UNIVERSITY CF ILLINOIS LIBRAF AT. URSANA-CHAMPAJGN I REVIEW OF THE POLICY 7Q GOVEBMEMT OF EtfGIiAtf », THE STATE OF ITS TRADE, COMMERCE, NATIONAL DEBT, AND CURRENCY; WITH A PLAN OF FINANCE, Submitted to the Government in 1827, 1828, $$ 1829. BY JAMES THICK. LONDON: PRINTED FOR THE AUTHOR, AND PI' HUSH ED HY EFFINGHAM WILSON, ROYAL EXCHANGE. JS30. PRINTED BY SPARKS AND JONES, AT THE UNION PRESS, 98, ST. JOHN STREET, SMITHFIELD BARS. To the Right Honourable the Lords, and the Honourable the Commons of the United Parliament of Great Britain and Ireland. My Lords and Gentlemen, In inscribing the following pages to the great council of the nation, I may be considered presump- tuous ; but as an Englishman born, and venerating the great institutions, and laws of my country ; and believing, as I do, that they are the best calculated for the government of a loyal, powerful, and indus- trious people — and that by virtue of those laws, the meanest subject in the realm is entitled to approach respectfully, the king, or his parliament ; either to express his adoration, or to seek redress for his grievances : — I have no hesitation in availing myself of that constitutional privilege, to make known my sentiments regarding the causes of those distresses IV which the people of this kingdom are now suffering ; and also of pointing out to you, my Lords and Gen- tlemen, some salutary remedies, with the view either to remove, or mitigate their effects. Believing it to be the anxious desire of those who legislate for, and those who govern the general interests of the nation, to adopt such measures as shall tend to ameliorate the condition of all classes of the people, now suffering under unparalleled privations, as in their wisdom shall seem best. My Lords and Gentlemen, — In imploring legisla- tive interference in the great concerns of the nation, at this eventful period, -permit me to call to mind, that the commerce of the country is the most im- portant branch of our national industry ; and that it is the base upon which that superstructure — national greatness — was reared ; and which has constituted this kingdom the most powerful in the world : and that the care of it requires the exercise of the utmost wisdom of the legislature. That the trade and commerce of the country have been for a long period languishing ; and that the effects of their depression have extended to all the manufacturing districts, is a fact so notorious, that it requires not the pen of an humble individual, like myself, to convey to your understandings, what the probable results are likely to be. Notwithstanding which, I beg to observe that the cause of that depres- sion may be, in part, attributed to the want of fore- sight in those ministers of the crown, who, upon the settlement of the affairs of Europe, at the close of the late war, neglected to secure by commercial treaties, some of the advantages we had obtained, and which we are fully entitled to hold ; not only on account of the sacrifices we had made for the benefit of other nations, whose battles we had fought as well as our own — but for our perseverance in maintaining free principles of commercial and national intercourse : and in other respects, I must admit, causes have arisen not altogether within the control of government. And I beg further to observe, that at no period in the history of this country, since we have been a trading nation do we find, that when there has been any great commercial distress, but that its effects have always extended to the manufac- turing and agricultural classes : which shews de- monstratively, that the well being of the two latter classes, greatly depends upon the success and pros- perity of the former : — therefore it is evident, that agriculture and manufactures depend more upon VI commerce, than what the landed gentlemen are generally disposed to admit. The great and appalling difficulties which the government has to encounter, requires the aid of the legislature in the investigation of the causes of those difficulties ; and also in ascertaining, what remedies can be applied for their removal. In furtherance of that object, I have endeavoured to shew in the follow- ing pages, that the long restriction upon cash pay- ments, and the return to a metallic currency, without a corresponding reduction of taxation, have caused a derangement of all the affairs of the nation. And in consequence of the uncertain state of the currency, capital has been withdrawn from trade, in which it has heretofore been beneficially employed ; thereby it has become unproductive : — and by the continual drainage to pay the interest of the great national debt, and to support the large government expendi- ture ; the middling classes of society have been reduced to a state bordering on pauperism, and the labouring classes have been obliged to throw themselves upon their respective parishes for support ; whereby the poors' rates have become so burthensome, that many of the parishes are already unable to support their poor. It is impossible for such a state of things VII to continue long, without producing a convulsion, such as will be beyond the power of government to controul. In taking this view, which I imagine must be considered a right one, of the state of the country, necessarily leads me to consider, what remedies can be applied. That an equitable arrangement with the public creditor — the adoption of economical principles in all the departments of the state — a large reduction of taxation and expenditure — a thorough investiga- tion of the state of the circulating medium — and an immutable standard given to the currency — together with an extension of freedom, in the trade and commerce of the country — are measures the most essential to be adopted, in order to restore that confidence, so necessary in a commercial country like England. My Lords and Gentlemen, — -In concluding this address, forming a short preface to my work, I must take leave to observe, that notwithstanding all those great embarassments, and the gloomy prospects before us, I am fully persuaded that there are re- sources enough in the country — and by a proper application of them to the exigencies of the state — Vlll we may yet be retrieved from all those evils, which have for a long time, paralized all the efforts to a regeneration. If my endeavours to elucidate the state of the country's affairs, and that the measures I have pointed out as a means for improving them, should be in the least contributive to that end, my labours will be sufficiently rewarded in the satisfaction I shall feel, in having been instrumental in rousing the slumbering energies of a powerful nation — to which all civilized countries look, as the grand bulwark of civil and political freedom. I have the honour to subscribe myself, My Lords and Gentlemen, Your most obedient and very humble servant, JAMES THICK. London, Jan. 30,1830. A REVIEW, &c. In reviewing the policy of the government of England, and the state of the trade and commerce of the country, as it has been, as it is now, and the prospects of its future condition and improve- ment ; and in considering the general state of the country particularly as regards the national debt, and currency ; likewise the evils which have been brought upon society by those delusive sys- tems that have been pursued by the several ad- ministrations, which have had the management of the affairs of the nation for the last thirty or forty years,— it requires one to possess more than an ordinary degree of understanding to be satisfied, that, unless great and important changes take place in our foreign, domestic, and commercial policy, we shall not be reduced to such a state as not to be able, by any means, to support the cre- dit of the country, and at the same time to bear B 10 the alarmingly encreasing burthens of the poors rates.*That there will he such a convulsion in the state, as England has never yet witnessed, no one can for a moment doubt, unless remedies are speedily applied, to cure the evils that have been brought upon the country, by the neglect of its greatest interests. When we look at the demoralized state of society, the depraved habits of the rising genera- tion, the great increase of crime, of the blackest character, the pauperism, and the accumulating misery among that portion of the community which has generally been considered the chief strength , and stamina of the country— the trading, manufacturing, and commercial classes— who is there but must tremble for the fate to which it would seem we are fast approaching? We are upon the brink of a precipice, however it is not too late to save ourselves from falling into the gulph ; but a different course must be pursued, to that which has been pursued for the last forty years. The constitution of England is calculated to * It appears by returns laid before parliament the 6th May, 1821, that the poors 1 rates for England and Wales in 1748, 49, and 50, were in each year about £689,971 ; in 1776 £1,530,844; in 1783 £2,000,637; in 1803 £4,267,963; in 1813 £6,129,000 ; and in 1819 £8,155,000. In the year 1827 they exceeded £8,200,000, of which £1,300,000 was expended for other purposes than the relief of the poor. 11 preserve to the nation, greater benefits than have ever fallen to the lot of any other European state, if its established principles were fairly acted upon. We have looked to the representatives of the peo- ple, as the safe guards of public liberty, public morals, and the conservators of Englishmens' rights;— but to what purpose \ The legislature has met session after session, but what measures have been adopted by its wisdon to improve the state of the country ? To what purposes have the talents of our legislators been applied, other than squabbling about places and pensions, and their own personal interests 1 The people have been exercising their rights time after time it is true, till they are tired, by returning men to parliament as their representatives, to whom they have confided their interests ; and although they have, in many cases, extorted pledges from them, have they not, one and all, when their personal interests have come in contact with their public duty, violated those pledges, and set at nought the general good of the people I Do we find that one parliament succeeding another, has ever been any real benefit to the nation 1 Do not three fourths of the members get returned, more by the exercise of improper influence, and from motives purely personal, than by a regard to the interests of the state, or by the unbiassed voice of the people I It is to be feared, that as long as we con- tinue to have such parliaments, we can expect but little improvement in our national affairs ; for any 12 minister of the clay, can, with a little shifting and shuffling, manage such parliaments, so as to suit his purposes ; and each succeeding administration seems to consider, that ' sufficient unto the day is the evil thereof:' and if they can patch up matters, and hum- bug the people for the period of the current year, they are willing to leave to chance what might be neces- sary for the next : and so we go on from year to year without any real or visible measures being adopted to improve our condition, whereby we Can hope to have our burthens lightened, by a reduction of taxation, and a check given to the great and alarmingly increasing poors' rates. Instead of us being, even what Buonaparte used to call us, " a nation of shop- keepers," we are very little better than a nation of paupers : the people have been living upon one ano- ther so long, that many of the parishes are already unable to support their poor, and are like the nation at large, getting into debt, by borrowing money, which in all probability can never be repaid. Such is the state of the country at this present time ; in fact, we have been going on from bad to worse, ever since the termination of the last war ; a war, that never would have been supported so long, had not the people, generally, believed that it were necessary to make great sacrifices, that it might be brought to a successful termination ; but unfortunately for the country, the sacrifices then made, together with the misplaced confidence in the government, have en- tailed upon the country the present enormous debt- 13 We were led to believe, that upon the return of peace, we should enjoy all the benefits, that war was calculated to secure to the people of England. We did arrive at that successful termination antici- pated ; but where are the benefits we expected to enjoy ? What treaties of commerce did our ministers enter into for the benefit of the nation I What steps have been taken to improve, and extend our trade \ What indemnity did we obtain from other nations for the great sacrifices we had made, to secure their inde- pendance— whose battles we had fought as well as our own ? What, in a word, has been done, compared to what might have been done, to ameliorate the con- dition of the people ? Alas ! the hopes of the nation have been met only with bitter disappointment. A large standing army has been kept up for no other purpose than to keep the people in awe ; whilst a profuse expenditure of the public money,— wrung from the people under the greatest distresses and privations,— has been carried on in support of a peace establishment, much too large, and far greater than the exigencies of the country could possibly require. We have been at peace fifteen years, and in that pe- riod we might have reduced our debt, at least one hundred millions more than we have, had the govern- ment adopted a peace establishment more consistent with the state of the nation, and the patriotism, and loyalty of the people ; and had, had recourse also to measures of retrenchment in all the departments of the state. It would then have induced those persons 14 who have absented themselves from their native land, and who have been spending their money in foreign countries, to remain at home. The heavy imposts, and high prices of the necessaries of life in this country, have been the causes of so many thousands remaining abroad, where millions of British money have been spent by absentees*; which might, and no doubt would have been spent here, to the benefit of the state, and the domestic trade of the country, had ministers had recourse to retrenchment, and likewise adopted measures for the improvement of the trade and commerce of the country. It is only necessary for persons who have sceptical notions on this sub- ject, to take a trip to the capital of France, to convince themselves, that English money to a very large amount, has been spent in all the towns, from the coast to the capital ; to the improvement and benefit of those places, where Englishmen and English families have been residing for many years. Is it not to be lamented then, that British subjects should be compelled to * The number of English now residing" in France, accord- ing- to the different returns made by the police authorities, to the prefect of police at Paris, is as follows : viz. Paris 14,500., Versailles 20S0, St. Germains 150, Tours 2T95, Bordeaux 965, Burreges 80, Montpellier 300, Marseilles 120, Lyons 60, Fontainbleau 30, St. Quentein 200, Dunkerque 500, St. Omer 700,Boulonge (sur mer) 6100, Calais 4550, and in various other parts of France 1885; making- a total of 35,695: (in 1824 there were nearly 16,000 in Boulonge alone) of this number, 6G80 are mechanics; their annual expenditure is estimated at 95,885.500 frajics, or £3,835,420 sterling. 15 leave their country, and spend their incomes in foreign countries ?— Incomes that are, in many cases, derived from the taxes of the people at home ;— but they have been compelled to do so, by the difficulty of supporting themselves and families in this, owing to the high rents, and excessive taxation of the peo- ple. The millions that are spent abroad by absentees, may fairly be counted as national loss ; for it certainly operates upon the wealth of the nation, in the same degree, as though the balance of trade was against us. Upon taking a fair and dispassionate view of the case, the following obvious questions naturally suggest themselves to one's mind.— What has driven so many English families to France, and other parts of the continent, but exces- sive taxation, and the great rents and high prices of the necessaries of life in this country ? What induces so many persons to travel for pleasure in foreign countries, in preference to making tours of the United Kingdom, but the comparative cheapness of living, and the moderate expenditure in travelling? Any person who has seen the beauties of England, Scotland, or Ireland, will say, that, combining the comforts to be found in travelling, the refinement of knowledge in in the inhabitants, with the beauties of the scenery throughout the United Kingdom, there is no country in the known world equal to it. Where is the Eng- lishman that prefers living under any of the govern- ments in Europe to that of England I What govern- ment is there that gives the subject so much liberty, 1G so much power, such freedom of speech and action, and equal protection by its laws as the constitution of this country I Is it not therefore to be deplored that we should be deprived of the means of enjoying all those great advantages, by the pertinacious adhe- rence of every succeeding administration to the evils and corruptions that have crept into the sys- tem ; and which is calculated to perpetuate the mi- series arising therefrom? Do we, or do our chil- dren, acquire more refinement in morals, more cor- rect notions of religious duties, greater habits of industry, and a larger expansion of useful know- ledge, and refinement of the mind, by a residence in foreign countries I Any person who has paid much attention to the habits and customs of the people for the last twenty or thirty years, must be convinced that we are dege- nerating fast in principle, and that the characteristics of Englishmen are changed. That that probity, and honour in fair dealing, which used to distinguish the people of tins country, are giving place to trick, and refinement in deception ; to the discomfiture of our- selves at home, and the destruction of confidence in our commercial dealings with foreign coun- tries. To what can all these symptoms be attri- buted, but to the immense load of debt, and the extravagant expenditure of the government ?* thereby * The whole annual income of the nation in 1695, was but £42,500,000, the taxes £5,000,000, and the coined g-old and silver £7 ; 500,000. In 1793 the interest of the debt, and 17 necessarily keeping up excessive taxation ; under the pressure of which the people are fast declining, and the virtuous stamina of the country is being destroyed ; and whereby they are compelled, in numerous instances, to abandon those honourable modes of living, which their forefathers were accus- tomed to, and which have been inculcated into the minds of their children, as principles of civil eco- nomy. Where is the father of a family, who can contemplate the happy circumstances, that religious and moral rectitude of principle, which he has en- deavoured to inculcate, and desires to see his off- spring possess, and which he feels it to be also his duty, to leave them in the full possession of; but that his last hours are embittered by the sad reflection, other charges on the consolidated fund, amounted to only £11,068,000, and the peace establishment £7,832,000. In 1793, the national debt was but £246,000,000, the interest on the same £11,000,000, and the peace establishment between 6 and £7,000,000, the amouut of gold and silver circulating- in the united kingdom was £25,000,000, bank notes £10,000,000, and other paper £10,000,000. The income for the year 1S23, was £57,402,730, and the expenditure £50,434,269. The estimates of income and expenditure for the year 1829 were as follows : income £51,347,000, expen- diture ; £48,333,593.— A sum £6,000,000 greater than the whole income of the nation in 1695, and nearly ten times as great as the taxes raised at that period. The peace estab- lishment for the present year is more than three times as large as ij was in 1793, and the national debt £000,000,000 more than it was at that period ! The poors' rates also are nearly four times as lai C 18 that all his efforts are rendered unavailing, from the deranged state of society, arising, in a great measure, from the causes I have stated ? Does it not, therefore behove the government, to abandon at once, that sys- tem which has been the cause of all the privations and miseries we are enduring, and to check the progress of those evils which are undermining, and destroying the very vitals of our nature? It affords us some satisfaction, certainly, to find that the ministers are beginning to feel the pressure of those difficulties, and the necessity of applying remedies ; but it be- hoves the legislature and government, to be more vigilant, and more energetic, in the exercise of those powers with which they are invested by the people, for the benefit of the whole community, since there are new states starting into existence in many parts of the world, which may become our rivals ; and since the march of intellect, (by no means confined to these realms) is rapidly expanding its usefulness among all the nations with which this country has carried on, for centuries, her great commercial dealings ; and from which she has derived all her immense wealth and importance, and which has brought her to that pinacle of greatness and power, whereby she has been enabled to break the chains of slavery, and give liberty and freedom of intercourse, to millions of our fellow beings, in various and remote parts of the world : the consequences of which are, that civiliza- tion is making rapid progress, and have already brought into existence new states, with which our 19 commercial u iU FCoiirse m ight be rendered very ad- vantageous and profitable, provided the government adopt strict economy at home, that taxation may be reduced ; so that we may be enabled, fairly to com- pete with foreign countries, in the supply of manufac- tures, which those new states will require. It is excessive taxation, that is the principal cause of our difficulties, and which paralyses our commerce. The great perfection which the arts, and sciences are brought to, added to the genius and enter- prising spirit of the people, would enable us to beat the foreigner in every market in the world ; provided rents and taxes were lower, and the neces- saries of life cheaper, together with the removal of the heavy imposts that are laid on the raw material, necessary in our manufactures. The very high duties, and the high rate of labour, prevent us supplying the various markets at a cheaper rate than the foreigner. We complain of a superabundant population, and the government is puzzled how to dispose of that superabundance : — there must be something egre- giously wrong in the state, when there appears a necessity for getting rid of a portion of its popula- tion; for it is an axiom long admitted, that when a country is numerously peopled, their necessities will produce invention, industry, and economy; and a nation so circumstanced, and so disposed, is always attended with riches;— on the contrary, where a country is large, and contains but few inhabitants, 20 you will generally find an abundance of poverty and indolence. We should therefore endeavour to remove the disabilities, and find out new sources of trade for the employment of the people, rather than put the country to the expence of removing a portion of the unemployed. A forced emigration is not cal- culated, effectually to cure the evil ; it might be of some benefit to the individuals sent out, but it cannot possibly relieve the country of the burthen of taxa- tion, and the poors' rates, which are the great evils that oppress us. It is rather surprising, that at a time when princi- ples of civil] and political economy, engross so much attention, that so little of real knowledge should be displayed, as to the measures that may be proper to be applied, for curing the evils which seem to beset all classes of people ; and that emigration should find so many advocates : as if, by depriving the country of a portion of its strength, we should get rid of taxation, and other burthens that oppress the people. If we had but comparatively a small debt, and only a small amount of revenue to raise ; and at the same time a large population, suffering great distresses and privations ; emigration might be a prudent and wise measure to have recourse to : for in that case you would be relieving the distressed, without weakening the power of the kingdom to any serious extent, as a small revenue could be more easily raised, than a large one, from the more affluent who would be left behind. But when by far the greater portion of the revenue is 21 raised from the great consumption of articles of necessity ;— and that consumption being principally among the middling and lower orders of society,— you encourage, and by such encouragement, induce a large portion of those classes to emigrate ; you take away the props and necessary supporters of the social compact, and leave the great weight of the edifice upon the weaker pillars. It cannot be expected, if emigration should take place to any considerable extent, that the most useless members of society will leave the country ; but rather, on the contrary, the young, the healthful, and capitalists, will be the des- cription of people who will emigrate ; and these are the people the most desirable to be kept at home. The larger portion of the revenue being now raised upon articles of excise, and the consumers of those articles being, principally, the trading and working- classes, it is evident, therefore, that if a great portion of the people belonging to these classes are driven out of the country, (no matter from what cause) it will be impossible to raise the necessary amount of revenue, without rendering the taxes more onerous, upon those who remain. We will suppose, for argu- ment sake, that five millions of the people should emigrate, (and there are more than five millions of the distressed) in proportion to that five millions, you will lose the means of raising ten millions of taxes, at the least ; therefore it must be apparent, that emigration cannot relieve the country of its burthens. 22 It is' a maxim incontrovertible, that the strength and power of states, greatly depend upon the numerical force of its inhabitants ; and, when there appears to be a superabundance, depend upon it, the cause will be found, on enquiry, to originate in some mismanage- ment on the part of the government. A nation can never be great and powerful, without being popu- lous ; and also abound in riches. That we surpass most other countries in the world in these particulars, is my firm conviction ; and we can only continue to maintain that superiority, and to hold the balance of Europe, (I might say the balance of the whole world) whilst we remain rich and powerful. Having arrived at the zenith in this respect, it necessarily behoves us to be careful, and husband our resources, and ame- liorate the condition of our trade with foreign coun- tries The advantages we might enjoy by our trade, would then enable us to surmount all our difficulties. The additional outlets which present themselves to our manufactures, and for the disposal of our foreign produce, in those new states in South America, will, by proper management, be new sources of wealth to the inhabitants of this kingdom.* *Brazil, Columbia, and Mexico, the three principal states of what is termed, Spanish America, contain a population of sixteen millions of souls, with which, by a proper manage- ment of our trade with South America, we might enlarge commercial intercourse to yery great advantage. The 23 What, 1 would ask, have increased the riches of Great Britain, but her foreign commerce ? or what, has enabled her to support those extraordinary, and expensive wars, but the great wealth which has flowed into this kingdom by its foreign trade ? It was by this we were enabled to destroy that mighty power set up by Buonaparte, which would have enslaved all Europe, but for the glorious success of our arms in the many hard fought battles with the enemy, for the purpose of securing the freedom of the world. At the conclusion of the last war ; and at the settlement of the affairs of Europe ; we might, un- doubtedly, have obtained by treaty, many commer- cial advantages ; but which were neglected, we had the power in our own hands, but we let the oppor- tunity slip ; and other countries have taken advan- tage of our short-sightedness. Although we had borne the brunt of that war, we were too generous at the conclusion of it ; otherwise we should have secured some indemnity for the great sacrifices we had made. Trade and commerce being the sinews of wealth, it ought therefore to be encouraged and supported ; but unfortunately, the aristocracy of the country generally, are averse to any measures that are pro- posed to benefit trade, conceiving that such are exports to Buenos Ayres alone in 1819, amounted to £730,808, and the imports fur the year ending- January 5th, 1810, amounted to £272,380. 21 likely to affect tlteir separate interests, and talk and bluster about the landed interest being neglected ; forgetting, or affecting not to know, that the great burthens of the state are supported principally by the trade and commerce of the country. It would be better, were the landed gentlemen to lay aside their prejudices, and support more effectually, such measures as are proposed to ease trade of some of the high duties and impositions upon it ; we should then be better able to bear the remaining part : for certain it is, that if trade prospers, we cannot fail of being able to pay the taxes upon our home consump- tions, and keep faith with the public creditor. The landed gentlemen are generally averse to any tax, that has an appearance of affecting land more than trade ; but they should recollect how much their private interests depend upon the welfare of trade, and how much the value of land has improved, since our trade has been augmented. The free trade principles, introduced by Mr. Hus- kisson, have certainly given us a brighter omen of future prosperity. — The more freedom there is in trade, the more of our product and manufactures will be exported. Although some of Mr. Huskisson's measures might be objected to, the fundamental prin- ciple should be encouraged and improved. At the same time, one ought not to be insensible of the dis- advantages in trading with any country, for their commodities, (excepting for those which are indis- pensible in our manufactures) that do not take from 25 us, products and manufactures in return ; tins obser- vation will particularly apply to France. Whether Mr. Huskisson has a peculiar partiality for that country, I know not ; but for the favor he has con- ferred upon her, it is certain she is not disposed to give us an equivalent. Whoever will take the trou- ble to investigate the trade with France, since the year 1678, when the prohibition took place ; (and notwithstanding the prohibition,) they will find that it has generally, if not always, been a losing one to this country. It has been calculated, that for the seventeen or eighteen years previous to 1678, we lost by that trade, a million a year ; if that be the fact, which I firmly believe it is, we ought to be very careful, in taking off restrictions upon the trade, with that, or any other country, that cannot give, 'or is not disposed to give us an equivalent. The use of foreign commodities among us, which hinders the consumption of our own, ought to be dis- couraged as much as possible, particularly those of French manufacture, as they do not take from us ours in return ; but carry away our money, which goes to pay their rent and labour, to the improve- ment of their lands ; which may be accounted as so much loss to this country. The high duties upon the manufactures, and trade of Great Britain, gives the people of other countries great advantages over us, and of which they are not in- sensible, as we find they are supplanting us in every mar- ket ; where we have heretofore had, almost, the exclusive D 26 supply : but how can this be checked, otherwise than by adopting economical principles, whereby the taxes can be reduced, which constitutes so great a clog upon our trade ? It will appear more necessary to the well being of trade, and that every stimulous should be given to it ; when we consider, that when peoples' habits are once alienated from the use of our manufactures, and products, they are not easily reclaimed ; besides the stimulous it gives to the manu- facturers in other countries, which will be a lasting disadvantage to those of England. I must take leave to remark here, (in order to shew another cause that exists for the loss of part of our trade) that, that probity and honour in our dealings with foreigners, which formerly so pre-eminently dis- tinguished us, is greatly deteriorated ; the deceptive mode of dressing up our manufactures, has brought us into disrepute in foreign countries ; and why has it been resorted to? but from the difficulty of supply- ing articles at a cheaper rate, owing to the high price of labour, and the heavy imposts on trade, which have driven manufacturers, and traders, to the degrading principles of trick, and imposition. If we turn our attention to America, and contem- plate the rapid progress she is making, in the improve- ment of her trade and commerce ; and to the great increase of her naval strength ; we shall find ample cause of alarm, for the inroads that are making upon our foreign commerce. The United States have long shewn a disposition to rival us in trade ; and it must 27 be admitted, that they have been too successful in tins respect.* They are now endeavouring to rival us in manufacturing also ; in which, probably, they will not be so successful. The passing of the late Tariff, may prove, to her cost, that she has been pre- mature, in adopting such a measure ; although, no doubt, it may have a serious effect upon the manu- facturing districts of this country, and cause a great * The tonnag-e of the United States 1 shipping" in 1822 was 1,224,426 tons, in 1823— 1,33S,585, in 1824,-1,389,163, in 1825,-1,425,111, in 1826,-1,534,191, in 1827—1,600,000, being- an averag-e increase in the last four years of 52,373 tons, requiring 1 an averag-e annual increase of about 2700 sailors. The coasting- trade, exclusive of steam boats, em- ployed in 1826 were 587,273 tons of shipping- ; and in 1827 — . 666,420 tons. The public debt of the United States in 1816, amounted to 123,016,375 dollars, and in 1829 its amount was only 5S,362,135 dollars. The following- are the official returns of the amount of revenue and the value of exports and imports of the United States from the year 1821 to 1S28 inclusive, (the exports and imports for 1828 are omitted.) — ■ REVENUE. EXPORTS. IMPORTS. Dollars. Dollars. Dollars. 1821 13,004,477 64,974,382 62,585,124 1822 17,5S9,768 72,160,281 83,238,834 1823 19,0SS,433 74,099,030 77,579,867 1824 17,073,325 75,9S6,657 80,549,007 1825 20,098,713 99,535,3SS 96,340,075 1S26 23,325,476 75,535,322 84,794,477 1827 22,606,290—82,324,829 79,487,060 1828 24,094,^13 The population uf the United Stales is about 11,500,000. 28 many hands* to be thrown out of employ. The Ame- ricans have many advantages over us, particularly in building ships of war, and of commerce, which have been the means of enabling them to engross a much larger portion of the carrying trade to all parts of the world, than otherwise could belong to them. Their trade to China, is a most important branch of their foreign commerce. The statements lately put forth, as to the supply of tea alone, by the Americans, ought to awaken our government, to the dangers, and dis- advantages that will accrue to the trade and commerce of England, by a continuance of the monopoly to the East India Company, since the Americans are making such great inroads into all the commerce of the world. All the subjects of Great Britain ought to be put upon an equal footing, by giving them an equal right of trading to all parts of the world ; nothing can be more just, or more for the interest of the country, nor can it fail of greatly increasing the trade and navigation of the kingdom. Before I proceed further upon this subject, I will give an extract from official returns, laid before par- liament, in May, 1828, relative to the East India Company. By those returns we find that the terri- torial and political debts amounted to £12,019,657, assets on the same branch amounted to only £1,759,361 deficiency £10,260,296. The com- mercial debts are stated at £1,596,332 Assets, £23,552,608, leaving a balance in favour of the company of £21,956,276. The amount of their 29 bonds then in circulation, bearing 4 per cent, in- terest, was £3,780,475 — those bonds not bearing interest, Mere £15,417 — The total balance in fa- vour of the company was £7,900,000. It might be wise, in certain cases, and under par- ticular circumstances, to secure to a corporation, or a community of persons, exclusive privileges for a given period ; but the continuance of laws, that are in themselves prejudicial to the general good, is a national grievance ; and when it is clearly demon- strated, the legislature ought immediately to repeal such laws ; and give to all, an equal right to trade to all parts of the known world ;— freedom of trade being a fundamental part of British liberty. The monopoly of a trade of such vast extent, which comprehends so great a portion of the globe, and which is now so well known to British traders in general, must in the present state of this country, more particularly when we consider the general state of all other countries, be very improper to be continued. The many complaints against the East India Com- pany on account of their oppressions, as well as against the monopoly of the China trade, should induce parliament to look at the interests of the kingdom in general, and not permit that company to have the exclusive right, beyond the term of the present charter, of carrying on the trade to the East Indies:— it is but just and fair that this company 30 should be foreclosed in favour of the nation ; for it is against the national interests, that it should be any longer carried on by a company of merchants, en- joying exclusive privileges, when the laying it open would be a great benefit to the kingdom at large. Nevertheless, in justice to the East India Company, it ought to be observed, that there is not so much bullion carried out of the kingdom now, in conse- quence of that trade, as there used to be ; (it was computed more than a century ago, that we exported to the East Indies and China 4 or £500,000 in bul- lion every year) but still that is no argument in favour of their monopoly, but rather tends to shew that if the trade were free, our exports to that coun- try would be greatly augmented. The declared value of the exports by the East India Company, and private traders, to the East In- dies, together with China, were in the year ending Jan. 5th, 1824-£4,228,948, in 1825-£4,076,7 18 in 1828-£3,918,071, in 1827-£4,468,883, and in 1828-£5,021,599 Total in the five years- £21,894,219. The principal increase was in articles of British manufactured cottons. During the same period, the agregate value of the several articles im- ported from the East Indies and China were, in 1824 -£10,437,170, in 1825-£ 10,373, 892, in 1826- £10,554,417, in 1827 £10,688,800, and in 1828 -£10,662,738 Total value £52,717,086. Re- exported in the same period, In the year 1824-^ 31 £2,599,905, in 1825-£3,00G,703, in 1826- 3,233,636, in 1827-£2,892,446, and in 1828- £2,454,802 Total value re-exported £14,187,492. The following is a statement of the prime cost, and the quantity of tea exported from the port of Can- ton, by the East India Company ; and also an account of the sale amount of teas, by the company for ten years :— Exported from Canton in quantity. prime tost. 1809—10- Zfo. 18,230,720 £1,194,498 1810—11 19,710,737 1,300,321 1811—12 26,169,221 1,738,709 1812—13 28,267,413 1,972,742 1813—14 24,727,436 1,711,899 1814—15 26,195,144 1,743,081 1S15— 16 33,013,387 2,157,687 1816—17 29,353,973 2,017,746 1817—18 20,151,597 1,322,414 1818—19 21,085,860 1,321,696 Amount Sold in 1810—11 Zfo.23,548,468 £3,896,291 1811—12 21,527,217 3,534,274 1812—13 23,068,033 3,793,383 1813—14 23,424,832 3,896,817 1814—15 27,S20,643 4,794,359 1815—16 26,234,244 4,102,668 1816—17 21,029,843 3,114,479 1817—18 23,401,706 3,502,368 1818—19 26,068,870 3,9S7,007 1819—20 25,032,48 1 3,489,385 The quantity of tea retained for home consumption alone, in 1820, was 22,462,050/6s. producing a net revenue of £3,128,149. In 1828, the consumption 32 was 28,790,481/6*. the revenue £3,177,179. (The increased consumption of coffee from 1820 to 1828, being a period of eight years, were from 6,896,288///s. to 16,522,423#>s. ; and of sugar, from 2,581 ^blcwt, to 3,285,S43c26'l.) By this statement it appears, that the consumption of tea, at home, in 1820, was only 2,580,434/fo. less than the amount imported by the company — ergo— the amount re-exported, was only 2,580,434/frs. Surely, under a different system, we might have a much larger export trade in that article. The Americans exported from China, in 1824—5, twelve million and half of pounds of tea ; and they, (the Americans) the Dutch, and the Hamburghers, have almost the exclusive supply of tea, into all parts of the world, in consequence of the East India Com- pany's monopoly, and the high duties imposed upon the trade, and commerce of the country.— Let the government look to this ;— for why should English traders, and merchants, be excluded from a partici- pation in so valuable a portion of the commerce of the world. It appears also, that in the period of the ten years, the increased amount of importations, was only one million and a half of pounds ; and in twenty years— that is from 1810 to 1830 — the increased consumption was little more than three millions of pounds ; there- fore, if we look at the great increase of the population, and compare the consumption of tea, as well as the consumption of all other articles of necessity, and luxury, we shall find, that there is lio great cause for 38 those congratulations, continually expressed by ministers, and others, as to the prosperity, and com- forts of the people : they must be either ignorant of the state of society, or must wish to conceal from general view, the real state of the country, when they pour forth such fulsome praises. It must be observed that the company have only 21 ships in their service, and the amount of their tonnage is only 30,036 tons, but if the trade were thrown open, I have no doubt but that, in the course of a very few years, there would be some hundreds of thousands of tons of shipping employed. Considering the great rivalry there is in trade in all other parts, and considering also the great change that has taken place in the state of those countries in the East, which have fallen under the dominion of the crown of Great Britain, comprehending a population of nearly one hundred millions, I am of opinion, that by establishing an open trade, pro- perly managed, we might secure to ourselves all the commerce of that vast empire, and to which, we should be enabled to export a larger amount of our own manufactures ; thereby give increased em- ployment to the labouring part of the population of this country. Formerly it was considered that the East India trade was disadvantageous, as it drained us of our coin and bullion ; and introduced into Europe goods that prevented the consumption of our own manu- factures. It is true, what were brought in, were E 31 principally articles of luxury, such as teas, spices, &c. and manufactured linens and silks, which hin- dered the consumption of European goods ; but the state of society is so much changed in the course of the last fifty years, that those articles which were then mere luxuries, are now become absolute neces- saries, and are in common and general use, not only in this country, but in all others where commercial enterprize has directed its course, and also forms a considerable portion of our extended trade. As to the manufactured silks, and linens, the use of them has been superseded by the great improvements in our own. The usefulness of many articles imported from the East Indies, in our manufactures, and the re-exportation of others, gives us a balance of trade with other countries, that more than compensates us for any loss that we can be supposed to sustain, either by the exportation of bullion, or the use of Indian manufactures ; but I believe very little of our coin, or bullion is now carried out to India, comoared to what formerly used to be exported. The exports to to that country consist now principally of other com- modities.* If the trade to the East Indies were laid open, great advantages would accrue to the shipping in- * The total amount of g-oods exported to the East Indies, China, and the Mauritius for the year ending* the 5th Janu- ary, 1829, was, by the East India Company, £l,12G,926 7 7 ; by free trade, including- the privileg-ed trade £4,084,426 10 11, total £5,211,353 4 6. 35 ft' rest, which has now not sufficient employment for its ships, and which has great reason to com- plain of the disabilities it labours under, in con- sequence of the high price of ship building materials, and the heavy imposts laid upon all that relates to the freighting, and clearing of ships from the ports of the United Kingdom. There cannot be a doubt that if the trade to the East Indies, and China, were thrown open to all his majesty's subjects, great bene- fits Mould accrue to the commerce of England, as well as to the British Colonies, whereby greater em- ployment Mould be given to the shipping of Great Britain. Although the trade has been but partially opened, the number of vessels employed in that trade last year, were 125 more than in 1825, as ap- pears by the number of vessels and their tonnage that were entered inwards, and cleared outwards, from the ports of Great Britain to, and from the East Indies and China. In 1825 there were entered, inwards, ships 80, tonnage 40,378 ; outwards, ships 102, tonnage 50,016 : and 1828, inwards, 110 ships, tonnage 61,270; outwards, 176 ships, tonnage 73,890. This statement clearly shews the probable advan- tages of an open and free trade. It is unnecessary for me to state that the shipping interest, is a most important branch of our general trade; yet, strange to say, it is of all others the most neglected. It is unnecessary for me here, to treat more fully upon the shipping interest, as the subject 30 has been repeatedly brought before parliament ; and has undergone many discussions ; but very little has been done for it by the legislature : upon every occa- sion there seems to have been great jealousies, or prejudices excited ; but whether they have arisen from ignorance of its importance, or whether the granting of concessions to it, would necessarily lead to more minute enquiries into other branches of the trade and commerce of the country — whereby the government would be under the necessity of re- trenching, in order to meet a supposed curtailment in the amount of the revenue — is a point I shall not undertake to determine. But I must remark, that our commercial marine, not only gives employment to many thousands of the male population of the kingdom, but it constitutes a fine nursery for sea- men ; from which, in the time of war, we are ena- bled to man the king's ships with good and efficient sailors. The high duties upon foreign timber, and other materials necessary for ship-building, which we are obliged to import from foreign parts, prevent a fair competition, with other maratime countries in navi- gation, — the people of which enjoy great advantages over us in these particulars. All these circumstances Combined, are additional reasons why the govern- ment should do all in its power to lessen the taxes, by all practical means ; and that it should likewise give every encouragement to the extension of trade to the East Indies, and the New World. 37 There is another part of the commercial policy of England, which I shall advert to, and which requires revision, I mean that snpineness of the government in forming treaties of commerce, when opportunities occur — and this laxity appears striking as regards our interests hi the new republican states of Ame- rican—although it might appear to some to be of minor importance ; yet I think it will be found, on mature consideration, to be of considerable consequence to our trade with those emancipated provinces. The high duties imposed upon mahogany, and all other timber imported into this kingdom from America, which do not bring clearances from the settlement at Honduras, or from some other of the British settle- ments, are very injurious, not only to the shipping interest, but to our American trade generally: the duty upon mahogany being 11. 10s. per ton, but that which is imported by the Honduras merchants, only 21. 10s. or from any other of our colonies ol. per ton. (The duty upon American timber imported into the United Kingdom is 85 per cent, and upon turpentine 100 percent.) It is very well known that there is very little to be got in the legalized districts of Honduras, and that the principal part brought to this country, is obtained by a contraband trade with the Mosquito shore. The wood-cutters at the Honduras settle- ment, are obliged to take their gangs from one hun- dred and fifty, to two hundred miles into the interior of the country, before they can obtain any that is fit for the English market, consequently a great portion is obtained from the Mosquito shore ; but they are obliged to get clearances from Balize to cover that illicit trade ; if the duties were taken off, or equa- lized, a considerable trade might be opened with those provinces bordering on the Mosquito shore, for mahogany, pine, and other woods ; as well as for other valuable and indigenous products. When the British settlers were removed from the Mosquito shore to the other side of the Bay of Hon- duras, it was stipulated in the treaty of peace with Spain, in 1183, and in a separate convention, in 1186, when they finally evacuated the settlements ; — that all the fortifications should be razed, and that the British should only be allowed to cut mahogany, or other timber, in the neighbourhood of Balize ; where the British settlement now is. The impolicy, (to say the least of it) of the British government, in agreeing to break up those settlements, has always been con- demned ; but it is not the only instance in British diplomacy, where we have been outwitted in treaties and conventions with Spain, and other countries. (It has been observed, that we lose by treaties, what we gain by valour ; and that we are outwitted, in most parts of our commerce, as well as in other things.) Had we maintained those establishments, we might now have been in possession of some of the finest provinces in all, what is called Spanish America ; — provinces that abound in valuable products, and con- taining a well disposed (though small) population ; who, in consequence of the cruelties exercised upon m the aboriginal inhabitants, by the Spaniards, have always considered themselves under the protection of the British government. But notwithstanding the convention entered into with Spain, in 1180, for the evacuation of the territories: we have shewn them, ever since, the semJ>lance of protection. It must be observed, that the country, in fact, was never actually and bona-fide, in the possession of Spain. The cruelties exercised by her towards the natives, created an eternal hatred to the name of a Spaniard, whereby such effectual resistance was made, to all attempts to subdue them, that they have been able always to maintain their independance ; consequently the country has never been drained of its valuable products, — such as mahogany, and other valuable timber ; sarsparilla, indigo, and a variety of dye woods, &c. There are known to be valuable gold and silver mines in the interior ; but the natives would never allow them to be worked, for fear of the Spaniards making further attempts to get possession of their country ; nearly the whole of which is now divided between two republics, — that of Columbia, and the united provinces of central America.— Although it has been so divided, the most important consideration is, that the consent of the inhabitants to this compact , lias never been asked for, or given ! The geographical situation of the country is such, that it cannot be said that any part of it, naturally, belongs to Colum- bia ; although she has declared, the Mosquito shore, 40 from the river Chagres, to Cape Gracios a Dios " to bean integral part of the republic." Bryan Edwards, in his history 7 of the West Indies, maintained the right which Great Britain had to the dominion of the country ; and states the following facts, which are clear and incontrovertible : namely, — ' 'that the native Indians have never been conquered by, nor did they ever submit, to the Spanish government : — that the Spaniards had never any settlement among them. — that during the course of upwards of 100 years, they have maintained a strict, and uninterrupted alliance, and friendship, with the subjects of Great Britain." In the central provinces, indigo is an indigenous plant, and is cultivated to great advantage ; and which forms no mean part of the trade with Guatimala : it was formerly considered to be the best in the world ; but the culture of the plant is now so much improved, in the East Indies, that, that which is im- ported from thence, is now considered equal, if not superior, to that of Guatimala. To shew the disposition and inclination of the inhabitants of the central provinces to trade with us, I shall here state a single fact, which came within my own knowledge. — In the year 1824, a friend of mine came to England in a vessel, from the bay of Hon- duras, on board of which, were two natives from Guatimala, owners of the valuable cargo, consisting principally of indigo and sarsparilla, of the value of 60,000/. When they had disposed of it, they went to Manchester, Leeds, and Sheffield, to lay out the 41 proceeds in manufactured goods, which they shipped at Liverpool, for Truxillo, or the port Omoa in the hay of Honduras, (these being the principal, and I might add, the only ports for the transit of goods to the interior). At that period, Guatimala was, and indeed has continued ever since, in a state of anarchy and rebellion ; notwithstanding, there is at present a considerable trade carried on, by the Honduras mer- chants, with the interior by way of these ports, in indigo, sarsparilla, dye, woods, and other products of great value ; and in return, British manufactured goods are taken, some merchants shipping in the course of a year, to the amount of upwards of 30,000^ in value. There can be no doubt, that if protection, and encouragement were given to a trade with these provinces, we could dispose of a very large amount of our manufactures ; and receive in return the valuable products of that country ; which are not only useful in our manufactures, but are articles of general trade. If there were a regular established government in that country, that trade might be considerably extended, and if facilities were given to it by the British government, which are much wanted, as well as better protection against the pirates, in the bay of Honduras, and on the Mos- quito coast, it would be a valuable appendage to the Jamaica trade. To return again to the consideration of the com- mercial policy, and trade of Great Britain generally. I must observe, it is surprising the government has F 42 ;not given greater encouragement, and greater faci- lities, to an extension of our foreign commerce. It cannot be doubted, but that it is from trade and commerce, that this country has been raised to that pitch of greatness, and power, which has enabled her to carry on such expensive wars, and at the same time, to add to the general stock of the kingdom. It was from the encouragement given to foreign com- merce, that England was enabled, from time to time, to enlarge her trade, and likewise her naval strength ; by it, she has maintained those mighty fleets, that have been rendered the terror of the ocean, and by which she has maintained the balance of power in Europe, in a comparative state of equilibrium. It is from foreign trade, we derive all our strength and riches ; in fact, it is the living fountain, from whence we draw all our nourishments ; and by which the body politic subsists. In considering Great Britain, with respect to the conveniences of its harbours, the excellency of its constitution, and the genius and enterprising spirit of its inhabitants ; we must con- clude, that there is no nation in the world more capable of increasing in wealth and splendour ; if we regulate well our commerce, and not load it too much with heavy imposts. If the legislature, and the government do not carefully exert its powers, in the exercise of legislative wisdom, the most profitable branches of our foreign trade, will be encroached upon ; and if we are not careful of our foreign com- merce, and more rigorous in upholding its interests, 43 we shall lose our reputation, and credit abroad. It is therefore become an interest of so much impor- tance, that we cannot, nor ought we to dispense with it ; on the contrary, we ought more and more to extend it to every part of the globe ; for not only does our domestic trade depend upon our foreign, but it is by it, and it alone, that we can hope to con- tinue to pay the interest of the debt. It would not be amiss were we to take a lesson from the government of the United States of Ame- rica : — The head of that government, General Jack- son, seems to feel sensibly, the necessity there is, for a mercantile country to manage its concerns with strict economy ; for in his inaugural address, he says — " with regard to the management of the public revenue, it will be my desire to observe the strictest economy, and more anxiously, because it will facili- tate the extinguishment of the national debt. With respect to the great interests of agriculture, com- merce and manufactures, an equitable adjustment of imposts seems to be required, and the only exception should exist in the peculiar encouragement of any products of either of those that may be found essen- tial to our national independence. Considering stand- ing armies as dangerous to free governments in time of peace ; I shall not seek to enlarge our present establishments; or disregard that salutary lesson of political experience, which teaches, that the military should be held subordinate to the civil power." The government of the United States, acting upon those 44 principles, have enabled the Americans to make such rapid progress in civilization, and in the extension of their trade and commerce. It must be apparent, that as we enlarge our trade, so iii proportion will be the consumption and export- ation of our native products, and manufactures. Other countries may, and will set up manufac- tures ; (as they become more enlightened) but, from the power and excellency of our machinery, the skill and industry of the people, we can always excel them ; and by proper regulations, and by a reduction of the heavy imposts laid upon trade, (which can only be accomplished by a rigid eco- nomy in the government expenditure abroad, and at home) we shall maintain that superiority in the sup- ply of the different markets of the world, for which we have been heretofore so eminently distinguished. It cannot be doubted, that the wisdom of the legis- lature should at all times be employed in promoting the interests of all classes of the community ; but it is to be lamented that the people have had too much cause for complaint against their representatives in neglecting the interest of the trading portion thereof. Allowing that every trade has, in some sort of man- ner, a separate interest, yet it has been too common in parliament, to consider the landed interest, as having a distinct arid separate one, and not at all dependant upon trade and commerce: but I would ask what has enhanced the value of land and doubled and trebled, and;, in many instances, quadrupled the 45 rent rolls of the landed proprietors ; but the trade and commerce of our country? I would wish those gentlemen, who are such sticklers for the agricul- tural interest, to consider the different figure we make now, to what we did a century and a half ago, and to consider also, the changes in the affairs and manners of Europe, and other parts of the world since that time ; and to look to the great acquisitions of wealth, strength, and power ; and also the pos- sessions acquired by that trade, which they are so jealous of. I will allow the agricultural interest to be a com- ponent part of the whole trade of the kingdom ; and ought to be supported; but not at the expence of the manufacturing and commercial interests ;* * Doctor Colquhoun, in his treatise on the wealth, power and resources of the British empire, estimated the value of all property created by agriculture, in all its branches, for the year ending- 1S12— 13, at £216,817,624. But allowing- for the depreciation of one-third, occasioned by a chang-e of circumstances since that time, and the alteration in the value of mon-ey, by a return to a metallic currency, the value would now be only £L14,545,0S3. He also estimated the whole property created in Great Britain and Ireland, at £425,521,372 ; and allowing- a depreciation of one-third, upon an average of the whole, the reduction will be £141,840,457. Any one who will attempt to deny that the alteration in the currency, has caused a depreciation in value, to the extent here named, must produce strong-er proofs, than any we ha\e had yet, or that it has been pro- duced by overproduction; and not by (lie alteration in the currency. 46 for it is by the well doing of the hitter, that the for- mer can be supported at all, and the interest of the national debt can likewise be paid. Can it be believed hereafter that so many of our nobility and gentry should not perceive the insepara- ble affinity there is between the landed and trading interests, or that they should give the preference to the one, rather than to the other, when it is demon- strated that it cannot go ill with trade, but land will decline also ; in fact, they mutually furnish each other with all the necessaries, comforts, and luxuries of life. It appears that, ever since we have been a trading nation, in proportion as our trade has increased, so has the population, and also the general stock of the kingdom ; for, in referring back to the period of 1688, when we gloriously succeeded in securing to the people of these realms, the benefits of the con- stitution, the population of England was only six million, seven hundred thousand, and our national stock was computed at 88,000,000/; (11,500,000/. of which, consisted of coined gold and silver) the exports and imports were only 4,000,0001. At the commencement of the reign of George I. the popu- lation was computed at 7,000,000. The exports and imports of the kingdom then, amounted to about 14,000,000/. In 1813, the estimated value of pro- perty created in Great Britain and Ireland, amounted to nearly 426,000,000/. In 1688, the rental of land, houses, &c= was computed at 14,000,000/, } and, 47 valued at eighteen years' purchase, (the then estimated value) would give 252,000,000/. sterling. The rental of land in 1820, was estimated at 54,000,000/. ster- ling ; and, valued at twenty years' purchase, would give 1,080,000,000/. sterling.* Before England be- came a trading nation, the general price of land was twelve years' purchase, and the legal interest ten per cent. About the year 1666, the value of land, in the best counties, was from eighteen to twenty years' purchase, and in the worst, from fourteen to sixteen, and the legal interest six per cent. Since the year 1666, the price of land, in the best counties, has varied from eighteen to twenty-seven years' purchase In 1688, our exports very little exceeded 2,ooo,ooo/. in 1703 they amounted to 6,614,103/. in 1710,— 6,690,828/. and in 1715,— 7,739,ooo/. (notwith- standing the rebellion broke out in this year) ; in the following year, they amounted to nearly 9,ooo,ooo/. In 1730, the exports amounted to 10,9oo,ooo/. in 1740, to l2,ooo,ooo/. in 1750, to 12,650,ooo/. in 1760, to 14,250,ooo/. in 1770, to 16,3oo,ooo/. ; in * In consequence of the alteration in the currency, and the uncertain value of Land, (owing" to the several causes that have been produced by the long- war,) it is impossible to g-ive anything- like a correct estimate of the actual value; therefore, the estimate above g'iven, must be taken as ima- ginary. Although in some local situations, the best land may be worth from twenty to twenty-five years' purchase, yet, if a g-eneral average were taken, I doubt very much, whether, at the present time, the value would be more than eig-hteen gears' purchase. 48 1780, they were reduced to 12,4oo,ooo/. ; in 1790, they had increased to 20,120,ooo/. In 1800, they amounted to 35,990,ooo/. in 1818, to 46,611,348/. in 1819, they were only 35,204,464/. and in the year 1828, they amounted to 52,797,455/. (this being the official value, the real value was only 36,814,176/.) In the year 1707, the exports exceeded the imports, 2, 193,000/. in 1703,-2,270,000/. in 1709,-2,100,000/. in 1710,— 2,680,000/. in 1711,-1,780,000/. in 1712, —3,000,000/. in 1713,.~only 1,590,700/. in 1714, 2,Coo,ooo/. Our exports in 1797, amounted to 30,518,ooo/. and the imports to 23,180,ooo/. surplus of exports, 7,332,oooZ. In 1818, the exports ex- ceeded the imports, by 9,732,348/. ; in 1819, by only 4,429,380/. The exports to foreign parts, in the year ending the 5th Jan, 1829, in British and Irish produce, and manufactures, were 51,276,448/. : 8 : 4. foreign and colonial merchandise, 9,806,247/. : 10 : 11. making, together, a total value of exports, 61,082,695/. : 15 : Id. The imports for the same year, amounted to 43,467,7477. : 7 : Id. — shewing a surplus of exports above the imports, of 17,614,948/. : 8 : 8d. The yearly amount of exports, upon an average, from 1814 to 1820, inclusive, was 45,262,375/. The yearly amount of exports, upon an average, from 1821 to 1828, inclusive, 36,462,019/. — annual decrease, in the last eight years,8,800,350/. (this is the real, not official, value.) The yearly amount of exports, of colonial and foreign commerce, from 1814 to 1830, inclusive, 14,517,378/. ditto from 49 1821 to 1828 inclusive 9,992,685/. Decrease per annum in the last eight years 4,524,690/. In 1827 the exports of cotton goods, hosiery, cotton twist, yarn, linens, woollens, and leather, wrought and un- wrought, amounted to 32,000,000/. The declared value of woollen goods exported in 1816, was 10,200,926/. ; in 1817 — 8,404,527/. ; in 1818 7,958,927/. ; 1819—9,047,959/.; in 1820—6,899,693/. in 1821—6,279,164/. ; and in 1822—7,395,185/. The quantity of cotton twist and yarn, exported from Great Britain in the year 1818 was 14,743,675/Z> T> tO — < CO os 05 CO CCQOCflODlBCCCDaJMCOCCg JO lO iO JO lO lO lO I— ' I— ' I— ' H- h- ' oait^wiOH^ocoooMOOi H-< HJ (— i O l-i CO id CO t— i-' J -1 _ •ji—jco-jco-'r,;^ M 05 W H -^ o en ^ o H O OD lO "1* GO Ox -4 CO «i A O GD g- 01 ~- oooH-^^cijg £5 52 bo cs b^ bo to jU 35 O E ^ P fc ® i" .° P J^< W JO © 5° 00 05 bn bo bo h- w O H « h ^ " OX zD CO ~* © © 'X CO UJ I— ' "£ IT ,.« w r— «-» r— M «< » ^ 2 ?S «c w Kl o to H-< I— i o o p© p © p p H - to rfi OO "CO H 35 O "-» H lO rf*. )^CC)bikUl35UffiO Q0 H rfi (/) -105 C0-4 1O CO CD O CD >U CO ui i+i. h— 2_r j>, o m to ^ ffi b bo "-Ji ^ 'oi'oi bn b>. cn "en ^» "ox 60 bo bs b>. © "bilo to O) w b ^lu bo to COGOiOCOCO-^054^0COCOCO-4 -aiOCn^W0504i.CDlOCDC5-* CO to CO -4 00 H- 1 C5 bs CO en 00 lO b>. "Lj b». © "ob^ bo bs © ta bo "co "ox O (— i^«4iOC04i-l0 050COO-a gii(iO0i05»«MO»0l l »0 n? M O-i fc CD M H tt* '* 2 w 33 cd M cr 10 o M O O «4 i— -1 Ox bo -4 05 o to CO 2 $ it) vi l/j T^ ^i ;« ^*^ ^-^ «.v ^— ' "™ ' , OOCJikOCC^HCOCBQO JS „* 35 m 35 « ^ W W M * ffl W 03 Ox Ox o ® b b b b b w to *« m to 05 h b to 2. inj_ioO5CnC500C5-4l— ' W O H H QO M OX 05 CO 00 CO CO CO t— lO OX CO 05 05 4* 05 ? C^^c350^cn^oo^cn-arfi.co-4$jn u ui cootcncocftcotU^ca^^j^co »U H- ' h- coco loco ® ^ ] w j* w ® „ a P "o5 bo H-i h- 1 bi. © h- 1 to bs b5 b^ © "b- © to MffiHBfeOOlWHCOOiHfl3H(B 0^05MH05H3)Hlfr«(HOlffl^ CD C3 C5 2. lO S". O £- O O ^ & ^ tj r o 4 ° a c 3 O (V .3 S T3 3' 3 o S3 2 p p (B CO' p 3 O CD ^ P ^ P u l-J £. 3' S' ? 3 ^ o ^ O C3- 1 ^ crq i » H5 S- * 55 It will be seen by the following statement to what extent our trade has been depreciated since the year 1814 ; and will show likewise, how fallacious are the official returns of exports, as a means of information regarding our foreign trade. Exported from the United Kingdom in the under- mentioned periods : — Years. Official value. Real value, difference of real value above official. 1814 £30,002,407 £47,851,153 £11,759,280 1815 44,053,455 53,217,445 0,103,000 1810 30,711,550 42,042,051 0,228,308 1817 30,007,010 42,055,250 0,257,04(5 1818 41,558,585 43,020,253 2,007,003 Total difference 1810 44,504,014 48,003,700 4,130,710 akWficiui'. 1820 35,034,415 37,330,500 1,705,001 £44322,390 1821 40,240,277 38,010,807 1,020,380 1822 40,831,704 30,050,021 4,172,118 1823 44,250,503 30,008,054 7,200,500 1824 43,804,372 35,458,048 8,340,324 1825 48,735,551 38,300,300 10,330,251 1820 1827 40,005,735 52,210,280 31,530,723 37,182,857 0,420,012 Total difference of real value less 15,030,423 than official. 1828 52,707,455 30,814,170 15,083,270 £72,100,350 The yearly amount of exports upon an average from 1814, to 1820 inclusive was 45,262,375/. The yearly amount of exports upon an average from 1821 to 1828 inclusive was 36,462,010/. Annual decrease in the last eight years 8,800,356/. It must appear to every one that is the least con- versant with commercial affairs, or understands 50 what constitutes national greatness, that if it had not been for the great trade of this kingdom, we never could have carried on those long and extraordinary wars which this country has been involved in ; nor could we have accomplished those great under- takings, which are to be found in the country ; nei- ther could we have extended our possessions in foreign parts to that degree , which has rendered the British, the most powerful nation in the world. It is true, we have burthened ourselves with an im- mense load of debt, which we have not the means, at present, of sensibly diminishing : but if it had not been for our trade, by which we supported those wars, in all probability, we should have been long since a province of France ; instead of being an independant and powerful nation ; diffusing through- out the world, the true principles of civil, and reli- gious liberty. Notwithstanding those great difficulties which we now labour under, and which appear to be almost insurmountable ; yet I am convinced, upon due con- sideration of our commercial embarrassments, and of the wealth and resources of the kingdom, provided the legislature give a proper direction to the affairs of the nation, and the government adopt a rigid economy in all the departments of the state, that we shall be able to get the better of all our difficulties, y bringing into cultivation the waste lands, and improving the culture of the poorer lands. For my part, I cannot see any reason why the cultivators of the soil should not have the means open to them, of similar accom- modation that traders, manufacturers, and merchants, are in the habit of receiving, if they require it ; and require it they will, whilst the aristocracy, and the other lords of the soil, exact from them such high rents ; and the government insist on maintaining a metallic currency, without a corresponding reduction of taxation. From my own experience and obser vations, I generally find, that the farmers are as well content with moderate profits, as any class of traders ; and I am certain, that it will be much better for the public, and will tend more to an equalization in price of the necessaries of life, if the supply of corn and cattle, and other products rested with the producers ; because, in the first place, if there should be an in- creased demand at any time, that increase will cause a gradual and corresponding increase of supply; and, in the second place, the public will not be sub- jected to a dependance upon avaricious monopolists ; — who can at all times, obtain the means of holding- back from the markets the necessary supply; al- though at the same time, the farmers will be com- pelled to sell at ruinous prices, from the want of, what I shall call, necessary assistance from the banks. I must observe, that however lightly some people may treat the agriculturists; and consider them N 98 as only secondary in the scale of legislative science ; I am fully convinced that, at least, the internal trade of the country must languish, and that distress will pervade the labouring poor, if the cultivators of the soil do not prosper. If farmers could not occasion- ally obtain temporary advances from country bank- ers, they frequently would be obliged to sell at ruinous prices, consequently they, as well as the public at large, would be more in the power of mer- ciless monopolists, and subjected likewise to fluc- tuating markets, by no means beneficial to any other class of the people. Many very severe re- marks have been unwittingly made of late years, upon the mode of living by the farmers, and their presumed extravagance ; and that they have been moving in a sphere far above that in which they ought to move ; — that they have given their daugh- ters boarding-school educations,— that they are taught music, dancing, and other accomplishments ;— and that their sons are brought up as gentlemen ; and that they themselves take wine, &c. : but, admitting that they have thus emerged from their former state, — have they (I would ask) outstepped the general march of society, or, according to the modern phrase, the " march of intellect ?" do not shopkeepers, and other traders do the same ? and I would ask also, whether farmers are not, or ought not to be, as res- pectable in society as any other class ? do they not labour as hard for an independance, and are not their avocations as useful to the public weal, as J)0 those who rail against them I If that class of people had remained in the ignorant statein which they were formerly, should we have seen these great improve- ments in husbandry, that have elevated the science of farming, and improved the breed of cattle, which have not only excited the admiration of surrounding nations, but the good effects of which are developed in all the parts of the known world, where colo- nization has been the object of British enterprize I From these considerations, I am of opinion, that, with proper guarantees, country banks are beneficial. It might probably be inferred from these observa- tions, when compared with what I have before stated, respecting the predilection which the land proprietors have shewn for the landed interest, in preference to the trading, and mercantile ; that there is an inconsistency in my reasoning ; but if my ob- servations and reasonings, are calmly considered, there will not, I am persuaded, be found any incon- sistency at all : for although I have stated that the aristocracy and the landed gentlemen generally, are more ready to support their own interests, than that of the commercial and trading : — I have never yet entertained, or expressed an opinion, that the landed interest should be altogether neglected ; but rather, on the contrary, as there exists an inseparable affi- nity of the one to the other, that both should be supported; for if it goes ill with trade, laud Mill suffer also, as both contribute to each other's support. In considering more particularly the metallic part 100 of the currency, I must say, that there lias not been an article of traffic, or commerce, so much mistaken, and so ill-judged of by the generality of men, in this country particularly, as that of gold or silver, in coin or in bullion. It has been argued and insisted on, that gold and silver ought not to be allowed as commodities of merchandize, nor suffered to be carried out, when once brought into the kingdom ; but those who entertain such notions, must be unacquainted with the true interests of their country, and with the causes of the immense wealth that has been brought into it. All men, possessing the most extensive knowledge, in all trading countries, have defined and allowed gold and silver, in coin or bullion, to be mercantile articles, and have always contended for their free exportation. All those nations which have the means of import- ing the precious metals, to answer other articles exported, are upon an equal footing with those coun- tries that have mines in their possession ; and barter their gold and silver for other commodities. In such countries gold and silver become articles of com- merce, as well as any other, and are turned in trade with advantage ; therefore more valuable in such a country, than where they are first produced ; and in those countries where there is skill and industry to improve trade ; added to the situation of such coun- tries for trade, it will produce more real riches to the 101 people, than even the possession 7 of gold, and silver mines. Nor can any quantity of it dug out of the mines, bear any proportion to that which may be made to arise from the labour of a trading and indus- trious people ; whose stock, though small at first, is ever increasing, and gaining additions ; so that the augmentation, arising upon that increase, makes a perpetual [addition, augmenting with the stock. It might truly be said, that such a nation has no bounds to its wealth, nor proportion to the productions of those countries, where the people, relying on the produce of their mines, dig them for the industrious ; and they themselves become beggars, notwithstand- their first property of all the gold, and silver mines in the world. The prohibition against the exportation of gold and silver from Spain, was evidently a bar to their industry ; and rendered that treasure, in a great measure, useless to the body of the people. If gold and silver had been allowed to be articles of trade, it would as a matter of course, have put them upon methods of turning them to more advantage ; whereas, while their hands were tied by their own laws, the gold and silver brought from thence, have been the very tools wherewith other nations have wrought, and by which they have gathered so much wealth. If this mistaken policy, had not at first diverted their thoughts from trade, they might have set up manufactures of their own, which would have pre- vented them being drained so much, by the manu- 102 factures of other countries ; and might have cairied the whole commerce of the world before them. I consider gold and silver to be of no other intrin- sic value, than as a settled and constant exchange for all other commodities ; for in those countries where they are not used in that way, other sub- stances, which to us would be of no value, are the settled medium of exchange, for all the commodities in those countries ; — as in Africa, where cowries, or blackamoors' teeth, formerly answered their purposes as money : — gold and silver being of no more use than any other article. Gold and silver being in general use, in almost all parts of the world, as a medium of exchange ; and being thus subservient to trade ; it is the destruction of trade to take it from thence : and as to keeping it here unemployed, it is only a loss to the nation, for the use of it among us, serves to no other end, than the conveniently transacting of payments between parties, in their different dealings. The plenty of it will be rather a national loss ; as it will thereby en- hance the price of our own goods to ourselves, and at the same time lessen the demand of foreigners ; con- sequently, bring Tuin upon trade, and impoverish the people. For foreigners could not afford to buy our manufactures, at that enhanced value which an ex- cess of money would raise them to ; therefore, unless money were permitted a freedom of going and coming, as people's occasions require, we should not be any richer than we are at present. No laws can 103 keep our money at home, for if we have not a well managed, and profitable trade, the money must, and will go, to pay the balance. If on the other hand, the balance of exports and imports be in our favour, the payments must be made to us in the precious metals ; — it cannot be paid in any thing else. Gold and silver being allowed as articles of com- merce, wherewith we purchase goods from some countries, for re-exportation to others, are thereby become beneficial articles in our trade ; and return a great balance in its own kind ; and also add greatly to our national stock ; but without such a freedom in trade, a superfluous plenty of money would be injurious to us. By a proper management of our trade, and the balance being on our side, we shall be gainers by sending out our money, to pur- chase such goods as may again be sold to other coun- tries ; and we shall, by such an increase as this will give us, always be masters of the exchanges, all over the world ; for having no debts to pay abroad, and money to receive everywhere, the exchanges will always be in our favour; therefore our gold and silver will give us a great advantage over other coun- tries, upon every occasion, when emergencies arise ; and the returns will be made with great increase. Having thus shewn, (though imperfectly) that it is for the interest of this country, to allow a free ex- portation of gold and silver, both in coin and in bul- lion, 1 shall next consider the causes of complaint of the scarcity of it. 104 Money is certainly necessary for carrying oft trade, for when that fails, men cannot buy, and trade immediately stops ; for credit, which supplies that deficit, is only the expectation, and assurance, of money when it is demanded. Nevertheless, it is a great mistake to think, that money is the cause "of a good, or bad trade : for it not money that so much influences trade, as it is trade that discovers the money, — it being the medium, whereby trade is the more conveniently managed, and not the spring from whence it arises. Thus, when trade is brisk, the money (the medium) is more in view, than when trade is dull ; and by changing hands oftener, an hundred pounds makes as great an appearance, as a sum ten times as large otherwise would : therefore it follows, that the appearance of money will be more or less, according to the extensiveness of our trade, and the more frequent, or less use of its me- dium, whereby it is carried on. Our foreign commerce having, generally, given us a balance of profit, that balance has been, principally, paid to us in gold ; for since the discovery of the great gold mines in the Brazils, gold has been more plentiful throughout Europe, in proportion to silver, than formerly. It must be noticed likewise, that money being requisite in trade, in proportion to the number of people, and the extensiveness of that trade ; and that a large trade, and the greater the number of people there are, there will be more money required to be 105 current among them, for their necessary expenses, as well as for the carrying on of their trade. And if we consicer the great increase of population in this country, and the extensiveness of our mnaufactures, and other works carried on, the great demand of that circulation of money by these means, will make money appear scarcer, than when the number was less, and our trade not so large. And as our foreign commerce has not brought us such good returns, as formerly, and that the foreign loans raised in this country, have been the means of greatly lessening that stock of money, and bullion ; which we had in this country, have contributed likewise to the appa- rent scarcity. In order to show more clearly the value and use of money in trade, I shall state the estimated amount of the stock of England at different periods, from the year 1600, — the great and wonderful increase of which, must principally, if not wholly, be attri- buted to our trade. It was computed that the stock of England (in which were comprehended, coined gold and silver, bullion, wrought plate, jewels, furniture, apparel, stock for trade and consumption, and the live stock in cattle, &c.) was in 1600 about 17,000,000/. ; in 1630, 28,000,000/. ; in 1660, 56,000,000/. ; in 1688, 88,000, COO/.; (in 1695, the annual income of the nation was computed at 42,500,000/. ; taxes in the same year amounted to 5,000,000/.) and in 1813, 425,000,000/. If we deduct but one fourth, or 25 per cent., from o IOC this amount, as the depreciation, the national stock will bo now 318,750,000/. In Mr. George Webb Hall's report to the agricultural association, on the 1st of May, 1820, we find that he estimated the total profits of the soil alone at 99,840,608/. The ostentation displayed by the people, has caused a great increase of plate and plated goods to be manufactured, which has been the means of converting bullion into those articles, which would otherwise, most probably, have been made into coin. There may not be the same objection, perhaps, to the converting of bullion into plate, as there is to the use of it in the manufacture of mock plate, and other spurious articles ; but its being so converted, it be- comes thereby unproductive, whereas if the same were made into coin, it would in all probability be circulating beneficially. It has been affirmed, that there were more plate wrought for families, from 1666 to 1688, than had been fabricated in 200 years before ; which is a proof that the nation was not only then prosperous in trade, but that the people were getting more re- fined in their tastes, and habits ; and were becoming more luxurious in their mode of living. The using of gold and silver bullion in the manu- facture of spurious articles, there cannot be a doubt, is a waste of the precious metals ; they being derived by the balance of profit, from the labour and industry of the people ; and obtained through the medium of 107 our foreign trade, it necessarily becomes part of the nation's stock of wealth ; it is proper therefore that it should be preserved ; but the use of it in the ma- nufacture of such articles, which resemble gold and silver plate, may be accounted as so much loss to the nation. The pride of the people is carried to such a pitch now-a-days, that almost every family of apparent respectability, has, if not plate, plated goods in their houses; and it might be observed, that their sideboards are set out more with spurious articles than genuine ; and for the purpose of deceiv- ing the eye, and making them appear as if they were really wealthy ; the manufacturer has contributed a little to their vanity ; by affixing marks to resemble the Goldsmith's Hall mark, — which the law requires to be stamped on standard gold and silver. If the nobility and gentry were to have real plate in their houses, instead of spurious articles,— that would lose very little by use, as to its intrinsic value, and would be at all times tangible property ; but plated goods are always in convertible, and intrinsically valueless ; we should therefore endeavour rather to increase, than diminish our stock of wealth ; as the time may come when our foreign trade will not give us any profit at all, but may be so disadvantageous, as to cause the exchanges to be turned so much against us, that a very great drainage upon our stock of bullion, and coin, might be the consequence. There are other circumstances to be considered also— the great distress among the manufacturing classes, — 108 the want of credit and confidence generally, among us, and the alteration in the circulating medium ; by the return to cash payments,— the large revenue that is col- lected, and the great demand for money by parishes, on account of the poor, — added to a declining trade, are additional causes of the scarcity ; or rather the little appearance of money. Having alluded to the circumstance of foreign loans being raised in this country, I am led to con- sider, briefly, the effects they are likely to produce upon our national resources.— It is a subject that re- quires the serious consideration of government, and the legislature; for if the people will, inconsiderately, lend their money to foreigners, to the injury of the nation at large; the government ought to interfere and prevent such rash acts being committed. The want of honour and good faith on the part of foreign governments, and the impoverished state of those countries that require such aid, ought to be seriously considered, before we part with our money; we had much better endeavour to find out new sources of commerce, for the employment of it ; or lend it to those of our own countrymen, who would employ it in trade, to the advantage and improvement of the great body of the people, than lend it to foreigners without any return. As I have before observed, money is an useful (and I might add) a necessary article in trade and commerce ; and by the employment of it in that way, has been the means of the accumulation of 100 great wealth in this kingdom. If, by lending the surplus to foreign governments or states, in the absence of trade, they regularly paid us the interest, and gradually liquidated the debts so contracted ; it would be the same to the nation, as a profitable and beneficial trade ; but, unfortunately for us, there can be no dependence either upon the faith j or the ability, of those governments, or states, to do the one, or the other ; and it is to be lamented that in the short period in which the experiment has been tried, we have already had the woful predictions of the more considerate and experienced men among us verified, and the sad effects are, — great distress and misery in those families, whose money has been so foolishly parted with ; and this is not all, bank- ruptcies, and even suicides, have been committed in consequence of speculations in, and the want of the regular payment of the interest on foreign loans : — this was easily to be foreseen, had common reason and prudence been exercised. If we part with our capital to foreigners, without getting reasonable returns for the use of it, we there- by not only prevent the beneficial employment of it at home, but we cause a check to be given to the increase of our national stock, and impair also, the resources of the country. I believe I have shewn some reasonable causes for the apparent scarcity of money in trade, and shall therefore say but little more on thishead ; but mere- ly remark, ---that in consequence of the great fund 110 proprietors drawing, periodically, so much money from the industrious and trading portion of the people, in the shape of interest upon the national debt ; it is accumulating fast in the hands of a few individuals, whose occasions, or habits of life, do not require the expenditure o f it, in an equal ratio, as compared to the amount so withdrawn ; it therefore becomes stagnant, and is placed in the hands of bankers, or in the bank of England, where it remains in a manner unused. The only circulation large sums, so accumulated have, is the occasionally changing of hands, from one to the other of great capitalists ; without producing any benefit to the nation whatever. This opinion is not formed hypothetically, for it is as demon- strable as that two and two make four. The bank books will shew, that the number of stock accounts have considerably decreased in the last few years, —the smaller ones having merged into the larger, for it appears that the total number of persons who received dividends, on the 5th January 1829, was only 275,839,— about 20,000 less than the number a few years ago. The result of this accu- mulation will be, that the national debt, if continued in its present shape, will produce a revolution in the country ; for the fundholders will acquire the greater portion of all the lands in the kingdom ; and the bulk of the nation will be reduced to a state of pauperism. —It is in the nature of the debt itself, to produce these results. Is it reasonable to suppose, that Ill posterity, who will have had nothing to do with the incurring of the debt, will permit such an in- cubus to remain upon the country ? I shall now only add one more reason, to shew why money is withdrawn from circulation, and that is respecting the absentees, who have become residents in France, and other countries ; and those who, in consequence of the cheapness of of living, and the comparative cheapness of travelling in foreign countries, are induced to travel therefor pleasure, instead of in their own country ; which in every other respect, presents objects of gratification, not to be surpassed in any other. /The greater portion of these people derive their incomes, from the taxation of the people of England ; they should therefore be compelled, in obedience to some law, (if they are not moved by the more irresistible impulse — a love for their own country) or be induced to return, by the government reducing the annual expenditure, and by taking off the assessed taxes, and causing a diminution of others ; whereby rents, parochial rates, and the necessaries of life, would be lowered ; — and spend their money among those who con- tribute to their support, and their extravagancies. Many millions of British money have been drawn away by these people, which have been spent abroad, to the improvement of the lands, and the 112 benefit of the trade of France, and other countries, where they have been for years residing. A tax upon absentees has been suggested, but in what manner it can be levied, or how it can be justified, as applicable to all, is a matter that requires much consideration. It would be more desirable, that measures, other than coercive, should be resorted to, if possible, to induce the absentees to return. In more particularly considering the state of the metallic currency, it must be observed, that as the re-coinage of our money, has brought it to nearly a clue proportion of value, in comparison with that of other countries, with which we trade ; and having set the coins, in the two species, as near the intrinsic value as may be ; those fluctuations, which have taken place in former periods — of gold for silver, and silver for gold, which were proved to be very disadvantageous to this country, will be prevented. As we have returned to cash payments, and hav- ing a tolerably wholesome currency ; to preserve it, the government must do all in its power to lessen the country's expences, and reduce the taxation of the people ; and likewise place the debt, and the finances of the country, upon a better footing ; whereby, all apprehension of a return to a paper medium, and a restriction upon cash payments, (which have been the principal causes of all our embarrassments,) may be done away with. The bare suspicion of the neces* 113 sity for another restriction bill, keeps the people in a state of uncertainty, and prevents the restoration of that confidence, so necessary among the mercan- tile and trading classes ; and the landed and monied interests ; which is also essential to the peace, hap- piness and prosperity of the kingdom. We find in former periods of the history of this country, that the distresses and difficulties of the times, induced the government to alter the denomination of value, of the money, with a view of removing those distresses and difficulties ; but the remedy generally proved more destructive than the disease ; for the people of other countries were upon the alert, and took advantage of those measures, and poured in upon, or drained us of our gold and silver ; as such alterations in our currency gave them an opportunity of doing. The raising or lowering the value of money, has always raised or sunk the exchanges in proportion ; and other countries have always benefitted by such alterations, to the great loss, and disadvantage of this country. Although the restriction of cash payments, was considered to be necessary at the time by the ministry, (though not, generally, by the people) under the circumstances in which the country was placed ; yet the sequel has proved, that the measure has been productive of a great deal of evil. Although an one pound note passed current among us for 20s. in silver, it produced the same effect upon our foreign P 114 trade, as though we had raised the denomination of value of the current coin, or the guinea, from twenty- one, to twenty-seven shillings. The foreign merchant, who sold us his commodi- ties, or had to receive a balance from us, would not take in payment a one pound note of our paper, as twenty shillings ; but required to be paid in sterling gold or silver ; and according to the rate of exchange between the two countries, to which the respective parties belonged. It must be observed, that as gold and silver are commodities, and have a value assigned to them, in exchange for other commodities ; so they have a proportionable value, in reference to one another ; or to bank notes, which were made by law, legal currency ; and this value being either settled or variable, fixes or alters the proportion the one bears to the other : it therefore follows, that it is always dangerous to tamper with the currency, or to lay a restraint upon the exportation of either gold or sil- ver ; for, as Locke says, ' it is not any sort of coinage does or can keep your money here ; for that wholly depends upon the balance of your trade.' It is therefore obvious, that it is our interest to remove as much as posssible, all restraints and impositions upon trade, so that we may be able to compete with the foreigner, in the different markets of the world, whereby we may be enabled to keep the balance in our favour, and which is the only sure means of bringing in a sufficiency of gold and silver, for our 115 uses at home : although that very gold aud silver may be sent out occasionally, in the course of that trade, the balance in the end cannot be paid to us in any thing else but gold or silver ; for, as Locke further says, * 'tis silver and gold, and not names, that pay debts, and purchase commodities :'_ no one, I think, can deny the correctness of this reasoning. As the population of the British Isles has consider- ably increased, and is now computed at 23,400,000, they require therefore a larger amount of currency, than when the population was not more than half that number. It will be found on examination, that trade, together with taxation, and the population, have increased in a greater ratio, than the influx of gold and silver ; and the people having at various times experienced a deficiency, other expedients have been resorted to, as a medium, for settling the various transactions of the people, in their trade and dealings with each other ; paper has therefore been found to be the most convenient, and at the same time, the least expensive substitute for coin ; and as the money had, from a variety of causes, disappeared, large issues of paper were made to supply its place. The large revenue collected annually, (between 50 and 60,000,000/.) added to the greatness of our trade, demands a larger amount of money than what we have |got, in gold and silver, and also a more rapid circulation of it ; but when trade is not brisk, the circulation will be proportionally slow,— paper then, in such cases, is an useful auxiliary ; but in 116 order to keep the currency in a wholesome state, paper should at all times be convertible into the cur- rent coin ; for if not convertible at the will of the holder, it will have the effect of raising the price of provisions, and other necessaries : thereby prejudice trade to such a degree, that convulsions in the state, and a derangement of all the affairs of the nation, will be the consequence ; and also great distress will be brought upon the people. It is impossible in the present state of the country, for its affairs to be carried on without paper money, of some sort or other ; for, as I have before observed, the great increase of population, and the large reve- nue to be collected, requires a much larger amount of circulating medium, than what we have in gold and silver ; and to prove that we have not a sufficien- cy of the precious metals for our purposes, it will be necessary to refer to a period of our history, when there was no paper money in circulation, and when the population was little more than one-third of its present number, and the taxes but as one to fifteen, compared with the present amount ; — to know what the people then required ; and what they had to carry on their affairs, without having recourse to paper money ; and also to subsequent periods, when the national debt, aud the taxation, as well as the popu- lation, had considerably increased : — we then find, that the metallic currency was not sufficient for all the purposes of the nation, without the aid of paper. The great evil of paper-money has been found to 117 exist in its inconvertibility, which were rendered so, by the acts of the legislature, and during the exis- tence of those acts, the great bulk of the debt was incurred ; but since they have been repealed, the ine- vitable consequence of the long restriction, (although as yet but partially developed), has been seriously felt, and will be felt still more, unless the taxation of the country be considerably reduced ; for it will be impossible to continue to collect so large a revenue, and so large an amount of parochial rates, with a limited circulating medium. In 1688, when there was no paper in circulation, no national debt, and but a very small revenue, the people required, and had got a gold and silver cur- rency of 11,500,000/. In 1773 the currency had increased to 35,201,030/. : viz. of gold 26,000,000/. ; of silver, 3,000,000/. ; and of bank notes 6,201,030/. The late Earl of Liverpool estimated the amount of the circulation, in 1793, to be 45,000,000/. : viz. gold and silver 25,000,000/. ; banknotes 10,000,000/. ; and of other paper 10,000,000/. In 1797 the gold and silver coin amounted to 30,000,000/. ; bank notes 11,408,826/. ; and country notes to 7,000,000/. Total 48,403,826/. Immediately following the latter period, owing to the passing of the restriction act, it might be said that gold began to go rapidly out of circulation, and as to the silver currency, the coun- try was never in a worse siate. In 1805 we find that the amount of bank notes alone had increased to 1S,397,S*0/. ; in 1808 to 21,304,930/. ; in 1816 to 118 27,304,930/. ; and in 1817, the amount was fur- ther increased (by an advance to government of 4,000,000/.) to 31,000,000/. In 1819 of bank notes, there were in circulation 36,448,850/. ; and country notes 16,500,000/. ; in 1820 the amount of bank notes was reduced to 24,612,120/., and country notes to 11,000,000/. : the total amount of the cir- culating medium for England, Scotland, and Ireland in that year was 58,000,000/. ; in 1822 the amount of gold in circulation, was only 8,000,000/., and the silver was increased to 7,000,000/., and the amount of bank notes was further reduced, and amounted then to 18,326,430/., and the country notes to 8,087,260/. : total 41,393,690/. The foreign loans and mining speculations, caused large exportation^ of gold, which reduced the amount in circulation, in 1824, to 6,000,000/. ; (the silver coin ap- pears to be the same as in 1822, viz. 7,000,000/.) the amount of bank notes was 20,293,362/., and the country notes 10,604,172/. : total 43,897,498/. It is important to state here, that the amount of the various sums of money paid in the year 1825 as deposits on foreign loans, mining and other specula- tions, was 17,582,773/. (the sums that had been already paid, amounted to 27,417,905/.) and the balance of foreign loans remaining, and to be paid, was 7,950,000/. There were coined from the 1st of July, 1825, to the 31st of May, 1827, gold 10,968,693/., and silver 1,000,595/. 126'. ; and the amount of the circulating 119 medium in 1727, stood thus, viz. — gold 13,000,000/., silver 8,000,000/. ; bank notes 22,000,000/. ; and country notes 7,000,000/. : total 50,000,000/. The amount of bank notes, under 5/. value, in circulation on the 1st of February, 1805, was 4,726,840/. ; and in April, 1810, 6,114,170/., the whole of which are now, I believe, withdrawn ; and the provincial notes, of like denomination, went out of circulation also, by the operation of Mr. Peel's bill ; which took effect on the 5th of April, 1829 ; and were supposed to amount to between 4 and 5,000,000/. The propriety of the measure for withdrawing those notes, has been much questioned, and a great deal of discussion has taken place in parliament, both pro, and con, before, and after passing the act ; and those persons who were more immediately interested in their circulation, have endeavoured to excite alarm throughout, the country, as to the con- sequences ; but it is my firm belief ;__ and that belief is grounded upon long, and practical experience, in the banking business, both in London and in the country, that although inconvenience may be felt for a short time for the want of a small currency, yet that inconvenience will be only temporary ; but on the contrary, that great good will ultimately be de- rived by the nation from the measure, I have no doubt — every poor man then who can save a pound, may put by a sovereign, instead of a ragged piece of paper, intrinsically worth nothing. The system pursued by the issuers of those deno- 120 minations of paper-money, was of course to take out of circulation, in their respective circles, all the gold and silver coin ; thereby force into circulation their own paper to supply its place. The money thus withdrawn, was either kept by them to answer their larger notes, since they could be demanded payment of in the legal coin ; or were transmitted to the London bankers, or the Bank of England, where it remained locked up, and useless, as to the country at large. But as the small notes are now withdrawn ; the gold and silver must of necessity, return again into circulation ; this must appear evi- dent to all who understand the question of the currency, or know any thing at all of the system of country banking. Although many gentlemen, whose practical know- ledge, and researches, have entitled them to great consideration and respect, for their opinions ; have argued contrary to this position : but knowing the fact, that they were personally interested in the issue of local paper, such argument produced no other effect upon my mind than surprize ; that men pos- sessing so much talent and acquirements, and legis- lators too, could forego their public duty, and sacri- fice principle also, for paltry lucre ; and endeavour to continue a system, that had already proved to be very injurious to the nation — a system that has pro- duced no small mischief to their country. The measures adopted by government, for giving to the people a wholesome currency, were necessary ; ra but at the same time, they should have been accom- panied with a large reduction of expenditure, and likewise larger reductions of taxation ; for until that takes place, we shall not experience much im- provement in our affairs. Can it be a matter of surprize, that we have experienced panics, and disorganization in our commercial and manufacturing concerns, when we consider the great fluctuations, and changes, that have taken place in the currency? The foreign transactions of some great capitalists in this country, in loan matters, and other specula- tions ; have contributed, not a little, to the embar- rassment of our national affairs; as the quantity of gold and silver sent out, on account of those trans- actions, will prove to have been detrimental to the internal trade, and commerce of the country. The silver alone, exported from this country to the continent, in the year 1827, was 10,264,590 oz. and from January 5th to April 1828, 3,628,750 oz. and from April to July, supposed to bo the same as from January to April ; making a total of 17,522,090 oz. exported in about eighteen months ; ami if averaged at 55. per oz. the value would be 4,405,522/. sterling. From the 11th of April to the 18th, this year, (1829) entries were made for exportation of the undermentioned quantities of gold and silver, to the following places ; viz. to Hamburgh, 24,000 oz. ; to Gibraltar, 300,000 oz. and to other places, 22,000 oz. and 1000 oz. of Q foreign silver coin were for China ; making a total for exportation in one week, of 347,000 oz. These large exportations could not be on account of trade alone ; but must be on account of the foreign loans, or other speculative transactions inimical to trade. The sending out of the country, the precious metals, either in coin or bullion, would not be of great consequence to the nation, (presuming that the individuals who export it, calculate upon a profitable return) provided we had a profitable trade— the balance of which must be paid us in the same kind ; therefore in due course it would again return ; but it is doubtful, whether upon the whole, our foreign trade gives us any profit at all, although our exports exceed the imports, the returns are known to be very small and precarious. It may not be uninteresting to my readers, to ha ve a statement of the annual coinage. I shall therefore insert here, a statement of the quantity, and value of the bullion made into coin, every year, from 1778 to 1797, when the restriction act was passed ; and from 1797 to the year 1810, and partially up to the year 1828 ; likewise the average coined from 1778 to 1810: by which it will appear, that there were coined, in lbs. weight. Value sterling. 1778 7,500 £350,437 10 6 1779 36,300 1,696,117 10 1780 No returns 1781 18,755 876,940 12 6 123 lbs. Weight, Value sterling. 1782 14,940 £698,074 7 6 1783 4,860 227,0S3 10 1764 17,595 822,126 7 6 1785 53,250 2,488,106 5 1786 23,700 1,107,382 10 1787 60,973 2,849,056 17 6 17S8 78,430 3,664,174 10 a 1789 32,760 1,530,711 1790 56,940 2,660,531 10 1791 52,575 2,456,566 17 6 1792 25,080 1,171,863 1793—58,800 2,747,430 0* 1794 54,765 2,258,S94 12 6 1795 10,560 493,416 1796 9,945 464,680 2 6 1797*— 55,535 2,000,297 5 1798 58,179 2,967,504 15 The imports for coinage in the following years, were, For the year lbs. weight. Value sterling. 1799 5,818 £449,961 15 1800 6,25S 489,877 2 6 1S01 14,103 673,002 1S02 437,068 18 G 1803 12,839 596,444 12 6 1804 16,627 718,396 17 1805 54,615 15 * The amount coined in this and the following" year, was nearly equal to any two preceding years ; but in the subse- quent year, and during the reign of paper money, the amount of coinage was comparatively small, and the paper had driven nearly the whole out of circulation ; that which., was left, was only the baser part. m His. u-eiglit. Value ttaling. 1806 8,778 £405,105 15 1S07 4,982 1808 3,009.. 371,744 2 1809 9,223 29S,94G 10 1810 4,203 Average coined, viz.: Of twenty years, from 1778 to 1798 £1,611,011 Often years, from 1799 to 1809 381,370 Of six years, from 1799 to 1804 511,777 Of five years, from 1804 to 1809 226,082 In 1808 there were in circulation between 30 and 40,000,000/. of Bank of England and country notes ; and in April 1810 the one and two pound notes alone of the Bank of England amounted to 6,114,170/., and the coinage had decreased to 226,082/. From the 1st of July, 1825, to the 31st of May, 1827, the amount of gold coined was 10,968,693/., and of silver 1,000,599/. 12s. It is worthy of remark that, during the conti- nuance of the restriction act, the value of landed property had increased more than double, which must be attributed to the great issue of paper. It appears by an extract from Mr. Gregory King's esti- mates of the state of the nation, in the year 1695, that the annual income of the nation was then but 42,500,000/. ; the taxes 5,000,000/. ; and the amount of coined gold and silver 7,500,000/. It appears also, by a statement of Mr. King, that the yearly produce of land up to 1700 was 13,000,000/. ; by an estimate of Mr. Pitt, in 1796, it was 125 25,000,0001. ; by returns to property tax, in J 801, 38,000,0001.; in 1815, 51,000,0001; and in 18-20 the rental of land was computed at 54,000,0001. The peace establishment of 1793 amounted to only 6,000,0001., it is now upwards of 20,000,0001. On the 9th of June, 1802, the navy and army esti- mates were moved in the House of Commons, for the remainder of that year ; by which, it appears that the annual expenditure for 70,000 men, composed of 14,000 cavalry, and 50,000 infantry, including the guards, was 2,500,0001. The supplies voted for 180T-8 were — for the army and extraordinaries 16,000,0001. ; for the navy and extraordinaries 18,000,0001. ; for the ordnance and extraordinaries 3,000,0001. ; the civil list 2,000,0001. ; miscellaneous 3,000,0001.; subsidies 5,000,0001.; and the di- vidends and sinking fund 28,000,0001.: total 75,000,0001. The peace establishment of 1815, in- cluding the interest of the debt, was 56,001,8241. In 1S25 the army estimates were 7,911,0001. ; the ordinance 1,754,0001. ; and the total expenditure for the year was 55,330,0001. The expenditure for the army last year, (1S28) including the ordnance, was upwards of 8,000,0001. ; and the total expenditure upwards of 50,000,0001. In 1813 there were ex- pended, besides all sums applicable to the reduction of the debt, 105,000 ? 000l. ; in 1814, 106,000,0001. ; and in 1815, 92,135,0001. : making a total for throe years of 303,135,0001.! was it possible for so large an expenditure to be circulated, and so large an 126 amount of revenue, as must have been collected in the three years to have been accomplished ; if there had been no paper in circulation, or had there been no restriction bill in existence I The national debt in 1790 was but 228,000,0001. ; the taxes 16,800,0001. ; and the' poors' rates 2,000,0001. In 1820 the debt had increased to 850,000,0001. ; the taxes to 60,000,0001. ; and the poors' rates to 8,000,0001. ! What, I would again ask, has produced all this great increase of the public burthens but the paper system, and how is it possible to get back through the great labyrinth, otherwise than by the aid of paper ; or by a total abandonment of the present system of finance, and an alteration of the state of the national debt ? It is very evident that the ministers were not aware of the consequences that were likely to ensue, by a return to cash payments, unaccom- panied by a corresponding reduction of the ex- penditure and taxation. But having committed the error, and not willing to forego the patronage and power, that must have been relinquished upon a large reduction of the government expenditure, and a reform of all the departments of the state, and being reluctant to acknowledge their ignorance of the sub- ject of currency—they endeavoured to repair that error by allowing the Bank of England to open branch banks. By which an effectual check has been given to credit among the trading and agricultural classes of the community ; for no private banker dare risk his 127 paper against that of the Bank of England— -neither dare the bank extend its issues to the amount of ac- commodation required by the trading, manufactur- ing, and agricultural interests, without producing a necessity for another restriction bill — thus the cir- culating medium will become so restricted as to oc- casion a greater, and a more alarming increase of the general distress, which now pervades all classes of the people — so that the very means resorted to for curing the evil, will tend to increase and per- petuate it. Some people are so infatuated with bank notes, that they imagine, that so long as the bank possess the power of issuing them, the country will be safe ; but the directors know full well, they dare not risk, even the possibility, of making such another application as was made in 1797. That which I have before urged, I must again repeat,— namely, that if we are to have paper-money, it must at all times be convertible into the current coin ; and should any difficulty arise in the financial state of the country, the government must look to other expedients, rather than increasing the amount of the paper-money, whereby they would be com- pelled to have recourse again to a restriction bill. There must be a reduction of the national expen- diture, a reduction of taxation, and an arrangement with the public creditor ; before we can hope for much better times. Although the trade of the country has apparently increased in the course of the Inst thirty years ; yet 128 when we look at the amount of exports and imports, and compare them with those of 1797, we shall then find that it has not increased in an equal ratio with the increase of the population,— of the taxation,— of the expenditure,— the national debt, and the poors' rates ; for whilst the taxes, the poors' rates, and the national debt have quadrupled, the trade of the country has not been doubled, as w T ill appear by referring to the returns of the amount of exports and im orts at the several periods. The exports in 1797 amounted to 30,518,000/. and the imports 23,186,000/. ; and in 1S28 the ex- ports w r ere, according to official value, 52,797,445/., (but the real value supposed to be only 37,000,000/.) and the imports 43,467,747/., shewing an increase of the exports of only about 22,000,000/., upon the official value, but only about 6,500,000/. on the real value ; and on the imports of about 20,000,000/. It is therefore clear that we cannot go on upon the present system much longer, without some very serious disaster happening to the nation ; for the system itself will, in its own operations, bring total ruin upon the mass of the people ; and the whole of the debt, together with the greatest portion of all the land, and other property in the kingdom, will be in the hands of a very few. Can we expect that pos- terity will permit such a state of things to continued or will they not revolutionize the whole system, and wipe away that debt which they will have had nothing whatever to do in the contracting of? 129 It is very clear, that a great diversity of opinion exists, as to the causes of our present difficulties, and also, as to the remedies necessary to be applied. Some contend that it is owing to F a superabundant population, the introduction of machinery, and over production, and some to the corn laws ; and there are others who come nearer the mark, and attribute the distress to the tampering with the currency, and the return to cash payments. The remedies proposed by the first, are as absurd as their reasoning upon the causes ; — they contend that emigration, and the disuse of machinery in ma- nufactures, will cure the existing evils. As to emi- gration, my opinion will be found in the early part of this work ; but upon the use of machinery and over production, I beg to say, that it is the most irrational argument that can be used ; for even by the aid of machinery, we cannot cope with the foreign manufacturer in the supply of the different markets ; much less could we, if every thing were to be done by manual labour alone : and as to over production ; I think it will be found upon enquiry, that the stock on hand is not so large now, as at any period since the war, when we were said to be in a flourishing condition ; neither is there that amount of capital employed in the different branches of our trade and commerce, and in agriculture as there was ten years ago. It must be apparent to the common observer, that there is not so much con- sumed, by the people now, of articles of necessity and 130 luxury, as there used to be, when compared with the increase of population ; for it may be observed, that hi almost all families, a visible change has taken place — all are obliged to lessen their consumption ; but is it to be believed on that account, because we do not consume so much as we ought ; that there is an over production \ If it were possible for us to become all at once prosperous, we should soon find that the stock on hand, would not be adequate to the demand ; and it must be observed also, that when trade is brisk, there is generally a larger stock of manufactured goods of all descriptions, in the factories, and in the warehouses of merchants ; than there is, when trade is dull : and as there is com- paratively but a small trade now, the stock on hand though small, may appear much too large. It is a fact also, which cannot be disputed, that in propor- tion to the accumulation of distress, has capital been withdrawn from trade, and employed in speculative concerns, or lent to foreign governments ; — the policy of which is very questionable, — and it being so withdrawn, there cannot be a doubt, but it has a tendency to increase that distress ; therefore I think it is manifest that it is not a redundant population, the use of machinery, or over production, that is the cause of our difficulties ; nor will emigration, the destruction of machinery, or consumption of the stock that is now on hand, restore us to a healthful state. With respect to the corn laws, it is absurd to •231 suppose that their existence is the cause, or that their repeal will prove a panacea, for all the dis- orders of the state : notwithstanding, I cannot but admit, that it is essential that there should be as much freedom in the trade of corn as is consistent with the price of labour : for, if wages of labour are low, corn, and all other necessaries, ought to be low also ; but on the other hand, if we have a good and brisk trade, the labourer will get better wages, consequently he can afford to give higher prices for his necessaries. Corn, it might with propriety be said, is the standard of value in all agricultural countries ; but it is not so in countries where the people depend upon manufactures and commerce ; as is the case with England ; although it is insisted on by some writers, that corn is the universal standard ; I am of opinion that it cannot be so considered with reference to England. But as agriculture is an important branch of our national industry, it ought therefore to be protected ; it becomes therefore a question of serious import, whether there should not be a small protecting duty. It is not so important to know whether the causes of our distresses, are immediate, or remote ; as it is to know what are the causes; and what measures ought to be resorted to for their removal, or to check the progress of their ruinous effects upon the national resources, and the morals of the people. If I were asked to state the oriyinal cause, I should go back m to 1797, and say, that the restriction bill, which was then passed, to protect the Bank of England, formed the ground wor'k of all the evils we are now endur- ing : but it is not necessary to dilate upon that now ; I shall therefore proceed to show what are, in my judgment, the more immediate causes of our diffi- culties, and what are the remedies necessary to be applied. The return to cash payments without a corres- ponding reduction of taxation, is one of the causes. The neglect of our foreign trade, and in not securing by commercial treaties, at the close of the late war, some of the advantages which we then enjoyed, and which we were fully entitled to hold,— is another. The pertinacious adherence to that false and extrava- gant system of government, by the Liverpool adminis- tration, is a third. The permitting the bank of England to extend their power, by establishing branch banks,— is a fourth ; by which a deadly blow has been given to confidence and the internal trade of the country. It was a sufficient check to inor- dinate issues of paper, when people were enabled to demand payment in gold : without placing in every nook in the country, a bank director, to pry into the affairs of all the trading, and manufacturing persons in the country ; and transmitting the same to their house of assembly iii Threadneedle-street, where it will be turned into pounds shillings and pence, and the balance struck according to their own capricious views— thereby become the ascendant of the minis- 133 try, and also of the trade and commerce of the coun- try. There is another cause which I must mention, and that is the great depreciation of property arising out of the state of the currency, and owing to the general want of confidence. — These are, according to my conception, the immediate causes of our diffi- culties, and which are within the control of the government of the country. There are others which have arisen out of the long war, and the great change that has taken place in the manners, and customs of the people of other countries, with which we trade, and which are not within the control of England. It might have been expected that when a general peace should return to Europe, that the trade would get more divided, and that other countries would set up manufactures ; therefore England could not expect to maintain that monopoly which she enjoyed during the war ; but she might have enjoyed her full share of that trade, had the government adopted strict economy at home, and reduced taxa- tion commensurate with the alterations in the cur- rency, and had likewise been more vigilant in pro- tecting our interests in foreign commerce. Now the question is, what is to be done, in order to bring the country again into a healthful state ? The existence of the evils, is certain ; but the reme- dies for the removal of them, not so certain. I shall therefore endeavour to shew, according to the best of my judgment, what measures are best to be 134 .adopted, under the peculiar situation in which all classes are now placed, for relieving the country ; and to give an impetus, to the slumbering energies of the people. First then, I propose a reduction of taxation, to the amount of five millions at the least ; by taking off the whole of the house and window duty, and some other of the assessed taxes, as well as some of the imposts upon our foreign trade. In order to meet a reduction of taxes, the govern- ment must reduce the annual expenditure, and adopt a peace establishment, more consistent with the state of the country, and the loyalty of the people. Take off the heavy duties upon colonial merchan- dize, and lessen the imposts upon other articles, which prove to be a-bar to the extension of our com- merce with other countries. Encourage as much as possible, a trade with the emancipated provinces of Spanish America ; and admit the products of those countries, into English ports, in British, or native ships, at as low a rate of duty as possible, so that our colonies may not suffer. Throw open the East India trade to all his ma- jesty's subjects. Allow corn to be imported at all times, upon pay- ing a low protecting duty. Deprive the bank of England of the power of establishing, or maintaining branch banks. Allow joint-stock banking companies to be estab- 135 lished in any part of England, under certain regula- tions ; but not allow such banks to issue any notes in London, or to issue any under the value of 5/. ; nor permit them to issue any notes payable to bearer, or otherwise, until the whole of their capital be actually raised. For whatever deficiency that may arise in the reve- nue (and not met by a reduction of expenditure), I propose a property tax, upon a graduated scale ; but I am of opinion, that by the adoption of these proposi- tions, and such other alterations in the system of finance, as I have submitted to government (see ap- pendix), the stimulous that would thereby be given to trade and commerce, and the consequent improve- ment that would take place in the revenue, there would be no necessity for any such tax. I have endeavoured to shew, in as concise a man- ner as I can, the causes of the distresses, and diffi- culties, that now oppress the trade and commerce of England ; and which have caused so much misery to the people : and I have likewise endeavoured to point out some salutary remedies, in the hope that they may have that weight and consideration, with those who have the power of applying them, as I conceive they merit. I must further observe, that there are wealth and resources enough in the country, to uphold its great- ness and power, and to make all classes of the people comfortable, and happy ; provided a proper arrange- 136 liient of the different interests were made, and a pro- per direction given to the energies of the people ; but unless that is done, and speedily too, a great convul- sion in the country will be the inevitable result. Although the legislature has, when the consider- ation of the distresses of the people have been urged, appointed committees, to investigate the causes of those distresses — yet those investigations have never produced results, whereby the true causes and effects, have been demonstrated ; or upon their reports, have remedies been applied for the removal of the disabilities : they have either not gone into the general state of the various interests, or they have suffered their own particular and individual interests, to bias them in their labours ; so that the several classes have been left to struggle with their difficul- ties, without even a prospect of any parliamentary aid. It is important, in order to come to right conclu- sions, that all the interests of the state, should be considered separately, and collectively ; and also that the causes and the effects of the various colli- sions, should be ascertained. Such an examination of the national affairs, ought to be gone into imme- diately ; but I fear, if deferred for another year, an explosion will take place, which will develope the whole at once : then it will be too late to apply those solitary remedies, which if applied in time, might save the nation from a convulsion, which otherwise is certain to happen. 137 As the return to cash payments, necessarily tends to a reduction of the circulating medium; it is very desirable, that some method should be adopted, whereby the revenue could be brought into the exchequer, without withdrawing from circulation (as under the present system we are compelled to do) so large an amount of that me- dium ; which must at all times be detrimental to the internal trade of the country ; more particu- larly when it is considered, that there are nearly 30,000,000/. required annually, to pay the inte- rest of the funded and unfunded debt, the greater portion of which, remains for a consider- able time locked up in the bank of England, or in the hands of bankers ; — consequently its return again into circulation is very slow, and must, of necessity, cramp the operations of manufacturers, and traders in general : the bankers having no other employment for it, than lending it to specu- lators in the funds ; the effect of which is evidently, the giving a fictitious value to funded property — thereby leading the public, generally, to believe that the high prices of the funds are owing to legitimate, and substantial causes,— the injurious consequences of which, are felt in that reaction which naturally follows. In a plan of finance, which I had the honour of submitting to government two years ago, I proposed a means, to prevent the with- drawing from circulation, so large an amount of s 138 the circulating medium ; that the dividend war- rants should be received in payment of the taxes, the customs, and excise duties ; and to make them available for that purpose, they should be issued to the public, one month before the usual time they are paid at the bank : by this plan, they would get into general circulation ; and it is rea- sonable to calculate, that the greater portion would find their way back to the bank, through the medium of the receivers general of taxes, the customs, and excise, and then be cancelled. I have given this part of the subject, the most serious consideration, and I cannot see any possi- ble objection to its being adopted. It would not be creating paper money, but rendering the divi- dend warrants into a sort of tallies, by which the dividends would be settled between the stock- holders and the government, in a similar manner to that which the London bankers settle their daily accounts with each other, at their clearing house : — it would, in fact, be equal to an addition of nearly ten millions to the circulating medium of the country ;— thereby fill up that vacuum, which has been occasioned by the withdrawing from circulation so much of the local paper. I beg leave here, to refer my readers to the plan, which is added to this work as an Appendix, and where it is more fully detailed. In the next session of parliament, 1 have no doubt attempts will be made for the repeal of Mr. 139 Peel's bill; but I trust there will be virtue and power enough, in the Commons house, to resist effectually, any such attempts. To return again to a small note currency, would be the most un- wise measure the legislature could adopt. The landed gentlemen will find it more conducive to their personal interests, and to the welfare of their country, in forcing the government to reduce the national expenditure, and to take off the assessed taxes, and others that bear heavily upon the indus- trious classes, and the trade of the country ; than by endeavouring to force upon the people again, a spu- rious currency : — they had better at once, lower the rents of their estates, than have them all thrown upon their hands, and their tenants become paupers : for where is the utility of having large rent-rolls, and no rents paid I — Revision and economy are the means to be resorted to. Whatever motives may be attributed to me, for publishing my thoughts upon the state of the coun- try, and the severity of my remarks upon the admi- nistrations, which have had the management of its affairs for the last thirty years ; I beg to assure my readers, that I have not been actuated by any sinister or personal motive, but solely with a conscious feel- ing of doing good ; by placing in a prominent point of view, the great interests of the state, — the evils which have, by the mal-administration of the coun- try's affairs, deteriorated, and brought them into jeopardy ; — and shewing also, that the greater por- 140 tionof our distresses and difficulties, may be traced to the restriction bill, which passed in 1797 ; during the existence of which, the paper system grew to that magnitude, which has nearly placed all things out of the controul of legislative power ; and has brought upon [the country desolation and ruin. — I have like- wise endeavoured to show, that the great expendi- ture of the government, has added greatly to our difficulties ; and that unless economical principles are speedily adopted, and a total change of system be pursued, the country will be lost beyond redemption. And we may be assured, that if the legislative autho- rity, and ministerial power, are not exerted with the utmost diligence, and wisdom, we shall not only suf- fer the most profitable branches of our foreign trade to be encroached upon, but may possibly lose a great portion of it altogether : therefore, unless the go- vernment do immediately set about "a reform, in all the departments of the state ; and lessen the heavy imposts upon trade ; and also take off those restric- tions, which prevent an extension of commerce, par- ticularly to the East Indies: — the strength and resources of the kingdom will be so impaired, that we shall not only weaken our own resources at home, but shall lose our reputatian, and credit abroad. It has therefore become our interest, and our duty also, to encourage and extend our foreign trade more than ever ; for, whatever part of it we neglect, or lose, other countries will take up,— thereby enrich themselves at the expense of England; for it must m be admitted that it is owing, principally, to the enter- prising spirit of Englishmen, that the general com- merce of the world, has been so much extended. Having considered, generally, the state of the nation, as it has been, is now, and its future prospects, I do not deem it necessary to pursue the subject further at present. I shall therefore conclude with a few general remarks ; hoping at the same time that my readers will duly appreciate my motives. The present distressed state of the country must impress every one's mind, who feels any interest at all in its welfare, with the necessity of upholding all its great interests ; and that it is the duty of all, to contribute in the best manner possible to the mitiga- tion of those distresses, and privations, which we are all enduring. In turning over the pages of the History of England, we find that the country has had its periods of adversity, as well as prosperity ; and that the great vicissitudes which the people have expe- rienced at various times, have arisen more by the misrule of those, who have had the governing of the national affairs ; than by any external circumstances which have appeared in other countries, calcu- lated to affect the trade and commerce, of this : although they have been the causes that have repeat- edly involved England in many ruinous wars ; yet notwithstanding, we have come out of those wars, store powerful than we were before; but it must lie observed that the nation has had at the several pe- 14-2 riods alluded to abler statesmen than those who have directed the affairs of the state of late years : — men, who regarded the trade and commerce of the coun- try, as the great principles to be upheld ; and which were the means that enriched the people, and gave strength, and power, to the nation, thereby caused us to be respected, as well as feared, abroad, by all other nations ; and also gave England that ascen- dancy in settling the affairs of Europe, whenever they became deranged ; and to whom the weaker pow- ers looked for succour, and protection when attacked by the rapacity of kings, or despots. England has been the only nation that could hold the balance of power in a comparative state of equi- librium,— although but a small portion of Europe, possessing, comparatively, but an unequal number of inhabitants, yet she has, by the great extension of her commerce,— the chivalrous and enterprising spirit of her population ; together with the constitutional, and liberal laws, which have governed the interests of the kingdom ; added to which, — and not the least in importance, — the great probity and honour in her dealings ; she has become the greatest nation in the world, — mistress of all the seas, her ships have wafted the commerce of the world from all shores, and poured into the lap of England, those ingots of gold ; which have not only enabled her to become rich and powerful ; but have likewise been the means of diffusing among other nations, the means of re- sisting those tyrants who have endeavoured at va- 143 rious times to enslave them ; and by her example, other nations, in remoter parts, have emerged from a state of bondage and barbarism ; and are now be- coming as enlightened as any nation in Europe. The patriotism and loyalty displayed by the peo- ple of England, whenever she has been attacked by foreign foes, or has been dissevered by civil dissen- tions, have been perverted by the kings ministers, and rendered subservient to their corrupt motives, in abridging the rights and constitutional Oct O liberties of the people ; whereby the country has been plunged into debt, and a system of corruption and extravagant expenditure has been carried on until the people have lost all their energies, and are become, as it were, incapable of any moral resis- tance. The characteristic dignity, and the proverbial pro- bity, and honour, of the English gentlemen and mer- chant ; have given place to meanness and chicanery ; — the middling classes are becoming poor, — their substances are being consumed, by the continual drainage, to pay the interest of the debt, and to sup- port the extravagant expenditure of the government, and the poors' rates. The mechanic, the handicrafts- man, and the agricultural labourer, from the want of employ, are no longer ashamed to become bur- thensome to their parishes ; and having sunk to the lowest depths of degradation,— men and boys, of all ages, are now to be seen crowding the streets in a state of mendicity, or harnessed like cattle, (doing 144 parochial work, altogether unprofitable, if not use- less) more like slaves than Englishmen, apparently insensible of the degraded state in which they are, and to which they have been brought, by the perti- nacious adherence to a false and extravagant system of government, which has been introduced, and pursued by ministers, incapable of governing rightly; and who never could have remained in power long enough to inflict the people with so much misery, had they (the people) been fairly represented in par- liament. In fact, the people generally, so far from possessing the power of uniting for the general good, dare not trust each other ; confidence being wholly destroyed ; — misery and crime stalk through the land, and the christian ministry, aided by the cha- ritable and pious part of the community, can scarce- ly give a proper bias to the minds of the rising gene- ration : — thus is England circumstanced at the pre- sent time. If government does not immediately take some bold steps, to check the progress of those evils, which are destroying the very vitals of our national existence ; and apply some salutary remedies ; the country will soon be plunged into a state of con- fusion ; from which it will not recover without ex- periencing all the horrors of intestine convulsions. Millions of starving beings will not quiescently linger out their miserable existence, without some desperate efforts being made to obtain the necessaries of life, and avenge themselves of the wrongs they have ' 145 endured. It is appalling to contemplate the conse- quences that must inevitably result from the outrages of an exasperated and oppressed people. The means for remedying or at least ameliorating the state of the people, is still to be found in the country. The legislature and the government should therefore throw aside all party considerations, and abandon for a time, at least, that selfish policy, which, regardless of the general good, has been suffered to prevail, when the great interests of the state have been forced upon their consideration ; and adopt a line of conduct that shall be satisfactory to the general wish of the nation ; whereby the people may be led to expect some relief from the very great burthens that are oppressing them ; and that their energies may not hereafter be uselessly exerted. The resources of the country are ample ; and with a consistent reform, of the commons house of parliament, so that the people can have a full, free, and unbiassed choice of their representatives, — that the ministers of the crown may be compelled, under a truly constitutional controul, to adopt a system of economy, and give a proper direction in the exercise of the powers, vested in them by the legislature, to the affairs of the country. — We may yet avert the storm that is gathering, and be again that great and powerful nation which has been heretofore the admira- tion of all the world. On the contrary, if the down- T 14(5 fall of England be permitted, surrounding nations and all countries where British influence has con- tributed to the enlightening, to the establishing, or to the regaining their liberties, (notwithstanding there may be jealousies and prejudices existing at the present time regarding her commercial greatness) will mourn her fate, and consider it the greatest calamity that Providence has permitted to fall upon civilized nations. APPENDIX. Propositions relative to the Finances of England, submitted to the Government by me, in Novem- ber y 1827; in March, 1S28; and again in February, 1829. First. — I propose a reduction of taxation to the amount of four millions, — by taking off the whole of the house and window duties ; and some other of the assessed taxes, that bear most oppressively upon the industrious classes ; and also some of the imposts which bear heavily upon the manufac- tures, and commerce of the country. Second. — A reduction of expenditure to the amount of four millions, viz. — jw Annum A reduction of the army estimates, of £ A reduction of the navy estmates, of . . . . A reduction of the ordnance estimates, of A reduction of the colonial expenditure By abolishing- useless places, and by an equitable adjustment of salaries. . . . By reducing- the allowance to the bank of Englanrl, for the management of the public debt 100,000 £490,000,000 c 148 Third. — That the whole of the 3 per cent, consols, and reduced annuities, the 3s per cents, and the 4 Iper cents, be consolidated into one general stock, to bear 4\ per cent, interest per annum. Fourth. — That the dividend warrants be delivered to the stockholders, one month before they are payable at the bank ; and that they be receivable by the collectors of taxes, and in the payment of customs, and excise duties. Fifth. — To create stock certificates, or debentures, to the amount of, and not exceeding, fifty mil- lions ; to be delivered to all such persons as may be desirous of holding the same, — in various amounts, of 100/. 200/. 250/. 300/. 500/. and 1000/. each ; — and for every certificate so granted, the like amount of stock to be transferred in lieu thereof— the said certificate to be transferrable without assignment. Sixth. — The interest to be 4\ per cent, per annum, payable half-yearly ; and a certain number of the dividend warrants to be attached to the certifi- cates, and payable to the bearer — the warrants to be so attached, that they might be cut off, without mutilating, or injuring the body of the certificate. Seventh. — The said dividend warrants to be receiv- able by the collectors of taxes, and in the payment of customs and excise duties ; in any part of his majesty's dominions. Eighth. — The sinking fund, for the future, to be applied in paying off the outstanding exchequer 119 • hills ; and after the whole of the unfunded debt is discharged, then to be applied in the reduction of the funded debt. Ninth. That no notes under 61. value, shall be allowed to be issued, either by the bank of Eng- land, or by any other persons acting as bankers, and that all notes shall be payable on demand, in the current coin of the realm. That all bankers who issue notes payable to bearer, shall keep open their banks, for the purpose of exchanging such notes, from nine o'clock in the morning until five in the afternoon, upon all days of business. That when it shall appear, upon the failure of [any banker, or banking establishment, that either of the partners have drawn out any sum of money, exceeding his, her, or their share of the profits, anc 1 the capital such partner or partners respectively has or have brought into the concern ; and has or have appropriated the same to his, her, or their private uses ; such person or persons so offending, shall be deemed guilty of felony. Remarks on the foregoing Propositions. First proposition, natitely, i\ reduction of taxes. — By tfttrillg off the whole of the house and window duty, it would afford gfeftt relief to all persons Occupying bouses—- do away with all \ cvitions assessments, Surcharges, and distraints upon the 150 goods of those who have no other means of paying ; and will create general satisfaction, and confidence in the government. The loss to the revenue would not amount to the sum reduced, as those persons who can afford to pay the taxes, would in all pro- bability, lay out the amount in other taxable arti- cles ; and in many cases, windows would be re- opened, that are now closed ; and new buildings would contain a greater number: consequently more timber, iron, lead, and glass would be con- sumed, which articles pay heavy duties. Second. By reducing the amount of the standing army, it would be more congenial to the feelings of Englishmen — bringing it more within the spirit of the constitution : no danger would arise there- from ; for I verily believe, there is not one in ten thousand, throughout the country, but would, if occasion required, rally around the government to protect it; and suppress any tumult in the country : — the same may be said of the navy ; in case any maratime power should make war upon us, or that the protection of the commerce of the country, should require additional force ; — as the great naval means we possess, enables us to equip ships of war, with the greatest expedition. By a rigid examination into our colonial affairs, and by adopting a system of economy, the expenditure might be greatly diminished. By abolishing use- less places, and by an equitable reduction of sala- ries, a considerable saying might be made. The 151 allowance to the bank of England for managing the public debt, may reasonably be reduced 100,000/. per annum. The calculation I have made in this respect is as follows : — there are from 200 to 230 clerks and porters, employed in the various stock offices ; but if a consolidation of all the stocks should take place, and stock certificates issued, as I have proposed, a much smaller number could transact the business (and indeed, without incurring the charge of being invidious, I presume to say, two-thirds of the number, would be suffi- cient to do all the business that is now done in the stock offices). I have taken for example, 20 clerks at 400/. per annum each ; 50 at 300/. 50 at 250/. 1C0 at 200/. and ten porters at 100/. a year each, ma- king an aggregate amount of 56,500/. For sta- tionery, coals, candles, &c. 15,000/. Allowance for rent, repairs, &c. 20,000/. — making a total expenditure of 91,500/. per annum : — this estimate I am certain is made considerably too high ; but this would leave the bank a net profit, of from 180 to 190,000/. per annum. From which I propose that 100,000/. be taken away. Third. — By consolidating the whole of the 3 per cents., 3a per cents., and 4 per cents., into one general stock, to bear interest of 4\ per cent, per annum ; you would reduce the nominal amount of the debt upwards of 225,000,000/. (the annual interest upon the debt would lie precisely the same as it is now.) Besides the above ad van- 152 tage; the public funds would always be more steady in price, which must be considered a desideratum ; for by the price of the public funds, the interest aris- ing upon all other property, in the kingdom is, in a great measure, regulated. The great disproportion, which one stock now bears to another, arises, in a great degree, from unnatural causes. The adept speculators will, while there are several stocks existing, manage to cause disproportionate prices, that they may pocket the differences. Can there be any other and sufficient reason for the same security bearing a different value in public estimation? Surely not. That inordinate speculation which has frequently caused such great fluctuations in the funds ; and which deters so many from investing, would in a great measure be done away with. There would be a consider- able diminution in the number of transfers ; con- sequently the saving of the 100,000/. as I have proposed, in the charge for management, could with propriety be made. The advantage or dis- advantage to the present stock holders, I have fully considered ; and am prepared by calculations and other considerations, to show that their in- terests would be improved. Fourth. — By delivering to the stock holders the dividend warrant one month before they are pay- able, they would be enabled to pay their taxes with less inconvenience to themselves than at present j as they would answer the purposes of 153 cash or bank notes ; and by making the warrants receivable in the payment of taxes, customs, and excise duties, there would be required, in the col- lection of the revenue, less of the circulating medium ; consequently less of that medium would be withdrawn from circulation. It must be ob- vious that so large an amount withdrawn under the present system, must be very prejudicial to trade in general ; as it is a long time before it gets again into general circulation, — scarcely in time for its re-collection for the next dividends. Fifth, Sixth, and Seventh. — By creating stock certificates, vast assistance would be given to trade, and commerce, by rendering available a portion of that capital, which is now locked up, and a mere dead weight. — This is deserving the most serious consideration of his majesty's go- vernment. To enter into a detail of all the advan- tages here, would be obviously unnecessary ; but some of them I shall beg leave to state. It would be of great utility to merchants and traders, in remote parts of the kingdom, in Ireland, the East and West Indies, and in all the colonies. It would also obviate the difficulties and delays in the present mode of raising money on funded pro- perty — it would be the means of drawing more real capital from foreign countries ; as by the ex- tensive circulation they would have, and being also a convertible security, bearing interest, and from its easy transmissive quality, it would form an T 154 useful circulating medium, particularly in the colonies. I propose that 50,000,000 should be the extent of the issue, unless it should afterwards be found beneficial to increase the amount. Eighth. — By applying the sinking fund in paying off* the unfunded debt, the advantages derived thereby would be greater than in expending the same in the purchase of stock ; as the gradual extinction of the unfunded debt, would greatly relieve minis- ters from the trammels which they have long been in, as regards the connection existing between the government and the bank of England. It would give them the ascendancy, in the consider- ation of the conditions upon which the bank char- ter should be renewed ; as by the time of the expiry of the current charter, the whole of the unfunded debt would be discharged. Besides, it would gradually take from the bank the power which they now possess, of extending, or contracting their paper issues to that degree, which has greatly contributed to the mercantile, and financial diffi- culties of the country : that body in fact, by having the power of controuling the circulating medium, are as it were, the sole arbiters of the value of all property in the kingdom, — a power that ought only to belong to the government, and then only to be exercised under the constitutional acts of the legislature. Ninth. — To render paper money useful and valu- able in a country, it should be kept under such 155 regulations, as to be upon a par with the metallic currency of that country. Paper should at all times be convertible into specie, with the greatest possible facility ; and to prevent as much as possible, apprehension arising in the pub- lic mind, of a depreciation in the value of paper, as compared with gold or 'silver, the government should have no floating debt. The alarm that has been raised regarding the withdrawing from circu- lation the 11. and 21. notes, has been caused in some measure, by those who benefit by the issue, and also by others, who are in a great measure unacquainted with the true bearings, and ramifi- cations thereof. There never will be much metallic currency circulating in the interior of the country, whilst the 1/. and 21. notes are in circulation : — when they are withdrawn, gold and silver will supply their places immediately, and continue in circulation. As soon as gold appears in provincial places, it is caught up by the issuers of 1/. and 21. notes ; and is either kept by them to answer the demands of their larger notes, or it is transmitted to the London bankers, or to the bank of England, where it remains unemployed. The great conster- nation and distress that have been felt by the trades- people and the working classes in the country (upon the failure of a country bank), who are always the holders of the small notes, is a sufficient justifica- tion for the government to put an end to their cir- culation. Great inconvenience is felt by travellers. 156 and others, owing to the country bankers not keeping open their banks, as the London bankers do, from 9 o'clock in the morning until 5 in the afternoon. I therefore suggest, that they shall be compelled to act upon the custom of London bankers. The necessity for a law to punish fraud- ulent bankers, need not be enforced by any obser- vations of mine ; the cases of Fauntleroy, and Stephenson, afford sufficient reasons for some such law, as I have suggested in this proposition, to be passed. Park Terrace, Islington, Nov. 21, 1827. Sir, If these propositions I have here made, should be adopted ; we shall then have a basis, upon which all persons may enter into engagements, with some degree of certainty, and confidence ; and the value of all existing contracts and bargains may be estimated by an unfluctua- ting standard. — A new spirit would be diffused among the mercantile, trading, and agricultural communities ; people would again return to rational and productive enterprize, capital would circulate ; instead of being, as it is at pre- sent, stagnant—the revenue would improve— the standard of prosperity, would again be unfurled — and the people would become happy and prosperous under the wisest, and best formed administration this country has had for a long series of years. I have the honour to be, sir, Your very obedient humble servant, JAMES THICK. To the Rt. Hon. J. C. Herries, Chancellor of the Exchequer, fyc. 157 ANSWER. Doivning Street, Ytt h Dec. 1827. Sir, I am directed by the chancellor of the exchequer, to acknowledge the receipt of your letter, transmitting* for his consideration certain propositions of finanoe. He de- sires me at the same time, to thank you for the trouble you have taken, in submitting- to him your views upon that subject. I ani; Sir, Your obedient humble s?rvant. A. G. SPEARMAN. J. Thick, Esq. 16, Park Terrace, Islington. To the Most Noble the Marquis of Lansdowne. My lord marquis, I take the liberty of enclosing for your lordship's perusal, and consideration, a copy of a letter, and proposi- tions of finance ; which I have done myself the honour of addressing to the right honourable the Chancellor of the Exchequer ; conceiving that, if those propositions were adopted, great benefits would arise in respect to the finan- cial operations of the country ; by placing them upon a basis, that would prove of beneficial importance to the country at large. Being impressed with a deep sense of the high importance of your lordship s transcendaut abili- ties, in matters of finance, I presume will be an excuse for me, in obtruding myself upon your lordship's attention, on this important subject. 1 have the honour to be, my lord marquis, Your lordship's most obedient humble servant, JAMKS THlt K. Park Terrace, Islington, Aov. 27, 1S27. 15S ANSWER. Whitehall, Nov. 2dth 1827. Lord Lansdowne beg*s to thank Mr. Thick, for the copy which he has sent him of his communication to the chancellor of the exchequer, on the subject of finance If Mr. Thick wishes the paper to be returned, Lord Lans- downe will send it to him as soon as he has perused it. J. Thick, Esq. Park Terrace, Islington. To the Rt. Hon. Lord Viscount Goderich. My lord, I presume to lay before your lordship a copy of a letter and propositions of finance, which I have done myself the honour of addressing to the right honourable the Chancellor of the Exchequer, in respect to the finan- cial operations of the country ; which that right honour- able gentleman has the immediate charge of. Being im- pressed with a deep sense of the great importance of the subject, and of the benefits, the country would derive from the adoption of those propositions ; and knowing also the high estimation in which your lordship's abilities, in matters of finance particularly, are held ; I presume to oiler no other apology for obtruding myself upon your lordship's notice on the present occasion. I have the honour to be, my lord, Your lordship's most obedient humble servant, JAMES THICK. Park Terrace, Islington, Nov. 21, 1837. 159 ANSWER. Downing Street, Dec. lltk, 1827. Sir, I am directed by Lord Goderich to acknowledge the receipt of your two letters; one containing- a plan of finance, the other your note of the 8th inst. I have the honour to be, Sir, Your obedient servant, B.S. BALFOLll. J. Thick, Esq. Park Terrace, Islington. To the lit. Hon. Henry Golbourn, Chancellor of the Exchequer. Sir, This is an epoch in the history of this country, that affords you an opportunity of doing an essential ser- vice to the nation ; by which you will exalt your own cha- racter; and place yourself upon an eminence in public estimation, that no chancellor of his majesty's exchequer, lias yet attained. This country, sir, is in a very critical situation, and is admitted to be so by all parties, particu- larly as regards the state of our financial affairs ; and it is only by the adoption of some bold, and energetic measures, that we can hope for more propitious times. It belongs to you, sir, in your official capacity, to place our financial affairs upon that basis, which alone can give to the people', some substantial grounds of hope, of a speed} return of that prosperity which the people once enjoyed ; and which has been held out to them ever since the termination of that long ami disastrous war, which this country chitumIou not 160 only to preserve the high station we hail attained among the nations of the world ; but in many critical periods of that war, it would seem we were contending even for our exis- tence as a powerful nation. The loug continued and appa- rently increasing difficulties, which the government and the people have to contend with, have no doubt induced many persons of better capacity than I possess, to consider the causes, the extent, and the consequences likely to result therefrom; and who have devised, and suggested various means, whereby many of those difficulties could be removed, and others rendered less onerous ; indeed it appears to me, sir, to be the duty of every one, who is at all acquainted with financial matters, the agriculture, trade, and commerce of the country, to lend a helping hand, in these times of peril and necessity. It was upon this view of the case that I was induced in November last to submit to the then chancellor of the exchequer, a plan of finance, the adoption of which would, in my humble judgment, improve that branch of our national affairs ; and place them and the currency upon such an intelligible basis, that all, who are interested in the welfare of their country, may understand them. I shall take leave to enclose a copy of that plan to you, Sir, in the hope, that a part of it at least, may be considered de- serving your serious consideration. That the resources of the country are great, and ample, no one I think will attempt to deny ; and yet notwithstanding, great distress prevails throughout the country, and all classes seem to be paralized. This state of things must surely arise in a great degree, from the deranged state of the civil polity of the country. If therefore a basis were given to our financial system, and an immutable standard to our cur- rency; together with the adoption of economical prin- ciples in all the departments of the state; we might 161 expect halcyon days would again return to the people, au<] a great improvement in the revenue would consequently take place ; from which we might entertain some pleasing hopes of lightening the very great burthen, the national debt, which, I am afraid we must of necessity leave to our posterity to get rid of. As regards the currency, some improvements have un- questionably taken place, since the termination of the war; but amongst them, I certainly do not reckon the extension of the monopoly of the bank of England, in the establishment of their branch banks, to be one of these improvements , for by the extraordinary power that body will thereby possess in a few years, will enable the direc- tors to control the whole pecuniary concerns of the coun- try ; and at auy time by merely penning in their parlour either of these two words ; ' contract ' or ' extend,' they will be enabled to alter the value of all property in the kingdom ; — Can this be right in a commercial country like this 1 In respect to the sinking fund, as it is at present con- stituted and applied ; it is so well understood, and so much has been said of it elsewhere, that it is needless for me to touch upon it here: it suffices to' say, that to issue exchequer bills for the purpose of buying stock; and afterwards converting those very bills into stock, (which must be the case sooner or later, if the present system be pursued) is not the way to get out of debt. Any one, sir, who frequents the Royal Exchange daily, or has inter- course with the trading, and commercial part of the com- munity, must witness the woful effects of poverty in the dejected appearance, and the downcast looks of all who have fallen under the system ; aud must also impress them with the necessity of a change of tliat system, which has nearly annihilated the l»«'st pari of the community. I beg to state, sir, that it must be considered of paramount ne- u 162 cessity, after the very long and arduous struggle this country has had to make, and the great, and appalling difficulties, it has to surmount ; that some sound principles of legis- lation should be adopted, particularly as regards the na- tional debt; and the currency ; whereby the interests of all classes of the community, may be placed upon such a basis, that the solidity of our means, may for the future, be rendered less susceptible of change, and derange- ment. The national debt and the finances seem to be the pivots, upon which all the machinery of the state turns ; and upon the security of which, the happiness of the people mainly depends. Every country, like individuals, has its periods — its infancy, maturity, and decline. Many people think, judg- ing analogically, that this country has been at its zenith, and that it is now on its decline : but however J. am not one of those who despair of its reviving prosperity — considering its immense wealth, and also its vast powers, both moral and physical, — I am fully convinced that this nation is yet capable, by a wise and judicious administration of its resources, of upholding its greatness; which has been, and I trust ever will be, the admiration of the world. From my various avocations, I have had opportu- nities of acquiring a knowledge of different branches of the trade, commerce, and agriculture of the country ; and likewise from my long experience in money matters, and strict attention to the various ramifications thereof, I have been enabled to appreciate the importance of them all, and the effects that are likely to arise from a scarcity or superfluity of money. I trust therefore I shall not be considered too presumptuous, in offering for your con- sideration the accompanying plan ; — being impressed with the conviction, that .some such principles as I have there 163 suggested, should be adopted ; 1 do not, therefore, deem it expedient to trouble you with any arguments to prove its feasibility ; but beg to state, that if any objection, or if any question should arise upon any part of it, I am prepared* and shall be ready to give you the fullest explanation to. I have the honour to be, sir, Your very obedient humble servant, JAMES THICK. Park Terrace, Islington, March 5, 1828. ANSWER. Downing Street, Uh May, 1828. Sir, I am directed by Mr. Golburn to acknowledge the receipt of your letter, and to thank you for the trouble you have taken in communicating your plan of finance. / I am, Sir, Your obedient servant, EDWARD WALPOLE. Mr. Thick, Park Terrace, Islington. To His Grace the Duke of Wellington. My lord duke, In humbly obtruding myself upon your grace's attention, at this eventful period, (whim the most impor- tant of all measures that have engaged the government of England, since the glorious revolution, must require the whole of the energies of your groat mind) might be attri- buted to a want of true respect towards the high station whirl) your grace so transceunantly fills ; but as the subject is next in importance 1o the one alluded to ; and which must again occupy the serious consideration of the legisla- ture. I trust that this circumstance alone, will be allowed 164 ns an excuse for submitting to your grace for consideration, a plan of finance ; which, I humbly conceive, will mate- rially improve that important branch of the government affairs. My lord duke, many schemes have, at various times, been proposed for the better regulation of our financial system, the trade, commerce, and agriculture of the coun- try, in order to make the various interests harmonize ; but no plan has, as yet, been acted upon, that can fully accomplish an object so desirable. With the greatest submission, therefore, I entreat your grace's attention to the enclosed ; and particularly to the 3rd, 5th, and 8th pro- positions, and also to the remarks I have made by way of of explanation thereof; as they are calculated to affect (should they be adopted) a very important change in the state of the funded debt of the country ; and likewise in the state of the currency. Your grace will perceive, by the adoption of the 3rd proposition, that the nominal amount of the debt will, immediately, be reduced upwards of £225,000,000. By the adoption of the 5th, a portion of the debt will be rendered available to trade, and com- merce, in all parts of his majesty's dominions, and will besides form a very wholesome addition to the circulating medium of the country. And by the adoption of the 8th proposition, a more effective reduction of the debt^will be accomplished, than by purchasing stock in the market; and will also be the means of keeping the funds more steady in price ; besides other advantages. If these pro- positions, I have the honour of submitting to your grace, should be carried into effect, I flatter myself we shall then have a basis upon which all persons may enter into contracts and engagements with some degree of certainty, and confidence, besides having an unfluctuating standard. A new spirit would be diffused throughout the whole mer- 166 cautile, trading, and agricultural communities ; people would agaiu return to rational and productive enterprize ; and capital would circulate, instead of being locked up, as it is at present, whereby it has become unproductive. Should your grace require further explanation, I beg to state, I am fully prepared to give it. I have the honour to be, my lord duke, Your grace's most obedient humble servant, JAMES THICK. 16, Park Terrace, Islington, Feb. 20, 1829. )£:nswer. London, Feb.2l 1827. The duke of Wellington presents his compliments to Mr. Thick. The duke has had the honor of receiving- his letter. Mr. J. Thick, Park Terrace, Islington. Note. — The following calculation shows to what extent the stock holders would be affected by the foregoing plan, (the calculation was made when the prices of stocks were as quoted.) Although it might be considered a hardship upon the 3 per cent, stock holders, yet, when we consider the necessity of an equitable adjustment, and the stability which would be given to public securities, by the adoption of the plan; their situation would be improved, rather than deteriorated ; and the nation would be greatly benefitted — inasmuch, as the debt would be* 166 less than 600,000,000/. instead of between 8 and 900,000,000/. and the credit of the country placed upon a firmer basis : — To receive 100/. 4\ per cent, stock, there must be transferred 150/. consols, or reduced annuities 128/. 11 5c?. S\ per cents. ; or 112/. 10s. of 4 per cents. The value in money of 150/. consols, or reduced, at 87, will be 130/. 10s. The value inmoney of 128/. 11. bd. SI per cents, at 93, will be 119/. lis. 5c/. The value in money of 112/. 10s. 4 t per cents, at 102, will be 114/. 15s. The value in money of 100/. 4\ per cent. stock (on the supposition that it would only fetch 114"4, being calculated at the rate of 102, the price of 4 percent, stock), would be 114/. 15s. ; therefore the presumed money loss, the holders of stock would sustain by the exchange (and that is supposing they were obliged to sell their new stock, and that it should not bear a higher price than 114^ per cent.) would be 15/. 15s. on 150/. 3 per cent stock, 4/. 16 5c?. on 128/. 11 5c/. of SI per cent stock ; and on 1 12/ 10s. 4 per cent, stock, nil. But the true proportion one stock ought to bear to the other, (taking the price of 3 per cents, at S7 as the criterion), is, Si per cents. 101a — 4 per cents. 116, and 4g per cents. 130^ It is therefore fair to presume, that the 4» per cent, stock would fetch at least 120 ; consequently the situation of the several stockholders would be thus : — the 3 per cent, holder would exchange 150/. 3 per cents. worth at 87, 1&0/. 10s. — the S\ per cent stockholder would exchange 1281. 11 5c?. S\ per cents, worth at 167 101s, 1301. 10s. — and the 4 per cent, holder would exchange 1121. 10s. 4 per cents, worth at 116, 1301. 10s.— for (each) 1001. 4\ per cent, stock, worth at 120, 1201. : therefore, according to this scale, they will all be upon an equality. As a security to the fundholder, I recommend that a pledge be given, that no further alteration shall take place in the funded debt, for the term of ten years. But that the government reserve to itself the right of paying off any portion of the debt at par, after the expiration of that period. The following statement shows the rate per cent, interest money would produce, taking the different stocks at the following prices, viz. — for 3 per cents, at 87-31. 8 lid. for S\ per cents, at 93—31. 15 3d. for 4 per cents, at 102 — 31. 18 5d. for 4i per cents, at 114^—31. 18 bd. But the true proportion one stock ought to bear to another, in order to produce the same rate of interest is, 3 per cents. 87 — 3o per cents. 101* — 4 per cents. 116 — 4a per cents. 130i. Stock purchased at either of these prices, will give 31. 8 lid. per cent, interest. 168 The following is a plan for creating eight millions of annuities, submitted to the chancellor of the exchequer, in March, 1826. To the Rt. Hon. the Chancellor of the Exchequer. Park Terrace, Islington, March 3, 182G. Sir, Iuthe present critical state of affairs,it behoves every one, who can suggest any plan that will tend to lighten the oppressive burthens which the various classes of society are suffering under, or that can in any degree operate so as to remedy the evils that at present exist, to propose it to those who have the power to carry the same into effect. I shall therefore, without further preface, or apology, suggest to you, sir, a plan that will in my humble opinion (if carried into effect) materially operate in restoring that, confidence, which is absolutely necessary, in order that the commercial, and manufacturing interests of the coun- try may be brought again into a state of prosperity. In proposing my plan to you, sir, I hope I shall not be deemed presumptuous, having had more than twenty years experience in the system of London, and country banking ; and likewise extensive practice and dealings in the public funds of Great Britain, as a broker, and otherwise, and having also devoted a great deal of time and attention to the consideration of the various systems of finance, pursued by yourself, and your predecessors in office. As it is understood to be your intention to propose, on Monday next, to parliament, your finance plans for the year ; I deem it necessary to communicate to you imme- diately, my proposition. Therefore, without further comment, I propose tha) 160 there be created eight millions of annuities, to expire with the long annuities in 1860— by a voluntary transfer of 3 per cent, consolidated, or reduced annuities ; to take as a [data the 3 per cents, at 80, and the long annuities at twenty years purchase. To raise eight millions of annuities, by a transfer of 3 per cent, consolidated, or reduced annuities, would re- quire £200,000,000 of stock, on which the annual interest payable, is £6,000,000 sterling ; thereby the public would lose two millions sterling per annum for thirty-four years, but at the end of that period, there would be extinguished £200,000,000 of the national debt. Now suppose that the additional £2,000,000 which the public would have to pay annually for 34 years, by a crea- tion of eight millions of annuities, should be laid out by the commissioners for the redemption of the national debt in the purchase of 3 per cent, stock ; taking the aver- age price at 80, and adding likewise the compound interest arising thereon, the amount of stock bought up would be £91,482,413 : 12 : 11 ; but by the annuities, so proposed to be created, there would be redeemed iu the same period £200,000,000 ; being £108,517,586 : 7 : 1 more, than by the operation of the sinking fund, to the extent of two mil- lions. Now, as k to the effect such a measure would produce upon the finances of the country, and the general interests of the people — In the first place, there being a sinking fund of five millions established by parliament ; that fund of course would be reduced to three millions, by the ab- straction of the 2 millions to pay to the annuitants. I would propose that the said three millions should be remitted t<> the people in taxes, and do away with the sinking fund altogether. If it is continued upon the present plan, the five millions, with its compound interest, regularly laid x 170 out in the purchase of 3 per cent stock, at the average price of 80 per cent., would redeem in 34 years only £228,704,032 : 12 : 3* of stock, being only an excess of £28,704,033 : 12 : 3\ over and above what would fall in by a creation of eight millions of annuities. I contend, therefore, that a remission of taxes to the amount of £3,000,000, and by paying to the fund holders two millions more annually, would produce very great and beneficial effects upon the fiuances of the country : inasmuch as the annuitants would have one fourth more additional income, and probably would spend 25 per cent, more in articles of necessity, and luxury : thereby add to the revenue of the state. A remission of £3,000,000 of taxes would afford great relief to all classes of the community, give general satisfaction and inspire confidence. I am fully convinced, from the observations I have made during many years experience in stock business, that the purchasing of ;»tock by the commissioners, has not, nor does it tend to keep np the price of stocks, or uphold the national credit. As to the immediate effect that would be produced upon the price of stocks, by the proposal of such a measure — that I have fully considered, and am prepared to show, that no serious depression (if any) would take place, but if a depression should be occasioned, it would be but temporary. There would, probably, be many conjectural opinions hazarded as to its feasibility ; and its effects upon the commercial, manufacturing, and agricultural interests, (upon the prosperity of these several interests, it must be admitted, depends the security and stability of the funded interest') and various objections may be started as to the policy of such a measure at the present juncture : in an- swer, I beg to say, I have maturely considered all pro- bable objections, and am prepared to combat them. 171 It would, perhaps, be obtruding too much, sir, upon your time and attention, to state all the views I have taken, as to the several bearings such a measure might be supposed to have upon the different interests of the country ; I shall therefore reserve all those points for future explanation, should it be required. Trusting this communication will be deemed worthy your serious attention, at this very critical period of distress. I have the honour to be, sir, Your very obedient humble servant, JAMES THICK. Of this communication no other notice was taken than a complimentary acknowledgment of its receipt. PRINTED BY SI IS \ \ !> JONES, AT THE VNION rilL^-, "if. B MITHFIBLD BARS.