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and transferrable promise to pay. Check the transferrable claim, and the grand impetus is injured, which at present cannot suffer didiminution, without immediately arresting the progress of labor: without payment man will not work; and if he cannot be paid in mo ney, recourse must be had to a transferrable promise; but it is immaterial to the laborer whether he work for gold or a turnpike ticket, provided that ticket will procure him the necessaries of life. This position has been fully illustrated during the late long and arduous struggle; for although the national debt has abundantly increased, yet has it been accompanied by an extension of national and domestic credit equal to its support, while the resources of the country have been commensurate to its burdens, and every thing has prospered. Houses have been built-roads formed canals cut-bridges erected-and agriculture most wonderfully advanced; nor is there a county that has not had its enclosures, or scarcely a science or manufacture that has not been improved; and these all owe their prosperity to what has been called a fictitious circulating medium. Even charity, the offspring of abundant riches, in England has been most profuse-nay, almost unlimited. All these result from national wealth-not the accumulation of gold! In England's most prosperous days twenty-five millions of specie was as much as it could boast of possessing. How long would twenty-five millions support its inhabitants? one, two, or six months. Can gold then be considered as national wealth ?— We surely must look to something else!

In taking a comprehensive view of our national circulating medium, it will be requisite to consider its amount in relation with that of the national debt, which it is called on to support, as well as with that of the various agricultural, manufacturing, commercial, and professional transactions, each demanding a given quantity to supply their respective daily wants; for it would be preposterous to imagine, that one thousand millions of debt-anim proved agriculture-florishing manufactures-extended commerce, and professional expenses, can be supported and carried on with the limited means that existed when the debt did not exceed two hundred millions-when the country possessed not a quarter of its present tradé, and agriculture was almost in its infancy. Any one who attentively considers the subject will readily perceive that the issues of accommodation from the Bank of England have not kept pace with the increase of debt, a debt which could not be supported by the existing bank notes in circulation, were it not for the co-operation of bankers' credit, country bank paper, and individual credit between party and party.

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lence, more powerful efficacy, than is generally imagined; their combinations give an impetus to every transaction, and urge man and beast into action, without which, the present system could not exist a week; they form the vital principle which directs and animates the whole community, and their being withdrawn would bring about instant annihilation to the prosperity of the empire.

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For the moment-let the benefit resulting from the resumption of cash payments be considered, and in the opposite scale let some of the inconveniences be placed. First, if the bank note were convertible into gold, any one might have the satisfaction of saying that he had gold in his purse, instead of bank paper, which, to an advocate for cash payments, might be cause of exultation but would it give him a grain more wheat with which to make his bread, or an ounce more meat with which to support nature? The goldsmith might, it is true, obtain gold for his trinkets or for exportation on better terms, at the expense of the Bank, and the exchange might, for a very short period, be brought more in favor of the nation; but these are objects of little import

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On the other hand, the bank directors, if compelled to pay in specie, would naturally say that, as the nation called on them to pay, in like manner they must call on the government and on individuals for the discharge of their acceptances, which could only be done by re-payment in their notes, thus diminishing the quantity outstanding against them. Does any man, the warmest advocate for taking off the Bank restriction, reflect on what must be the inevitable consequences of such a proceeding? The directors, by discontinuing their advances in discounting bills, would give a fatal blow to confidence, and would paralize public and private credit.

It may here be necessary to give those unacquainted with money transactions some idea of the extent of credit which the issuing of one bank note upon discount establishes. To say that a note so issued upon a a bill at usance or sixty days for 1000l. forms a credit equal to sixty times its amount, would be narrowing its sphere of action; it possibly may reach three hundred times its value; that is, supposing it to pass into five hands in the course of each day, (for a bank note is is transferred from hand to hand with a velocity not generally comprehended,) it pays at least one bill due on each succeeding day, which at the usance would alone extend the credit afforded to sixty times its amount; for when once a bill is paid, a fresh one is given for a similar period, and thus the creabs dit is generated. A very small portion of bank notes remain for a day inactive, and it frequently happens, that by paying the note

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into a banker's hands, five, six, or even ten bills are discharged by checks, and adjusted at the settling house, thus, in some degree, illustrating the foregoing position of credit so created being equal to three hundred or even three hundred and sixty times the amount of the first note so issued from the Bank; or, in other words, it pays five or six bills in the course of each day. This is no hypothesis, but a circumstance of daily occurrence strange as it may appear that it should not have been treated of before.

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Is there any minister who would be bold enough,-nay mad enough, to venture upon a measure which must overturn this state of things? It recals to memory an anecdote of two persons discoursing on religious faith; the one had every assurance in religion-the other none. "If I am wrong," said the man with faith, "I am but where I am, but if right where are you ?"

The extensive operations of a single bank-note, as supporting credit, explain what has been an enigma to many, who, without this explanation, could never form a conception as to what was the cause of a daily or weekly plenty or scarcity of money; any one who now considers the subject attentively, will instantly perceive, that the Bank's refusing to issue a few hundred thousand pounds on discountable bills, in the course of the week, will produce the latter effect; the occasional extension of discount, or issue of paper, either by the Bank or the Government, or the withholding it, giving rise to, or checking a credit at the lowest computation, in a sixty-fold ratio. Thus 100,000l. would give a credit, amounting in the whole to 6,000,000, or take up bills to the amount of 100,000 daily, for sixty successive days, before the original bank note became repayable into the Bank. For instance, A. obtains money, say 1000l. on his bill, discounted at sixty days' date, given for goods the 29th October, with three days' grace added, which three days are supposed to have run off before the bill is converted, and due the 1st of January, on which day it is to be repaid. On the 2d November, A. pays it to B, who with it takes up his acceptance before given on the 3d, C. does the same on the 4th, D. the same, and so on for sixty days; thus giving in the way of credit, sixty times the actual amount of the note; or, what is the same thing, contributing to the general operations of commerce, 1000l. for each of sixty days.

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The payment of duties on any particular day, on West or East India produce, into the Bank, on account of government, causes a temporary scarcity. In like manner the accumulation in the public coffers from taxes to pay the quarterly dividends, uniformly creates a scarcity for the time being, which would be most severely felt, did not the necessities of the bankers and merchants

carry them to the Bank with their bills in their hands to have their wants relieved; when, ere a few hours have expired, the circulating wheel is again set in motion, and all goes on prosperously, to the comfort and satisfaction of the majority of the monied world; hence it happens that money is more plentiful on Fridays;-Thursdays being appropriated for discounting London drawn bills. On Wednesday preceding the day for general discounts, money is usually more scarce.

It may be adduced in opposition to this argument, that whenever money is in abundance, the discounts at the Bank are less, proceeding not from a want of bills, but that the merchants do not so freely apply to the Bank for assistance.

This fact being granted, still the money (i. e. bank notes) almost invariably flows in the first instance from the Bank, whence in general it can only proceed; for it rarely occurs that the profit upon merchandise can by itself be so considerable as to make money plentiful; if it had that effect, the exchange would instantly turn in favor of England, and the price of gold would decline.

In times of plenty, individuals having an excess of money, supply the place of the Bank, by discounting paper, with the profit resulting from any favorable speculation in the funds, in which the government becomes a loser, in proportion as the public is the gainer; this state, however, of the monied market seldom happens, but when the funds rise considerably above the price at which the contracts for loans have been made; individuals then enabling the bankers to discount: this acts precisely in the same manner as if proceeding direct from the Bank. The Government, to enable the commissioners to purchase, obtains advances from the Bank, or on the sale of exchequer bills; while the profit accruing to individuals from the sale of stock to the commissioners, although it may not exceed one or two millions, establishes the plenty alluded to; and acting as an almost incomprehensible source, establishes an extended credit. The Bank, in one way or another, is the original lender, and to it the nation must look for the sup port of general credit. Recently, when the three per cents. had risen to 84, money instantly became in great abundance, so vice versa now that the funds have fallen considerably below the price at which the last exchequer bills were funded, and that the commissioners have invested ten millions, perhaps after the rate of five per cent. loss to the individuals supplying the stock, money has become more scarce and more in request, so as even to cause inconvenience to many individuals; now if half a million thus creates distress, what would the withdrawing four or five millions occasion? certainly more than a tenfold inconvenience, as compared

with that lately experienced; because, although five millions may, on paper, be but ten times half a million, yet panic would come in aid, and thus multiply the evil with accumulated force.

It is to these fluctuations that the extension or diminution of credit, acting either way in perhaps an hundred fold degree, is to be attributed; and it is by the favorable changes in loans, that individuals have amassed such large fortunes, which indeed the country could never support, did not the fortunes so accumulated furnish, in the aggregate, a supply to the annual collection of taxes; and thus, in a great degree, uphold their own income. Those who possess this species of property, seem for ever jealous of, and at variance with, the landed proprietor; they cavil at every advantage or chance of prosperity which he appears to enjoy; forgetting, that if the landed proprietor did not participate in the general benefit, by raising the price of the produce of the soil, the fundholder could not receive his dividend. The stockholder is ever upon the alert to exclaim against any rise in the price of grain and envi ous of the landed proprietor raising his rent. Whenever any proposition is even hinted at to enhance the price of corn to enable the grower to cultivate it, and which chiefly supports the monied interest, he becomes alarmed in the extreme, lest the price of corn should be raised to its due standard.

It is the equilibrium alone which can regulate all money transactions which can bring the exchange to par-gold to its regular price; and possibly bring back the former in favor of England. At this juncture stockholder, manufacturer, and even landed proprietor, are all troubled and uneasy ȧt not possessing gold the instant demanded—ever true to the nature of man-ready at all times to accept of an advantage, though reluctant to make the smallest sacrifice for its attainment.

Had it never occurred to place a restriction on the Bank payments, where would the funded interest be at this moment-or the landed either ? for it equally affects both—and yet combined with the manufacturer, all are clamorous for something they know not what, beyond that which must lead to the destruction of all-by throwing impediments in the way of government.

Were such transactions wholly confined to the Bank, which discounts the greater portion of mercantile bills, the credit would be confined to sixty-fold, as the note could only pass into the Bank, once in a day, and a fresh note made out for a new bill the succeeding one; but the action on bills in the Bank is limited, compared with the operation which takes place out of the Bankfor the note not only servés to pay bills, but it discharges drafts for all stock transactions in which the drawing and redrawing are enormous, and only adjusted at the settling house, where frequent

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