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 THE UNIVERSITY 
 
 OF ILLINOIS 
 
 LIBRARY 
 
 13875 
 
 ^^^>^
 
 Return this book on or before the 
 Latest Date stamped below. 
 
 University of Illinois L ibrary 
 
 \m io m 
 
 ni-'O i
 
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 IDAP^IEIB^ 
 
 Entire Repeal 
 
 OF 
 
 ®ftt JSaulv Mtstiiction %tt^ 
 
 AND 
 
 Stiggested for obviating them. 
 
 By J O H N \V R a Y, Esq. 
 
 SOLD BY F. C. AND J. RIVINCTON, ST. TAUL'S CHURCH-VARD; 
 
 AND HATCHARD, PICCADILLY. 
 
 ALSO BY BURGESS AND HUNT, RAMSGATE, 
 
 Price \s. Qd. 
 
 Printed by Burgess, rJunt, ij- Cai ter, Quten-Street, Kwmsgate. 

 
 OF AN 
 
 Entire Repeal 
 
 OF THE 
 
 Uanfe Mt&txktion ^tt 
 
 ■ HE establishment of an efiicient paper- 
 currency maintaining an unimpaired value, 
 during a period of more than twenty years, 
 exhibits to the political economist the import- 
 ant fact, not previously supposed to be pos- 
 sible, that the intervention of a metallic cur- 
 rency for the circulation of every species of 
 exchangeable commodities, may be safely and 
 conveniently dispensed with. 
 
 A paper currency, guarded in its issue 
 by the very principles on which the Bank of 
 England is conducted, cannot be exposed to 
 depreciation, because that issue is governed by 
 
 A 2
 
 4 
 
 the demand, beyond which it has, in no one 
 instance, been carried. Bank paper represents 
 and is a true sign of property — hence, it has 
 ever commanded the public confidence, and 
 for all objects of traffic within the realm, it has 
 been found to possess the powers of bullion. 
 
 In several of the continental states, in 
 which the government has sought relief from 
 financial difficulties, by the issue of paper, that 
 paper did not command the public confidence, 
 and therefore fell to a discount. It represented 
 nothing, and its encrease produced the uniform 
 effect of a proportionate depreciation. Such 
 paper is obviously of a nature, bearing no simi- 
 larity to bank paper. They possess no one fa- 
 culty in common, and cannot therefore in their 
 operation be productive of similar consequen- 
 ces. The cause assigned, sufficiently accounts 
 for the fatal mischiefs, which have attended 
 the arbitrary and uncontroled issue of the one 
 — but that cause, cannot be applicable to the 
 
 other. The one is a baseless fabric the 
 
 other rests on the substantial foundation of the 
 property which it represents. 
 
 The public opinion on this subject is 
 steady and has been strongly pronounced, on 
 each and every occasion, when the recurrence 
 to cash payments has been conte.mplated.
 
 Bank paper has the decided preference — no 
 inconvenience is felt — whilst even a remote 
 prospect of a repeal of the Bank Restriction 
 Act, already fills the commercial world with 
 alarm. 
 
 The effects of a diminished circulating me- 
 dium are anticipated, though obscurely seen — 
 for no one can estimate the magnitude of the 
 evil, on its nearer approach. That it will be 
 tremendous, many sound politicians think, and 
 are prepared to demonstrate. But, were it 
 otherwise, and their opinion, not founded as it 
 seems to be, in the nature of things, the very 
 circumstance of its almost universal prevalence, 
 would generate infinite calamity — afTect pub- 
 lic credit, and derange the relative value of 
 exchangeable commodities. ~ 
 
 In the ruder ages of society, various and 
 successive were the conventional emblems of 
 property, 'till the precious metals received that 
 distinction by the general assent of the civilized 
 world, and thence were vulgarly considered, as 
 constituting the riches of the state. Experi- 
 ence hovyever and reflection, have gradually 
 \e(\. to a very different opinion, and have finally 
 detected the gross, yet venial error, by estab- 
 lishing the distinction, between property and
 
 6 
 
 its sign. In the infancy of society, shells or 
 other emblems have performed the office, which 
 we now assign to the precious metals. Their 
 functions at the respective periods were similar 
 — and their intrinsic value — equal. For each 
 answered the intended purpose — that of facili- 
 tating the interchange of commodities. 
 
 It may be proper to call to our recollec- 
 tion, that the supply of gold within the last thirty 
 years at least has proved inconsiderable, whilst 
 the money value of property, in every part of 
 Europe, and in the United Kingdom in particu- 
 lar, has risen in a ratio infinitely beyond the 
 proportion, which that supply bears to the pre- 
 viously existing amount. 
 
 When it was asserted by an eminent 
 writer at an early period, that one hundred 
 millions of public debt, would cause a na- 
 tional bankruptcy, he might be correct — at the 
 then estimated money value of all the property 
 in the kingdom, the pressure of such a debt 
 might be intolerable, and the interest be equal 
 to, or perhaps exceed the utmost extent to 
 which taxation could be carried — the utmost 
 amount, which the country could be compe- 
 tent to bear. But the money value of all pro- 
 perty having advanced with the progress of tax- 
 ation and of wealth, the crisis anticipate d has pas-
 
 sc(] without convulsion J and a debt greatly ex- 
 ceeding six times the amount in question not 
 only exists and is borne without affecting the na- 
 tional prosperity, but a sinking fund is also pro- 
 vided for, which encreases the weight of taxa- 
 tion nearly 50 per cent, on the produce requi- 
 red for the payment of the interest. So that in 
 effect, the same pressure is experienced, the 
 same burthen supported, as if the capital debt 
 v\rere50percent. greater than its actual amount, 
 and the whole sum now applied to the payment 
 of the interest and of the sinking fund, were re- 
 quired exclusively for the payment of interest 
 alone. 
 
 Hence the conclusion, that the United 
 Kingdom, in its present state of property, and 
 the present money value of that property, is 
 competent to bear a permanent debt, one half 
 beyond its present amount. The revenue ne- 
 cessary to provide for it is actually levied — the 
 difference consists in the application — in the 
 pressure there is no difference. — 
 
 Suppose a country burthened v^^ith tax- 
 es, bearing any given proportion to the aggre- 
 gate amount of the money value of its whole 
 produce of land, labour, mines, fisheries, colo- 
 nies, &c. — that proportion will be clearly af- 
 fected by any degree of further taxation: nor
 
 8 
 
 is it less obvious to reflecting men, thatadimi-* 
 nution in the money value of the whole pro- 
 duce, leads to the same inevitable consequen- 
 ces, although no addition be made to the taxes. 
 
 The truth is, either process destroys 
 
 the previously existing proportion. ^The 
 
 same powers to bear an additional burthen, or 
 diminished powers to bear the same burthen, 
 present the same result. The equilibrium is 
 deranged, and the scale kicks the beam. The 
 weight of taxes will be found in either case, 
 oppressive if not intolerable. 
 
 But if on the other hand, taxation re- 
 main unchanged, and the money value of 
 produce be not deteriorated — that equilibrium, 
 so indispensible to the prosperity of the state 
 will be preserved. To preserve it therefore, 
 and to protect the money value of produce 
 from deterioration is clearly the duty of the 
 statesman. 
 
 Let us examine, whether that duty will 
 be performed by a repeal of the Bank Restric- 
 tion Act and by a recurrence to cash payments. 
 
 And first, as to the practicability of ob- 
 taining an adequate amount of gold; we must 
 then consider the means of effectually apply- 
 ing it, if obtained, to the intended purpose — to
 
 9 
 
 the maintenance of a metallic circulation. 
 
 With this view, we will assume — that previously 
 to the war, there existed in circulation and in 
 the coffers of the bank, an amount sufficient, 
 together with a moderate addition of bank notes 
 and of country bank notes, for the purpose of 
 carrvinoj on the internal commerce of the coun- 
 try, and of making adequate provision against 
 a run. 
 
 The amount of this compound circulat- 
 ing medium, it will doubtless be admitted, 
 bore a certain, necessary, though unascertaina- 
 ble proportion to the aggregate money value 
 of every description of property. 
 
 It will also be admitted, that since that 
 period, the progress of taxation and other cau- 
 ses, have operated upon such money value, and 
 that the same extent of property, and the same, 
 or a similar quantity of exchangeable commodi- 
 ties then supposed to exist, bear at this mo- 
 ment and have borne for some time past, a 
 largely encreased money value. 
 
 Now, as there did exist, a certain, ne* 
 cessary, though unascertainable proportion be^- 
 tween the aggregate of the circulating medium 
 and of the money value of property, — it follows 
 
 B
 
 10 
 
 that, that proportion must be maintained- and 
 the circulating medium be increased up to the 
 level of that indefinite proportion, which is si- 
 lently determined and regulated by the de- 
 mand — that is, by the amount or money value 
 of commodities requiring to be exchanged, and 
 by the degree of activity which in commercial 
 
 transactions, may happen to prevail 
 
 Hence a diminished circulating medium tends 
 to check public prosperity — to embarrass the 
 operations of commerce, — and most materially 
 to affect the revenue of the state. 
 
 Vast additions have also been made to this 
 mass of property, and for some years past the 
 demand for bank paper has required and main- 
 tained, a circulation of about 27 millions, in ad- 
 dition to 18 or 20 millions of country bank notes; 
 — an amount immensely beyond the circulation 
 which existed previous to the war. 
 
 If then the Restriction Act be suffered 
 to expire in July next, the bank and the coun- 
 try bankers must be provided with a stock of 
 gold, not such as they thought sufficient for 
 their former limited scale of circulation, — but 
 such a stock as shall beconsidered adequate to 
 the present extended circulation, and to the pre-
 
 11 
 
 cautions, which a paper medium payable on de-. 
 mand in cash, shall dictate to the prudence and 
 discretion both of the bank directors and of 
 country bankers. 
 
 Whence is this stock of gold to be ob- 
 tained? The continential states requiring gold 
 for their own circulation, cannot afford any 
 large amount to be withdrawn, and the poverty 
 of the South American mines precludes the ex- 
 pectation of supply, — whilst occasional remit- 
 tances of bullion from other quarters are too 
 insignificant to claim attention. 
 
 It should seem, if these views be correct, 
 that a supply of gold sufficient to support a 
 circulating medium of the present indispensi- 
 ble extent, is wholly impracticable. To the 
 effect of a diminished or inadequate circulation 
 the country will therefore be exposed, by any 
 attempt to withdraw from the bank the protec- 
 tion of the Restriction Act. 
 
 Let us however, assume for a moment, 
 the practicability of collecting the mass of gold 
 required, — we have then to consider the mean^ 
 
 B 2
 
 12 
 
 of securing hs permanent application to the in- 
 tended purpose. 
 
 The perfect confidence of the public in 
 bank paper is certainly calculated to relieve the 
 directors in ordinary cases, from the apprehen- 
 sion of a run ; but it is against extraordinary 
 cases, that prudence and duty require them to 
 beVt all times prepared. Such may occur, and 
 notes pour in to be exchanged for gold, altho' 
 
 that confidence shall not have abated an 
 
 unfavorable state of the exchanges may induce 
 the export of gold — bullion will then rise above 
 the mint price, and cannot therefore be pur- 
 chased so cheaply as coined gold j which is, by 
 conversion of bank notes, obtainable from the 
 bank, at the rate of ^.3 1? 10|- per oz. — the 
 mint price. — The bank is therefore the cheap- 
 er market, and to that every dealer will have 
 recourse; for it cannot be imagined, that any 
 one will go to the open bullion market and pay 
 an advanced price, so long as a supply can be 
 be obtained from the bank. 
 
 Such was the demand for exportation, 
 arising from the depressed course of exchange, 
 that we have recently seen bullion 15 to 20 
 per cent, above the mint price. —
 
 13 
 
 At this moment the course is considerably 
 under par, and still admits of the advantageous 
 export of gold. And had the recent harvest 
 been as unproductive in wheat, as it has pro- 
 ved in other species of grain, it is more than 
 probable, that the importation would have 
 caused by its extent, a further and very serious 
 depression. In such case, the large profit on 
 exportation would inevitably induce demands 
 on the bank to an incalculable amount. 
 
 Other similar instances might be noticed, 
 which in the very nature of commerce must 
 frequently occur. It is ever fluctuating, and 
 the balance of trade will occasionally change 
 sides. 
 
 In these or similar circumstances, it is 
 manifest, that the bank would be exposed to a 
 run of indefinite extent, and the coin of the 
 realm be speedily found more current in Paris 
 and Amsterdam, than in London. 
 
 This anticipation of the future, is borne 
 out by the experience of the past — and the re- 
 cent cash payments of the bank, have had the 
 effect of partially supplying the French, rather 
 than the British capital, with a metallic cur- 
 rency ! —
 
 14 
 
 Against the temptation of enormous pro- 
 fits, the penalties of law have ever proved a 
 feeble barrier: and whilst at the risk of confis- 
 cation, the hardy adventurer will export coin 
 in its own shape—the more timid will previ- 
 ously disguise it by the operation of the cruci- 
 ble. By either process, the law is violated. — 
 Both are therefore criminal, — but the one be- 
 ing completed by *' Swearing off," frequently 
 involves the deeper guilt of wilful perjury. 
 
 By these means, gold coin rapidly dis- 
 appears, and the object of giving to the United 
 Kingdom, a, permanent metalWc currency, is de- 
 feated. 
 
 It may be said and truly said, that with 
 a change in commercial relations, gold will 
 again return. No doubt — reverse the circum- 
 stances assumed — and a course of exchange un- 
 favorable to Paris or Amsterdam, will induce 
 the remittance of bullion io London, as a course 
 unfavorable io London, had previously induced 
 its remittance to Paris or Amsterdam. A new 
 supply of gold is thus obtained; but since the 
 part of it converted into bullion furnishes 
 only the material for coinage, the labours of
 
 15 
 
 the mint are again in requisition, and the good 
 citizens are once more gratified with a proba- 
 bly transient, though somewhat costly ghmpse 
 of St. George and the Dragon. 
 
 *' Urnasque frustra Danaides plenas ferunt." 
 
 And surely the wisdom of that policy 
 may be considered questionable, which prefers 
 the certainty of an immediate evil, and of the 
 greater magnitude, to the chance of one that 
 is remote : to a contingency which cannot be- 
 come formidable, or take us by surprise. — Its 
 approach, \{ ever realized, will be gradual, and 
 its progress easily checked. But at this mo- 
 ment, when the circulation appears in a healthy 
 state, why apply to the doctor? Is it not more 
 rational to decline his interference, until at 
 least, some slight symptoms of disease, shall 
 have required and have furnished data for the 
 exercise of his skill ? Why not wait until we 
 shall discover that there is something to be cu- 
 red, — something of a really morbid character 
 existing, ere we tamper with the body politic, 
 or expose it to hazard, by a measure of imagi- 
 nary precaution? Delay will not diminish 
 
 the efficacy of the projected nostrum, and to it
 
 r 
 
 16 
 
 recourse may be had at any time, if nothing 
 better can be found. 
 
 Since then, in the ever fluctuating rela- 
 tions of commerce between this and other coun- 
 tries, dangers and difficulties may attend the 
 repeal of the Bank Restriction Act — let us con- 
 sider the practicability of establishing a curren- 
 cy of such a nature and so effectually guarded, 
 tiiat it shall not be liable to depreciation. 
 
 Those who contend for the necessity of 
 subjecting the bank to take up its notes in 
 gold on demand, conceive that regulation to 
 be the only test of value, and the only means 
 
 of preventing an excessive issue of paper. 
 
 This opinion carries with it an air of truth, 
 and if internal circulation were the sole object, 
 it might be really true. Gold might then be 
 received as an immutable standard, and a pound 
 note be held as immutably to represent such 
 portion of an ounce of gold, as twenty shillings 
 bear to £3 17 lOf, the mint price. 
 
 But our foreign commerce, and connec- 
 tions with foreign states, materially alter the 
 case — since both affect the value of gold and 
 subject it to fluctuation. Thence, the irre- 
 sistible inference, that it cannot in such circum- 
 stances, constitute an immutable standard. y
 
 17 
 
 Yet, in denying this faculty to gold, 
 it is not intended to deny also the existence of 
 any power to adjust or regulate a paper medi- 
 um. On the contrary, it is considered, under 
 certain modifications, to be susceptible of that 
 application. 
 
 Whenever bullion is at the mint price, 
 the bank may safely engage to pay in gold all 
 the demands which shall be made in exchange 
 for its notes. One hundred sovereigns, weigh- 
 ing about 25oz. .682, would be given for one 
 hundred pound-notes: but if the market price / 
 of bullion, instead of ^3. 17- IOt, be £k-. per ^ y y / 
 
 oz. — IS it reasonable to subject the bank to y y - 
 
 the payment of an equal weight at the ad vane- ^*^>^**"^ v / x 
 
 ed, as at the standard price? The bank '^^^'*^'^ y ^r 
 
 would certainly refuse in such case, to sell hid- ^j^-^-"^' . . 
 
 lion at less than ^^4.— Why then should it be -^-^^^^'^" ^■^ 
 compelled to accept a^3. 17. 10| for coin of the ^.c^^^^^ ^' ^^*<*y 
 same standard ? ^^'>*^ ^^ -^^^^^^ 
 
 The price of gold is affected, in com- y . 
 mon with every other article of merchandize, - 
 
 
 by supply and demand. When the demand ^^' 
 
 ^>5. 
 
 J^^r~ jS^ ^ >5i> t ^^ 
 
 exceeds the supply, less gold will be given in 
 exchange, — and if that demand should hav« A Z^^^^^^* 
 raised the price to s§*4. per oz. the bank in de- '^^^^^'^ 
 livering twenty-five ounces of gold, for one 
 
 
 '/r^^ V ^^.
 
 18 
 
 hundred pound-notes, will have given their va- 
 lue, or money's worth, as it will give no morCi 
 when the price is £3. 17- lOi per oz. in deliv- 
 erinjr the greater weisrht of 25oz, .682, for the 
 same amount of notes. 
 
 An agio table, calculated for each inter- 
 mediate price of gold, from £3, 17- 10^ per oz. 
 to £5. or upwards, instantly shewing the agio 
 for anv given sum, would facilitate the des- 
 patch of business. It is indeed in transactions 
 of a certain magnitude only, that such reference 
 could be necessary, minor demands being pay- 
 able in silver, at the option of the bank.* 
 
 Were silver as abundant as bank paper, 
 and to be made the standard currency, — gold 
 would still fluctuate in price, and would com- 
 mand a greater than the fixed proportionate 
 value, whenever wanted for exportation. Com- 
 prising a greater value in a smaller weight and 
 compass, the carriage is less expensive than 
 
 * Should this arrangement be objected to, as hold- 
 ing out to the bank a new source of profit — it may, if it so 
 prove, furnish a proi)er subject for discussion on the re- 
 newal of the charter ; or admit of some other modifications 
 advantageous to the public. It must however be observed, 
 that (he eiicrease of the dead capital must operate against the 
 cliance of any material ullimate gain.
 
 19 
 
 that of an equal value in silver. Gold will tiien 
 be at a premium in exchange for silver, as it 
 will also in exchange for paper, whenever pre- 
 ferable as a medium of foreign payment. 
 
 On the ordinary retail transactions of 
 trade, these fluctuations would have no influ- 
 ence, and a sovereign be invariably exchanged 
 for twenty shillings or for a pound-note, until 
 the demand for exportation should have raised 
 gold so considerably above the mint price, as 
 to offer an inducement for collecting coin at a 
 premium.* 
 
 Were the bank, authorized by the 1 
 gislature to regulate its cash payments on the 
 principle suggested, the speculators in ex-y ^^^'^ ^ 
 
 changes and dealers in bullion, being prevent-yr'-*^^ ''''^*'^^*V* ^ 
 ed from drawing specie from its coffers at an 4 '"'''=' -^^■^ 
 under value, or at less than the price current in .U ;&«r.Tr»— ^**< y^*y 
 the market, could have no motive for exclusive-^ ^^^-ir^^^ y^^p. 
 
 )// *y/ :^^-^^ '^^-^ 
 
 >< 
 
 '^<'-i 
 
 * In Hamburgh, various gold coins, such as Louis 
 d'ors, Dutch and Danish Ducats, as well as the Ducats of 
 the city, are current. Their prices fluctuate, without pro- 
 ducing inconvenience ; as in the ordinary course of retail 
 transactions, they generally pass at the nominal value of 
 silver, respectively affixed to them. It is when they assume 
 the character of merchandize, and are purchased with a view 
 to payments at a distant fair, that they bear an agio againsf 
 silver. 
 
 C 2
 
 
 20 
 
 \y purchasing at the bank, what they might ob- 
 tain elsewhere, on equal terms. 
 
 Hence, the danger of a run would be 
 mainly obviated, — for the bank, possessing the 
 confidence of the public, cannot have cause to 
 
 /a^^Avt ^-t/^^^ "^^'^'"apprehend any extraordinary demand for gold, 
 'v^ v^^-*^-^*^ '^'*ftH' purposes of domestic circulation. An 
 ■^-*^£^ ^■«^''>- ■^^^^^•''''^iextraordinary demand can only be caused by 
 ■■ v/ //'^ t^< r**t-^t.>' a fall in the exchange and the profits of expor- 
 /^/^v >.>»-*^'>^i'»«^/tation, and that demand would be checked by 
 {-\j^/^^ — an advance of the price. 
 
 The bank would however, be enabled 
 from time to time, to replenish its coffers at or 
 about the mint price, and be prepared for every 
 exigency, whilst the occasional profit on the 
 sale, would probably yield reasonable com- 
 pensation for the loss attendant on an extra 
 amount of dead capital. 
 
 The demand could not, certainly, under 
 any imaginable circumstances, be so great as 
 may be supposed to be possible, in the event 
 of an unqualified repeal of the Bank Restriction 
 Act; and the bank may thus collect an amount 
 of treasure adequate to its security, — and 
 maintain at the same time, a circulation suf- 
 ficient for the purposes of commerce and the
 
 21 
 
 public convenience. AVhereas, to attain the 
 like security, under the unquaHfied liability to 
 pay in cash, would require an unattainable 
 amount of.treasure, or compel the directors to 
 seek that security by withdrawing a large por- 
 tion of their notes. The effect of that mea- 
 sure would, as already stated, be pregnant with 
 infinite mischief. The exportation of gold, in 
 an unfavorable state of the exchange, tends to 
 correct that state, and to restore the equilibri- 
 um, — in the mean time the exporter pays his 
 foreign creditors at a cheaper rate than by bills. 
 — Gold by this application of it becomes really 
 valuable, by being rendered really useful. 
 
 The export of coin, if permitted by law, 
 would effect with equal or greater facility than 
 bullion, the payment of a foreign claim, and 
 afterwards return to circulate again at home. — 
 The expense of a new coinage would thus less 
 frequently occur. 
 
 In case of any sudden emergency, de- 
 manding an immediate payment abroad, go- 
 vernment M^ould also be enabled by the aid of 
 the bank, to transmit coin or bullion, and thus 
 avert the consequence of a ruinous exchange. 
 — This consideration mmII appear important to 
 those, who know that the loss by exchange e\\-
 
 22 
 
 hanced the expense of the late contest, to the 
 amount of many milHons. 
 
 Thence, in the event of war, the policy 
 of again recurring to an unquahfied Bank Res- 
 triction Act, is obvious. After an experiment 
 which has proved incalculably beneficial, not 
 only to this country but to Europe — a different 
 course w^ere to prefer danger to security, by 
 deviating from that path, which has conduct- 
 ed us to honor and prosperity. 
 
 These suggestions are submitted to the 
 pubfic, with the anxious wish that they may 
 lead to the means of conciliating, by a middle 
 course, the conflicting opinions of those, who 
 insist on the necessity of a metallic currency, 
 or of a metallic test of paper currency, by an 
 nnqualified repeal of the Bank Restriction Act : 
 and of those on the other hand, who advocate 
 the safe efficiency of a paper currency without 
 such test. 
 
 Many persons of sound judgment do not 
 hesitate to pronounce the dangers attributed to 
 the latter to be wholly visionary, and it must 
 be confessed, with much appearance of reason; 
 since that opinion is countenanced by the 
 experience of more than twenty j^ears, during 
 which period, agriculture and commerce have
 
 23 
 
 prospered beyond all former example. As these 
 facts however, are not received as conclusive, 
 in the estimation of many others, whose senti- 
 ments, from their rank,, their talents, and their 
 influence, claim the utmost deference and con- 
 sideration, every one will feel a just anxiety to 
 allay their apprehensions, and hail with satis- 
 faction, any safe and practicable system, which 
 shall obtain the concurrence and support of 
 both parties. 
 
 To that object do these pages owe their 
 origin, and not to any apparent necessity for a 
 change of system. 
 
 It is hoped, that the principles which 
 they promulgate, may remove the objections of 
 the scrupulous theorist — and prepare him te 
 admit, that they make effectual provision for 
 
 a metallic test of paper currency a test, 
 
 which averts the risk of deterioration — which 
 presents no obstacle to the issue of bank paper 
 sufficient for the fair demands of commerce, 
 and yet provides the means of checking its re- 
 dundancy. 
 
 They appear therefore calculated to guard 
 against those convulsive fluctuations in the 
 money value of property', which any material 
 variation in the currency is certain to produce.
 
 24 
 
 and to prevent that chasm in the circulating 
 medium, which would be the fatal and inevita- 
 ble consequence of an unqualified Repeal of 
 the Bank Restriction Act. 
 
 Note. — It is a fact of notoriety, that many high. 
 ]y respectable country bankers, contemplate an immediate 
 reduction of their paper currency, so soon as the Bank 
 
 Restriction shall be removed. They say prudently, that 
 
 they will not incur the risk and expense attendant upon the 
 carriage of gold from the Metropolis, in case of any unu- 
 sual demand upon them. The mischief consequent upon 
 such diminished circulation, can hardly be calculated. — As 
 for instance — the corn buyer and grazier pay the farmer in 
 bills upon London — the latter requires small notes for his 
 ordinary expenses — the banker refuses to discount, because 
 he may instantly be called upon to pay his notes in cash. 
 — In any event, whether the Restriction be continued or not, 
 a tender of Bank of England notes in payment, ought still 
 to be, as it now is, a protection against personal arrest. 
 
 FINIS. 
 
 Errata. 
 For such portion read, such a proportion, — Page 16, line 20, 
 
 Prirlcd by Burgess, Hunt and Carter, Queen-Street, 
 Ilams-ute.