Bonuses, eight per cent, upon their £100 Shares, as a Profit, the Directors admit ; though they have at all times refused to dis- cover the REAL profit, even to Shareholders of Bank Stock. 25. That this unjustifiable secrecy is not usual in Public Companies, where the whole amount of the profits and benefits are actually made known, and divided amongst the shareholders; and warrants the supposition, that the real Profits and Benefits of the Bank of England, have hitherto been too considera- ble for the Public to be made acquainted with ; or the shares in Bank stock, like those in many of the Canal Companies, might have risen several hundreds per cent, instead of from 100 to 120 per cent, premium, which has been about their market price, — but then, the eyes of the community would have been opened to the system, and that system would, in consequence, very probably have long ceased to exist ; so that, the only Plan has evidently been, to keep the actual results of the Bank's transactions unexposed to Public observation ; — to pay the stock holders 8 per cent, upon their £100 shares; and in order to silence and tranquillize them, to distribute additional sums amongst them from time to time, in the shape of Bonuses. — This amount of profit alone shews the thing cannot be a very bad one ; but I suspect that if it were pos- sible to arrive at positive information, so that ihe ivhole of the Bank's aft'airs could clearly be laid open, and made known, the present unfortunnte slate of the Country would easily be accounted for 26. That every pound oi fictitious Capital, so borrowed, has been repaid, by £6 instalments, yearly, in real Property ; some portions of it many times over within the last one hundred and forty years; all of it within every twentieth year alter its creatiuu ; avid yet every at^lOO ol' such Paper, intrinsically of no value, is novv actually selling for at least one hundred and sixty pounds, from its having been created on perpetual, instead of terminable interest. If the Nation had possessed the privilege of redeeming all Loans at their original price, at the expiration of 10, 15, or 20 years after their creation, Stockholders would have enjoyed all the benefit of their rise, originating in the depression of the Private Paper Currency, during the whole of that period. This would have allowed plenty of time for speculation, and for the rise and ruin of innumerable neck or nothing Men : and then the said stock would gradually have subsided, and sunk again to its original cost price, without actual loss to the State ; which it ought always to have been protected from. — The amount of the different Loans would not have been the sooner paid off on account of such a stipulation ; so that the stock would still have continued in the Market upon the terms which yiow actually exist ; but the Nation would have secured the privilege of paying it off after that period had expired, without sacrifice, whenever it was capable of so doing, by giving a few months' notice of such intention. 27. That, as in every twenty years, therefore, all Amounts so borrowed, became repaid, little or none of the real and original Debt, now exists ; and most opulent Tradesmen, in the ordinary affairs of Business, would be satis- fied to receive Amounts, due to them in full, upon similar Terms. 28. That the Loan Purchasers themselves, have been always aware, that there tvould come a Period, when the Dkbt would eat up and absorb the Country's Wealth, destroy its Prosperity, and render it incapable of future Payments. 29. That, from the Misery now overwhelming four-fifths of the Population, increased by the Competition of other Nations, it is evident that Period can- not be very remote, unless some Plan be devised to prevent it. 30. That, independently of the Bank of England, being suffered to be- come this terrible Engine of destruction, similar Privileges were granted to hetween eight and nine hundred other like Establishments, in the Country ; all engaged in bringing on the same general Ruin. 31. That these other Banks were permitted to put similar Paper into circulation, for the accommodating Individuals with Loans ; just as the Bank of England was accoraraodating the Government; and were thus additionally enabled, to buy up and speculate in liand, Houses, Grain, and every other Article, with no more Capital than sufficient for putting their Establish- ments into motion. 32. That a ^t'lOOO of real Property, is more than needful, to enable such Bankers to print Notes, nipresenting £80,000 ; thus obtaining an Interest, by letting out the said amount in PiiivATE Loans, to the extent of £4,000 per Annum, or 400 per cent. ; instead of ^50, or 5 per cent, the legal Interest upon the said £ 1,000; which is all the law allows, if the said £1,000 so lent ou Loan, be cash, or real property; but change the amount into Paper, or fictitious property, injurious to the general welfare, and then the Law permits 400 per cent, upon the said ,£1,006 to be taken. — Six per cent, interest on real Money is Usury ! but four hundred per cent, on phantom Money, des- troying the Nations prosperity, is legal ! This shews the imperfection, and inconsistency of such legislation as this ; and points out by what easy means Loan Mongers have amassed fortunes oi hundreds of thousands annually for ever. — Destroy the system, and these enormities cease. 33. That, if Country Bankers, thus having the privilege of turning their £1,000 cash into £80,000 or .£100,000 of Paper, were satisfied to let out the said sum, in Loan at 2^ percent., which is equal to two hundred per cent. Interest upon their rea/ Capital, or the said £1,000, the Public Funds would immediately rise to 100 per cent, premium, (which accounts for their rising and fluctuating as they have done,) because £100 in the Funds would then render as much in- terest as firo hum/red pounds in Private Paper. — Thus the Public has at all times, and very unjustly, been pay ing jf<'/re per cent, for every ^fc'100 borrowed in Bank Paper, whilst Individuals have been obtaining a similar Paper at a much lower rate ; so that, the Nation has hitherto paid nearly, and ofteiitimes even more than double the amount of interest it oii/jht to have paid; or stock could not have risen at all. If Paper could not have been obtained clieaper than Covernment paid for it, the J'unds would have remained stationary ; and the Public has in consequence now to pay nearly double the amount it has bor- rowed, on redeeming the said Stock, for the very same reason. — Here then it is evident, that the Privilef/e granted to Private Bankers has been the sole cause of all the depreciation of property, and of all the flucluntion, and uncertainty attendant on ei'eri/ saleable article ; as well as on the Funds, and the Gold circulating medium ; and if the aforesaid Bankers were to agree to lend their Paper on Loan at one per cent., which they could very well afford to do, because I have shown, that it would be at least equal to eighty per cent. upon the rert/ Capital embarked, or the said £1000, then the Public would have been obliged to pay four hundred per cent, more on all their Dividends, than the current rate of interest ; and the Public founds, in that case, would have been at Jive hundred pounds for every one £100 so borrowed, or at four hundred pounds per cent, premium. This shews the absurdity, and ruinous injustice, and inequality of the present system of Banking, in which no pro- perty can ever be considered safe; or its intrinsic value fixed, settled, or known. — What is worth £100 to-day, may only be worth £70 next week; £60 the week following, and so on. Thus the s6 1,000 real cash, is at once reduced to the necessity of receiving fen pounds as interest, instead of ^'60, and becomes at once depreciated to one-fifth of its intrinsic value. This shews how private Paper has tended to ruin all real Capital, which must evidently vary in proportion to the rate of Paper interest ; and though it wovxld thus diminish the value of the said £1,000 in Cash to almost nothing, it enables the Paper Maker's £1,000 to secure eighty or one hundred per cent. Remove this destructive influence, and real Property will instantly recover its former level, and there remain for ever ; which is an important consideration to all Land Owners, particularly to the Aristocracy, &c. 34. That a Country Banker, if he get 5 per cent, upon his £100,000 in Paper, and by this means does not depreciate the value of real Capital or Property, he makes per annum by his £ £ £ s.d. £, s.d. Paper | percent. 750 Gold 7 10 I 500 5 i 250 2 10 i 125 1 5 -,V 62 10 12 6 Paper at 5 per cent. 5,000, by Gold 50 4 4,000, 40 3 3,000, 30 2 2,000, 20 1 1,000, 10 Thus, if he lend his Paper Capital at one-sixteenth per cent., or one shilling and three pence per hundred pounds, he gains ttcnty-five per cent, more than the man of real Capital, who lends his £1,000 out in Loan at Five per cent. B^it this latter, according to an equal ratio of interest, which he would, in this event, be obliged to take, only receives twelve shillings and sixpence ! ! The Paper Maker gets £Q-2 lOv. \ The Man o^ real Capital 12.';. Qd.\\\ This scale is sufficient to shew every possible degree of depreciation to which real Capital, or the Public Funds, have been, and must be at all times subject, in consequence of this destructive private privilege. — The Land Owner may thus easily account for the ruin of /i prevent Alarm, or the possibility of Inconvenience 10 to Trade, or otherwise, after the Establishment of the National Banks, by a run upon the Country Banks, which might produce a Panic, and all its con- comitant Distress ; 67. That, the National County Banks, be authorized, to take up such portions of the Paper of the different Country Banks, in each County re- spectively, as such Banks might not have been able to redeem, after a reason- able Public Notice given them so to do. 68. That, a very exact return be obtained by Government, from each Country Bank, of all its Notes in Circulation, and a Prohibition be made, against the issuing of any further Notes, subsequently to the said Notice and Return. 69. That, by taking up the Outstanding Notes, agreeably to that return, with Caution against fraudulent, after Issues, the Public would be secured, as nearly as might be, from Injury. 70. That, the Country Bankers, in consequence of such Protection to their Persons and Property, (although by Law, under an engagement, to pay all their Notes on Deinand,) should be obliged to make the largest Deposits, as a first Instalment, which their available means would admit of; in order to Cancel, in the first instance, as many of their Notes, as possible, so taken up by the said National Banks. 71. That, Country Bankers be forced to give Security for whatever Ba- lance may remain thus uncancelled by them ; and pay an Interest of five per cent., on every such Sum, so remaining, until the whole be actually paid off. 72. That, to protect the Country, as much as possible, from Loss, by Individuals taking Advantage of the aforesaid Protection, of their Persons and Property, in issuing Notes, after prohibition; or in making false Returns, with that view ; a Law be passed, to punish every Instance of fraud, by a severe Penalty. 73. That, when Country Bankers have paid in the whole of their Instal- ments, and have thus cancelled the whole of their respective Notes in circu- lation, such Individuals, should be considered peculiarly Competent, as Candidates, for the Management of the National Banks, established in their Vicinity ; as possessing a knowledge of the local Business, for Discount- ing, &c. 74. That Onk and Two Pound Notks would be needed in Abundance; as no one would ever be so great an Enemy to the welfare of the Country, his family, and his Own Interest, and Property, as Consent to receive a Single Sovereign again, even in Payment, except with the view of taking it to the County Banka to change it for a One pound Note, well knowing that the Sovereign would be immediately used in buying up Stock, which Sovereign would be brought back again to the said Banks for aslfnilar purpose, until an atnple quantity of Circulating Medium had thus been got afloat. 75. That, if it were possible, any individual was so perverse, unpatriotic, and so opposed to his own Interest, as to desire Gold, which would never happen with people in their senses, it would be at all times as readily obtained, from the County Banks, as at present: because J'aper would he (/uite sm Convertible as it now is: but all Persons would too clearly see it their interest to carry their Gold to (he County Banks to be ewchnngedfor Paper ; know- ing that, every Pound Note so exchanged, for the Sovereign, would pay off One Shilling of Taxes, or One Pound of the Debt. 76. That, in consequence, Gold would no longer pass from hand to hand, in Circulation, except on its speedy way to each County Bank ; as every One Pound Note given in return for it, would take off One Pound of the M Debt; and thus destroy, as I have ah'eady said. One Shilling, or five per Cent, of so much Taxation : because, for every One Pound Note, circulated by the National Banks, its equivalent in Gold, or otherwise, would be re- ceived; and ALL Sums, so received, would be immediately employed to buy tip, and redeem so much Debt. Thus gold would continue the useful medium of getting as much Paper into circulation, as I have before observed, would be needful for supplying the necessities of the Agriculture, Manufactures, Commerce, and Revenue of the State; and after it had accomplished this end, it would ultimately )wt again be circulated ua Money, but would be dis- posed of by the County Banks as an artifde of Commerce ; which alone it ought to be, in any State; particularly in one so extensively Commercial as England is. 77. That in consequence, a One Pound Note would always be worth Twknty Shillings to the Nation, as Money; and a Sovereign, while circu- lating as Money, always worth five per cent, less, or only Nineteen ; because every such Sovereign would occupy the place of a One Pound Note ; nor could any thing ever tend to raise the value of the Gold, as a Circulating Medium: nox diminish the lvalue of the Note: so that that Medium could never fluctuate again. 78. That, if it were possible, to keep a Million of Sovereigns in Circula- tion, under this system, it is evident they would occupy the Place of a Mil- lion of One Pound Notes ; and so prevent a Million of Shillings being taken off in Tares; because, this Million of Sovereigns, if they were brought to the Bank to be exchanged for a Million of One Pound Notes, would be employed as I have already said, to buy up a Million of Stock, and so destroy the perpetual interest thereon ; which Stock it could not buy up, until taken out of circulation and brought to the Bunk for that purpose. 79. That the Million of Sovereigns, if kept in circulation, would in reality be equal to a tax of .£50,000 per Annum ; which the Public would never consent to incur, when it rested altogether with Itsklf to prevent it; so that. Gold could never again circulate with Paper after the above period ; because each Sovereign would perpetuate a Tax. 80. That, the above, is therefore the Desideratum in Political Economy, nei.er before discovered, that a Paper should become superior to a Gold Cur- rency ; and intrinsically, as a Circulating IMedium, be for ever worth 7nore. That it should be universally, and eagerly taken, as a Blessing ; and Gold shunned, as an Evil. The former revered as the only (destroyer of the Public Debt, and the Dispenser of General Happiness. The latter avoided, as the supporter of that Debt ; an Enemy to Public Welfare ; a Per- petuator of Taxation : and the most inexorable Sinecurist in the State. 81. That Gold is the most e.rpensive, dangerous, inconvenient, and inadequate of all Circulating Mediums ,• particularly in a Mercantile Country like Eng- land. — The rate of Exchange between one State and another usually bears a proportionate value with \hQ piice of Gold, so that. Bills are never preferred as a remittance, unless they decidedly leave a profit at the moment, beyond what a remittance in Gold would leave. — Now the political changes which daily take place in Europe, for instance, create momentary Panics, which raise or lower the ejrchange for the time. Exaggerated rumours upon the Stock Exchange, circulated with the same intent, produce similar fluctuations. Whenever these circumstances have the effect intended, of lowering the Ex- change, many Millions of Sovereigns may be .shipped to France, before the thing can be even suspected : and these will come back again, the moment some similar trick can be j)layed ofli to enable them to leave a profit ! Thus 12 England with a Gold circulation is always at the mercy of Money dealers. — Besides, Forty Millions of Gold Circulation, cost the Country Two Millions a year for the interest only. 82. That half a dozen such Men as Rothschild in different parts of the Continent, all agreeing- together for this purpose, can at anytimefnake aForeign demand for Gold ; and hold it, until it will leave a benefit to ship it back again ! Thus then, either the actual Politics, or unfounded rumours, or an agreement between a kw individuals, may in a (ew days, draw off" a quantity of Gold, sufficient inevitably to cripple and paralizc all the Commercial Arrangements of the State, so as to leave an Amount even insufficient for the exigences of Government alone. Ought therefore the power of such uni- versal ruin to be left in the hands of such men ? Yet as long as the present Sf/stem lasts, the Government must always succumb to the will and wishes of such Individuals ; but the moment it ceases, their influence and importance vanish, and Ministers become independent ! 83. That this is not the only mischief arising from a Gold Currency. — An innumerable number of Jews are constantly employed in stveating Gold Coin, or robbing it of its weight, until the to hole in circulation has become light! Suppose then, that there are 30 Millions of Sovereigns in circulation, and that this peculative operation continues (as was the case with Guineas, J until the Sovereign becomes worth two shillings less ; it is evident, the said Jews will have sweated away Three Millions of Gold ; which is a most serious loss and inconvenience to the Country; as such Gold so diminished in weight, must ultimately be all called in ; and, further, Gold holds out an encouragement to the Coiner, and thus injures the Community by large quantities of false Money getting into circulation. 84. That none of these evils can ever attend such a Paper Money as I pro- pose, which every Individual is interested in supporting ; nor can any thing ever alter or reduce the amount of the Circulating Medhim at any time out ; which is an incalculable advantage to the Community; besides, it would yfcT and settle the Exchange with other Countries generally ; and almost entirely destroy all the roguery now practised by the Jews, and Money, and Loan, and Stock Dealers,^ — who could then make no private Paper Money of , their oivn, to depreciate all the real property of the Country, and the Public Funds ; nor could Forgers easily imitate Notes executed by several of the best artists. 85. That, no reward the Country can confer in the shape of Distinction, however elevated; nor any Pecuniary Consideration, however liberal; can prove more than a Recompense, for the discovery of the above Fact ,- that Paper is superior to Gold as a Circulating Medium, — which must prove the State's Regeneration, if this System be put into Execution; notwithstand- ing all the Discussions, and Treatises, on Paper against Gold ; and the Fluctuation of the Circulating Medium ; which, as I have already observed, could never fluctuate again. 86. That, as the System, from its very Nature, must for ever continue to confer a Profit, and to produce a Gain, a time must inevitably come, when the Wholk Debt must be bought up and cancelled. 87. That, when the said Debt should be all Redeemed, all Benefits and Profits, would be disposed of, in Loans, on Landed or other Securities; and thus raise a Fund for rapidly removing all remaining Taxation; for as the Fund so raised increased. Taxes would be Yearly taken off" in exact Proportion, until they also actually ceased. 88. That this Financial System, therefore, is the very reverse of all others, hitherto known and practised; because, it not only tends to the 13 Rciiioval of a Nutiunnl Dcbt^ and lo pri'vcnt the poHsil'dity of any State ever becoinlng ruined, by pecuniary J^?nbarras.stJie?i/s, but it supersedes the NECESSITY Jor Taxation in any shape, which will easily be proved by such States adopting it as have at present little or no Debt; as the Profits and Benefits will be amply sufficient to pay their Government expenses, particu- larly in the United States, &c. 89. That, when the Country has arrived at that Period; or even, any wise approaching to it, free Trade, with all parts of the World, in all descriptions of Produce, or Manufactures, need no longer be dreaded ; as such Trade could then, only produce a Good, by rendering the Capital and Industry of Eng- land, productive; and her Ports, the universal Emporium. 90. That, several Banks should be established in London, to receive Deposits, and do business, on the System practised by Town Bankers ; as no Man would ever risk his Property again, in supporting thousands of Indi- viduals in a^uence, and with the chance of losing it, and being reduced to Indigence, which frequently happens, when he could place it securely in the National London Banks; and benefit, through the medium of diminished Taxation, to the Amount of every shilling Profit, so produced. 91. That this Profit is beyond all idea extensive, may easily be conceived, when we contemplate Coutt's and Hoare's, and a dozen others of the chief Banking Houses in the Metropolis ; whose Principals equal in Wealth, most of the Eastern Nabobs; which Wealth is all obtained, by dealing m fictitious capital, for the Convenience of Commercial Accommodation. 92. That, from recent information, obtained by the Chancellor of the Ex- chequer, it appears, Sixty Millions pass through the hands, of only a. few of the London tlstablishments monthly ; which is equal to the wholk Na- tional Debt, in the short pace of One Year. How enormous then must be the Amount received, and paid, by the ivhole of the said Banks: and how large must be the Benefits, resulting from such incalculable Transactions ! 93. That, the Nation may fairly be permitted to Compete with these and other Banking Establishments, which have hitherto been preying upon its Resources, even to the very brink of Ruin ; particularly when that Com- petition, forms a portion of the only means of ensuring its future Safety, Prosperity, and certain Renovation. 94. That, a Sum about equal to the aggregate Balance, generally on hand, amongst the whole London Bankers, might be employed, to redeem so much of the Debt ; instead of lying idle, as it now does, amongst the whole of those Establishments ; or used in promoting the separate Interests of their private Speculations; which is unfortunately more frequently the case; and which would amount to a very large sum. 95. That, should an unusual drawing upon the London National Banks, ever encroach considerably upon this Balance, so disposed of, for any length of time; as a matter of caution, against the possibility of over issue, (which I do not believe could take place, as no one would ever desire, or consent to receive Gold, from any of the said National London Banks, after a full and adequate Paper circulation had been established,) a moderate amount might be at any moment refunded, for the deficiency; and an equal sum be again redeemed, at the earliest convenient period. 96. That when it is ascertained, little or no perpetual Interest will ever in future be created, the Funds, it is thought by some individuals, who pretend to understand these matters, would possibly rise — I \\niikotherwise, for reasons it would not be possible for me satisfactorily to state in so small a space as a sheet. Should this however actually be the case, Public Bonds in this, as well ]4 as ;ill ('ouiilric's with a fuudeil Debt, (who will adopt tlic same System ); would become more valuable. 97. That such Debt having been created by Loans, not averaging above two-thirds of the present Market price, it would be unjust the Public should pay higher, on redeeming such Stock, than its present Rate ; as nothing but the introduction of such a system as this, could possibly advance it, more than a trifle beyond its existing level. 98. That, in this case a Law be passed, as an act of Justice towards the Public, fixing the prevai!i»g price of Stock to the period of 10 years; after which the Public should have the privilege to redeem it at its cost price; because hitherto every other kind of property has been depreciated by private Paper, which has raised the Funds to their present unnatural rate, and these there- fore ought to be permitted to subside again gradually. I merely mention this because it is the opinion of some the Funds would advance. I do not think so, but feel persuaded this system would render such a Law unnecessary. 99. '['hat, the Public having borrowed at £60, in a fictitious Capital, all which it has since repaid, by yearly instalments, over and over again, in real Money, it ought not, in reason, to be obliged to pay from £90, to perhaps £l20, for the same Amount \ particularly as it has hitherto consented to pay interest upon this encreased value of its Stock, according to the current value of interest on depreciated Paper, instead of upon the original amount borrowed; or such Stock could not have risen; but which we see has risen in exact proportion as the said Paper has /a//en in value, compared with Gold. 100. 1'hat, it is quite as unjust it should have to do so, as where an In- dividual has borrowed £60 at 5 per cent, and should be called upon to pay £120, because Interest had dropt to 2| per cent, in consequence of there being an over issue of Irresponsible Paper in circulation ; with which private Speculation he ought to have nothing to do. 101. That, this is more particularly unjust with the Public, who can never redeem its Bonds in War time, when the Funds are usually low, froni its increased Expenditure ; so that, the Public Creditor, has always enjoyed a very unfair advantage over the Public, which the liCgislature ought to have provided against ; or ought now to provide against. 102. That, the circumstance of the Funds being 50 per cent higher in real money, than they were contracted for, even in fictitious money, makes the Debt, at least, 50 per cent, greater than it would have been, if the Bonds had continued Stationary, like private Bonds, as ought to have been the case ; the Public having the advantage, as I have already said, of 10, 15, or 20 years, or until due notice had been given of an intention to redeem, to speculate upon their regular and certain rise. This would have given the Public Creditor the benefit of the advance, during that period, ejcactly in proportion to the depreciation of Private Paper, which they now enjoy, without this equitable condition in behalf of the Public: but which condition, had it existed, would thus have reduced the said Stock or Funds to a par with private Bonds, when bought up to be cancelled. But I still say I think the Funds would drop to their natural level, as soon as private Paper ceased to exist, which alone has been the cause of reducing the current rate of interest, and consequently of raising the Funds. 103. That, the National Banks, should be as independent of the Govern- ment, as Private Banks : or the Bank of FiUgland ; or the East India Company; and their Directors, chosen on the spot, from the principal Securities in each County, whether Land or Stockholders, by those having amounts also engaged as Securities, sufficient to entitle them to vote. 15 104. Tliut, County ?Jfml)ers miglu Ite HoiiovjiiT Dircclors, wliich would en.able them to become afquainted with all the particulars of their respective County Banks; so tliat, the affairs and arrangements generally being under the controul of the Legislature, all the information necessary to be known, and communicated, would already be most minutely in the possession of the said County Members, who would be amply prepared to assist the House when going into the general accounts. 105. That, no Servant, in any Department, should be appointed, without a strict examination, before a Committee, chosen for that purpose, to ascertain his Competency ; and prevent private Influence. This would ensure im- mediate occupation, to the greater portion of such Individuals, as might become disengaged, from private Banks: and who already possess all the information required. 106. That, the appointment of Director, as Guardian to the Public welfare, should be a Post of the highest Distinction, rather than Remuneration. As such, it would be coveted by the richest, and most independent Individuals in each County. 107. That, all Salaries, should be upon a moderate scale; drawn up and agreed to, by the general Committee, or otherwise; and altered, and confirmed by Parliament ; and all Promotions, should be regulated by Rotation, unless the Committee were clearly of opinion, there was incapacity; and in this case, it should inevitably pass on to the next, independently of any influence. 108. That, there should be an Establishment in London, to examine, check, and audit all accounts; and correspond with the difierent County Banks thereon : so that the clearest statements might be periodically prepared, to be laid before Parliament, for inspection; in order that the Legislature might be satisfied, all Premiums, and Profits, were immediately employed, in buying up and cancelling the Debt : and all proper economy enforced, &c.; and these periodical statements should be regularly printed ; so that they might be purchased by the Public, who would be universally interested in knowing every particular relatively to the transactions of the National Bank generally : and who would also, by this means, be enabled to see, thai all Profits and Benefits were actually disposed of in the Redemption of the Dtbt, Sfc. 109. That all the National Notes, should be similar: and executed by three or four of the best Artists, in different branches, to prevent Forgery ; and to enable all persons, the more easily to judge of their genuineness; as their beauty and perfection, would vender imitation, almost impossible. 110. That, in the event of Wars, requiring future Loans, in addition to the Revenue; then, that all Sinecures, unmerited and overpaid Pensions, Places, &c. should be reformed and al)olished ; Crown Lands disposed of publicly ; and general economy enforced, before any additional Funded Debt, be ever again permitted or agreed to, ill. That, these arrangements be determined by a Law, passed expressly for the purpose, that when such an event should actually take place, there should no longer be any cvcuse, for continuing an extravagant expenditure ; or for the funding additional Debt, as long as there existed the possibility of avoiding it. 112. That, as the Debt diminished. Taxation would daily decrease; Pros- perity advance; and Pauperism gradually disappear; so that the Public would, in a short time, become materially relieved from tlie oppressive weight of the Poor Laws, which would ultimately almost cease to exist, as an inevitable consequence. 1(3 I lo. That, for the WfHare of PuLlic Chaiilit-s, their Fiiiiclcd I'ruperty might be the only amounts retained, upon perpetual Interest; that the advantages might never fail that class of the Community, who so much need their beneficent influence. 114. That, all Dividends, remaining unclaimed for a certain period, and which it is evident, will never have any Claimants, should be at once can- celled, by Law : so that every year, certain portions of the Debt, would die away in this manner, instead of being kept open in perpetuity. 1 15. That, if it be thought indispensable, the National Bank should have Gold and Silver to any considerable amount, immediately on its commence- ment, in the event of the Bank of England having no balance to pay in, as the Exchequer bills to be redeemed may equal the present circulation ; then, two or three millions of the said Exchequer bills could be funded, for this purpose ; but on the contrary, I am persuaded, every Individual would send his Gold to the National Bank, directly it commenced his operations, to be exchanged for Notes ; being well aware, that every sovereign so exchanged, would instantly be disposed of, in redeeming Stock. There would therefore be an eagerness throughout the whole Community, to send Gold to the different County Banks, until its circulation would no longer be needed, by an amount of Paper having been thus got out, sufficient to supply all the exigencies of the state; when Gold would henceforward be disposed of in the Market like all other saleable commodities. 1 16. That, as in the Reign of William the III., a Foreign Prince by Rirth^ the Monstrous Project of Funding was carried into effect, in order to raise Unnatural Supplies, for the Government of that period, regardless of the Ruin it would bring on future Generations : so, I trust, that in the Reign of William the IV., an English Prince by Bhth, sentiments, and affection, THE System / nou> pr/pofie, will be adopted, in order fffcctually to remedy so great, so terrible an Evil. Chandos House, March 16, 1832. '' Baron Neumann presents his compliments to Mr. Kentish, and begs to inform him, that he shall submit to the consideration of hi.i Government the Pamphlets upon Finance he was good enough to send to him, and of whose rherit Baron Neumann had heard before." — Ambassador from the Court of Austria. Sabloniere Hotel, January 27, 1832. Sir, — I have to apologise for not immediately acknowledging the receipt of the two Pamphlets on the Banking System and Public Debt of this Country, and Paper Currency of the Brazils, &c., which you had the goodness to address to nie some days ago. The subject being of great interest, and your Plan being equally applicable to the United Provinces of La Plata, I had the pleasure of trans- mitting the said Pamphlets to my Government by the last Packet ; and I have no doubt they will be read there with the same satisfaction derived by me from their perusal. I have the honor to be. Sir, your most Obedient Servant, MANUEL MORENO. Ambassador from the United Provinces of La Plata. Want of space prevents my giving extracts from the letter of the American Am- bassador, and most of the other Foreign Ministers ; who have forwarded the works to their respective Governments with the same intention.