fmsmi^^mm-^^-^^m 
 
 CONSIDERATIONS ON C0MJ5ERCK, BULLION 
 AND COIN, CIRCULATION AND EXCHANGES; 
 with a view to our present oir- 
 cuinstances 
 by 
 GEORGE CHALMERS 
 1811
 
 liluhiersitu af JUmots Htbrjtrg 
 
 Katlratt ^wstlu JlHestmt Cullertimt 
 
 |Jrcscntehl944 
 
 \J.\^. 
 
 cop- c.
 
 Return this book on or before the 
 Latest Date stamped below. 
 
 University of IlUnois_Ubrary__^^ 
 
 H?^: -^(j 
 
 ::i 
 
 L161— IMl
 
 CONSIDERATIONS 
 
 ON 
 
 COMMERCE, 
 
 Bullion anU Coin, 
 
 CIRCULATION AND EXCHANGES; 
 
 WITH A VIEAF TO 
 
 OUR PRESENT CIRCUMSTANCES. 
 
 BY GEORGE CHALMERS, F.R.S. S.A. 
 THE AUTHOR OF 
 
 THE COMPARATIVE STRENGTH OF GREAT BRITAIK, 
 &C. 
 
 / would not wish to have it understood, in the City, that 
 " this Court had ANY DOUBT, whether B AN K NoTES^ 
 " be not always considered as MONEY, or CASH." 
 
 LD. MANSFIELD. 
 
 THE SECOND EDITION. 
 
 LONDON: 
 
 Printed by Luke Hansard fie Sons, near Lincoln's-Inn Fields, 
 For J. J. STOCKDALE, No. 41, PALL-MALL, 
 
 1«] 1
 
 
 ADVERTISEMENT. 
 
 VtHEN I was preparing for the pre.s<?, a 
 new Edition of my Estimate, eight months 
 ago, my attention was naturally drawn to the 
 analogous topicks of Bullion and Coin, of 
 Circulation and Exchanges, which then occu- 
 pied the public attention, from the exami- 
 nations of the Bullion Committee. 
 
 I also engaged in similar enquiries, in order 
 
 to satisfy my own judgment on those diliicult 
 
 questions, in our existing circumstances of 
 
 \< Trade, at home, and Transactions, abroad. I 
 
 ^. published my Estimate-, and I drew up what 
 
 I had to say on all those topicks, for future 
 
 'i publication, before the Report of that Com- 
 
 '^ mittee was given in, and, of course, before it 
 
 was 

 
 IV 
 
 A\'as retailed, in Newspapers, and republished, 
 as a Pamphlet. 
 
 But, I have not found in it any facts, or 
 seen any arguments, which have induced me, 
 to change the opinions, that I had already 
 formedj from my previous researches, and sub- 
 sequent reflections. I have thought it neces- 
 sary, to state the foregoing intimations, in this 
 prefatory Advertisement; to account, for some 
 of the matter, as w^ll as the manner of the 
 considerations, which I now submit to the 
 Publick.
 
 CONSIDERATIONS 
 
 ON 
 
 COMMERCE; 
 
 BULLION AND COIN; 
 
 CIIICULATION AND EXCHANGES. 
 
 TP\URING the progressive prosperity of Great 
 -*--^ Britain, in all that constitutes opulence, and 
 power, throughout the effluxion ofhalf a century, the 
 year 1809 was the most prosperous. 
 
 This truth will, equally, appear, whether we con- 
 sider our domestic industr}', or our foreign trade. 
 In that year of energy, the people of this country 
 engiiged in a thousand more enterprizes, within our 
 several Shires, than they had ever done before, in 
 any age of their efforts. There were, in fact, passed 
 a greater number of laws, for local meliorations, than 
 iiad ever been enacted, in the busiest period. Were 
 ^e to examine the Parliamentary record, we should 
 find that, in the eight years, which ended with 1809, 
 there was a much greater number of such energizing 
 statutes enacted; than in the eight years preceding; 
 B tliat
 
 2 COXSrOERATIONS ON COMMfiRCi * 
 
 that in the eight years, which elapsed in 1800, 
 there was a still greater number of such salutary 
 laws made, in this period, than in the eight years, 
 which ended in 17;) 2. We may thus infcr, from 
 the public record, an important point of experience, 
 that the vigorous people of this animated nation 
 carry the struggle o-f war into their domestic pur- 
 suits. Owing to that augmented energy, there were 
 more skill, more capital, and more people, employed 
 in the labours of agriculture, during the busy year 
 1809, than any former period could boast: Nor, 
 were there, in any age, more dividing of Commons,, 
 more inclosing of AVastes, more draining of Fens. 
 When Excises, and such taxes, yield abundantly, 
 ihis circumstance evinces the full employment of the 
 people ; their industrious pursuits, and their abilities 
 to consume what theii- wants, or wishes, demand. 
 
 The exportation of vast cargoes, being the surplus 
 products of such a people s labour, proves, suffi- 
 ciently, that there must have been very extensive, ' 
 and persevering ind\istry at home, to produce such 
 cargoes, for export abroad. This nation never en- 
 joyed the advantages of so immense a foreign trade, 
 as it happily possessed, in the memorable year 1 809. 
 The greatest export of any former time, was that 
 of 1 802, a year of peace, when we sent out the value 
 of j^. 41, 41 1,966 : But, in 1809, a year of hostilities, 
 after our commerce had been denounced, by the Ber- 
 lin, and Milan decrees^ we exported from Great Bri- 
 10 tain.
 
 BULLION AND COIN J ETC. 3 
 
 t£un, the much more valuable cargo of £.50,301, yd-^. 
 Never, in any period, belonged to the several 
 ports of this country so many ships : There were 
 never, in any year, employed so many shipping, to 
 transport such uncommon surpluses of ^\hat our 
 land, and labour, produced. We may be said to have 
 enjoyed, at the conclusion of that productive year, the 
 whole trade, which the unhappy world retained; 
 since we had possessed ourselves of the ships, com- 
 merce, and colonies of our malignant enemy. * It 
 is, only ]\Ir. Huskisson, who cries out, in the language 
 of regret, when stating his question : 
 
 " /, waking, view'd with grief the rising sun, 
 " And fondly mourn 'd the dear delusion gone." 
 
 It is of considerable importance, in answering 
 such a question, amidst such regrets, to submit to 
 the more cheerful reader the fair value, at which our 
 prodigious commercial concerns might, in that year, 
 be calculated : — 
 
 The official value of the imports, and exports, in \ 809, ex- 
 <clusive of the. value of the imports, from India, and China, 
 amounted to - - - - - - £. 80,708,823 
 
 Add 50 per cent, for the difference between 
 the real, and the official value - - . 40,354,421 
 
 Carried forward - £. i2i,o63,'2;|4 
 
 * See, ill the Appendix, a Chronological Account of Com- 
 merce, in this island, from the Restoration, to the end of 1809 ; 
 I have annexed this comprehensive document; because it will 
 support, with decisive streni^th, many of my consideratioJis. 
 B 2
 
 4 COXSIDERATIONS ON COMMERCE ,' 
 
 Brought forward - j^. 1-2 1,063,244; 
 
 The domestic trade has always been deemed 
 at least equal, if not superior, to our oversea 
 trade; hence ._-.-- i'ii,o»3,244- 
 
 The coast trade may be estimated at one half 
 of the imports, and exports ; hence - - r)O,53i,6'20 
 
 Add to the above the value of ships, which 
 were registered, in Great Britain, in 1809 ; be- 
 ing 2,368,468 tons, at j^. 10 per ton - - 23,684,680 
 
 The freight thereon, at /^5 per ton - - ii534'i,34<^ 
 
 The difference, betw'een the tonnage ofBritiish 
 vessels, cleared inwards, and out\vards,(3,o7o,7-25) 
 for the year 1 8og, and the registered tonnage, as 
 above, 2,368,468 ; being 702,257 tons, at;^. 10 
 per ton --_.__- 7,022,570 
 
 The freight thereon, at ^. 5 per ton - - 3,511,285 
 
 X.34Mi8,985. 
 The amount of property liisured, in 1809 - * 162,538,900. 
 
 Such, then, was th-s amount of the dealings of 
 Great Britian, domestic, and foreign, during the 
 year i-8o;9, as laid before the House of Commons, 
 by a very well-informed Commitfee'j". From all 
 tliose considerations, we may perceive, how much 
 labour was put in motion, and sustained ; how much 
 commercial value was produced ; and how njany 
 
 * The basis of that Estimate was derived from the Compa-. 
 tation of the Insurance Committee ; and laid before the Com- 
 mons hpuse, in the last Session : See th« Report of that abte 
 Committee. 
 
 fid. 
 
 facilities
 
 BULLIO;^^ AND COIN ; .ETC. 5 
 
 facilities were given to every man, and to every mea- 
 sure, by our paper monei/, which seems to be now 
 discredited, at least, by all those, who, from habit, 
 or accident, or association, look with malign aspect 
 on our national prosperity : And hence, the recent 
 efforts of mischief, the misconceptions of interest, 
 *ind the falshood of disai)pointment ; the publica- 
 tions of self-conceit, and the usual insidiousness of 
 French oeconomists : 
 
 " Who can add colours ev'n to the Cameleon ; 
 " Change fliapes with Proteus, for advantage." 
 
 As the heart, that sends out, and receives, tlie 
 -rital fluid, the Bank, which energizes our whole 
 circulation, is -regarded by those several classes, 
 with jealous vigilance. By interest, the Bank is said 
 to issue too few Notes : By factiousness, the Bank 
 
 fis charged with issuing too many Notes. AVhen 
 we see the wide-circulating journals of the South, 
 
 -and North, inculcate, "svith sly insidiousness, the 
 positive depreciation of the Bank Notes ; when we 
 perceive pamphlet, after pamphlet, attempting to 
 demonstrate the discredit of Iknk cash ; when we 
 observe sucli frequent declamations, followed by 
 
 -serious eiK^uiry ; we may easily suppose, there must 
 
 J)e more meant, than meets the ear. When the 
 great end of th« United Irishmen was to produce 
 
 ..bloody change, in Ireland, by the overthrow of all 
 
 government, and the destruction of all property, the 
 
 B 3 directory
 
 6 CONSIDERATIONS ON COilMERCE ; 
 
 Directory of those miscreants recommended to their 
 followers the refusal of the Bank of Ireland's 
 Notes *. Such attempts, on the opposite sides of 
 the Channel, by similar miscreants, evince a coin- 
 cidence of mischief; and show, with sufficient con- 
 viction, the existence of the same design, to sap the 
 foundations of the Bank, while they wish to weaken ' 
 the stability of the State. 
 
 The year 1797 will always be memorable, in om* 
 commercial annals, for the well-known restriction of 
 the Bank, by Parliament. This restriction was ac- 
 companied, by the secret enquiries of both Houses 
 of Parliament. By them it was disclosed, that the 
 Bank possessed a surplus of effects over her debts, 
 of £. 3,839.550, exclusive oi £. n, 526,350 sterl- 
 ing money, as the debt, from the Nation, to the 
 Bank. Tliis is plainly a satisfactory statement. The 
 Bank Directors, by a memorable resolution, in 
 October 1597, submitted to the wisdom of Parlia- 
 ment, tlieir ability, and their willingness, to issue 
 specie, for the public accommodation, according to 
 
 * The proceedings of the Secret Committees of the Irish 
 Parlianient record that malignant J«cf. Some years ago, when 
 Jacobinism ran high, in Great Britain, I was assured, by a per- 
 son, who knew the circumstance, that a leading Jacobin, at 
 Manehestep, went about the Exchange-, there, oti'ering Bank of 
 England notes, at a discount: but, he was soon met, by very 
 different persons, who, seeitig his purpose, offered to take a 
 £. 1,090, a week, at his discounts. TJiis promptitude put ap 
 end to the Jacobin's impertinence. 
 
 theii'
 
 BTJILION AND COIN ; ETC. 7 
 
 their usual practice, " \i the political ciraimstances 
 " of the Country did not render it inexpedient.** 
 But, the Parliament were then actuated, by too 
 much knowledge of our enemies' projects, and in- 
 fluenced by too much wisdom, to withdraw the re- 
 striction, which had been imposed, by circumspec- 
 tion, and has been continued, by experience. Thus 
 are the affairs of the Bank, and the interests of the 
 State, interwoven into the same web of policy; 
 so that the tearing of the one might rend the 
 other : And hence, may we perceive the maligners 
 of the Bank, and the enemies of the State, to be 
 generally the same ; the same in object ; the same 
 in mischief; the same in means. Yet, will it, also, 
 be memorable, in our commercial annals, that the 
 year i S09, after that restriction had witnessed a 
 dozen yeai's prosperity, surpassed any former pe- 
 riod, in national meliorations, domestic industry, 
 <md foreign trade *. 
 
 Such, however, are tlie wonderous chang-es of a 
 changeful world 1 The most prosperous period is 
 sometimes clouded, by a disastrous year : Many 
 traders adventure out on tlie ocean of commerce, as 
 I have, formerly, remarked ; yet, all cannot return, 
 with happy gales, into poit The year 1792 was 
 the most remarkable of any former time, for industry 
 «t home, and traffick abroad : Yet, Mas it followed, 
 
 * Set; the Cliruuological Table, Appendix, N* \. for the 
 facts. 
 
 B 4 t J
 
 8 COXSIDERAIIOXS OX COMMERCL ; 
 
 by the bankruptcies of 1793 ! The year 1809 wa* 
 superior to 1792, in every thing, that constitutes 
 superior industry, and more extensive commerce, in 
 the proportion of £. 50,000,000, and upM,ard3 to 
 X. 25,000,000; yet, Avas this prosperousness ac- 
 companied, by unfavourable exchanges, and fol- 
 lowed by several bankruptcies ; by some debility of 
 public, and of private credit. But, — 
 
 " Let us embrace those sour adversities : 
 " For, wise men say, it is the wisest course.'* 
 
 It is, indeed, a fact, Avhich cannot be doubted, 
 that our Exchanges have, for some months, been 
 unfavourable, amidst the conmiercial revolutions of 
 the European world. Several of the most con- 
 siderable towns, in Europe, whence Exchanges were 
 carried on, under happier auspices, to a great 
 extent, ceased to be commercial, when those sour 
 adversities fell upon them. And the disadvantage- 
 ous Exchanges with Hamburgh, Amsterdam, and 
 France, are now attributed to every cause, except 
 the true one. The first cause, that occurs to vulgar 
 minds is a wrong balance upon our general trade. 
 When we see exported, from Great Britain, during 
 the busy year 1809, a cargo of the value of 
 ^.50,301,761, according to the Custom-house 
 books ; when we are assured, that the real value, 
 according to accurate computations, from the cur- 
 rent prices^, of that vast cargo, amounted to 
 
 X 66,017,712,
 
 15ULLI0X AND COIK ; ETC. Q 
 
 ^.66,017,712, sterling money, we may perceive, 
 how many balances must be owing to us, on our 
 general trade *. Entj our tradci'S give long credits; 
 and such vast debts are not easily collected into 
 tlie hands of their friends, abroad, to their use, 
 while bills of exchange must be accepted : Yet, thore 
 great Exports plainly show how much the balance 
 of trade is in favour of this Commercial island. 
 While, ho^vever, the revolutionary system of the 
 Continent continues to vex every European Prince, 
 and to injure every industrious people ; while the 
 same system of vexation, and wrong, is applied to 
 the British trafhck, our foreign funds cannot be 
 easily brought round to their true destination, either 
 to liquidate debts, or to antici[)ate draughts : and we 
 may owe balances to northern Europe, wliich are 
 settled for at Hamburgh ; whence the whole claims 
 upon this nation are drawn for, in bills of exchange, 
 or are acquitted to whatever amount, by the trans- 
 missioH of bullion, or goods. I have been assured 
 by Hamburgh merchants, of great acuteness, and 
 knowledge, who are in the daily habit of making 
 remittances to that commercial town, that the real 
 causes of the lowness of the Exchanges, with I Jam- 
 burgh, and the export of bullion, undoubtedly are, 
 that the present balance, not of trade but of paij- 
 ?nents, is against (vreat Britain; and those very in- 
 telligent merchants insist, whatever theorists may 
 
 ,* ^ee the Chronological Table, .Appendix, N» i. 
 
 5ay,
 
 10 COXSIDKRATIONR OX COMMERCE; 
 
 say, that those overpowering pa^^mcnts have arisen, 
 from the vast importations, during recent times, 
 from the Baltic, which must be paid for, at Ham- 
 burgh, while goods cannot be sent thitlier, for pre- 
 serving the equilibrium of the exchange. The facts, 
 which have just been stated, by those, who feel the 
 truth, represent our trade to the principal ports oi' 
 Europe, as in a revolutionary state. We may easily 
 perceive some of the effects of the Berlin Decree. 
 And we may see very sufficient reason for doubting, 
 whether the vast cargoes, which were exported, in 
 1 809, to the European Continent, amounting to the 
 real value of £. 27,190,000 sterHng money, all 
 reached their destined ports. Nor, did the circuit- 
 ous trade of the American citizens, to Europe, fur- 
 nish, in tiiat year, many credits, or frequent remit- 
 tances, as the proceeds of that commerce, to meet 
 the bills of exchange, from the neighbouring Con^ 
 tinent. We may now perceive two of the great 
 causes, that produced the deficiency of British 
 funds, on the neighbouring Continent, notwith- 
 standing our vast exportations to Europe. 
 
 We come at length to the last, though not the 
 1^'ast of the various causes, which have crippled our 
 European trade, and narrowed our commercial funds, 
 on the neighbouring Continent. The Dombiator of 
 Eurojre commands, that British merchants shall 
 neither traffick, nor possess any such funds ; that 
 the products of British labour shall be destroyed. 
 
 Such
 
 BULLION AND coin; ETC. 11 
 
 Such a code requires not an elaborate cominentary. 
 The enforcement of such a code, from such a legis- 
 lator, must necessarily obstruct the dealings of 
 trade, and lessen the efficiency of credits, in Northern 
 Germany : Under such an unrelenting tyranny, no 
 one will be so hardy, or so foolish, as to avow, that 
 he possesses either British goods, or British credits*. 
 As the very principle of exchange is confidence, 
 what exchanges can exist under a code of trea- 
 chery ! There is another cause, which has no small 
 weigVit, in the present considerations : During the 
 times, that are passed, various commercial cities ex- 
 isted, which made exchanges, and re-exchanges, to 
 a great extent ; such as Venice, Leghorn, and 
 Genoa, in the South ; in the North, the Hanse- 
 towns : }]y carrying on, through their means, cir- 
 cuitous exchanges, the direct exchanges were greatly 
 faciHtated, and particular pressures somewhat 
 eased. But, where are now the Free Toicns of the 
 South, or North I We may say, with a little de- 
 parture from the original thought, and expression : 
 
 ** Their good stars, that were our former helps, 
 " Have empty left their orbs, and shot their fires 
 *' Into the abysm of hell ! " 
 
 Such, then are the real causes of our unfavour- 
 able exchanges, and the consequent export of bul- 
 
 * We have heard, lately, from Altona, and its neighbour- 
 hood, tkat, luider the Napoleon code of commerce, the wife 
 betrays her husband, the son his father, brother impeaches 
 biother, and the fritjid his friend. 
 
 lion,
 
 12 CONSIDEBATIONS ON COMMERCE , 
 
 5ion, which are quite equal to the distressing effects. 
 But most of those causes are merely contemporary 
 uith the Continental System ; and ^\ ith it, their 
 effects will of course disappear, when the patient 
 |>iudence of the British merchants shall have per- 
 formed thoir commercial engagements ; v\'ith which, 
 howev<ji% the Bank of England has certainly no 
 .<iirect concern. 
 
 That truth may be demonstrated, from a brief 
 history of the Bank Redrktion. The origin of this 
 salutary measure is not to be attributed to the 
 desires of the Bank Directors ; but, to the pru- 
 dence of Government, and the wisdom of Parlia- 
 ment. The epech of that llestriction is February 
 1797, and, the state of the Nation, at that epoch, 
 may be shortly given, in'the-following mannei': The 
 whole Exports of Gr^at Britain amounted, in that 
 year, to £. 28,91 7,010 ; and the balance of trade to 
 about £, 7,906,000. The sum of Bank Notes, 
 which was then circulated, for the. common benefit, 
 may be stated at 5^. 1 0,403,000. There were 
 coined, in 1 797, £. 2,000,297 of gold ; while the 
 price of standard silver was 5/2^ per ounce. The 
 exchange with Hamburgh was 36. 9 ; and the 
 3 Per Gent. Consols sold, on an average, at 53! 
 percent. Under all those circumstances, at the 
 end of 1797, the Bank Directors submitted to Par- 
 iiameiit their ability, and willingness, to pay, as 
 
 uBual,
 
 UOLLION AND coin; etc. IJ 
 
 tisual, in specie, if the wisdom of the nation saxt 
 yio political reason to prevent thcni. 
 
 But, the wisdom of Parliament did see political 
 reasons^ in tlie nature of the war, and the malignity 
 of our enemy, to enforce the llestrictien, ratlier than 
 relinquish the gold to such an enemy. And, 
 duringthe second year of the Bank llestriction, iwt- 
 withstanding all that orators could say, or pamph- 
 leteers could write, there occurred a vast flow ot 
 trade, favourable exchanges, cheap silver, and every 
 appearance of general prosperity ;— except, that the 
 Bank J(fues had risen, as a necessary consequence 
 of locking up the gold coins, from ;^. 10,403,000 to 
 ;^. 12,695,9 70 : Yet, are there wise men, who think, 
 such an additional issue may have contributed some- 
 what to the said prosperity. Meantinie, mone}f 
 abounded, which, in some minds, is the great good : 
 and, this favourable state of commercial matters,, 
 during this second year of the Bank Restriction, wat. 
 attributed " to the balance of trade.'' In tbit 
 prosperous year, 1798, " it was ascertained, by the 
 '* most accurate enquiries, that there was a profit on 
 " bullion, by importing, and selling, at the mint 
 " price ; so advantageous was the Exchange owing 
 " to the favourable balance of trade widi this 
 " country : The great influx of gold, and silver, into 
 ** this island, since February 1 7p7., being wholly 
 " owing to that tavourable circumstance, in our 
 *' Commercial aflairs ; and there being, at the same 
 
 " time.
 
 14 C0!>.SID£RATI0NS ON COMMERCt ; 
 
 *' time, to counteract that influx, no payment of any 
 *' foreign loans, or subsidies, or extraordinary cx- 
 " penccs, incurred in other countries :" Add to the 
 foregoing representation t " Every Hamburgh packet 
 "continued [in 1798] to import into this country 
 " a large quantity of gold ; much uas thus im- 
 " ported, in the natural course of trade ; and con- 
 *' siderable sums were imported, by commission^ 
 " from the Bank"— 
 
 " While those halcyon days brought forth the arts of Peace." 
 
 Such, then, was the favourable state of money 
 inatters, throughout the prosperous year 1798, 
 notwithstanding the Bank Restriction! The ex* 
 change with Hamburgh, in that year, vibrated 
 irom 38. 2. to 37. while the average rate of the 
 v.hole year was about 37. 7-^-.; which is full 114 
 per cent, in favour of Great Britain. A favourable 
 exchange of ii-f- per cent, produced, as we have 
 seen above, that great current of bullion, by 
 every packet ; there being no adverse circumstances 
 of loans or subsidies, to foreign powers, to cheek 
 the fulness, and rapidity of its flow *. But, is it 
 
 * The Bank Issues fluctuated, in 1798, from j^. 12,000,000 to 
 jT. 13,000,000. There was, in that year, an export of bullion 
 to our factories abroad of j/^. 1,264,287, which we may infer 
 had little, or no effect, while the current of bullion set in, with 
 such abundant influx. The balance of trade, to which .such 
 great eftects were attributed, as it appeared, on the Custom- 
 )iouse books, was only jC- 5,743,888 : But, the favourahler 
 exchange was 1 1-| per cent, above the par. 
 
 not
 
 BfLLIOl'J AND COIN ; ETC. ?.y 
 
 tiol apparent, from those proofs, that if sl favourable 
 exchange of ii-f- percent, produced so great an 
 inward current, an itnfavourablc exchange of 1 1^-, 
 equally unchecked, by any collateral circun^^tances, 
 t\ould, in the same manner, produce an outward 
 current of bullion of e(jual flow, and fuhiess. Now 
 the average of the adverse exchanges of 1 809, being 
 1 1 J per cent, below par, what must have been the 
 current of bullion exported ! This deduction seems 
 to decide the Avholc question, concerning the cause, 
 and the effects, of the exchanges, in 1809, 
 
 But, at the end of 1798, a sad reverse was at 
 hand. Though the exchange continued thus favour- 
 able, during the four first months of 1 79(4 ; yet, 
 before the end of this year, the exchange had fallen, 
 against this country, to 32 ; and the price of stand- 
 ard silver rose from 5/1 to 5/4 1 per ounce. Those 
 great effects are attributed, by i\fr. ]Mushet, and 
 Lord King, to tlK? enlarged issue of Bank notes, 
 from £. 12,695,970, to £. 13,397,820. But, what 
 do collateral facts, and instructive circumstances, 
 prove ? Foreign subsidies, and bad seasons, began 
 now to shed their unhappy influences, on ouv poli- 
 tical economy. The dear years, 1799, ^^^^, ^^^ 
 1801, demanded an export of twenty millions of 
 specie * : And otiier adverse circumstances produced 
 
 debilitating 
 
 * The Minister said in Parliament, on the 3d of Fcbrumy 
 1803; "We buve bud three years of 4ca?cjVy, during which, 
 
 " twenty
 
 debilitating eftects on the exchanges with Hamburgh, 
 and incidental!}', on the builion market of our island. 
 The average exchange with Hamburgh, during the 
 iirst six- months of 1799, ^<?i"g 3^- (^l, v^as Sf 
 ][)ei* cent.- above Y/?€ /Mr of S'S- 8 ; and the average 
 of the last six months of the same year, being 33. 2. 
 was nearly 1 1 per cent, below the same par *. The 
 average exchange, with Hamburgh, of the year 1 800, 
 being -31. 8. was nearly 6 per cent below par : And 
 the average of 1801 being 31.7. was 6 f per cent. 
 below par t- The flourishing trade, to which the Mi^ 
 Ttister alluded, when he delivered his sentiments, on 
 - the said 3d of February 1 803, were the exports of 
 the years 1 800, 1801, and the year of peace, 1802; 
 
 *y twenty millions of specie have been sent out of this coun- 
 "" try, Tor the purcTiase of Corn: There has been also a 
 ■ ifc-'^aiti of specie, in consequence of largersums of money being 
 .*' sent out of the kingdom, for the jiayment of our army, and 
 ," navy, in the several parts of the world. We have, it is true, 
 ♦' a flourishing commerce ; but, it has not yet had the effect of 
 .V .bringing back the specie, thus drawn from the Country." 
 
 * It was given in evidence to the Lords Committee, during 
 tTie Enquiry of 1797, by those who knew the best, that 33. 8. 
 'for the pound sterling is the par of Exchange with Hamburgli, 
 
 'according to the usage of many years ; and that Castaign's 
 
 ""Pape'rs 'are calculated on this jpar. 
 
 i;\..t. The fame persons gave in evidence to the Lords' Secret 
 ..Comxijittee, 1797, " that the exchange at 33. to 33.6. will 
 ; ■" cany bullion out of this country ; and when, from 36. to 36.6, 
 .. *' it will bring in bullion : the price of gold, generally fallutg, 
 ** when the ejf change rj/ta ; and the price of gold rifing, when 
 *' the exchange /a//« ; in the abfence of extraordinary caufes." 
 
 but
 
 Bullion and coin; etc. 17 
 
 but, in all those yeai's oi great eafoj^t, the course of 
 Exchange was adverse to this country *. Such, then, 
 were the facts, which the Minister had within his 
 contemplation, on the 3d of February 1803 : When 
 he spoke of our flourishing trade, there were greater 
 cargoes exported, in those three preceding years, 
 than had ever been sent, from this industrious 
 country before : And yet, ^vere the exchanges un- 
 favourable, during the same three years, though one 
 of them was a year of peace. But did the gradual 
 rise of the Bank issues create the unfavourable ex- 
 changes of those times ? Or, w as it the remittances 
 of Specie, and the Subsidies, that were stated by the 
 finance JVlinister ? The great issues of the Bank in 
 1802, were demanded by the industry, and exports 
 of that peaceful year, when the Bank sustained the 
 labours, and promoted the commerce of our ener- 
 
 The Exports : The Exchange : The Bank issues ; 
 
 '* In 1800,^^.38, wo, 120; belov) pur, Sf/c*; -£. 14,563,740. 
 
 1111801-37,786,857; - d° - C^p'c*; - 15,459,050, 
 
 In 1802 - 41,211,966 ; - (T* - o4-P*c'i - 16,3-20,958. 
 
 Add to those instructive Statements, that there was laid be- 
 fore the Parliament, on the 29th of June 1801, a Treasury Ac- 
 count ; showing the amount of the several sums of money 
 advanced, by way of loan, or subsidy, to the different States, from 
 the beginning of the war, to have been j^\ 12,599,288. 2. 10. ; 
 against all which the Bank Directors constantly remonstrated 
 as producing uiijaiottrable exchanges. Those se%'ejal facts, 
 converging to one point, prove, that the Bank issues did not 
 produce the vnjavovrable exchanges ; but tended to support the 
 fxclianges, by facilitating a great export of goods. 
 
 C getic
 
 18 CON-SIDEIIATIOXS ON COMMERCE; 
 
 getic country. But, it may be again asked, were those 
 remittances of specie, the effects of scarcity, and tlie 
 result of subsidies, owino; to tlie Bank Restriction ; 
 or did the Bank issues alleviate the one, and faci» 
 litate the other, M-hen they sustained tlie industry, 
 and promoted the exports of our enterprizing 
 people ! * 
 
 Tlie reader was troubled with those details ; as 
 they are the very essence of the present enquiry : 
 Those details are of so much importance, that every 
 judicious reader must wish, for some further illus- 
 tration, from different points of view. The Mer- 
 chants, Bankers, and Brokers, ^ho were examined 
 by the Secret Committees of Parliament, in 1797, 
 concurred in their opinions, tliat the favourable, or 
 wnfavourable exchanges, rule the money market J 
 and ought to over-rule forejgR subsidies ; as they 
 turn the balance of paifments against this country ; 
 and the balance of payments govern the exchangesy. 
 while the commercial world is free, from domina- 
 
 "* The war was renewed, in 1803: and, the first impres- 
 s-ions of it were to reduce the exports of the country, from 
 jr.4i,4n,96G to ^T. 31,438,495, The Bank issues of 1803 
 were somewhat less : The Hamburgh exchanges rose aboxc 
 pan I per cent. : and the price of bullion ^e// somewhat, as 
 the exchange rose. Such wag the commercial state of our 
 affairs, when the various statutes, that had been made, from 
 time to time, for confirmirg, and contiiuiing the Bank Resfric' 
 //on, were, on the 15th of December 1803, after mature con- 
 fideration of recent experience, continued, dtiring the rvar, hy 
 the 44 Geo. III. ch. !► 
 
 tioriw
 
 BULLION AXD coin; ETC- I9 
 
 tion*. All the intelligent Merchants, and Brokers, 
 with Mhom I have lately spoken, for my own in- 
 formation, concur in the several opinions, which 
 have just been mentioned. Feeling their force, and 
 •the effects of a low, or high exchange, the Governors 
 of the Bank heard, with a sort of horror, of a foreign 
 loan. Yet, is tlie Minister obliged, amidst such wars, 
 to make such loans, and to grant sudi subsidies ; 
 conceiving it to be far wiser, to fight such an enemy 
 on the Rhine, and the Danube, on the Mondego,an(i 
 Tagus, ratlier than the Thames, ortFie Shannon |. 
 
 It 
 
 * The. late Mr. Giles, the Governor of the Bank, said to th«» 
 Lords'" G.erarnittee, in 1797 - " I conceive, thiit ali loans, mad* 
 ■*' for foreign Powers, or monies gives to them, mustultimbtely 
 " go in specie, although not remitted, in money ; but, it 
 ■*' affects the exchange ; «o iis to occasion gold to go out of th» 
 " country ;"— and, being asked, lithe Ivan would ultimately 
 £0 in specie, nnle&s the exchange iiere reduced BKLOWpar; h(t 
 answered, pointedly : " It would bring ike exchange beloin 
 j)ar." 
 
 t On the 6th of June 1799, a message was delivered, from 
 "the King, to I'arliament, " that be had engaged with the Em- 
 "f* peror of Russiayfor 45,000 men; and for the fitting out of 
 " which were to be given j^. '225,0*10; and, moreover, a 
 " monthly subsidy of /. 75.000:" And, among the Supplies, 
 there were voted to the Emperor, as a subsidy, ^.8-25,000. — On 
 the 1 7 ih of February 1800, the Minister said, the total amount 
 ■of the subsidy, which was wanted, for the German prince:; 
 would probably rise to £. '^,500,000 ; but, he would only then 
 move, for an advancement of j^.. 500,000; • Now; such were 
 •the flnctuations of 1799, owing to those notices, that the Ham- 
 burgh exchange fell fiom IJ^ per cent, above par to 6-^ per 
 c 2 cent.
 
 20 CONSIDKRATlONd ON COMMERCE', 
 
 It is a point agreed, then, from the experience o( 
 the past, and the facts of daily life, that every 
 measure, which tends to raise Me balance oi pay- 
 ■ments against this country, necessarily brings down 
 the exchange to unfavourable vibrations, and car- 
 
 *nes out our bullion, whatever can be opposed to 
 its issue. We see additional proofs of this, in the 
 singular state of our commerce, during 1809. 
 There was a vast export of merchandize, far be- 
 yond the example of all former years, amounting in 
 
 ' 1 809 * to upwards oi £. C6, 000,000. of real value ; 
 
 -cent, below par : .and,, notwithstanding the great exportations 
 of the years 1800, and 1801, the exchange, in the first, was 
 6 percent, bdow par; and in the second year, iSoi, continued 
 below par 6-| per cent. : Nay ; though the peace was, at length, 
 made ; and 1802. was a year of extraordinary export ; yet, the 
 exchange of lSo2 was still 2-5 per cent, ie/ow par. Those 
 facts,- and circiimstancei?, convert .the rcaaomngs of Mr. Giles 
 into- experiaicc. When the vast exports of 1802, however, 
 were brought round upon the balance of payments, in 1803, tha 
 ♦•xchange with Hamburgh rose to be 1 j per cent, aboie par : 
 and, in the hostile years, 1 804-5-6-7 and 1 808, the exchangf $,■ 
 owning to our great trade, in the absence of foreign loans, con- 
 tinued above the par. It was the vast imports, of 1809, with 
 the obstruction of rernittance», owing to the revolutionary 
 causes before raeJitioned, which converted Ihosc fax ovr able 
 exchanges to a ruitious exchange of ii| per cent, below the par, 
 that nothing, but the great credit, and resources of tliis coun- 
 try, could withstand. 
 
 * The real value of Exports, from Great Britain, as we learn, 
 from the ikillion Report, 228, 
 
 was, in i«o5,;^. 51,109,131 J - in i8c6, j^;. 53,028,881 ; 
 in .1S&7, ^.50,482,661 ; - in 1 808, ,^. 49,969,746 ; 
 in 1S09, ^.66,ii7,7n, sterling money. 
 
 there
 
 BULLION AND COIN; ETC. 21 
 
 there was mi immense balance on our general trade 
 with the world, amounting to £. 14,884,649 of real 
 value * : And yet, a most extraordinary import, 
 from the North of Europe, in that year, turned the 
 balance of payments, in favour of Hamburs^h; 
 while revolutionary means were employed, on the 
 neighbouring continent, to prevent the funds of the 
 importers, from reaching their friends, in that great 
 emporium. We see, accordingly, every thing, that 
 was given in evidence to the Parliament of j 797, by 
 the IVIerchants, Bankers, and Brokers, in full opera- 
 tion : The exchange fell below par to 1 1 Jper-cent.; 
 and bullion was sent out, at whatever price ; to an- 
 swer the unfavourable balance oi paj/ments, between 
 the North of Europe and England, The fore- 
 going facts, and circumstances, then, are adequate 
 causes, to produce the disadvantageous effects of 
 an adverse exchange of 1 1 1 per-cent ; of the ex- 
 port of gold and silver ; and of the" consequent rise 
 of the prices of bullion, in the markets at home f* 
 
 Thus, 
 
 * According to a castigated account of tho Inspector Ge- 
 neral, in the Bullion Report, 228, the real balance of our 
 trade with all the world, 
 was, in 1805, ^.6,616,434.; - in 1806, ;^. 10,433,747 ; 
 
 in 1807, j^. 5,866,944 ; - m 1808, X- 12j48 1,290; 
 
 in 1809, £ . 14,884,649. 
 
 t In addition to all those facts, reasonings, and accounts, I 
 
 will beg leave to stale a detail, from Sir Francis Baring's Ob- 
 
 scrrations, 1797: In speaking, p. 49, of the exchanges with 
 
 c 3 Hamburgh,
 
 %2 CO^^SIDLRATIONS ON COMMERCE; 
 
 Thus, then, according to Sir Francis Baring, there 
 is no occasion to ask a question of the EulHon Com- 
 mittee, with regard to those practical points, when 
 there is an adverse exchange of 1 1 1 per-cent. : Vve 
 are therefore, justified, .in. saying, if the revolutionary 
 system of the Dominator of Europe should cease, 
 vyhat has happened in our commercial aftairs, 
 would; agjiin, happen : 
 
 " The hearts 
 
 " Of all his people may revolt from him, 
 " and kiss the lips of unacquainted change." 
 
 Hamburgh, 1796, he proved, by calculation, that there waa 
 \hen a profit on exporting gold to Hamburgh, 
 
 in January 1796 - of - 7^ per cent.; 
 
 iu February 1 796 - o.f - 6 i per cent. ; 
 
 in March 1796 - of - 8 1 per cent. :• 
 After thus showing such profits, on tlie export of bullion, Sir 
 Francis cried out: " With such docuiiients, in the possession 
 *.' 'of every foreign/Merchant, there is no occasion to ask d 
 '.' question, either of tViC Tre3.sury, or of the Bank." — '■' U 
 " must be indifferent," he adds, " if bullion be exported, to 
 " what service it shall be" applied; but, it is of infinite im- 
 <* portance, whether the magnitude of the stim «hal} exceed, 
 *' or fjxll short of the balance of trade ; for whilst the balance 
 " of trade is favourable, the money must return." I concur 
 entirely with that eminent merchant, in his reasonings, As ap- 
 plied to our commercial affairs, in 1809 : on our geiieral trade, 
 ■we had a great balance : but, owing to those revolutionary 
 measures, our funds were prevented from meeting our debts» 
 payable in the North of Europe : and thereby the exchange fell 
 to be unfavourable, 1 1 i per cent. ; yet, while the balance of 
 trade \?,'m our favour, the money must return : We have seen 
 how it returned in 1798, soon after the Bank Restriction look 
 place, when the exchange rose lo per cent, in our favour ; and 
 how it flowed, in many subsequent years of wai*.
 
 BULLION" AND COIN; ETC. 23 
 
 I- 
 
 Of the ExCHANGKS. 
 
 We are thus conducted, by a regular progress, 
 to the great question, whether tliose effects, of un- 
 favourable eixhanges, and high pt'ices of bullion, be 
 owing to causes at home, or to causes abroad ; 
 whether to the revolutionary causes, on the neigh-r 
 bouring Continent ; or, to the depreciation of the 
 Bank paper, from its supposed superabundance. I 
 mean to maintain, that the true causes of those dis- 
 advantageous effects originated abroad, and not at 
 home: And I shall argue the question from facts, frona 
 circumstances, and from ex()crience, against all 
 those, who treat a very important subject of daily 
 life, frgm abstract principles, idle theories, and a 
 bold defiance of comnion sense. 
 
 1 . The first fact is, that we are at war ; we are 
 at war, with Bonaparte * : And the Frepch troops, 
 say the said QomxmtiQe, possess the North of Ger^ 
 vumy : But, this is saying nothing, to the purpose ; 
 since the mere possession of the French troops, 
 while they left every one to follow his o>vn affairs, 
 in his own way; to enjoy his pursuits, and hi$ 
 property ; would not affect the exchange : It is^ 
 in this question, as in several sorts of cases, which 
 come before our criminal courts, absolutely neces- 
 
 * It must always be remembered, that this was the great 
 cause, which induced the wisdom of Parhameut, in December 
 1803, to continue the Bank Restriction to the end of the war, 
 and six monlhs beyond it. 
 
 c 4 sary,
 
 24 CO?fSrDERATIONS ON COMMERCE 
 
 sary, to speak in plain terms : Bonaparte has de- 
 clared, and his will is the la\<*', that we shall have no 
 trade in Europe ; that we shall have no goods, nor 
 credits, any where, witliin his domination, that we 
 shall have no funds, and no remittances. These 
 are facts, which are but too well known, and too 
 much felt, all over Europe. Those facts go to the 
 very soul of the question, as we see our traders am 
 neither have credits, nor can they send cargoes, to 
 meet demands. We see, then, from the foregoing 
 considerations, how much more those revolutionary 
 measures produce unfavourable exchanges, than the 
 loans, and subsidies, which, as we have seen, pro- 
 duced unfavourable exchanges, and drained this 
 country of bullion, by enabling the foreign Powers, 
 to draw bills on this Nation, to the amount of the 
 loans, or subsidies ; and thereby augmenting the 
 balance of payments: But, the merchants met 
 those payments, by the effort of goods, which pre^ 
 served the equable balance of exchanges, while goods 
 could be sent. The wonder now is, when we see 
 such tyranny, aided too by treachery, applied to our 
 commercial transactions, that any sort of exchanges 
 should . remain. Are we then to enquire, why the 
 Hamburgh exchange has fallen to 1 1 1 per cent. ; 
 why our bullion should be exported ; why bullion 
 is uncommonly dear, in the market of London ! 
 
 2. While our traders were thus deprived of their 
 funds, their credits, and their correspondencies, and 
 
 of
 
 BULLION AND COIN; ETC. 2^ 
 
 of the various means of meeting payments, great im- 
 portations were made, from the North of Euroj)e*. 
 To satisfy such vast demands, there appears to have 
 been no other resource but drawing bills upon this 
 country, at a very reduced exchange of schillings 
 and grotes, for our pound sterling. ~ They very 
 naturally sent bullion to Hainburiih, even at a high 
 price, till the bullion was exhausted. Ft is asked, 
 with more acuteness, than experience, since a hun- 
 dred pounds, in specie, may be transported to 
 Hamburgh, at the expence oi £.^. 12. 1 j. why 
 not send bullion, rather than incur the loss, of an 
 adverse exchange of ii| percent- The proper, 
 answer is, that there -was not adequate bullion to 
 send. If there had been bullion, to remit, fix)m 
 the London market, to Hamburgh, it would have 
 been intercepted, and condemned, as the property 
 
 . ■* A very eminent, and well informed Russia ntiercliant has . 
 informed me, as follows : "In the year ji 809,. we importet). 
 " from Russia, produce of the value of j^. 5,000,000 sterliii-;, 
 " at least ; for which we paid £. 4,000,000 sterling in //y/^'-Z/^v 
 " to neutral ships, or Euch as are called neutral: what came 
 «' fr©m other Baltic ports, I dijii't know ; but, our jmporta- 
 *' tions, from Russia, relieved that country of an immense 
 " load, which cost this nation about what I have said." Mr. 
 Greffulhe gave pretty much the same information to th^ Bul- 
 lion ComYnittce, Minutes,. 64, of the 8° edit. Those intima- 
 tions are confirmed, by a castigated account of the Inspector 
 General, that we imported, from Europe, in 1808,^.8,905,099, 
 and _£. 1 9,82 1,601, in 1809, of real value : This statement of 
 those two years, though the imports were, from all Europe, 
 evinces, incidentally, what a vjst amount inu&t have been im- 
 ported, from the Baltic, 
 
 of
 
 26 CON"STDERATIOT^S ON" COl\<f^IfiRCK ; 
 
 of English traders. Nor, Avas it possible, amidst 
 those commercial embarrassments, to make cir- 
 cuitous remittances, by drawing on, and remitting to 
 other towns, which would have sustained the direct 
 exchanges : The middlemen too, or exchangers, were 
 gone ; and the very free tozv7is, the busy scenes of 
 trade, and the very seats of exchangers, had ceased 
 to be commercial. Again ; while our trade, with 
 Hamburgh, remained free, and the exchange became 
 adverse, every merchant knew, how to profit from 
 both those circumstances ; When, from the state of 
 the exchanges, he saw, that he must receive a 
 smaller number of schillings and grotes, for his 
 pound sterling, he perceived, incidentally, that the 
 pritte of goods, in the London market, was lessened, 
 in proportion, to the fall of the exchange : And of 
 course, by making his remittance to Hamburgh, in 
 goods, in preference to bullion, he not only saved 
 the loss on the exchange, but obtained a profit on 
 the goods expoited. Such w^as the practice of 
 merchants ! But, could this operation, which was so 
 familiar, and So frequent, while trade was free, be 
 performed, in 1 809 ? No : and of course the whole 
 exchanges, and the prices of bullion, became dis- 
 organized, when the usual expedient of sending 
 cheaper cargoes, which kept both the course of the 
 exchange, and the prices of bullion, in equilibriuniy 
 could no more be applied. ^Moreover, it has been 
 intimated to me, by a very respectable merchant, 
 
 who
 
 BULLIO>f AND COIN ; ETC. 27 
 
 who is well acquainted with foreign affairs, that the 
 fioii-exportatiofis oi the Amerkan tr&.de may bear, 
 considerably, on this question ; as the Britisli credi- 
 tors were thereby deprived of credits^ on the neigh- 
 bouring continent : The American citizens are alwayi 
 indebted ten, or twelve millions, to the British mer- 
 chants, for goods furnished on credit, which the 
 American citizens were in the habit of paying, by 
 the consignment of their ships,, and cargoes, to their 
 correspondents, in Europe, who were directed by 
 them, to remit the proceeds to their British credi- 
 tois *. From that important information, we may 
 again perceive the sophistry of arguing abstract pix)- 
 positions, without adverting to special circumstances, 
 which are the essential facts of the case : And, this 
 examination brings us round to the main questions, 
 why are the exchanges so low, and the price of 
 bullion so. high ? The pointed answer, among sound 
 reasoners, must be ; because revolutionary mqans 
 were Interposed, to jirevent the usual application ol~ 
 the appropriate equilibrium of goods. 
 
 3. If we take a different view of this litigated 
 question, we shall distinctly perceive, vihetlier the 
 rising, or falling of the exchange be owing to the 
 revolutionary tauses, before mentioned, or to the 
 J^alik issues, which the Committee supposes. Tiie 
 
 • The well-informed Mr. GrtfTuIIie giive pretty much tlic 
 same information, I see, to the Bullion Committee. JMimites, 
 68, of the 8° edit. 
 
 epoch
 
 jj8 considerations on commerce; 
 
 .epoch of the Bank Restriction was February 1797, 
 .as we have seen; and 1809 was ttae 13th year ef 
 tiie Restriction, amidst wars, and subsidies. Let us 
 now see, how the Exchanges stood, whether favour- 
 able, or adverse, in each year : 
 
 '.rU'lDMuiflOK-'/rt :v»4fi'')rt^»r)r<rJ33>! ?Mov<;par. — Bdow pw. 
 
 Ial7g7, the Hamburgh ExcHatng«Vas 9 1 patent. 
 In 1798 - - - - D° - - was 1 1 1 p"^ cent. 
 Jn 1799 - - - - D" - - was 4 p' cent. 
 '"■^''^ 'In 1800 i l'-*#>Q''*-<P'^was - - - -6 p'cent, 
 la 180 1 -r /.'- "B?J%r 'y was - ' - - 6^ p'cent. 
 In jao2 -, it i^&^v - was ' -. - -2|p'cen». 
 In 1 803 - - - - D* •« - was, 1 1 p' cent. 
 in ig^-''- t"^^'^^^ 'i^^^Was 5f P'cerrt. - 
 )'^|A 18015' -'B,oJLi>«,':D^5"* %' was slp'-cent. 
 
 in 1807 - » - .- Xk^'. - va(S 2'i p' cent, 
 
 ,. Uff ^ W . fj -f' --l^avou'ratie"! '^^-' ' 9 years, Adverse 4 years*. 
 
 ''^'' it thus appears that, during the effluxion of 13 
 "yea.fSf_ under i\ie Bank Restrictmi, M'hile more 
 
 than a thousand domestic improvements were made, 
 ■ Vhife extensive indiistry prevailed at home, ^nd our 
 'irade to' foreign parts prospered, beyond example, 
 'there were 7«/2^ ycarsi' of favourable, and /owr of 
 
 adverse' exchanges ; the first being alwv^ par, an,d 
 'thc'iasf set of exchanges beloxv par. "What, then, 
 "Isthie fair conclusion/ from the premises? That the 
 
 Bclii'k R'estrictidnl[iii.i shed a salutary/ or a maligi; 
 ' ^ ^ - - influence,
 
 fiULMOy AND COI>r; ETC. 'i() 
 
 irtfluence, on our commercial affairs ; In nme years 
 of favourable exchanges, the influence of the Bank 
 was salutary \ in the four years of adverse Ex- 
 changes, we are to suppose it to have been mali<^n. 
 Wc have seen above, in 1797, and 1798, the two 
 first years of that Restriction, how favourable the 
 exchanges were ; and we have already learned, from 
 minute enquiries, how much bullion flowed into this 
 country, as the consequences of those favourable 
 exchanges, in 1797, and 1798. Then followed the 
 three dear years, which cost the nation twenty 
 million of specie, while there were subsidies, and 
 loans, to aggravate that evil, and to augment that 
 drain. At length, came the peace of 1 802, which 
 dragged after it the long tail of all wars, the settling 
 of outstanding claims, and the funding of floating 
 debts. The war was renewed in 1803, which was 
 followed, by four hostile years of prosperous trade, 
 and favourable exchanges, whatever may have been 
 paid in subsidies to unsuccessful Allies. Sustained 
 by the discounts of the restricted Bank, the Traders 
 carried on a beneficial commerce, amidst malignant 
 hostilities. And, it was the Berlin decree, and its 
 -consequent force, and perfidies, which reduced the 
 favourable exchange of 1808 to ij per cent, and 
 lowered the adverse exchange of 1 809, to the extent 
 of 1 1 1 per cent. From this view of causes, and 
 effects, I am led to say, in the true temper of 
 Sir Francis Baring, that there is no occasion^ with 
 
 this
 
 30 CONSIDERATIONS ON COMMERCE; 
 
 this experience, and those facts, before us, to go to 
 any set of men to ask, whether the loxv exchanges, 
 and the high prices of bulhon; in 1809, be owing 
 to the Bank Restrictions of Parliament; to the re- 
 volutionary measures of the Dominator of Europe; 
 or to the depreciation of the current maneij. Gene* 
 ral experience, and common sense, attribute the 
 adverse exchanges, and high prices of bullion, to 
 the revolutionary measures, beforementioucd, with 
 Uieir attendant circumstances : The Bullion Com^ 
 mittee has attributed the high price of bullion, an<i 
 the unfavourable exchanges to the d,epreciation of 
 ihe current vwney^ in opposition to this common 
 sense, and to that general experience *. It follows of 
 course, from the theory oi the ComJTjittee, that our 
 
 * The daily transaction^ of the clearing-house, lo. the City^ 
 ■where' persons meet to' settle their tnutuat claims of many 
 xnilli6ns, are in evidence, before the Bullion Committee. It is 
 a fact, that bills of exchange are, every day, settled there, to 
 the amount of five millions, without even afking a single ques- 
 tion about the'price of guineas, or the depreciation uf mone)', 
 which price and defjreciati'on, from intuition, they know to be 
 imaginary ;- and without the intervention of Bank notes, except* 
 for paying the small balance remaining . unliquidated, that may 
 be compared to the petty cash of common change. Would it 
 not be rather ridiculoas^j in our pamphleteers, whether noble, of 
 igqoble, to get into the ^aid ckarmg'/misc^ in order to warn 
 the pejsons there assen^bled, at 4 o'clock, bow they settle thosei 
 vast transactions, without enc^uii ing about the real value of 
 guineas, the price of bullion,^ and above all, about the deprecia- 
 tion of money, vphich is supposed to rule the course of exchange, 
 hy tlie said pamphleteers. 
 
 4 current
 
 BULLION AND COIN; ETC. 3 1 
 
 current money was depredated, during t\\09,(i four 
 years of adverse exchantres, but, was enhanced^ 
 durinc the nine of favourable exchanges, under the 
 thirteen years of the Bank Restriction. According 
 to that theory, the current money rose, and fell in its 
 value, from change of circumstances ; and the ex- 
 changes rose, and fell, as a consequence : And tlius, 
 according to the same theory, vioney can no longer be 
 counted a standard, since it varies with every wind, 
 ■which brings in the mails. We have lived to. see 
 vmtapliyaicks over-ruled by common sense : And, 
 il requires not prophecy to foretell, that commercial 
 practice, as it has always done, will continue to 
 over-rule that metaphysical theory. The daily prac* 
 tice of the dearijig-house derides all abstract theo- 
 ries, as useless, or pernicious. 
 
 4. Considering the foregoing facts, with their 
 attendant circumstances, the practice of merchants, 
 and the experience of business, the proposition, 
 which attributes those adverse exchanges, and con- 
 sequent prices of bullion, to the revolutionary mea- 
 sures of the Continental system, seems to be de- 
 monstrated : All those, indeed, who disregard facts, 
 and circumstances, in their reasonings, who deride 
 the practice of merchants, and the experience of 
 business, of course conclude, from their scholastic 
 conceits, that the unluvourable exchanges, and the 
 dearness of bullion, arose from tlie Bank Restric- 
 tion,
 
 32 CONStDERATlONf? ON COMMERCE; 
 
 lion, ^vhilc the sophisters wei'C ignorant that, by the 
 established law, Bank Notes are Cafli *. 
 • 5. The same Sophists, who pretend, that Bank 
 Notes are depreciated, because gold, and silver, are 
 dear; in the same strain of sophistry insist, tliat 
 Bank Notes are depreciated ; because the exchanges 
 are unfavourable : Now, from this sort of logic, we 
 may infer, that since Bank Notes arc supposed to 
 be depreciated, when the exchanges are toiv, the 
 same Bank Notes will become preciouS; when the 
 exchanges become high : What, then, is this, but to 
 make the value of Bank Notes to depend on a 
 standard, which, from its fluctuations, is the most 
 unlike a standard : The absurdity of this pretence 
 consists, in trying to measure the value of Bank 
 Notes, which have the permanence of cash^ by ex- 
 changes, which iiavc none. ]\Ioncy is said to be 
 the measure of merchandizes ; how, then, can 
 exchanges, which rise, and fall, every post, be the 
 measure of money r What is this mode of reasoning, 
 but to make the fluctuations of exchange to be the 
 standard measure of the money unit, or pound 
 sterling, which are no longer to remain stationary, 
 but, to vary with the fluctuations of the exchange f. 
 
 * See Mr. Iluflasson's pamplilat. 
 
 t Wa may learn, from the very intelligent Harris, " that 
 " bills of exchange, being substitutes for bullion, are thansdvci 
 " as much a commadihj, as bullion, ov any thing else." Essay 
 on Money, 1-28. 
 
 And,
 
 BULLION AND COIN; ETC. '^J 
 
 And, we may thus perceive, from so absurd an argu- 
 ment, that exchanges, owing to their mutability, cannot 
 be the mt'd.sure of any thing ; as bills of exchange 
 are as much commodities, as merchandize : " These 
 " observations, plainly, show, says Harris, the ablest 
 " assay-master, in luu'opc, tliat any calculation of 
 •" national profit, or los6, from the course of ex- 
 " change, must needs be very precarious :" yet, lie 
 adds, "is it almost certain, that by those transac- 
 " tions, the country will sustain some loss, against 
 " which, the exchange bears ; and, there is no other 
 " zcay. of bringing the balance even, but by the ex-^ 
 " portation of goods, or bullion *." Do not all the 
 merchants say, that the e.rport of goods is the best 
 equilibrium of the unfavourable exchange? What 
 would that assayist have thought of a proposal, wliich 
 had a necessary tendency, to transfer the whole coins 
 of a country, in favour of a malignant enemy, I pre- 
 tend not to know. 
 
 b. The first person, who, during late times, tried 
 to prove the depreciation of Bank notes, or cash, by 
 
 • Harris on Coin and Money, Commerce, and F.xchanges, 
 1757, p. 123. Sir James Stuart, the profound political oeco- 
 noiiiist, who knew Harris, personally, says that he, was "the 
 •' best assay maker, in Europe." His Essay on Money evinces, 
 that Harris was one of the. most judicious writers, in Europe, 
 with regard to the present question, though he did not live to 
 «ci', what we have seen, a Continental system substituted, f(u- 
 a commercial system ; ti)e first founded upon force, and fraud ; 
 the secund founded on freedon;, and confidfMice. 
 
 D a reference
 
 34 COXSIDEKATIONS ON CO-AniERCE ; 
 
 a reference to the course of exchange, with all its 
 fluctuations, was Lord King*. Ilis Lordsliip sup- 
 posed, probably, that foreign exchanges are esti- 
 mated, and settled, on the gulden gu'uiea, and that 
 the dra^yers of such bills, from abroad, expect to be 
 paid, for their bills, in bullion. His Lordship was 
 thus induced to collect a series of exchanges, which 
 he compared, with contemporary issues, of Eank 
 notes. And, seeing, as he supposed, that a large 
 issue of Bank notes was generally accompanied, by 
 an unlavourable exchange, he was thus led to think, 
 that he could prove, from the course of the exchanges, 
 the depreciation of Bank notes. But, are his Lord- 
 ship's suppositions founded, in anything but mistake ! 
 "With Ilaniburgh, the exchanges are all made upon 
 the 77ioneij unit, or pound sterling, by demanding, 
 and receiving an uncertain number of scheiiings and 
 grotes, for the pound sterling : and the Hamburgh 
 merchants entering into sucli transactions of ex- 
 change, expect to be paid, not in bullion, or in 
 guineas, but in current money : The Hamburgh mer- 
 chants have long known, that Bank )ioies, being c^,s7?, 
 ficcording to the custom of trade, and the couiiiion 
 law, are a legal acquittal of such bills; that the 
 current coins of tl^is counliy, ulietiicr v.-eighty, or 
 light, could be of little use to them abroad ; since 
 they could neither export, nor iuelt such current 
 
 * Ilis Lordsliip had Uie goodness to piiulibb his Th.mi^hls, in 
 May 1803, u very iiian:-picioub luuui'.'ut. 
 
 <'oin.> ;
 
 BULLIOV AN'D COIX ; F.tC. ^^ 
 
 coins : Nor, do the Hamburgh merchants ever ex- 
 pect to be' paid in bullion, m hich is a mere mercan- 
 tile commodity, that rises, and falls, in its price, 
 according to the demand, and the sup[)ly, in the 
 marivet. We have already seen, how litde the per- 
 sons, who meet at the Clearino;-hoMse, in the City, 
 with bills to be liquidated, think about bullion, or 
 money, or any thing but currency, whether Bankers* 
 cheques, or Bank notes. His Lordship, assuming 
 thus, as the ground of his argument, what could 
 not be supported, in fact, gave an imperfect booic 
 to the reading world. This will ever be the case 
 with those, who deviate into abstractions, rather than 
 delight to argue, from facts. His Lordsliip was 
 soon refuted, by Mr. Henry Boase, with great supe- 
 riority of knowledge, as well as vigour of reasoning. 
 It was now clearly sho^^■n, that the Hamburgh ex- 
 changes had been ditlcrent, in fact, from what his 
 Lordship had sup[)oscd ; that the Hamburgh mer- 
 chants never expect to be paid their bills of ex- 
 change, contrary to their contract, in ciu'rent coiuttf 
 but, in the current money of Great Britain. Mr. 
 Boase's argument, which proved, that the recoinage 
 of the gold, from 1773, to 1777, i?iclusivc, did not 
 affict the exchanges, was nevertheless neglected, 
 Nvliile Lord Kinii's notions were followed, though 
 his argument had been refuted. 
 
 7. Some persons of greater rank, and p?rliap,> of 
 
 superior t;dcnts, to Lord King, were milled, in heir 
 
 D 3 opinions,
 
 36 CONSIDERATIONS ON COMMERCE; 
 
 opinions, as to the effects of the recoinaire of the 
 gold, fi-om 1773 to 1777, by not a.lverting to the 
 dificrcnce, between the par of cxchanse, and the 
 course of exchange : All that can be allowed to 
 those eminent persons is, that a good coinage is 
 better than a bad coinage. The melioration of the 
 guineas may have incliorated the par of exchange ; 
 but, certainly not the coiwse of exchange, wljich is 
 a quite different thing *. Now, those who specu- 
 late upon the effects of the recoinage, fail egregi- 
 ously, in their argument, by not slwwing, that there 
 was a new par of exchange settled with Hamburgh, 
 in consequence of that melioration of the guineas : 
 They could not show what never, in fact, happened f . 
 
 And, 
 
 * See "Sir. Boase's Letter lo Lord King, 51. wherein he exhi- 
 bits the Hamburgh exchanges, both before, and after that re- 
 coinage; and thereby demonstrales, that the exchanges wer« 
 higher 6f/orf that operation, which began in August 1773, than 
 they were, during the eighteen months, which succeeded: for 
 the Hamburgh exchange was 34.11, in March 1773, and never 
 rose so high, throughout the subsequent njonths to the close of 
 1776. It is a fallacy to suppose, that the recoinage was made 
 in one year : In 1773. there was only coined the sterling value 
 of ^. 1,317,645., which could not have much affeded either 
 the exchanges, or tht price of bullion. 
 
 t Mr. de Mattos, the exchange broker, who, when he was 
 examined by the Lords' Committee, [1797] htd been four and 
 thirty years, in that employment, [from 1763] did not recog- 
 nize any such change oi par ; but spdl^e of it as fixed, at 33 
 schellings, and S grotes, for £. 1. sterling, both being mere 
 money of account, and not coins. Mr. Eliason, another very 
 1 experienced
 
 BULLION AXD COIN ; ETC. 37 
 
 And, those facts, and circnnistauccs, evince, that the 
 exchanges Gi Hamburgh are carried on, ^^ith less 
 attention to the coinage, than some suppose, and 
 with more regard to the curre/icj^, than others un- 
 willingly allow. Those intimations strike very deep 
 into the thcors-, which supposes the high exchanges 
 
 experienced broker of exchanges, concurred with M. de ?tIattos, 
 on that occasion. We may now infer, that the speculators on 
 the effects of the recoinage upon the exchange, are equally un- 
 founded, in their fact, as they are absurd, in their reasoning; as 
 all reasonlning is, which contradicts fact, and experience. The 
 subjoined Statement of Hamburgh Exchanges, which are sub- 
 mitted tabkxcisc to the intelligent reader, will demonstrate the 
 truth of what has been said above : 
 
 Hamburgh K xch axg rs : 
 
 lu 
 
 1770. 
 
 1771. 
 
 1772. 
 
 ^773- 
 
 (recoin- 
 age.) 
 
 1774- 
 
 (recoin- 
 age.) 
 
 '775. 
 Do. 
 
 1776. 
 Do. 
 
 
 
 
 
 
 January - - 
 
 33.2| 
 
 33. 8§ 
 
 32.71 
 
 34.11 
 
 34.91 
 
 34.3 
 
 33.111 
 
 February 
 
 33.2 
 
 33.8| 
 
 32.9| 
 
 34.91 
 
 34.9 
 
 34.31 
 
 33.10 
 
 March - - 
 
 33.2 
 
 S3.7 
 
 32 111 
 
 34.11 
 
 34.91 
 
 S4.5 
 
 33.9 
 
 April - - - 
 
 33.3 
 
 33.6i 
 
 32.111 
 
 34.9f 
 
 34.7| 
 
 34. -Jl 
 
 33.7 
 
 May - - - 
 
 33.3 
 
 .33.41 
 
 32.101 
 
 34,10 j 
 
 34.7f 
 
 3i.3\ 
 
 53.61 
 
 June - - - 
 
 33.11 
 
 33.11 
 
 33.n 
 
 34.91 
 
 .34.8§ 
 
 34.41 
 
 33.4 
 
 July - - - 
 
 334 
 
 33.01 
 
 33.2f 
 
 34.10 
 
 35.81 
 
 54.41 
 
 33.41 
 
 Auguit - - 
 
 33 4 
 
 32.11| 
 
 33AI 
 
 34.8^ 
 
 34.65 
 
 34.3| 
 
 33.4 
 
 Septembe* - 
 
 53,21 
 
 32 111 
 
 33.bl 
 
 34.81 
 
 34.5 
 
 34.:;^ 
 
 33.5 
 
 Oaobcr . - 
 
 33.3 
 
 32.101 
 
 33.91 
 
 34.9 
 
 34.2 
 
 34,-2% 
 
 33.21 
 
 November - 
 
 33.4i 
 
 32.81 
 
 .33.9 
 
 34.81 
 
 34.3 
 
 34.2 
 
 33.^Z 
 
 December - 
 
 33.5- 
 
 32.7^ 
 
 33.101 
 
 34.91 
 
 34.3 
 
 31.0| 
 
 33.1^ 
 
 Average of ) 
 Ciicli jear j 
 
 33.3 
 
 33.21 
 
 .'33.3 
 
 3). 81 
 
 34.61 
 
 34.3 1 
 
 335^ 
 
 i>3 
 
 of
 
 38 CON'SIDERATIOXS ON COMMERCE; 
 
 of 1 S09, to be more ou ing to the Bank restricticn, 
 than to the Continental system. 
 
 8. As persons of great consideration have beeri 
 thus led into misconceptions, on this important sub- 
 ject ; it becomes necessary to enter into sonje ex- 
 explanations, on the difficult topicks of foreign 
 exchanges, about va liich so many volumes have been 
 written, from ti»e early days of INIalyncs and Mis- 
 fecnden to the recent times of jMuschet and llicardo. 
 The par in commerce is the equality, betueen dif- 
 ferent coins, in distant countries ; so much as one 
 must give of one sort oi specie, for any other sort of 
 specie : The par of exchange differs from the course 
 of exchange, in tliis : The par sho\vs what any other 
 nation, or town, ought to allow in exchange ; the 
 par being certain and Jircd, by the intrinsic values 
 of the several coins, when estimated against each 
 other : But, the course only shows what the ex- 
 changers will allow, in exchange ; \\ hich is uncertain, 
 and contingent*. There is another point, in this 
 
 difficult 
 
 r * See Chambers's Diet, in vo. Far. The late Joseph Har- 
 ris, the well informed Assay-master of the Mint, wrote most dis- 
 tinctly, on this perplexing subject. Speaking of the par of 
 exchange, he says, " the ttionks of the world ai e thereby, in 
 " elfect, reduced into one cunimoit standard ; and, it may be 
 " readily seen, how much of the money of one country is 
 *' equivalent to a given sum of another country." Essay on 
 INloney, 1757, p. 115. Mr, Musrhet, one of the Clerks, in the 
 Mint, who has favoured the world with an enquiry on the e/fccts 
 of the Bank Restrktion Act, seems not to understand theyjar of 
 
 exchange^
 
 BULLION AXD COIK; ETC. 39 
 
 difficult subject, which the JLulicious Ilairis has 
 solved. Some, he says, arc apl to doubt, whether 
 the exchange be favourable, or adverse, when they 
 hear, that the exchange /^-zZ/.v to our /(As.y, and riscx 
 to our gdiii. The rule, he adds, is this ; AV'hen the 
 exchanges are made upon the pound iicrii/ig, as 
 •they are with Hamburgh, Holland, and Flanders, 
 bv receiving, for that mojiey unit [;^. i.] wliich is a 
 tiling fixed, an uncertain number of schellings, and 
 grotes, Flemish : And, the fewer of these, which are 
 received for the pound sterling, the exchange is said 
 to fall, in dis-favour of Gieat Britain. It is, how- 
 ever, quite different, continues he, when the exchange 
 is made on the mom:y unit of France, and Spain, 
 or other counti'ies, when we agree to give an uncer- 
 tain number of our pence^ for t\\c franii of the one 
 country, or the dollar of the other: And when we 
 gi\e more of our pence, for the frank, or piece of 
 eight, than the par requires, the exchange is said to 
 rise, in dis-favour of this country, and in favour of 
 FVance, and Spain. Thus much, then, from the 
 judicious, and intelligent Harris, for the better com- 
 prehending of the subject of exchanges, which is 
 
 exchange, in the same maimer, that tlie Assay-master under- 
 stood it ; as soinothiiig ^ifc/, for a standard', since Mr. Mus- 
 chet supposes a cUti'erent par to exist every month ; so that he 
 confounds tixedncfcs witli ^MC^«a/iOH ; and supposes certainty, 
 and u/iccrtuinty, to exist in the .same object: now; without a 
 htaiidard, there is no judging of the rise, or ftill of the course of 
 excliange, or whelliw it be favourable, or unfavourable. 
 
 D 4 undoubtedly
 
 40 CONSIDERATIONS ON COMMERCE ; 
 
 undoubtedly to those, who are unacquainted with 
 such subjects, as obscure, as it is complex : But, the 
 real practice of exchange, he concludes, branches 
 out into an immense labarinth, which is not easily 
 unfolded, without much experience, and attentive 
 application. The general trader, however, without 
 going into any labyrinth, and without any exposi- 
 tion, does understand, practically, the whole course 
 of exchanges, with the commercial world, when it 
 was not yet compressed, by revolutionary means. 
 Such a trader watched the arrival of every mail, 
 which exposed to his intelligent eyes, not the par, 
 indeed, but the course of the exchanges, for the 
 direction of his own affairs. If such a trader sa:\v, 
 that the course of the exchanges, by allowing so few 
 schellings and grotes, for the pound sterling, was so 
 low, as ^0 operate as a premium on the semUug of 
 goods to the town, where the exchange was thus 
 low ; his next object of inspection was the whole 
 prices current of merchandizes, in order to see what 
 could, with the best effect, and the greatest profit, 
 be sent thither : He now exported a cargo, so as- 
 sorted, and to such an extent, as to bring the course 
 of exchange to an equilibrium. Such was the true 
 anodyne of an unfavourable exchange, till recent 
 times. It was this operation of the traders, that en- 
 abled this country, by sending cargoes, in mitigation 
 of the unfavourable exchange, to pay for the grain, 
 which the dear years demanded 5 to aid, and sub- 
 sidize
 
 BULLION AND COIN ; ETC. 41 
 
 siJize foreign Princes ; as well as to satisfy the 
 wiiole dcnicinds, from the stock market, for di-cidaidny 
 and transfers: But, could such an operation be 
 performed, to any advantage ; could it be per- 
 formed at all, during the unfavourable intiuences of 
 the year 1 809 ? Is it tair, then, in candid discussion, 
 to investigate the question, without ascertaining 
 every fact, and collecting every circumstance, whicli- 
 could, in any manner, be^r u[)on the point at 
 issue ? 
 
 0. With this head of enquiry, as to tJif course of 
 exchange^ I have almost done. From the forego- 
 ing intimations, I am led to infer, in the face of 
 what has been said, written, and reported, that 
 whatever connection there may be, between the par 
 of exchange, and coins, there is no necessary influ- 
 ence of cause and effect, between the course of ex- 
 change, and the notes of the Bank : For, the usual 
 exchanges with Hamburgh are always settled, by a 
 reference to the money unit, or pound sterl'mg, as 
 the standard ; the Hamburgh Exchangers always 
 expected to he paid in the money of account ; eis 
 they knew, that the money of account was acquitted 
 here in Bank notes, which, according to the custom 
 of trade, and the common laxv, are money, arc cash^ 
 and not securities for money : Nor, did the mer- 
 chants, and bankers of Hamburgh ever enter into 
 any consideration of coins, or any estiujate of the 
 usual amount of current money. They knew, bcr 
 
 fore
 
 42 CONSIDERATIONS ON COMMERCE; 
 
 lore the Bank restriction began, that they could not, 
 under the existing law, melt, or export the current 
 coins: Did the Bank restriction, then, effect any 
 thing more, than to lock up the gold coins, Ironi the 
 melters, and exporters? Did not the traders, and 
 bankers of Hamburgh know this circumstance, that 
 the cohis, u'hich before they could not export, or 
 melt, were now locked up ; that the Bank of Eng- 
 land was thus, in some sort, transformed into the 
 Bank of Amsterdam, which always receives, and 
 never gives out, bullion. And are not all those 
 questions answered, affirmatively, by the subsequent 
 state of the exchanges, during the thirteen years of 
 the Restriction, when they were favourable, in nine 
 years, and unfavourable, only mjour. This expe- 
 rience of thirteen years demonstrates, that the 
 traders, and bankers of Hamburgh always made 
 their exchanges upon the pound sterling, according 
 to the usual course, and expected to be paid in 
 Bank notes, which they knew to be cash, and not 
 securities for money : The practice of the Clearing- 
 houscy \vhcre millions of bills are daily liquidated, 
 without any enqui)iGS about guineas, or bullion, or 
 circulating medium, or any thing but Bank noteSy 
 which the receivers, and payers, there, recognize, by 
 a happy intuition to be cash, throws disparagement 
 upon the whole theory, which attributes motives, 
 and management, to the merchants, and bankers of 
 Hamburgh, which they plainly never thought of; as 
 
 tliey
 
 BULLION AST) COIN; ETC. 43 
 
 they knew, that the carrying of s-ach a theory into 
 practice would impede circulation, and would stop 
 tlie whole machiner}' of conuiierce. 
 
 1 0. After all those considerations, with re^iard to 
 this head of Edcliunge, it heconjcs projicr to add the 
 EviDExcE, Avhich was given to the Bullion Com- 
 mittee, fur its information, (i.) As to the j?(r/r of 
 exchange, Mr. C. Lyxe said; " Though there are 
 '• fixed pars of exchange, between Britain and 
 " other countries, they are not in the smallest degree 
 *' attended to ; nor, do they, in any wanner, serve 
 *' as a guide, for exchange apcratimis; which, 
 " as he conceived, are solely governed, by a 
 " greater, or smaller demand for Bills *." ]\Ir. 
 J. L. Grefi-'ulhe said ; i\\Q par of exchange is of 
 no interest to the practical merchant ; the conve- 
 nience of commercial calculation does not require 
 the establishment of a par of exchange "j"." — As 
 to the question, how far the exchanges are 7^ided 
 by the balance oi payments, between countries, Mr. 
 Greffulhe added ; " thecxcljangesare influenced, 
 " by commercial causes onl}-, except the payments 
 " of Government ; — I conceive tlie cause of the pre- 
 " sent state of the exchange to be entirely com- 
 " mercial, %vith the exception of the payments, 
 " which Government have had occasion to make 
 
 * Minutes of EviJcnce, fol. Rep. 6o. Bills of Exchan<:e, a* 
 live see from Harris, are merely merchandizes. 
 t Tb. 68, 69. 
 
 " Upon
 
 44 CONSIDERATIONS ON COMMIiRCE; 
 
 " uix)n the Continent, in the shape of subsidies, 
 *' and for payment of troops; it is the balance of 
 ^^ payments, which affects the excliange*. " IVlr. 
 Ab. GoLDSJiiD being asked, " Do you consider 
 *' gold, and silve}% as the only regul-itors of ex- 
 " change?" answered, " A(9 ; I do not; I icon- 
 " sider the imports and e.vports, as the rt emulators 
 " oi exchange f." With regard to the causes oithe 
 loxv or adverse exchanges: Mr. C. Lyne said, 
 *' The exchanges with the Continent being against 
 '' England, while the balance of trade is in her 
 " favour, is, in my opinion, satisfactorily accounted 
 " for, by the following facts: — The favourable 
 " balance being chiefly against South America, 
 " from whence, it has not yet come back, and can- 
 " not yet produce its effect, in the general balance 
 *' with otlier countries, which are creditors ; by a 
 " greater amount of import, from the Baltic, 
 " France, &c. than the export thither ; by a great 
 " difficulty, and hazard, in carrying on bill, and 
 " bullion, operations with the Continent ; as also 
 *' from some parts of the Continent to others ; 
 *' w hich require greater profits to cover the risks ; 
 ** and therefore, causes an augmented depression, 
 " in the exchanges, the expence being doubled ; by 
 
 * lb. 70, 71. And, to which, he might have added the pay- 
 ing of the interest of the public debts to foreigners, amounting 
 to more than j^. 600,000. sterling. 
 t lb. 93. 
 
 the
 
 BULLION AND COIN ; ETC. 45 
 
 " the want of a concurrence of drawers, and conse- 
 " quent competition, which would enable the few 
 *' individuals engaged, in those operations, to con- 
 " troll the exchanges, and keep them so much 
 " depressed to their own advantage : By the great 
 *' export of specie, for the purposes of Govern- 
 " ment*." To the same point, the anonymous 
 Continental Merchant says; " that the Go- 
 " vernment bills on the Continent have frequently 
 " produced a gi-eater effect on the exchange, than 
 " bills of individuals to an equal amount, though 
 " not always sof-" J. L. Greffulhe ascribes 
 the fall of the exchange, between London and Ham- 
 burgh, to the commercial situation of this country 
 with the Continent ; to the imports, and to the pay- 
 ments of specie ; the deficiency of the exports : 
 Anotlier principal cause, he adds, of the low rate of 
 exchange, is to be ascribed to the stoppage of the 
 American circuitous trade, by the restrictions im- 
 posed, in America, whereby other Americans have 
 been prevented from carrying their cargoes to the 
 Continent, which would have operated upon the 
 exchange, in as great a measure, as an export from 
 this country ; the greater j^art of the returns of such 
 American cargoes being sent to their credit to the 
 British merchants :j: : The Continental expenditure 
 of Government has, no doubt, affected the cx- 
 
 • lb. 6 1. He miglit have added, llie equilibrium of cxpuri 
 being prevented. 
 
 t II'- 84. : lb. 65— 68. 
 
 changes,
 
 46 CONSIDERATIONS ON COMMERCE; 
 
 changes *'. The anonymous Merchant concurred 
 with Mr. Greffulhe, in saying that, *' the stoppage 
 «' of the American trade to the European continent, 
 " in a great degree aggravated the Ion state of the 
 *' exchanges ; as nearly the whole American exports 
 " to tlic European continent were remitted, by 
 " bills, to this country f." The anon Yimous coti" 
 t'tnental Merchant was asked, " To what causes do 
 *' you ascribe the present unfavourable exchange?" 
 " The lirst great depreciation," said he, " took 
 *' place, w^ien the French got possession of the 
 " North of Germany ; and passed some penal de- 
 " crees against a communication \\\i\\ this country, 
 " at tlie same time, that a sequestration was laid 
 " upon all English goods, and property. VVliilst 
 " the payments, for l^nglish accounts were still to 
 *' be made, and the reimbursements to be taken on 
 " this country ; the communication, by letters being, 
 " also, very difficult, and uncertain, rendered it not 
 *' easy to tind middle men [Exchangers] as in the 
 " usual times, to purchase, and to send such bills to 
 " England, for returns ; whilst no suit could be in- 
 " stituted, in the Courts of Justice, there [in Gei> 
 " many] against any person, who chose to resist 
 " payment of a returned bill, or to dispute the cause 
 " of re-excbange ; whilst those causes depressed the 
 " exchange, payments which were due to England, 
 '* only came round, at distant periods t-" Being 
 
 * Id, 1 lb. 7?. : Id. 
 
 asked,
 
 LUTiioN" A\p corx; etc. 47 
 
 asked, " How nmcli oi the untavourable e\clian*^e 
 '■' \vi!S to be attributed to the etiect of the measures 
 " taken by the Enemy, and liow niucli to the 
 " eftect of the Bank of England paptr not being 
 *' cojivcrtibic into cash?'' he answered, " I ascribe 
 " the \\hv»le of the depreciation to have taken place, 
 *' originally, in consequence of the measures of the 
 *•' enemy; and /As* not having recovered, to the cir- 
 " cunistancc of the paper of England, not being 
 " exchangeable for cash^; [that is, the gold of 
 England, being locked u[), could not bt; exported ; 
 and the coins of England, not being exportable by 
 law.] The same axonymous Dvlerchant v.ent on 
 to assign other causes, for the adverse cxcliange, 
 namely, the large shipments, from the Baltic, uliich 
 were draw n for, and the bills negociated, imniedi- 
 ately, on the shipments taking place, tha continued 
 difficulty of the correspondence with the Contiiient ; 
 tlie curtiiiled number of houses, who were ■wiilin>-. 
 to undertake such operrttiun:?, either by accepting 
 bills, for English account, which might be drawn 
 from the various parts, on the Conlinent, where 
 shipments took place, or by accepting bills, that 
 might be dravvU, from t'nis country, for goods siiipped 
 al>road ; the length of time, vvliich is recjuirod beibrc 
 [re-exported good'-^ from the Corilinent] can be 
 converted into cash, from the circuitous routes, that 
 
 * lb. 79. The anonvmous MercJiant di(i not know, niiy 
 nioro tlian the Committee, that Ba/ik iwta are cash, according 
 to the settled law of the l.tnd. 
 
 they
 
 48 CONSIDERATIO^S ON COMMERCE,' 
 
 they are obliged to take ; the very large sums, which 
 were paid to foreign ship-owners, which, in some 
 instances, as on hemp, has amounted to nearly its 
 prime cost, in Russia * ; some merchants, on the 
 Continent, do not make advances on property, con- 
 signed as heretofore ; from the course of our export 
 trade, tlie Continent is largely indebted to this 
 country, and in a much greater proportion, than 
 what they would be, if trade had bee» carried on, as 
 heretofore f ; while the goods imported from the 
 Continent are drawn for, on the shipment, and for 
 such of these as are exported to the American 
 States, this country gives credit; and it takes 
 eighteen months, to bring the payments round. 
 The imports, from the Continent, during the last 
 year, qf Baltic produce, German linens, and other 
 products of the Continent, have been unusually 
 greatj. Mr. J. L. Greffulhe said, " Goods 
 *' imported by the British merchant are paid for, 
 '* immediately, while the returns, for exports are 
 *' slow, and cannot yet, for the last year, have pro- 
 " duced their due effect upon the exchange ; the 
 *' imports from the Baltic, in 1 809, have been con- 
 *' siderably more, than double tlie amount of the 
 
 * lb. B2. — 84. Mr. Grolftilhe concurs, in this ; saying that 
 the freight from the. Baltic amounted to ^1^.50. per-cent. of the 
 first cost of the goods, lb. 66. 
 
 i lb. 83. . : lb. 
 
 same
 
 BULLION AXD COIN ; ETC. 49 
 
 *' same imports, in 1808 *. The imports of wines, 
 
 " and brandies, [and he might have added corfi] 
 
 *' from France, have been considerable, and no 
 
 '* merchandize exported from this country, in re- 
 
 " turn I ; from the north of Germany, there has 
 
 '* been an excess of imports, above the exports; to 
 
 ^' Holland, the exports have exceeded the imports, 
 
 ^' although the imports have been great ; PloUand, 
 
 *■ and the Ems, have been the principal points, to 
 
 " -which the exports have gone § : Mr. W. C. 
 
 ** Chambers said, that the Continent is, at present, 
 
 • ' much indebted to England |j : and, he added, 
 
 " that for goods exported, from the Continent hither, 
 
 " for which they have paid, when re-exported to 
 
 " the Colonies, the merchants give credit, for 1 2, or 
 
 ^' 18 months; and he deemed those happy, who 
 
 " get payment so soon :" He, also, said, " very 
 
 '' little exchanjre business has been doing; of late 
 
 " years ; and this is owing to our exclusion, from 
 
 " many parts of the Continent, to which before we 
 
 " had free access ^." 
 
 II. Such 
 
 * lb. 66. yie said, the balance of pg.yment8 may thus be 
 against us, while the genwal exports exceed the imports ; 
 Returns may be delayed, not oulv for fiionths, but for years. 
 lb. 71. 
 
 t Id. : lb. 67. § Id. II lb. loj. 
 
 f lb. 101. Mr. Ab. Goldsmid concurred, in those repre- 
 sentations, lb. 94. The difficulties, and penal restrictions, 
 Jiave not only lessened the nu7jiber of Exchangers, but alsp 
 E ^»V9
 
 50 CON.SIDERATIONS ON COMMERCE; 
 
 11. Such, then, are the informations, which were 
 given, in substance, to the Bullion Committee, by 
 practical men, who are supposed, however, to be 
 sometimes contradictory, often vague, and upon the 
 whole unsatisfactory to the Committee*. But, is there 
 any doubt, whether the Berlin, and Milan- decrees 
 still exist? Is there any doubt, whether the Conti- 
 ncntal sijsiem was in full o])eration, during the year 
 1809? Is there any doubt, whether British debts^ 
 and credits, and goods, were confiscated, under that 
 system ; or whether British merchandize could be 
 exported, in 1809, to the Continent, under that 
 system, without confiscation, and forfeiture ? Is there 
 any doubt, whether that system be not now rigorously 
 enforced ? That there are no such doubts, all Europe 
 has testified, without introducing the witnesses, whom 
 tlie Committee called, examined, doubted, and dis- 
 believed. Without relying on the informations of 
 practical men, who will be believed by the world, the 
 whole question of the exchanges has been already dis- 
 cussed upon the existence of the Continental system, 
 and the revolutionary measures of force, and fraud, 
 which were practised upon the British commerce, 
 and people, under that system of violence, and 
 
 doubled the expence of exchange, operations, which have risen 
 to 4 schellings, Flem. on the pound sterhng, said the anonymous 
 Continent Merchant, ib. 74; and he repeated, again, the want 
 of middle-men, who formerly employed great capitals, in ex- 
 changes, but, from the increased difficulties, and dangers of such 
 exchange operations, are now rarely to be met with. Ib. 82. 
 • Report, 8" Edit. 18—22. 
 
 perfidy.
 
 BULLION AND COIN; ETC. 5I 
 
 perfidy. The question of the exchanges has, in the 
 foregoing Considerations, been discussed, under 
 various views ; and it has been invariably seen, that 
 the causes assigned were altogether adequate to 
 produce the obvious effects of adverse exchanges, 
 and high prices of gold, and silver, without assuming 
 what cannot be proved ; or, insisting on positions 
 that cannot be maintained. It is not necessary to 
 derive any aid, from the additional facts, that the 
 magistracy of Hamburgh have formally prohibited 
 all correspondence M'ith British subjects ; that the 
 bankers of Hamburgh have written to their cor- 
 respondents, in London, declining any further com- 
 mercial intercourse, from a regard to their own 
 property, and persons. Thus, then, are the Ham- 
 burgh exchanges completely extinguished, under 
 the outrageous operation of the Continental system ; 
 and thus has the whole question been decided, by 
 positive institute, against the doubts, and assump- 
 tions, subtilties and theories, of the Bullion Com- 
 mittee ; as the Senate of Hamburgh has done, what 
 an Act of Parliament nuist have done. 
 
 1 2. Yet, (joes the Committee rely on the feeble 
 information of Sir Francis Baring, whose evidence is 
 interwoven into the contexture of the Report : "Sir 
 " Francis considered the two great circumstances, 
 " which affect the exchange, in its present unfavour- 
 *' able state, to be the restrictimis upon trade, nith 
 '* the Continent^ and the increased circulation of 
 
 U. OF ILL UR
 
 52 CONSIDERATIONS ON COMMERCE; 
 
 " this countrxj^ in paper, as productive of the 
 *' scarcity of bullion : And, he instanced, as an 
 " example of a contrary state of things, the secen 
 " I/ears war, and the American wai', in which 
 " there were the same remittances to the Continent, 
 " fornaval, and military expenditures ; yet, no want 
 " of bullion was ever felt*,'" But, without con- 
 sidering that, in those wars, the Continental system 
 did not exist, with its contempt for commerce, and 
 its terrorism to traders, it may be said that, the 
 memory of good Sir Francis failed him ; and the 
 Conmiittee, by adopting into their Report his failure, 
 also fail : In fact, there was such a scarcity of gold, 
 and silver, in the fourth year of the seven years war, 
 as to induce the Bank, to change the established 
 mode of its issues : In fact, there was an CTtraor- 
 dinary drain of caslh from the Bank, in the last 
 year of the American warf. We have now seen, 
 in evidence, the egregious tailure of both : That Sir 
 Francis should fail, in his recollection, at his time 
 
 of 
 
 * Report, 8^ Edit, 19. 
 f " There being, says Anderson, in his Deduction of Com- 
 " merce, 413, an umtmat scarcity of gold, and silver, at this 
 " time, in England, partly occasioned, by 7nuch money being 
 " carried out of the nation, on account of the expensive wars, 
 " in Germany, and America, and partly, by the large demand 
 " for the current service of the year iTSQ-" [tlie total grants 
 of that successful year, being £. 12,749,860 !] In the last year 
 of the American war, owing to various causes, " there was aa 
 " extraordinary drain of cash, from the Bank, particularly, jn 
 '« October 1783, when the L'a/ii ca^A was /ouer [in amount]
 
 BULLION AVD COIN-; ETC. 53 
 
 of life, and amidst his variety of affairs, might be 
 expected : But, that the Bullion Committee, with 
 the Zorfl^/ Report, 1797, on the table, should have 
 stated to Parliament such Jictiotis for facts^ is^uite 
 wonderful*. Sir Francis had already shown, in his 
 pamphlet, 1797, as we have seen, that it is quite 
 unnecessary to appoint a Committee of Enquiry, 
 when it is known, in the City, that sir, seven, and 
 eight per cent, profit may be made, by exporting 
 bullion t • And, Sir Francis had, also, delivered his 
 experienced judgement, in 1797, upon the main 
 question ; " As, a retrograde motion, in public 
 " credit, is productive of consequences, which are 
 *' incalculable; I am averse, fi-om the Bank re- 
 " assuming their payments, generally, during the 
 *' xvar, whilst there is a possibility of their being 
 " obliged, to suspend them again J." Sir Francis, 
 however, was induced, when he more recently gave 
 his information to the Bullion Committee, to palter 
 with it in a double sense ; yet, nothing would have 
 been left, hi a double sense, had the Committee, 
 finally, asked him, " Is it your judgement, under 
 
 '• than even in llie tcecli, preceding th« 26 February, 1797, 
 " when the Bank restriction took place." Macpheitioo's Annals 
 of Commerce, IV — 34. But, this fact does not altogether re«t 
 on the authority of this well informed Annalist. It stands upt n 
 the records of Parliament ! 
 
 * See Lords' Secret Com. Rep. 259. 
 
 fObserv. 49. J Observ. 63 69—81' 
 
 E 3 " our
 
 54 CONSIDERATIONS ON COMMERCE; 
 
 *' our domestic circumstances, -And under the opera' 
 " tiom of the continental system, that the Bank 
 *' Restriction should be removed, during such a 
 *' w^', with such an enemy?" His answer must 
 have been, " In 1797, I submitted my opinion to 
 *' the public, that under the then circumstances, it 
 " ought not to be removed ; 1 have always been of 
 " the same opinion, that under the existing circum- 
 " stances, at home, and abroad, it ought, by no 
 " means, to be removed." We may now perceive, 
 that the Committee, by not asking the main ques- 
 tion, with a view to all circumstances, Sir Francis 
 Baring was induced to declare a fallacy to the 
 public ; This sort of fallacy runs throughout the 
 ivhole exavninations : By pressing points, which go 
 to support a system, and keeping the special circum- 
 stances of the enquiry out of sight, the Committee 
 made intelligent men speak a language, which con- 
 veyed opinions, that they did not hold. In 
 making this reply, it is far, from my intention, to 
 retract any of those sentiments of respect, for the 
 person, and consideration, for the opinions, of Sir 
 Francis Baring, which I have invariably held. 
 
 13. Let us now examine, whether the Committee 
 be more happy, in its next topick, of the par of e.v- 
 change*. Either the Committee did not know the 
 meaning of the par of exchange ; or, for the conve- 
 nience of theory, the Committee substituted the word 
 
 * Report, 8° Edit. 22. 
 
 currency.
 
 BULLION AND COIN ; ETC. 55 
 
 currency, for the word coin ; and by changing the 
 one word, for the other, the Committee seized the 
 ''vantage ground of argument. It is the result of 
 the comparison of the coim of different countries, 
 which constitutes the par of exchange, and not a 
 comparison of the currencies ; as coins may be as- 
 sayed, but not currencies, which may be in paper. 
 Sir Issac Newton assayed the several coins of the 
 different European nations, in order to ascertain 
 their relative values, or par ; but ho did not assay 
 currencies. " Hence," says Harris, the gieat as- 
 sayist, " the equality of silver, expressed by differ- 
 " ent denominations of coins, constitutes \vhat is 
 *' usually called, t\\Qpar of exchange, betwixt any 
 " two countries *." We thus perceive, how the 
 Committee fails, either in its knowledge, or its argu- 
 ment. The par of exchange, as we have seen, 
 differs from the course of exchange, in this : The 
 par shows w hat any other nation, or town, ought to 
 alloiv, in exchange, the par being certain, and Ji.ved, 
 by the intrinsic values of the several coi?is, when 
 estimated against each otlier ; But, the cou?^se, only, 
 
 t Essay on Money and Coins 115: And, with him coucnrs 
 every other writer on money, and exchanges. The judicious 
 Magens had stated enough on this point, when he said; " la 
 **■ calculations of t/ic par, rogai d ib had unlj/ to the coined silver 
 *' of the several countries ; and not to tlie acc'uhntal price of 
 " bullion ; for, this is never long the same." Universal mer- 
 ch;tijt, 78. ISIagens, necessarily, excUuicd, from his contem.- 
 plation, all currencies. 
 
 i 4 :>how»
 
 56 CONSIDERATIONS ON COMMERCE; 
 
 shows what the Exchangers xvill allow^ in exchange, 
 which is uncertain^ and cojit'mgent : There is another 
 difference, arising out of the practice, and conveni- 
 ence of trade, which constitutes the difference, be^ 
 tween the true, and the nominal par of exchange *. 
 Those experienced exchange-brokers, De Matto&j 
 and Eliason, alluded to the same nominal exchange, 
 ■when they informed the Lords' Committee, in 17Q7) 
 that the par of exchange, with Hamburgh, was 
 always calculated upon the Bank money, which is 
 iixedi and the pound sterling, which is also fixed, 
 and unchangeable ; that the one, and the other, are 
 fictitious ; and that the present par had been the 
 same, as long as they could remember; Whether, 
 then, the par be calculated upon the several cohis, 
 or upon the money of account, the one, or the other 
 must be fixed, and unchangeable. In fair discus- 
 sion, therefore, it is absurd to suppose, that the par 
 of exchange can be calculated upon the currency of 
 a country, which may consist much more of secu- 
 rities for money, than money itself, and may be sub- 
 ject to change, and depreciation, according to the 
 nature of the securities, whether good, or bad. After 
 
 * It was with an allusion to the nvminal par of exchange, 
 that Magens, in speaking of the difi'erent ways, among mer- 
 chants, of negotiating bills of exchange said, " If a bill of 
 " exchange is demanded on Hamburgh, the negotiation is 
 *' always meant to be on the pound sterling ; and the question is, 
 *'' how many schellings and pence, Flemish, are to be received, 
 " abroad, for each pound sterling.'' Univers. Merch. 82. 
 
 reviewing
 
 fcULLIO>r AND COIXJ ETC. 57 
 
 reviewing the various exchanges of different coun- 
 tries, and of Portugal, in particular, and computing 
 the par upon the currency^ the Committee comes, 
 at length, to the end, for which this computation, 
 and that review was made, of finding not so much 
 some defect, in our coms^ as some depreciation, or 
 dehiUty, in our currency *\ 
 
 1 4. The Committee now diverges to a supposed 
 principle, which is said to have been long settled, 
 and generally understood, " that the difference of 
 " exchange, resulting from the state of trade, and 
 ** payments, between two countries, is limited, by 
 " the expence of conveying, and insuring the pre- 
 " cious metals, from the one country to the other f." 
 What the Committee calls a principle, is by our 
 elder writers, on such subjects, denominated the na- 
 tural exchange ; and the natural exchange is said to 
 consist, in the whole charge of sending the thing 
 itself, to be transported. How cumbersome this 
 was needs not be told. And, it was the inconve- 
 nience of the Co)?2??ttt tee's principle, the transporting 
 of the thing itself, at whatever trouble, and expence, 
 which introduced the artificial exchanges : And, 
 hence originated bills ofeaxhange, the par of ex- 
 change, and the course of exchange, which have no 
 difficulty in them to any, except to those, who 
 wander away, from merchandize, to metaphysics : 
 The Committee now states, as a truth, by all ad- 
 
 • Report, 8" Ed. 25. t Id. 
 
 mitted.
 
 ■58 CONSIDJilRATrONS ON COMMERCE; 
 
 mitted, " That the real difference of exchange, rt^ 
 " suiting from the state of trade, and payments, 
 " never can fall lower, than the amount of such 
 " expence of carnage, including the insurance *.'* 
 What is this, but dragging us back to the natural 
 exchanges, far from the course of commerce^ and- the 
 practice oi merchants : And, is that to be assumed, 
 in fair discussion as a truism in trade, which is in- 
 consistent with tlie nature of commerce, and is dis- 
 proved, by the practice of merchants : Such logic 
 may be allowed, in the schools, but such specula- 
 tions will be reprobated on 'Change : this reproba- 
 tion will not only take place among practical men ; 
 but, that principle of the Committee had been 
 already disproved by speculative men : Taking the 
 par of the natural exchange to be tlie amount of the 
 'whole charges of conveyance, as the Committee 
 assert, What does the great Assay-master of the 
 
 * Report 8* ed. 25. But, Mr Blake, a favourite writer, of 
 the present times, on exchanges, disputes the above-mentioned 
 truth ; and, he assures us, p. 29, that in the period, from 1774 
 to 1705, the exchanges, between Hamburgh and London were 
 frequently so unfavourable to London, as far to exceed the ex- 
 pence of the transit of bullion. If the Hamburgh exchanges of 
 November 1760, NovcmLier 1774, January 178-2, of July and 
 September 1783, be compared with the prices of bullion, it 
 will be found, that the exchanges sometimes fell below the 
 par to more than doable the expence of tranaporting bullion to 
 Hamburgh. Research, might, with a little trouble, find other 
 statements to the same purpose, if it were of any importance 
 to dispute, pertinaciously, about the truth of a theoretic point, 
 which is so contrary to the practice of trade. 
 
 2 Mint
 
 BULLION AND COIN ; ETC, 5^) 
 
 Mint say ? " The price of bills may be reduced below 
 *' par ; but, bullion can never be lower than the 
 " established standard, the ^lint being always open 
 *' to receive it at Mint-price*." The Bullion Com- 
 mittee examined the late Abraham Goldsmid, in this 
 manner: — " In ordinary times, when our gold coin 
 " is at its standard, can the exchange be depressed 
 '* lower, by the state of [the] balance of payments, 
 " than what it costs, to transport specie, or bul- 
 " lion?" Answ. " Sometimes one way, and some 
 '* times the other, over, and above [under] such 
 " price." — " How much over and above [under] 
 *' such ex pence, do you conceive?" Answ. " I 
 " have known it differ, as much as live per cent 
 ** either way, [over, or undei']." — *' Can so great 
 " a difference as five per cent, continue, for any 
 *' considerable time?" Answ. " I have known, from 
 " one to five per cent, continue, for three, or four 
 
 * Harris on Money, and Coins, p. i2l. Magens, another great 
 assayist, and calculator, as well as experienced merchant, who 
 knew practice, as well as theory, writing between the years 
 1740 and 1750, says : "Since a good part of the silver and 
 " gold from Spain and Portugal are the returns for goods, from 
 " Germany, sent thither, they [the Germans] have not always 
 " occasion, for taking it all in goods, from England; and so, in 
 " course, part of the same bullion will often, from England, 
 " find its way through Holland into Germany, and, naturally^ 
 *' the exchange from London to Amsterdam, for most times, 
 ** must be under par, so as to afford the charges of sending over 
 " bullion; and so, in reality, I observed it to have been, and 
 *' you see, by the above course of exchanges, it was, in 1729." 
 Universal JMerchant, 85. 
 
 " years.**
 
 60 CONSIDERATIONS ON COMMERCE; 
 
 " years." — How long did it ever continue so high 
 " as five per cent?" Answ. " I have known it five 
 " per cent, but very seldom, and not for a long time 
 " together." — We have thus, from the examina- 
 tion of Abraham Goldsmid proof of the fact, in op- 
 position to the Committee's principle. And, from 
 all those facts, circumstances, and authorities, we 
 may infer, that the famous dogma of the Committee 
 i& not only reprobated by pt^actical men, but by 
 speculative men, and by scientific men, as well as, 
 by tlie still more overpowering authorities oifact, 
 and experience : Now, we thus perceive, that the 
 Committee has not only failed, as assayists, but as 
 logicians, as far as it assumes to outargue fact, and 
 to defy experience. 
 
 15. We are, in this manner, conducted by the 
 Committee, to enquire, whether the practice of bu- 
 siness consists, wholly, in the transport of bullion, as 
 it supposes ? Has this supposed practice ever existed, 
 since the invention of bills of exchange, which came 
 in the stead of bullion carriage. Did such a prac- 
 tice exist recently, either before, or since the Bank 
 restriction ? The very book, which lay on the Com- 
 mittee-table, would have answered, negatively, that 
 <luestion*. The whole mines of South America 
 
 would 
 
 * Blake on Ejjrhanges, p. 25, says, " that a very small part 
 " of the payment of an unfavourable balance is effected, by the 
 " transit of bullion." We also learn, from the more scientific 
 
 Harris,
 
 BULLION AND COIN ; ETC. 6l 
 
 would not suffice, to settle the vast balances of our 
 general payments, during tlie various turns of so 
 vast a trade, as ours, taking in to the acccount the 
 paying of dividends, the demand for subsidies, the 
 craving of our vast estabhshments abroad, both 
 civil, and military. On the contrary, the evidence, 
 which was given to the Committee, by the practical 
 men, evinced, that bullion can only be furnished, in 
 a small proportion ; and can only go a httle way, 
 in restoring an adverse exchange, while other mej- 
 chandize can be furnished, to any amount ; and 
 w^ould even more effectually restore the fallen ex- 
 change, if the commercial communication, with the 
 Continent, were not restrained, by the Contmental 
 system. If we argue, indeed, with Mr. Blake, that 
 a very small part of payments is effected^ by the 
 transit of bullion, what, then, becomes of that other 
 
 Harris, Essay, 123, who, speaking of the payment of unfavour- 
 able balances, 8a}b, " there is no way of bringing the balance 
 " even, but bi/ the exportation of goods, or bullion." Then, 
 what said the experienced Magens, " I will venture to maintain, 
 " th4t as trade is now caiTied on, (Jte country coin has the least 
 ♦' share, in moving the wheels ; silver, and gold, as bullion do 
 " more : and, I will ask. Whether it be not possible, to gain a 
 " balance of trade, without receiving it, in bullion? whereto, I 
 *' I answer. Surely, it is, by importing more in foreign com- 
 " moditics, useful every where, than we want, by our exporting, 
 " and selling them U> other coiuitries, we may gain a better 
 " balance in trade, than by receiving bullion," Universal Mer- 
 chant, partii. 5. What is this, but a description of the ge- 
 ■eral course of trade ! 
 
 dogma
 
 62 CONSIDERATIONS ON COMMERCE ; 
 
 dogma of the Bullion Committee, that bullion regu- 
 lates the prices of exchange, while exchange docs 
 not regulate the prices of bullion ? The experience 
 of Magens had already revealed to the world, what 
 a slight variation of a few grotes, in the exchange, 
 will send bullion, to and fro, between Amsterdam 
 and London *. Does not, then, exchange command 
 bullion to go to, and fro, between London and Am- 
 sterdam, or Hamburgh ? If such, then, be the supre- 
 maci) of exchanges must they not regulate, not only 
 the i?iotions of bullion, but the rise, and fall, of prices, 
 if it remain stationary. Those questions were all 
 answered, affirmatively, by the merchants, bankers, 
 and brokers, before the Secret Committees of Par- 
 liament, in 1 797, who all concurred, in the position, 
 that exchange regulates bullion, but not bullion, eX" 
 change. By examining the commercial events, during 
 the effluxion of thirteen years of prosperity, under 
 the Bank restriction, I have already shou n, that the 
 iacts, and reasonings of those practical men had been 
 
 * Univers. Merch. p. 84. referring to the experience of tner- 
 chants: " To avoid, says Harris, the charge, trouble, and hazard 
 *' of transporting bullion backwards, and forwards, for the sup- 
 " plying of different occasions, the method of discharging debts, 
 " by bills of exchange, was introduced: This was an excellent 
 ** invention; these bills being as subservient, lu foreign com- 
 " merce, as coins are^ in home traffic ; for, by shifting of debts, 
 " and credits, from one place to another, they so far answer 
 " all the purposes of money.'' Essay on Money and Coin^ 
 
 converted
 
 UULLIOK AND COIN ; ETC. 6$ 
 
 converted, by events, intx) experience *. Shall dog- 
 matism, then, be now admitted to defy facts, to out- 
 face demonstration, and to scot}' at the practice of 
 business ! 
 
 16. After all those discussions, with regard to ex- 
 changes, far from me be the wish of detaining the 
 more gentle reader, w ith minute calculations of the 
 true variations of exchange, with Hamburgh, during 
 the prosperous year 1809. In my foregoing con- 
 siderations, I have reasoned the question upon the 
 Average of 1 1 j per cent, during the whole year, 
 which seemed to be the true rule of argumentation. 
 The Committee, by a very ditierent computation, 
 has reasoned the fall of the exchanges, upon a con- 
 tinued depression " from 1 6 to 20 per cent, through- 
 " out the yearf." The Commitlee may possibly 
 he right ; but, the probability is, tiiat the Committee 
 is mistaken. The exchange v.ith Hamburgh, in 
 1808, according to an average of the whole year, 
 was somewhat favourable. In the subsequent year, 
 the lowest point, to which it fell, was 28. 6. being 
 only I5i- per cent, below the par; yet, this depres- 
 sion only continued during, three z.'cehs together. 
 Duiing the lowest viu)ith of the lowest year^ 1 Sou. 
 
 ' The Bullion Comniittef aske»J the 1-ile Abraham Goldsiiiid, 
 " Do you consider gold, and silver, as the only regulators ol" 
 " the exchange? NO, I do not," said he. The proper answer 
 19 auch a question, by such a pcisoa had been ; Who ever heard 
 of gold, and silver, bein^ the only regulators of the exchang<^ ? 
 
 t Report, 8" ed. a;. 
 
 the
 
 64 CONSIDERATIONS ON COMMERCE 5 
 
 the average rate of this exchange was 28. 9. being 
 14I per cent, below par ; the average of the whole 
 year 1809, was 29. 9! being n^ per cent, below 
 par. Now, the average of the whole year, among 
 just reasoners, is the true criterion, as the whole 
 enquiry turns upon this year of adverse exchanges. 
 The investigation of the Committee was carried on, 
 through the months of March, April, and May, 
 1810 ; and it was concluded, by the presentation of 
 its Report, on the 8th of June. Now ; the average 
 rate of exchange with Hamburgh, during March 
 1810, was 29. 2, being 13 § percent, below par, 
 the same during April, was 3 1 , and during May> 
 only 31, which nearly amounted to 8 per cent, be- 
 low par. It was not, then, correct, to state the de- 
 pression of the exchange with Hamburgh, during 
 .1809, as amounting from 16 to 20 per cent, and 
 still more incorrect, to state this amount of depres- 
 sion, as a continued depression, throughout that 
 period. The average rate of exchange with Ham- 
 burgh, during April, and May 1810, being only 
 eight percent, below par, as we have just seen, this 
 was only one per cent, below the expence of trans- 
 porting bullion to Hamburgh. Abraham Goldsmid 
 informed the Committee, (and he is supported by 
 the fact) that, during ordinary times, when the 
 Continental system did not overpower all trade, and 
 all exchange, the exchange had fallen five per cent, 
 below the whole expence of transporting bullion to 
 
 the
 
 the neighbouring Continent. The toregoing facts, 
 then, evince the feebleness of the foundation, whereon 
 the Committee tiionglit fit to raise so weighty a 
 superstructure, as a Jiezv system, arising out of some" 
 thing dcfcctlvL 'ni our orni currency. 
 
 6. From those considerations, the Committee 
 iiaturall}" diverged to enquiries, with regard to the 
 balance oi OUT exports, and imports; the Committee 
 observing on this head, " how entirely the present 
 " depression of our exchange, with Europe, is re- 
 *' ferred, by many persons, to a great excess of our 
 " imports, above our exports *." But, with sub- 
 mission, this is not the true state of the question, at 
 issue, before the public. The merchants, bankers, 
 and brokers, maintained before the Committee, 7iot 
 that there had been a great excess of iniports above 
 our exports ; but, that there had been, in 1 809, a 
 most extraordinary import, from the North of 
 Europe, in foreign ships ; whilst the goods, and 
 credits, of the British traders were prevented, by 
 the force, and fraud, of the Continental system^ 
 J'roju reaching their destined ports : IJcnce, arose a 
 great deficiency of funds, to pay, for those imports ; 
 and hence, the necessity of drawing so many bills 
 of exchange, from Hamburgh, to a vast amount, so 
 as greatly to reduce the course of exchange, to their 
 loss : Thus, the merchants^ and bankers, are led to 
 
 "< Report, 8^ ed. 28. 
 
 F complain
 
 C}6 coxs-iderAtions on commeiuje ; 
 complain, that their informations are not so stated^ 
 as to comprehend the rihole question : And, they 
 msibt, from the rise of the Hambm'gh exchanr^e^ 
 early, in 1810; from iif in 1S09, to S per cent, 
 fivourably in April, and May 1810, that had their 
 whole goods,, and credits, reached their destined 
 ports, the exchange v. ould iiavc become so advanta- 
 geouSj as perhaps, to have reached that point above 
 par, which uould have turned the current of bullion, 
 fi'om Hamburgh 10 London, as it undoubtedly did» 
 in 179S. The merchants complain, that their cre- 
 dit is injured, by not representing the zchoie truth, 
 with all its accompanying circumstances : The 
 bankers complain, that they are wronged, in their 
 affairs, by representing a depredation of our ozin 
 eiirrency, while the real disorder arises, abroad, from 
 the fraudulence, and force, of the Continental sys- 
 tem. And those merchants, bankers, and brokers, 
 consider such representations, when unsupported by 
 facts, and uniUustrated, by circumstances, as mis- 
 representations, which, it must be allowed, are 
 equally injurious to private, and public credit, that 
 every one, who wishes \Aell to liimsclf, or tiie state, 
 has an interest to support. 
 
 7. Accurate enquiry will probably find, that the 
 traders are more founded, in their before-mentioned 
 complaints, than might be supposed, from the ob- 
 scure views of an interesting subject, which the 
 
 Committee
 
 JBULLiON AND COIN ; ETC. 67 
 
 Committee has given* : And, this truth will nppear, 
 whether we consider the balance of payments, or 
 the balance of trade, durincr the Jive years, ending 
 with 1 809, withotit again adverting to the apocryphal 
 piir of exchange, w hich the Committee re-assi^-mes, 
 in opposition to those great assayists, Newton, 
 Magens, and Harris f. " Our debt to foreigners, 
 " says the last, operates, in the same manner, as a 
 " balance of trade against us, to the whole amount 
 " of the dividends, owing to them, [and he might 
 " have added the stock sold by them ;] and 
 " the same he subjoins, is true, as to all foreign 
 *' subsidies," and he might have subjoined, also, our 
 public expenditure X- Those various payments 
 cannot now be so easily liquidated, as formerly, 
 during the commercial freedom of the imperial 
 towns, and the existence of the bankers, and ex- 
 changers, in every commercial city. Yet, the 
 Committee assumes it, as a fact, that there remahied 
 a large l)alance of payments, on the favourable 
 balance of trade of the four previous years to i S09, 
 quite sulKicient to meet the extraordinary causes of 
 the depression of the exchange, in 1 809 ; and in 
 the course of the enquiry, the Committee repeatedly 
 press that notion on the merchants, who stated the 
 balance of payments, as the leading, and most pow- 
 
 * Report, S*- ed. -28— 3'2. t Id- 
 
 X Essay on Money, 125. Magens concurs in this. Sect, 
 xxxi. Univexs. Mcrch. 1'2— 15. 
 
 F 2 erful
 
 6S CONSIDERATIONS ON COJIMERCE;- 
 
 evful cause of depressing the exchange, though not 
 the sole cause, as the Committee misconeeive ** 
 In order to justify tihe rejection of tlie informations-, 
 Tvhich were given,, by the practical men, on this 
 head, the Committee studiously place the balance 
 of trade, according to the real "calue of the exj)ort9 
 and imports, between Great Britain, and all the world, 
 during the Jive years, ending with 1 809, which they 
 contrast, by adding a; statement of tlie official 
 value of the exporfe aad imports of Britain with 
 the European Continent, only, for the same five 
 years : By thus contrasting real values, uith official 
 values, the Committee fails,, as much as accowitants, 
 as it had already doae, as assayists ;■ But, the object 
 Mas, to show large balances oi the trade, m farceur 
 of Britain, wifcii the European Continent, during, 
 those free years, in opposition to the documents,, 
 annexed to the Report itselt^ which evince a con- 
 tiary factf : For, according to the real value of the . 
 
 exports, 
 
 * Wedded- to this notion, the Committee disregards the evi- 
 itience of the merchants upon the point; and even sneers at Mr. 
 Grefl'ulhe, i'or maintaining that, the state of the balance of pay- 
 ments alone was sufficient, to account for any depression of the- 
 exchanges, however great. Report, 8° ed. 31 — 1. 
 
 t Appx. Rep. No. 75, and 76 : The Committee, indeed avow 
 [Rep. 8° ed. ^29.] that they pkce'httle confidence in the der 
 ductions, made even from tl)e improved document of the In- 
 spector Generals : "■ It is deft-ctive, as I\Ir. Irving has himself 
 ". stated, inasmuch as, it svpplus no account of the sum drawi 
 ** bi/Joreigners (which is at the f resent moment peculiarly 
 7 "large)
 
 BULLION AND coin; T.TC. ^9 
 
 '•exports, ))etwecn Britain and the neighbouring Coii- 
 tinent, the real balance of trade was against Britain, 
 in the years 1805, iSoG, and 1807, whilej in 1808, 
 the balance, in tlivour of Ikitain, '.vas iwo milljions 
 less, than that exhibited, in the Conimittce's state- 
 ment ; and,, in i 809, the -favourable balance was 
 only one half of what the Commitlee eidubits.: 
 Neither, was it very consistent with business, nor to 
 tlic practice of trade, to bring forward the favourable 
 balance of 1 809, to bear on the exchcu^ges. of the 
 same year, which, according to the course of com- 
 merce, and the nature of things, as stated, by the 
 
 .Jjractical men, can only bear on the subsequent 
 exchange, of 1810 : Thus, according to the Com- 
 mittee's own documents, stood the genuine balance 
 of trade on our Eurojjeau .commcrcCg in -the four 
 following years * .: 
 
 * large) on account Qf'fiu^igkty f?«c ^0 ^/<f»?, for -tlw^ employment 
 «• of their shipping." Now, what does Mr. Irving himself 
 really, say ? " I <:onsider the account objectionable, ia some 
 " respects ; the values are calculated, at the prk-es, ia this 
 " market, of course the imports iiiclude the mercantile proiits, 
 " and tht freights inv:ards ; the exports are exclusive oi'thc 
 " freights outwards." bee Mr. Irving's Evidence, ai-z, of the 
 S° edit. By thus stating Mr. Irving to have said the con- 
 trary of what he did say, tlie Committee has misled some able 
 men. 
 
 * Appx. No. 75— 7G; being the castigiatrd accounts of thp 
 Inspector Gencial.
 
 70 
 
 CONSIDERATIONS ON COMMERCE ; 
 
 Years. 
 
 Exports : 
 real value. 
 
 Imports : 
 real value. 
 
 Balance 
 
 infuvmr of 
 Britain. 
 
 Balance 
 against 
 Britain. 
 
 1805 - 
 
 20,435,940 
 
 £' 
 21,744,762 
 
 £' 
 
 £- 
 
 1,308,822 
 
 1806 - 
 
 i7»547,'243 
 
 17,855,524 
 
 - - - 
 
 308,281 
 
 1807 - 
 
 15,420,514 
 
 17,442,755 
 
 . - . 
 
 2,022,241 
 
 1808 - 
 
 13,983,123 
 
 8,905,099 
 
 5,078,024 
 
 — 
 
 Total ^. 
 
 67,386,820 
 
 65,948,140 
 
 1,438,680 
 
 3,680,344 
 
 We now perceive, by deducting the advesre ba- 
 lance of £. 3,689,344 from the favourable ba- 
 lance of £. 5,078,024, according to the Committee's 
 document, that the balance of trade, on our Etira- 
 pean commerce, on those four years, was only 
 3^.1,438,680. Now; it will appear, on the con- 
 trary, that the expenditure of Government, on the 
 neighbouring Continent, during the same Jour 
 years, with the remittances to foreigners, on their 
 funded property, amounted together to upwards of 
 £. 1 5,000,000. The subjoined Statement will evince 
 the truth of this striking fact : — 
 
 In 1805, the expenditure of Government, abroad, 
 was upwards of - - £, 3,000,000 
 The remittances, for the divi- 
 dends of foreign Stockholders, 680,000 
 
 3,680,000 
 
 In 1806, the expenditure of Government, abroad, 
 was more than - -£,2,100,000 
 The remittances, iox foreign 
 
 dividends - - - 680,000 
 
 2,780,000 
 
 Carried up - £. 6,460,000
 
 BULLION- AND coin; ETC. 7 1 
 
 ' Brought forward - £.6,^6l0^ooq 
 lii 1807, the expenditure of Government, abroad, 
 uas more than - - ^. '2,i0Oj000 
 The remittances, for furcign 
 
 dividends, full - - -680,000 
 
 3,iSo,ooq 
 
 In l8o8j the expenditure of Government, abroad, 
 was upwards of - - ;^- 5,500,000 
 Tlie remittances for foreign 
 
 dividends - - - 677,700 
 The remittances to foreigners, 
 
 iox slack sold - ~ .655,800 
 
 6,833,500 
 
 The total remittance of fhose'four years, £. i'6,473,5oo 
 Uut, deduct the faiou ruble bcdamx of tradt, w'lUi 
 
 Europe, in those four years - - - - 1,438,680 
 
 ilence, the real balance of payments, to be sent 
 to Europe, in bullion, or goods^ in those four 
 Tjears - - - ' ^ ^ - £• 15,034,920 
 
 We now perceive, that instead of a balance of 
 ^aymcntSy in favour of Great Britain, in her ac- 
 count Mith Europe, on those four years, as the 
 Committee miscalculate, there was, in fact, a ba- 
 Jance of payments against Circat Britain of ;7Z*5 re 
 ilmn J//'Ue?i million. jNIuch of this vast balance 
 iuust have been liquidated, by tlie proceeds ^of the 
 balances due to Britain, from ha' Colonies, and 
 from America : But, as it requites full eighteen 
 vionths, to bring round the payments, from the 
 Colonies, and America, part of that grand balance, 
 in favour of Europe, must have remained, as a 
 F 4 |)rcssurc,
 
 72 CONSIDERATIONS OX COMMERCE; 
 
 pressure, upon the year 1 809 : And, in addition to 
 what thus remained, unhquidated, on those four 
 years, ending witii 1808, 
 
 Jn 180Q, there was so large an c.x})Gncliture of 
 Government on the European Continent, 
 iS:c. a^7- -- - -- 8,035,'23Q 
 
 Remittances made, for foreign dividends t . 59-2,980 
 Remittances made, for foreign stock sold out - 1,040,000 
 
 Hence, the total remittances to Europe, in 
 
 that year, was - - , _ - _£. 0,668,210 
 
 In 1809, the trade of Britain with Europe, stood thus: 
 Exports, according to the /-co/ value, £-2'/,igo,2-;^'j 
 Imports, according to the same value, 19,821,601 
 
 Balance, in favour of Britain - ~ ■ — ■ — 7.368,736 
 
 Now I tliis balance of trade, iii 1 800, amounting to 
 jT.y, 368,736, could not, we see, meet the much larger 
 payments, amounting to ;£. 9,668,210, which were 
 obviously requisite, for the public expenditure, and 
 for stock sales, and dividends, in the same year : For, 
 it appears, from the information of the practical meff, 
 tliat according -jj the accustomed course of trade, 
 owinjjf to the usual credits, and to the Continental 
 system, that the favourable balance of trade could not 
 be made, usefully, etlectuid, till the subsequent year, 
 1810: So that the payments, in 1809, with what- 
 ever remained unliquidated of the outstanding ba- 
 lances, in the four preceding years, also operated 
 on the exchanges of 1809, with little relief, from 
 
 the
 
 BULLION AND COIN ; ETC. 73 
 
 the great exports of this prosperous year; and, 
 this operation, when superadded to the various 
 other adverse circumstances, which were j)lainly 
 stated to the Committee, by tlie practical men, 
 did produce a most extraordinary depression of the 
 Hambun^h exchanges, in 1809, though not so 
 threat, as from 1 5 to 20 per cent, as the Committee 
 report. The favourable balance of trade, in 1809, 
 began tg operate, as we ha\'e seen, in the Spring-* 
 time of iSio: Thus, the Hamburgh exclianges, 
 which fluctuated, at the end of 1809, and in tho 
 beginning of iSio, from 28. 6 to 29. 6, j-ose, in 
 March to 30, and in April to 31 ; it continued, at 
 31, throughout April, and May; and again rose, in 
 June 1810, to 31 and to 31.2: So that, the average 
 of the Hamburgh exxhange, during the first six 
 months of 1810, was 29. 1 i-f, which is U per cent. 
 beloxv the par. This examination, then, of the be- 
 fore-mentioned documents, and accounts, exchanges, 
 and facts, evinces, that the genuine informations of 
 the practical men were accurate, however the 
 Committee may disdain their judgements. 
 
 8. The Bullion Committee, at length, came to 
 two conclusions, on this topick of exchange ; or 
 rather one demonstration, out of two inferences. 
 Here is the concUuHng paragraph of the Report, on 
 this essential head of the Enquiry*: " From the 
 f* foreffoinii reasoniniis, relative to the state of the 
 
 * Rep. S" cd. 34.. 
 
 ^- exchanges,
 
 74 CONSIDEIIATIONS QN COMMERCE ; 
 
 ■^ exchanges, if they a.'e considered a part, your 
 " Committee fnid it difFicult to resist an inference, 
 *' that a portion, at least, of the great fall, which 
 ^' the exchanges lately suffered, must have resulted, 
 " not from the state of trade, but, from a change 
 *' in the relative "value oiour domestic currency : 
 '' But, when this deduction is joined, witli that, 
 " which your Committee have stated, respecting 
 '' the change, in the market price of gold, that in- 
 " ference appears to be demonstrated.'" Those 
 are certainly the Aveightiest conclusions, which were 
 ever drawn, from such doubtful premisses; con- 
 eidering that, they aim a blow, not only at the 
 private credit of every individual, but a sti'oke to 
 the pubiic credit of the nation : And, in such a 
 nation as this, private credit is a great object with 
 every one, &\K\public credit, as it is one of the great 
 resources of this commercial <:ountry, has always 
 been deemed, by the Commons House of Parli- 
 ament, as a w orthy object of peculiar caie. It was 
 quite apparent, from the day, on which the newspa- 
 pers began to retail the opinions, and the recommen- 
 dation of the Committee, that the well-informed 
 people of this animated nation would not submit to 
 such opinions, and such a recommendation, wliich 
 deteriorate private fortune, and weakeii public 
 securities: And, what were iiitelligeit men re- 
 quired to believe? That the Hamburgh exchanges, 
 m June last, were fallen to a point of depression, 
 
 fiom
 
 BULLION AND COIN ; ETC. 75 
 
 from 15 to 20 |)er cent, below the usual par, when 
 every broker, and eveiy baby, I was going to say, 
 knew, that the exchange had risen to 1 1 per cent. ; 
 that the price of bullion regulates the exchanges, 
 when every practical, and every scientific man, 
 know, that the exchange regulates the price of 
 bullion; that the Bank notes are only securities 
 for moneys depreciated securities ; when the citizens 
 of London, who are experienced, in the custom of 
 trade, and the magistracy of the country, who are 
 acquainted with the common law; all know, that 
 Bank notes are cash, and 7iot securities for money. 
 Such are the dogmas, which are to support that 
 weighty inference, which has already deteriorated 
 private property, and lessened public credit. But, 
 when this deduction is joined to the change, in the 
 market price of gold, that inference, in the opinion 
 of the Committee, assumes the dignity of demon- 
 stration. The Committee, then, did not know 
 what all the world knows, that gold is a commodity, 
 which, like all merchandizes, rises, and falls, in its 
 price, according to the supply, and demand, in the 
 market. The Committee did not believe, what men 
 of science had written, and men of business had 
 said, that unfavourable exchanges make bullion 
 dear, and favourable exchanges, cheap; and so, that 
 gold rises in price, wlien exchanges are adverse, 
 and falls in value, when the exchanges arc favour- 
 able. Sixty years ago, ^lagens had shown how few 
 
 grotes,
 
 ^5 CONSIDERATIONS CM COMMERCE; 
 
 groteg, in the prices of exchange, would eflfect the 
 'transit of gold, l»etween London and Amsterdam. 
 Sh* FraHcls Baring, in 1797, had proved, by the 
 rule of three, that an unfavourable exchange of 
 •7, or 6 per cent, would malfe bullion pass, frotti 
 London, lo Hamburgh: But, when there is an 
 adverse exchange of 15, to 20 per cent, the Com- 
 •imit4:6e does not believe, that any one Mould export 
 'bullion, for sucli a profit, though gold coins be every 
 ,day seized, on boa,rd of ships, in the act of transpor- 
 tation. Experience had shown the world, that du- 
 ring the dear years, a^id under the Bank restricdon, 
 the trade of this nation not only made the various 
 payments of specie for corn, and subsidies to the 
 Princes, and Potentates, of the Continent, but sup- 
 ported the exchanges, by its exports : Yet, cannot 
 the Committee be persuaded, that the export of 
 goods is the true equilihrium of the exclian 
 
 es. 
 
 and not the transit of bullion. The Committee see 
 various agents, public, and private, in the open 
 market, buying bullion, for the purposes of peace, 
 as well as for the uses of wai' ; yet, the high prices 
 .aire attributed to any cause, rather than to the vari- 
 ous competitions of many buyers, and few sellers. 
 The Committee had no suspicion, it seems, tliat a 
 Company existed, at Paris, under tl>e Emperors eye, 
 for cirainingthis country of its specie : and, the Com- 
 mittee, notwithstanding all those facts, and circum- 
 .stances, attribute the high prices of gold, not io 
 
 revolutionary
 
 BULLION^ AND COIIC » ETC. 77 
 
 i«volutionary causes, abroad, but, to a depreciated 
 -currency, at home : and, to this opinion the 
 Comi]iittee is wedded, with all the conviction qf 
 ikmonst ration. 
 
 But, I have done, with this head of tJie Ex' 
 cha?iges ; having finished what I had to say, in my 
 considerations, on this topick. I will only add, 
 how little consistent with good sense, it is, to 
 suppose cash to have depreciated^ rather than 
 prices to have risoi, contrary to general expe- 
 rience ; aiKi contrary to what was understood, in 
 the Parliament, 1797, after great enquiry. It is a& 
 little insistent, with good sense, to argue, not only 
 without proof, but against proof, that the traders, 
 and bankers, at Hamburgh, knowing the custom 
 of our trade, and the adjudication of our law, which 
 attributes ta Uank notes all the qualities of cash, 
 and the arrangements of our Parliament, with regard 
 to the 13ank restriction^ would give, now, fewev 
 schellings and grotes, for our pound sterling, than, 
 tbrmcrly ; when, under dii!erent auspices, — 
 
 " Instructed ships did sail to quick CDmmevcej 
 
 " By which remotest natioas are ally'd ; 
 " Which makes one city of the universe, 
 
 " Where some may gaai, and all may be supply'd." 
 
 But, in the present case, tliis supply, and thut 
 gain, did not take place : Under the Napoleon code, 
 the universe is no longer one city, whatever poet? 
 
 :nav
 
 ^S CoJJSibtRAtiOJJS ON COMMERCE J 
 
 may sing; and under the Continental system^ re- 
 motest nations are no more v^llied, whatever Com- 
 mittees may think, or Ex-secretaries may say* 
 
 It. 
 
 Of the Price of Bullio:*?. 
 
 1. From considerations, with regard to the coiti^sc 
 
 of the exchanges, the transition is easy to the 
 prices of bulhon ; because they are very intimately 
 connected: Under the sane state of trade, the 
 course of exchange, the price of bulUon, and the 
 export of goods, are all correlatives, from the 
 universal practice of the mercantile ^vorid*^ The 
 merchants, bankers, and brokers, who were exa- 
 
 * The very well informed Harris, when shewing " how the 
 •• price of bullion is injiiicnced" said: " A demand for bills upon 
 " a. particular place, raises their prices, as in other cases ; and 
 " when these prices have got up to a certain degree above par, 
 " the price of hullion will be also advanced above the standard 
 " of the country : for, dearness of bills causes a demand for 
 " bullion to be exported ; and in proportion of the demand to 
 *' the supply in the market, the price of bullion will be raised : 
 " — Again ; by ti-ansporting bullion, the price of bills will be 
 " lowered ; and that, again, will gradually lower the price of 
 "' bullion, until the prices of each are again brought to a par." 
 And he addh-,/' there is no other way of bringing the balance 
 " even, but, by the exportation of goods, or bullion." Essay 
 on Money,! '21 — 3. This is the opinion of all speculative men, 
 as well as e?;pericncecl merchants. 
 
 mined^
 
 BULLION- AND COIN; ETC. 7^ 
 
 hiined, by the Secret Committees of Parliament, in 
 1797, gave it as their opinions, that the course of 
 the exchange overrules the price of bullion ; and 
 the two very experienced exchange-brokers, De 
 Mattos, and Eliason, showed the Lords the ve7y 
 pivotf uporr which the export-price of bullion 
 turns, as the exchange is favourable, or adverse *; 
 and of course, the low, or high^ price of bullion. 
 To argue, then, against the universal practice of the 
 mercantile worid, against the opinions of such assay- 
 ists, as Harris, and Magens, against the informations 
 of all the merchants, bankers, and brokers, to Parlia- 
 ment, in 1797, against the fact, as it occurred, in 
 1797, and 1798, is most absurd mfair discussion. 
 2. Sir James Stuart, that most profound pO' 
 litical cccojiomist, has with his usual acuteness, 
 shown how perplexity, and confusion, have been 
 introduced, by confounding itkas, which are quite 
 diilerent, in themselves : " The terms, goldy and 
 " silver, money of account, coin, bullion, and priced 
 says he, " are often made use of as spionimous, 
 " although no things can be more different :" 
 (1.) The terras gold, and sihcr, should convey to us, 
 he goes on to explain, no other idea, than that of 
 pure physical substances: (2.) That of 7noney of 
 
 * In confirmation of that reasoning, Magens, the experienced 
 Magens said, in 1753, " Merchants know, tliat^ diflcrence, ia 
 " the exchange of live, or six grutts, will make gold and 
 " silver, go to, and fro, between London and Amsterdam.'^ 
 Univers. MercUant, 84. 
 
 account
 
 ^q CONSIDERATIONS ON COHMERCE* 
 
 account Tepresents an mt^amiblt scaky for measuring 
 mlue: (3.) Coin conveys the idea of the public 
 nuthority, asccftaininir the exact proportion of fine, 
 and alloy, in a mixed metal; and the realizing in 
 a determinate weight of it, the invariable scale of 
 money, sometimes correctly, and sometimes incor- 
 rectly : (4.) Bullion carries the idea of certain de- 
 terminate mixtures of the metals, commonly ascer- 
 tained, by some public stamp ; and di'awing their 
 value exactly, from the proportion of the fme metals, 
 which they contain, the workmanship being consider- 
 ed, as of no value: (5.) Price, again, when consider- 
 ed, as consisting oicovnis a more complex idea still ; 
 since in it [the com] are comprehended the' value 
 of the metals, the authority of the stamp, lor the 
 currency ; the actual value of the coin, a;5 a tnanu-' 
 facture, above the value of it, as ai metal ; the com- 
 mon, and universal equivalent of all things ; " and 
 '"^* the mean value of the' currency, of which /;r/ce is 
 '*' supposed to contain exact aliquot parts, when, 
 ''''"perhaps, it does not." ~ But, he adds, " all these 
 '" different ideas^ are commonly confounded, both in 
 f speaking, and writing ;" and fi-om this arises the 
 '^'""principal difficulties : And, if three, or four people 
 be engaged, iii conversation, upbrr money, he adds^ 
 every one using the same term, in a different ac- 
 ceptation, the confusion becomes inextricable: 
 " In like manner," he continues, '* when we speak of 
 ** coi?i, and of biiUion, that of the t^vo ought to be 
 ■''* . . " considered
 
 BULLION AND COIN; ETC. 8l 
 
 *' considered as the 7?wst Jjxeily which changes its 
 " proportion of value the least, with respect to a!i 
 ** commodities: Were prices attache! to iriains of 
 " silver and gold, hulllon ought, in that case, to be 
 " considered, as fixed ; butj as they [the prices\ 
 '* are more attached to the deiiominations of the 
 " coiii^ the coi)i ought to be considei'ed as Jixed *." 
 XTom the foregoing expositions of this very able 
 writer, the more judicious readers will be enabled 
 to trace i\\e fallacy, \\ hich runs through the Bullion 
 Ileport, by considering bullion as the measure of 
 prices, rather than coins, or monei/ of account, or 
 Bank cash that, by law, is identified with both 
 vimey of account, and cow*. The same judicious 
 readers may see something of the same confusion 
 of tongues, above mentioned, prevail, constantly, iu 
 other bullion examinations, wherein questions are 
 asked, in 07ij£ sense, of bullion, and coins, and the 
 answer given, in a different sense : Take the ex- 
 ample of the examination of the very well informed 
 Mr. Chambers, wlio is reprehended, by Mr. Hns- 
 kisson, though he was not wrong f: Mr. Chambers 
 was asked ; — Do you consider a Ba.k of England 
 notCi f^r one pound, under these present circum- 
 stances, as exchangeable in gold, for what it repre- 
 ,scnt3 of that?7?e^i?/?— Answ. I Aonot conceive gold 
 to be a fairer standard, for Bank of England notes, 
 
 * Political Ctciinoniy, book iii. ch. 5. 
 I ratnphlft, 21 — a; 
 
 G than
 
 S2 CONSIDERATIONS ON COSTJtERCE J 
 
 ttian indigo, or broad dotli. The same question: 
 ^vas repeated ; and, Mr. Chainlxi's said, " If il 
 ^ represents twenty sliillin<Ts of that metaly at the 
 ^^ CoitMge pricCy it ifs not." AH that while, ^/fi 
 vas as much merchandize, as broad cloth, and no* 
 more a ^ncasure, than broad cloth : The j'allacy,. 
 then, consisted, in confounding o-<9A/ with the coin\ 
 and j\Ir. Chambers, like an intelligent man, tried to- 
 draw the Committee, from ih^ JuU&tij, by saying; 
 Yes J if the Banknote of twenty shillings represents 
 twenty shilling* oi gold, at tlie coinage price : The 
 whole commercial world will reprehend tlie Bullioft 
 Committee, for asking such questions^ more than 
 fifty years after the Court of King's Bench, with 
 Lord JMansfield, for its Chief, had seJemnly de- 
 termined, upon consideration of all the cases, thai 
 Bank notes are cash ; are not securities for monei/ ; 
 but cash, as much as guineas themselves : The 
 POPULAR VOICE, then, speaking the lasguage of 
 solid sense, with the support of the custom o-f trade, 
 and of the decision of the King's Bendi,, will overrule 
 tlie Bullion Committee, which is supportedi, by none 
 of. those decisive authorities : And, the popular 
 voice is clear, that bullion, whether gold, or silver, 
 is as ihuch a me?xhandize,2LS broadcloth, oi' a bull; 
 and of course, ought not to be the measure oi Bank 
 notes, which are as much cash, as guineas them^ 
 selves. 
 
 ^^. '' In this country, say the tcxty and its com- 
 
 " mentar_y
 
 BULLION AND COIN; ETC. 8.3 
 
 " mcntary * gold is itself the measure of all 
 *' exchangeable value, the scale to which all money 
 " prices are referred : It is so, not only by the 
 " usage, and commercial habits of the country, 
 *' but likewise, by operation of law, ever since the 
 " Act of the 14th of his present Majesty [finally 
 *' rendered perpetual, by an Act of the 39th year of 
 " the reign] disallowed a legal tenda\ in silver co'uk 
 ** beyond the sum of £. 25." — But, those acts ap- 
 plied to gold coin of the mixt standard, which never 
 varies, and not to gold bullion, which does vary, 
 €very day, as a saleable commodity, according 
 to the scarcity, or plenty of it, in the market : 
 Those Statutes did not repeal the common law, 
 \\\\\d\ has recognized Bank notes to be cashy and 
 to be receivable, as cash. The merchants, who were 
 examined, except the anonymous Continental Mer- 
 chant, maintained, that cold bullion is not the mea- 
 sure of value ; but, is itself measured, in its vary- 
 ing value, like other merchandize, by the money of 
 account, which Sir James Stuart assures us, never 
 varies: Vet; the Committee justiiicd the said y?//- 
 lacify by the modes of Hamburgh; by the manner 
 of securing a fixed standard of value, for the great 
 commercial payments of tliat town : At l;Ia:iiburgh, 
 it is said, " silver is not only the measure of all 
 " exchangeable value, but is rendered an inva- 
 "' riable measure^ except, in so far as, the relative 
 ^ Report, J. Mr. Huskisson's pamphlet, 6. 
 
 9 ^ « valu*
 
 84 CO-VMDKRAThONf:- GX COMMEllCE; 
 
 " value oi' bilver itself Viiiies, with tiie varying sup"' 
 *" ply of fchiit precious metal, from the mines :" 
 Now ; the well-kn.ow ii fa^t, as stated to Parliament, 
 in 1797, is, thikt the Banco, or jiank money, is, in- 
 variably, both the money of account, and the mea- 
 ,sure of vahic ; being founded on, and correspond- . 
 i?)g with, the Jjank silver, which js unii'oFinly depo- 
 sited, at a standard fineness, and at the fixed rate of 
 -27. 10 per marc fine ; Hence, all paymcrits, at Iiam«- 
 burcrh, are made in Banco, and fiold bullion, -which 
 varies, in its price, is mea:nired, and purchased, by 
 Ban-GO, that is invariable, while huUioii rises, and 
 jails, with the market price : So, in this country, 
 the pound -sfcriiug is both the money of account, 
 and the measure of value, whieh, of course,, is inva- 
 i;iablc^ all payinenta are made, by the pound ster- 
 ling, or moiiiiy of account, which is- i/ie Kh/g^- 
 Ida- Jul tnuiii'ij, at conunou law : Thus, the pound 
 stei^ling, nnilbr^nly, corresponds Avith the standard 
 value, of the gold coin, but it cannot correspond 
 with the price of gold bullion, which varies, accord,^ 
 ingtothe demand, and supj^ly, \u the London Lnai> 
 J\et, any more, than itcaii> with any other merchan- 
 dize : Now ; the Coiiimittee, by assuming, contrary 
 ,t6 the common law, as well as the common prac- 
 tice, gold bullion, as the measure of value, endea- 
 vours to niake both {lie pouiuhterliug, andUie Bank 
 .notes, to rise> and tall, in their values, just as gold 
 b'uillon rises^ and trills, in the market : In short, 
 .•■■''•-■ t!.e-
 
 BUT J ION A^■r) coix ; y.rc. S.-; 
 
 Ifne ^hove J h/ In ci/ con«;i.;ts, in substituting the word 
 gold, for the word coin, and the word bullion, for tlse 
 word money ; and thus confounding the nnture of 
 thinfTS, and the nicanini>' both of lan-^uaife, and of 
 law: Such, thctt, is this famous /?///<7(7/, by wliich 
 the Committee would prove, that Bank notes arc 
 depreciated, in opposition to the examinations of 
 the merchants, a>nd to the comnKW sense ef man- 
 Iiind ; -aacJ by the «ame fallacy, the Committee at- 
 tempt t-o n^.a^ke out the depreciation of the current 
 money of Holland : as gold InilUonh-^d risen, at Am- 
 fcterdam, to ijf i)crcrnt. above t!]e standard par. 
 Abraham Clo'dsnvid, having st^ited the extraordi- 
 nary rise, in the price of gold bullion^ at Amotcr- 
 daui, was abked by tbie Committee, *^ V*! how gold 
 "** is above par, v/ould you riOt say, v^hc^ comjDared 
 '' with (guilders, the enrrenc v-of I I(*lland, that^'-.v/AAvi 
 " VLve depreciated f X-o; said iie, I sUowld^/o/. Mr. 
 iCIrcffulhe was asked a sim^hjf question, ^ I-s not 
 ^' the great ditference, in the pi iec oi goid 'aiho\Q 
 '• its [>ar, at yVmsterdaui owing U'i the xlepreciation 
 " oi \.\\Q guiUlerT lb wiiichiic ariswoied, ** I cour 
 •*' ccive not ; the price ofg<?kl, as compared to the 
 " current guilder, whic]4 is the regular moxle of 
 ^^ sel'liu4;, at Aniijtcrdam, has been consideyably 
 ^' higho*', at foruiei^ periods." 'J he sauie mode ojt 
 ■enquiry whs applied to the monry matters of Pa^is^ 
 *ts tlK3 rise, in ihei price of gold bulhon had been 
 ^hou n, to be higher at Paris, than at Anisterdaiii, 
 G 3 ai)4
 
 86 C'oNgTDERATIOXS ON COMxM£nCE; 
 
 and London : But, of such fallacies enough, when 
 brought forward to outface fact, and to outargue 
 experience. 
 
 4. The experience of 1797, and 1798, evinced, 
 that a favourable exchange of ;£. 10 per cent 
 would induce a vast influx of bullion : Is it not fair 
 to argue, then, that an unfavourable exchange of 
 1 1 1 per cent., in 1 809, wouki occasion, in the 
 same manner, a vast export of bullion, at a high 
 price? But, that evil of an unfavourable exchange 
 of 1 1 1 per cent, was aggravated, in 1 809, by the well 
 known difficulty of getting ^'ocxZ-s sent to the destined 
 port, owing to the Continental systeni : No\a', tlife 
 ea'port oi goods to the place of exchanges is, by the 
 commercial world, deemed the true equilibrhim of 
 the low exchanges, and the consequent high prices 
 of buUiQH. There was another evil, which contri- 
 buted greatly to cause the low exchanges of 1 809, 
 which the Committee did not sufficiently consider, 
 as it \\as unable to state the public account of the 
 whole payment^ abroad : Although the balance of 
 trade, in 1 809 was large ; yet, it was not equal to 
 tlie whole balance of adverse payments^ by txco viil^ 
 lious and a iialfy as we have already seen, 
 
 5, May not a greater demand, for bullion, in the 
 }wriie vuirkct, for domestic nianufacturers, have pro- 
 duced a rise in the price of buUion, both gold and 
 silver, on the London Exchange? Vcs : Certainly, if 
 there was a gr-eatcr demand, even su^iposing the 
 
 J 1 same
 
 BULLION ^ND coin; TuTC. 87 
 
 sanie supply, the prices would be hiirlier ; and i£ 
 the supply did not keep pace with .the dcmaixd, thp 
 prices would be much higher. Now ; it is a fact, 
 jtiiat there a\ as a greater quantity of gold, and silver, 
 plate njanufactured, in Great Britain, in the ten 
 .years ending w ith 1 809, than in the U')i years end- 
 ing with 1797*. While the mviuufacture of plate 
 
 thus 
 
 ^ Thefe v;^ic assayed, in GoWsmitb's Hull, Loudon, 
 Goid; Silver; 
 
 ox. d«ts. gr 
 
 |j| the 
 
 ended 
 
 ill the .0 >curs ) _ •OiQ,o83. o. tq. 
 ended with 1797 j __L_ • ^^ '^ J^ 
 
 10 years 7 - « 
 
 Tb.ere was much more gold, and silver, manufactured, in 
 'London, during the years 1797, and 179^,' than in 1789, and 
 1788 ; so were there mpch more gold, un<i silver plate manu- 
 factured, withiu London, in iSoQ and 4808, tiian in 1800, and 
 1801 ; the two lir.st years of the Lixt period of ten years, than 
 ill the year of peace, i8c=2. We hiay thiis marl; the pi'ogress 
 t)f manufacture, and of opulehce, dining those ten y<;ars, under 
 the Bauk /cstrictiun. Thcj|^^ aiij other assay-ofiices, in l"ng- 
 Jand, as we may leurn *"iom an account in the Bullion Report. 
 In Scotland, also, we may see tije same appearances, though 
 in a somewhat less proportion, of the progress, there, of in- 
 
 dut try, and v,e;illh : ; For, in 
 the first ten years, ending with 
 1797, there wore manufac lured, 
 \\\ Sci»t!:^nd - - - - 
 
 In the liibi ten years, ending 
 wiih i8i»9 - - . _ 
 
 Gold : Silver 
 
 u/. liis's. cr. 
 
 oz. 
 
 dxMs. 
 
 220. 6. 4. 
 
 - - 214. 
 
 0. 
 
 •-7P- I.")- 11- 
 
 - soQ.aoo. 
 
 1 3.2 1 . 
 
 The two la.'.t years, 1809, en(< 1808, we muy remark, were 
 
 far.feiipenor, to the two lii.^t years, in both ibc periods : And, 
 
 Ci 4 '" it
 
 88 CONSIDERATIONS ox COMMERCE; 
 
 thus hold its progress, we may perceive, from the 
 foregoing documents, that the prices of gold, and 
 silver, ought to have been higher, in the market of 
 London, in the years, 1808, and 1809, than in any 
 two years of the tzvo y^ars of 1793, and of 1803. 
 And, -from those documents, we may, also, per- 
 ceive, the greater industry, reproduction of capital, 
 and wealth of indivi.'nals, during the war of 1803, 
 than during the war of 1793. Fi*om these facts, 
 and circumstances, we may rath^er infer, that th^ 
 price of bullion, both gold, and silver, rose in tlieif 
 prices, than that Bn.k' notes depreciated! 
 
 4. If a public agent come into the market of 
 London, whether to buy coin, corn, or cotton, his 
 operations are immediately felt, by the sellers, whp 
 raise the prices, in proportion to his supposed pur- 
 phases. During the years 1 808, and 1 809, we had 
 our armies to supi)ly m ith spepie, iji ev'ei'y quartev 
 of the globe*, ]3ut, what must be tlie enhance- 
 ment of |he prices of bullion, if tliere be tzvo public 
 a^^ents, in the same inarket, at the sapri^ time, one 
 l^^nglibh, and one French? It is easy, then, to per? 
 ccive, from those proofs, how-nquch the prices of 
 spcvie. must have risen, when' the' d'euifand ' was 
 urgent, and the supply was small ; , Jt mufet be inf 
 
 it is <-uriiHJs to obgerve, from the ppbnc accounts, tlmt the 
 d;'.t\es on plute correspond vith the- progress of the manii- 
 iactme.- . .- . „; .^, ■ .:, ' , 
 
 * See the Accounts in the Appx. of the Eullioii Report.. ■ 
 
 ferred,
 
 BULLION AND COIN; ETC. 8(). 
 
 ferrcd, therefore, that the assuruptioii is false, which 
 supposes, contrary to the tact, that the prices of 
 bullion did not rise ; but, that Bank notes became 
 depreciated. 
 
 6. If such disadvantageous effects on the prices 
 of bullion followed, of course, from the operations 
 of a public agent, for the support of the State, what 
 must be the necessary effects of the purchases of 
 bullion, in our markets, for our malignant enemy. 
 That -the French government has not only spies, in 
 our sti-eets, but agents, in our markets, for buying, 
 and exporting our bullion, both gold, and siilver, is 
 certain. The Berlin, and Milan decrees, are so 
 notorious, as to require no vouchers,- for their de- 
 tails, or objects ! France continues under every 
 system of licr government, to obstruct the trade, and 
 injure tlie credit of Great Britain, by the most in- 
 jurious intrigues*. How the operations qf s.ijicli a 
 
 Company 
 
 * In I'jg-i, as we. Jcnow, from B<arerre's public Declaration, 
 the Directory fornie<i acon^jiiracy, lor draining this country of 
 specie : for tbiu end, agents,' in London, were authorized, to 
 draw bills on the Cais^e D'El'contpic, hv whatever suin^, at 
 ■whatever .exchanges ; investing tiie produce of such bills, in 
 gold, and silver, which were to be transniitied to I'rance, where 
 ihe value of the 'pre<:u>U9 i»eials tiyw tu be raised ; to meet buch 
 remittances of foreign coios, or mull en guineas. Bui, Robeb- 
 pierre, by destroying the ruling party, ruined their project. 
 lAud, the wisli of the French government, wherever it may be 
 lodged, to undermine owr piiblk credit, and private commerce, 
 continues equally active, and more sly. The able, and eloquent 
 
 Letter
 
 fJO COXSIDERATIONS OV COMMERCE ; 
 
 Company upon the bullion market^ -both in raising 
 the price, and exporting the couunodity, need not 
 be told. The ascertainment of tiie existence of 
 such a Company, for such an object, as tlie draining 
 this country of its gold^ and silver, leaves tlie Bul^ 
 iion report, as it solves the CommiUees scruples, 
 Avithout the value, or the ueight of a straw : For, 
 T\ho would deliver the treasure of the Bank of 
 England into such impure hands, for promoting so 
 maiign a project ? 
 
 7. Arising from the same malignant policy, diere 
 is another cause, which operates powerfully, both 
 in raising the prices of bullion, at home, and in 
 transporting it abroad. The foreign shipmasters of 
 700,000 tons of shipping, as they know, that neither 
 their property, nor their persons would be sate, if 
 they were to carry mercl^andi^es, from this coiintry, 
 to their own, employ brokers to buy up for them, at 
 any rate, bullion of whatever kiqd, which they 
 
 Letter on the Genius and Dispositians of French Government, la- 
 bours this important point. And, I will add a fJact, which has 
 been ascertained to me, by two persons, froi^i foreign parts, who 
 chose not to be named, any more than the Continevinl merchant^ 
 that a Company has been recently established, at Paris, under 
 the all-powerful protection of the Emperor, whose sole object 
 is, to drain England of bullion. A ship, which has been, lately, 
 seized, carrying out bullion, in large quantities, conveyed with 
 it several letters, which were intercepted ; aud^which contained 
 intimations, and traces, of such a Company,, existing, at 
 Paris. . . 
 
 transport,
 
 EUI.IION AND coin; etc. 9I 
 
 transport, in various nays, and shapes*. That policy, 
 then, operates, disadvantagcously, in tsvo respects ; 
 it prevents the export of goods, wliich would yield 
 benefit to the shipmaster ; and it drains us of our 
 bullion, while it raises the price of the remainder. 
 But, the evil does not so much consist, in employing 
 foreign ships, in our transport, during tlie operations 
 of war, as they always have, and ever must be ; but, 
 in the revolutionary measures on the neighbouring 
 Continent, which prevent the foreign shipuiasters, 
 from benefiting themselves, and us, by carrying out 
 merchandizes, rather than money ; And tiie delect 
 in the reasonings, both of Mr. Huskisson, and the 
 Bullion Committee, consists, in constantly keeping 
 out of sight, the revolutionarii iiiciisiires, before- 
 mentioned, the great causes of t lie apparent effects: 
 While this sort of sophistry continues so fashionable 
 among our political aconeviists, I will repeat a 
 thousand times, that amidst unfavourable exchanges, 
 it is the export of goods, which forms the equilibrium, 
 the corrective, the anodyne, of those eftects, and 
 that cau--e : But, if there can be no carriage of goods 
 to the proper market, owing to those revolutionary 
 measures ; then, can there be nu cquiUbriupi, cor- 
 
 •If we estiinitc tlx? freight of 700,000 t uis of foreign ship- 
 ping, at j^. 5. per ton, this would prove, that those shipmasters 
 can ie<I awiiy in 1809, j^. 3,500,000. sterling. The' freights nf 
 foreign ships, from the IJultic, only, in 1800, was calculated to 
 •me, by an eminent Uussia irierchant, at jT. 4,000,000. 
 
 rcctivc^
 
 92 (..ON'SIDERATIOXS ON COM.AlERCi: ; 
 
 r-ectk'c, or anodfjne ; and there must, as cause and 
 effect, be the export of bullion, if any be, and the 
 hJf^h prices of that commodity, if any yet remain, in 
 the home market*. 
 
 •8. By such sophists, it is said, that upon the 
 recent reform of the gold co/ns, tlie prices of bullion, ' 
 immediately fell, as the necessary consequence* 
 lliis may be considered, as little better, than an 
 assumption of the point to be proved. It has been 
 already shown, that the exchanges, Avith Ilanjburgh, 
 did not immediately rise, as Lord Kiiig, and others 
 supposed : I will now show, that the prices of 
 bullion began to fall, before the recoinage, and not 
 after, as some suppose. This recoinage took place, 
 in 1773? accqrdirjg to Mr, Iluskisson, whose 
 principles lead liim to deal much in goierah: 
 According to the late Earl of JJ^^erpool, the father 
 of tlie measure, " the recoinage was carried on 
 "from the year 1773 to 1777, inclusive f."' But, 
 on such a point, we must be still more mipute : In 
 fact, the gold recojnage begai), in August 1773, and 
 pndcd with 1777. The prices of foreign coi^rs, and 
 bars, during February 1770, appear by an average 
 of both, to have been" £. 4. 0. 6'. During soniq 
 
 * The whole exaniinatidiis of the Bullion Committee support 
 what is said above of the scorcitj/ of bullion, in the home market: 
 The frequent seizure of ships, in recent times, with large quan- 
 tities of gold" on boards in the act of traiisportalion, demon- 
 strates the great drain of bullion, by foreign shipmasters. 
 \ Piinted Report, 4, 
 
 months,
 
 fiULLION- AND CCW!* - ETC. p^ 
 
 months, the price rciDained, with some fluctuations, 
 upwards of £. 4. In October, November, and 
 December, the prices fell to £.3. 18. 10. Iii 
 the last six months of the subsequent year, the 
 prices again rose beyond /. 4. They soon after 
 rose still higlier : And, ia January 1772, they stood 
 at £.4' 1- 3' which seem to have been the highest 
 of those times, when the average exchange, with 
 ttamburgli, was 32. 7I : They continued tiilJuly 
 of the same year, at^T. 4, accompanied with low 
 exchanges : And thraughout the last six months 
 of 1772, the prices fluctuated down to ,£. 3. 1 8-. 
 while the exchange rose to 33. io|. In January, 
 and February. of 1/73, ^^^^ prices rose a little: 
 But, in ^March, and April, the prices began to 
 vibrate lovTer; in May, they fell a little; in June 
 they fell still more, so as lo be ^.3. 17. 9: This 
 was the price, in August 1773, when the recoinage 
 Legan ; and so it continued till August 1774*. By 
 
 thus 
 
 * The Hamburgh Exchanges stood, meantime, thus ; 
 The average of March - 1773 was 34.. 11 
 April - 1773 - 34.9.7. 
 May - 1773 - 34.ioi 
 June - 1773 - 34.9a 
 July - 1773 - 34.10 
 Auguit- 1773 - 34.8I 
 l^eptember 1773 - 34.84 
 October 1773 - 34.0 
 November 1773 - 34.8I 
 December 1773 ' 34-94 
 
 The
 
 94 CONSIDERATIONS ON COMMERCE ; 
 
 thus taking those comparative views of the prices^ 
 ■with the exchanges, what do we see, but the 6M'- 
 changes overnd'uig the prices, as the practical men 
 say, and as the BulHon Committee deny ; tohik the 
 reco'mage seems to have had no obvi«us effect. It 
 is a very curious fact, that, in 1801, the last year 
 of the late war, while the exports amounted to 
 jC-37>786,857. the balance of trade to ;^.4,99i,3oo. 
 the Bank issues to cf". 15,459,050. and the Ham- 
 burgh exchange was beloxo par 6 f per cent the 
 price of gold rose to £.^. 6. and of silver to 5/11 
 per ounce ; now, ibis price of silver is exactly the 
 same as that of 1 809, and the price of gold was 
 nearly as much ; But, there occurred, in 1801, no 
 })ublic enquiries, as to the prices of either, nor, w as- 
 the current money said to have lessened, in its real 
 value. Upon all tliose viev\^ of the subject, can that 
 depreciation be assumed, in argument, as a truths 
 which Is plainly disproved, as a fact. 
 
 7. There is some reason, however, to suspect, 
 that the gold refiners, whose very trade consists, in 
 sorting, and selling of bullion, both gold, and silver, 
 at all tiaies make a slight difference, between Iho 
 precious metals, which they have so much, in their 
 contemplation, and current money, which cannot 
 
 be 
 
 The average of 1773 - 34.8^; 
 
 The average of 1774 - J4-6f 
 
 The average of 1779 - 34.3|i 
 
 The average of 1776 - 3;>-5|
 
 BULLION AND coin; ETC. Oj. 
 
 be converted into plate, or sold, as merchandize * 
 The other classes of our industrious people prefer 
 p(ipe7^ money to tl^ precious metals ; as it is more 
 convenient, in the uses of trade, and in the facilitiesf 
 of life. The whole kingdom of Scotland prefers 
 Bank notes to golden guineas. By another accurate 
 person, it was stated, " that the medium price of 
 "dollars, from 176;, to 1797, was 63 1 pence!'' The 
 English coins, he added, being better than dollai':? 
 7^ dwts. the value of the coin is full 2d. per 
 ounce, above the dollar'; and tl^e sjlver coins being^ 
 
 * The late Mr. Garl.et, an eminent refiner, at Birmingbam, 
 stated, in a Paper, which I iiave before me, " that in 40 yean» 
 •* [tVom 1758 to 179SJ the price of gold, in the London market, 
 ' by Bank notes, had not varied so m.ich as 5^ per cent.". '' Ii< 
 " the bunie market, he added, that bftwceu 1783 and 1793, 
 " silver had varied, in price, £. 19. 6. per cent. ; between Jarw 
 " 179a, and D° 1703, it had varied j^. 9. 3. percent.; and in 
 " 17977 if had yafitd £. 13.. 6. 4; per cent.", ," In thQ market 
 " ot lI;Kiibi;rgh, he staled, that the price of^old ducats fllic^ 
 " tuated, every year, between 1792, and 1707, generally, from 
 " 4 to 5^ per cent, advance upon the standard price of 6 marcs 
 '/..banco per ducat : But, the varic\tion, between the 1st of July 
 " and the i ilh of November 1796, was 7I per cpnt. Between 
 " the years 178'a and 1706, the variation was ii^ per cent, in 
 " ducats. And the variation of Frederick dors, at Hamburgh, 
 " during the years 1793-4-5 was £. 7. 4. 1 1, per cent." 'I'hus 
 niiitb, from j\Ir. Garjct, which corresponds with more recent 
 notice?, as to this obscure, but interesting topick. Whatcvex 
 there may be, however, in the above inlimations, Mr. Merle, 
 i!ie lUinkur, and refiner, stated to the; Bulliun Comraitteo, that 
 gold bullion had not risen, with the increase of Bank notes: 
 ur.d he added, " I do not think, Bank jwles have had any effect 
 "•' «/; gijld, Minutcs; 53. 
 
 current
 
 9^ coysiDi'RA'rioss ox Commerce; 
 
 current, at Oiily 62 d. per ounce ; the conclusion 
 is obvious. Tiie same conclusion will appear still 
 more obvious, from the following Statement : The 
 average prices of dollars, from 1 765 ,h. ds. 
 to 1797, inclusive, was - - 5* 3l. p.oz. 
 
 Add the difterence, in the value of 
 dolkrs, from English coin - - 0. 2. 
 
 5. 5i.p.oz*. 
 It thus appears that, the English 
 
 silver Coin being current, at 5/2 per 
 
 oz. the average price of silver, frbni 
 
 1765 to 1797, was full $i d. per 
 
 ounce, above the current value of the 
 
 silver coin. The average price of 
 
 silver, in bars, from 179S to 1809, 
 
 inclusive, was - - - - 5. 7|. p.oz. ; 
 
 Which is full 5f d. per ounce above the current 
 value of the coin. AVe have now before us the 
 average price of silver, in the London market, for 
 upwards o^ forty years, which was equal to 3| d. 
 per ounce, above the Mint price. Yes ; says Mr. 
 Muschet, all this, only, shows the dcprcciaticn oiiho. 
 current ononey, during rmre Xh^nfuiiy years. Nay ; 
 did not those popular prices overrule the Mint? 
 Well ; in that period, -the ^iint did make some 
 
 * The average price of silver, in bars, from 1765 to 1797, 
 inclusive, ^vas a fraction above 5/4.7, or ueurly 5/5. per ounce, 
 according to Castaign's Puper. 
 
 silver
 
 liCLLION AND coin; ETC. 97 
 
 silver coins ; but, were they not, immediately, 
 melted down, to brings the metal to those popular 
 prices. What is this, but the popular voice over- 
 raling the 'moneytary system of the land. The 
 popular voice has always oveiTuled the moneytary 
 system of every country. It'^id so^ under the old 
 government of France : It has done so, in Great 
 Britain, since the well-known recoinage of K. William. 
 And hence, arises the folly of buying silver at 5/5! 
 per ounce, above the j\lint price, to be coined, at a 
 great public charge ; and to be immediately melted, 
 for popular use. It is, now demonstrated, I trust, 
 that Mr. Muschet's Mint price, as a standard, is 
 not an axiom of wisdom, but an axiom of folly ! 
 Now, as far as the Bullion Committee has been 
 carried, by prejudice, to adopt Mr. Muschefs 
 axiom, that Committee has recommended to Par- 
 liament a Mint policy, which had been condemned, 
 for upwards of forty years, by the popular voice. 
 And, " what are axioms, or principles more general, 
 " according to the judicious Hooker, but such as 
 " this, that the greater good is to be chose fi before 
 " the lesser:' 
 
 9. But, of all this enough, with regard to ^vhat I 
 have to say, as to the high prices of bullion I It is 
 ap()arent, that accurate reasoners must take an 
 average of all those causes, Vtipre stated, ,of tnc 
 clearness of bullion, in the London market, before 
 they can fonn any opinion, either of the prices of 
 H bullion,
 
 ()8 COXSIDERATIOXS ON COMMEUC£ ; 
 
 bullion, or of the state of our currency, (i.) It 
 is the judgment of all those, ^\ho argue, from the- 
 practice of business, and from experience in traf- 
 fick ; w ho regard the coune of cwcha/ige, the price 
 of' buUinriy and the e.vport iff goods; in connection 
 with both, as correlatives ; that exchanges overrule- 
 prices ; so that unfavourable exchanges, when they 
 fall to a certain depression, ^\ ill raise the price of 
 bullion, even when goods are sent, as an equilibrium, 
 and will raise the prices of bullion very liigh, when 
 that equilibrium, as in 1809, cannot be applied. 
 (2.) An augmented demand, for home manufa6tures 
 of gold and silver, if the supplies of bullion be 
 scanty, and uncertain, will raise the prices, in the 
 London market, in proportion to the urgency of the 
 demand, and the scantiness of the supply. (3.) If 
 the public agents of opposing powers come into the 
 bullion market, to buy up foreign coins, for the 
 pay of contending armies, the competition of such 
 agents, in addition to other demands, while no 
 additional supplies arrive, must moreover enhance 
 the prices of bullion. (4.) If in addition to those 
 causes, foreign shipmasters, in great numbers, who 
 dare not carry home merchandizes, transport bul- 
 lion, this drain, by lessening the quantity, tends 
 greatly to raise the ])rices, which Mere ali'eady high. 
 (5.) If it be a fact, as is asserted by those, who 
 know the fact, that there is a Commercial Company, 
 at Paris, under the protection of the Dominator of 
 1 Enrol e.
 
 BULLION AND COIN ; ETC. O9 
 
 Europe, for the purpose of drahihig this country of 
 bullion, this fact alone Avould decide the practical 
 question, at issue, Whether bullion be dear, or Bank 
 notes be really depreciated. 
 
 10. I see, however, that the Committee doubt, 
 notwithstanding the informations laid on its table, 
 " whether, in point of fact, such a demand, for 
 " gold, as is alleged, has operated, in the man- 
 " ner supposed*." I cannot hope to convince the 
 Committee : ];iit, I ^ill beg leave to submit some 
 additional considerations to the view of those, who 
 may honour this Tract with a perusal. 
 
 Here is the Committee's first position : " In the 
 " sound, and naturalstateoithc Britisli currency, 
 " the foundation of which is «-oW, no increased de- 
 " mand for gold, from other parts of the world, how- 
 " evergreatjorfrom whatever causes arising, can have 
 " the effect of producing here, for a considerable pe- 
 " riod of time, a material rise in the market price of 
 *' gold*." Had tlie Committee said, in the sound, and 
 natural state of the I^ritish trade, instead of the British 
 currency, 1 should have regarded such a [)osition, 
 as a truism : For, according to the established prac- 
 tice of foreign trade, in its natural state, an abun- 
 dant export of mercantile goods, as the proper equi- 
 librium of the exchange, to the town, where ^he 
 <^xchange is adverse, immediately raises up the ex- 
 change to par, and oftener so much above the par, 
 
 ♦ Report, 8' ed. p. 5. t ilj- 4- 
 
 II 2 as
 
 100 COXSIDERATIOXS ON COMMERCE^ 
 
 as to induce an influx of gold : This happened, in 
 1797, and 1798, as \^e have seen, after the Bank 
 restriction ; so as greatly to increase the abundance 
 of gold, in the London market, and to reduce the 
 price of silver, from 5/4I per ounce, in 1796,. to 
 S/2I, in 1797, and to 5/1, in 1798. But, is our 
 foreign trade, now, in its natural state ? The 
 answer must be, that among sound enquirers, 
 there is no propriety, no useful puq:)ose, in arguing 
 the question, at issue, before the pubhc, on a dif<- 
 ferent state of our trade, and currency, from the 
 real one, which involves every one's fortune, and 
 hazards the safety of the State. 
 
 The Committee now proceed to its second posi- 
 tion, in the following terms * : — ■" If there were an 
 ** unusual demand, for gold, upon the Continent, 
 " such as could influence its market price, in this 
 " Country, it would of course influence, also, and 
 " indeed in the first instance, its price in the Con^ 
 " tinental markets ; and it was to be expected, that 
 *' those who ascribed the high price here to the 
 *' great demand abroad would have been prepared 
 " to state, that there was a corresponding high 
 " price abroad : Your Committee did not find, 
 *' that tliCy grounded their inference upon any such 
 " information ; and so far as your Committee have 
 " been enabled to ascertain, it does not appear. 
 " that during the period, vthen the price of gold 
 
 *Ib.5. 
 
 " bullion
 
 BULLION AND COIN; ETC. lOl 
 
 ^ bullion was rising here, as valued, in our paper 
 " [Bank notesj there was any correspondent rise in 
 " the price of gold bullion, in the market [markets] 
 " of the Continent, as valued, in their respective 
 " currencies." 
 
 I will first proceed to point out a material errour, 
 which runs through the whole reasonings of the 
 Committee, on tliis topick, of the comparative 
 prices of bullion, in Great Britain, and the neigh- 
 bouring Continent, and particularly, in France ; — 
 I will, secondly, lay before tlie inquisitive r;: :der, 
 such informations, as I have been able to draw, from 
 that Continent, for my own satisfaction, (i.) Afy 
 objection to tlie Committees reasonings on the 
 comparative pi ices of bullion, in Great Britain, and 
 the European Continent, arises fiom tlie uull-known 
 circumstance, that in Britain the cohiage is made, at 
 the expence of the public ; so that every one, who 
 .carries gold bullion to tlie English Mint, receives 
 back, free from ex pence, the same weight of ciiins: 
 This practice of coinage, which, in every view, is 
 very objection-dbie, has a nece^sar / tendenrvto keep 
 the value of bullion mucii beyond the relative value 
 of bullion, on the Continent,' where there is a 
 seigniorage, and other chargt;s, on the coinage, 
 which, of course, bears down the value of the bul- 
 lion, in proportion to sucii impositions on the mint- 
 Age : Owing to tliose causes, bullion, in England, is 
 sXwdys duner, than it is in France; because the 
 II 3 price
 
 102 COXSIDERATIOXS ON COMMERCE; 
 
 price of it, in England, is kept up by the Mint ; 
 while, in France, bullion is allomed to fall 8 per cent. 
 below the coin *. By not attending to those various 
 circumstances, in the value of the bullion, where 
 there is a free, and an unfrec, mintage, the Com- 
 mittee, in its reasoning on this topick, has fallen into 
 no less an errour, throughout, than 8 per cent. ; so 
 as to value the bullion of England too high, and the 
 bullion of France too low, to that extent ; an errour 
 this, which Sir James wStuart would have taught any 
 one to avoid : But, I have done ; having neither 
 time, nor inclination, to trace fallibihty further, 
 through a wilderness of misapprehensions, and mis- 
 takes, fallacies, and contradictions. (2.) I now pro- 
 ceed to the more agreeable task, of laying before 
 the more inquisitive reader such informations, as I 
 have, fortunately, obtained, from the Continent, 
 with respect to this subject, in the convenient form 
 of the queries sent over, and the answers returned f : 
 (i.) Quer. Has there been any uncommon demand, 
 at Hamburgh, during the last year, [i809,]for bul- 
 lion ? Answ. 1 . The demand has been great ; but, I 
 
 * For this very curious, and important subject, see the vastly 
 sagacious- Sir James Stuart's Political CEconomy, hook iii. 
 . part ii. ch. 2. The best edition of this very interesting book, 
 in the present circumstances of the dispute, between the Bullion 
 Committee and the commercial world, is that of Cadell and 
 Davies, 1805. 
 
 ■\ The Answerers, of course, like the Continental Merchant, 
 must be anonymous. 
 
 do
 
 BULLION AND COIN; ETC. 1 03 
 
 lio not know, that it has been more so, tlian for- 
 merly ? Answ. 2. Yes ; on account of the contiguity, 
 of Hamburgh, for the chief Northern trade of 
 Europe, and tlie facihty afforded by Luhec, in trans- 
 porting si)ecie to Russia, and the Prussian ports, 
 and the interior navigation into Germany. Answ. 
 3. By a letter, from Hanjburgh, dated the 24th of 
 July 1810: "It appears, that there has been a 
 " great demand, at Hamburgh, last year [1809] 
 " for bulhon; and it has continued more, or less, 
 " from various causes ; the contribution$, payable 
 " in France, are given, by some, as the chief cause; 
 " while others consider the unusual large demand 
 *' for ducats^ from Russia, occasioned by her wars, 
 " with the Persians, and Turks, and the consequent 
 *' necessities of the Russian armies, at such a dis- 
 " tance, iVom their immediate resources, as the 
 " leading cause of the quantity of gold, and silver, 
 " last year, being exported [from Hamburgh]; 
 " silver was sent more to France, and gold to 
 *' Russia: Certain, however, it is, that the exporta- 
 " tion to both countries, either direct, or by cri- 
 *' cuitous routes, was large beyond all other years : 
 " Much gold was drawn, [from Hamburgli] by the 
 ^' Dutch, for the purpose of coining ducats, which 
 *' all went to Russia: The large purchases of 
 " wlieat, in the Nordiern ports, and chiefly in Dant- 
 " zic, since the early part of this year, occasioned 
 '^ by the wants, on your side, have operated also 
 H 4 " ou
 
 104 CONSII>ERATIOXS ON COMMERCE; 
 
 *' on the [iricc of gold ; the Poles being accustomed 
 " to receive the amount of their corn, in Dutch 
 " ducats, and always in a time of extraordinary de- 
 " mand, carrying off to their own country a large 
 " balance, in gold coin : Here are, therefore, inde- 
 *' pendant of many smaller, three good causes, for 
 " the scarcity, at different times, felt, and for the 
 " dearness of bullion. The price of gold has 
 " varied, at different periods, very much, and been 
 " at times very high." — The price of standard gold, 
 calculated at the par of exchange with this country, 
 upon Hamburgh, was, according to the latest quo- 
 tation, from that city [in the summer 1810] 79-f per 
 ounce: But, we must always recollect the betore- 
 mentioned' reasoning of Sir James Stuart, which 
 shows, that 8 per cent, must be added to such 
 prices, for the seignior oge abroad. Quer. 2. Has 
 there been any uncommon demand, -at Paris, for 
 bullion, "duping the last twelve months? Answ. 1. 
 There has been lately an uncommon demand, at 
 Paris, for bullion, both gold and silver; because, 
 independentlyj of other causes, there has been a 
 Company established, under the sanction of the 
 Emperor, whose sole object is, to drain Eng- 
 land of bullion, both gold, and silver, which are 
 always, from 2f to 5 per cent, higher, in Paris, 
 than in Hamburgh, and Amsterdam. Answ. 2. 
 There has -been a great demand, for coin, owing, 
 it is supposed, partly to the necessity of supply-
 
 BULLION AND COIN; ETC. I05 
 
 ing the armies, in Spain, with necessaries, M-hich, 
 owing; to the poverty of the country, coiilcl not, 
 as in the North, be made to subsist them ; and 
 partly, in consequence of the manufacture of bul- 
 lion [in Paris :] It is understood, tliat an Association 
 is estiiblishcd, at Paiis, lor the purpose of draining 
 money, and bullion, from this country [Britain]; 
 but, I cannot ascertain, if it be mere private specu- 
 lation, or aided by Governiiient ; but, a great deal 
 is smuggled by evtry tcsscL not merely lor the 
 purpose of p^jying for their cargoes, and p^eig his, 
 but 0)1 speculation for the purpose of buying 
 bills. France has no smaller paper currency than 
 50 francs, namely, about j^. 20. 12^. sterhng value; 
 lesser suras are paid in coin ; and specie is paid at 
 the Bank, on presenting their bills, to any amount : 
 France resumed her specie transactions early, in 
 1797. The consumption of bullion, at Paris, is 
 very great ; and it is supposed to be much gi'eater 
 than formerly ; the present wealthy families, in 
 France, having had bo legacies of plate, jewels, or 
 ti-inkets, need every thing, entirely new. Bullion 
 has advanced at Paris, in about the same ratio as 
 here: The present value of a guinea is equal 
 to -3 2 J. ^d. sterling, in that city. — I here beg 
 leave to close this head of informations, as to the 
 prices of bullion abroad, with desiring the more 
 curious reader, to keep constandy in mind Sir James 
 Stuart's rule, above-mentioned, on account of the 
 
 scigiuoragt
 
 106 CONSIDERATIONS ON COMHERCK; 
 
 seigniorage, on the Mint, so as always to add 
 8 per cent, on the nominal prices, which are quoted ; 
 and so as, to correct this material error of the Com- 
 mittee. The information of the late Abraham 
 GoLDSMiD concurs with ihostiransinissions to me : 
 Being asked, if the price of gold had fluctuated 
 much at Hamburgh, duiing that period, he said ; 
 " Not much, not more than from 3 to 4 per cent. 
 *' it has not been more than 8| or 81 per cent. 
 " above par ; nor, lower than 4 per cent, above 
 ^' par J the par being 96." Being asked about the 
 price of silver, at Plamburgh, he said : " The 
 " price of bar silver, at Hamburgh, is always 
 " fixed [at the bank] ; yet there is a variation of the 
 " price of silver [in the market], owing to the dif- 
 " ferent demands there may be, from other coun- 
 *' tries, which require it." — Being asked the price 
 of gold, at Amsterdam, as compared \\'ith the par; 
 be said, " The price of gold, at Amsterdam, has 
 *' been as high as lyf per cent, above the par, and 
 *' as low as 12 1 per cent, above par, which it now 
 " is :" Thus, have we seen above, that there was a 
 great, diwdi continued coinage of ducats, 2X Amster- 
 dam, for Russia, and for Poland. Being asked 
 about the price of gold, at Paris, he said ; " That 
 "a guinea is worth about 25 s. and 44 guineas 
 ^' would sell at PariS; for £-S5' 12j. 6t/.; and 
 iy upon the whole agreed, that the pound of gold, 
 *'Jn London, and at Paris, is at present, [March 
 
 " 1810]
 
 BULLION' AND COIN; ETC. 107 
 
 ** I810] nearly of the same value, the difference 
 " being only y s. Gd. per pound loAver at Paris * .'* 
 This goes to establish the truth of Sir James Stuart's 
 theory, above-mentioned; and shows also, that 
 neither Mr. Goldsmid, nor the (Committee, were 
 aware of that theory, which;, after all this examina- 
 tion, proves, contrary to the Committee's notion, 
 that gold was still higher, ?it Paris, than at London, 
 8 per cent, on account of the seigniorage; so thit, 
 in fact, the Committee deluded itself, by appearances, 
 into an opinion, which, when embodied into the 
 Report, cannot stand the test of criticism : What 
 avails, then, the nicest calculation, when there is 
 detected, in it, an errour of 8 per cent. ! 
 
 11. The merchants, bankers, and brokers, 
 \\ho gave their informations to the Bullion Com- 
 mittee, referred the high prices of gold, in the 
 London market, to three causes, chiefly : i . The 
 adverse state of the exchanges, which, necessarily, 
 drained the home market; and which has been 
 already shown to be a cause fully equal to the 
 effect : (2.) The great demand, for exportation, 
 not so much, perhaps, to satisfy a balance on the 
 general account of payments, amounting in 1 809, 
 as we have seen, to full two million and a half, as 
 to answer the various demands of the mints, and 
 manufactories, and niililarij matters of the Con- 
 tinent : (:j.) The scarcity of bullion, in the London 
 
 * Com. Minutes, 8° ed. uG— 17. 
 
 market,
 
 lOS CONSIDERATIONS ON COMMERCE ; 
 
 ittarket, to answer its demand, for domestic, and 
 foreign, services. But, the Committee, while it 
 disbeliev£d the assigned causes to be equal to the 
 obvious effects, was quite unconscious, that there 
 existed a cause, the Company existing, at Paris ^ 
 for draining this nation, of its gold, which would 
 have explained the various phenomena, that puzzled 
 in mazes, and peiplex'd witherrour, the Commitee's 
 enquiries. 
 
 12. In this sceptical state of the Committee's 
 mind, it becomes necessary, to re-state the testimony 
 which was submitted to its judgement. The very 
 high price of bullion, at home, seems to evince some 
 drain from abroad: In 1809, when the exchange 
 was, as unfavourable, as 1 1 f per cent, the market 
 price of gold bullion was ;^. 4. 6^. to ^.^^.^s. or 10 f 
 to 1 3 per cent, above the Mint price, for gold, which 
 could not he exported; and £.^. \os. to £.4. \2s. 
 being from 1 5 f to 18 per cent, above the current 
 price for gold, which could be e.vported: This dif- 
 ference, between the prices of gold exportable, and 
 gold not exportable, evinces a considerable demand, 
 for exportation : And the Committee has reasoned, 
 throughout, on the highest prices, without, however, 
 admitting the export, in fact, or the demand for 
 export *. (2.) It has, however, been proved before 
 the Committee, that the price of transporting gold 
 lias risen to 7 per cent w hich seems to imply," tliat 
 * Report 3. 
 
 much
 
 BULLION AND COIN ; ETC. IO9 
 
 much had been sent out. The chief object of this 
 great export was said, by some of the informants, 
 to be the demand, for the use of tlie French armies*. 
 ^Ir. A. Ascher Goldemid informed the Committee 
 that, since the epoch of the Spanish war, Spanish 
 doubloons have borne a greater price on the Conti- 
 nent t- He also disclosed, that the whole gold, 
 which is sold, for l.ome consumption, is less than a 
 2oth part ot 1'.^ quantity, that is usually sold for 
 export X- He added, that most of the late sales of ' 
 gold had been made to French and Dutch mer- 
 chants, for exportation §. Mr. Merle, the refiner, 
 said, that " we have sold a greater quantity, for 
 " exportation, during the last year, than formerly |j.'* 
 — 3. Yet, the Committee is not convinced of the 
 reaUty of the rise of prices on the Continent: " So 
 " far says the Committee, as it has been enabled to 
 " ascertain, it does not appear that, during the period, 
 ** when the price of gold bullion was rising here^ 
 
 • The Committee, however, observed, that if the demand 
 for the French armies, had been lately much increased, " the 
 " general supply of Europe has been augmented, by all that 
 " quantity, which this great commercial country has spared, 
 " in consequence of the substitution of another medium of cir- 
 *' culation." But, when that other medium, came out of the 
 Bunk, did not the gold go into the Bank ; whence, it has not 
 teen spared to the French armies, though particular peifons 
 seem to be not quite un\vinin;j, to spare to the French armies 
 the gold retained in the Bank, by approving the removal of the 
 restriction. 
 
 t Minutes, 56. I lb. 39. 
 
 Hd. II lb. 51-
 
 no CONSIDERATIONS ON" COMil^ftCE ; 
 
 ** as valued, in our paper [cuiTcncy] there Avas any 
 *-' corresponding rise, in tiie price of gold bullion, 
 *' in the itiarket 'of the "Continent, as valued, in tlreir 
 "currencies*'!" When this was said, the Com- 
 mittee ^^ as not awar€ of the difference created, by 
 the seigniorage, between the bullion, in the London 
 market, and the buUion of Paris, as explained, by 
 Sir J antes Stuart : The Committee did not advert 
 to wliat A. Asclicr Goldsmid, the gold-broker, said, 
 that his house fixes the price of bullion, between 
 the buyer and seller ; and that, in fixing the price of 
 bullion, here, reference is had to the prices, in the 
 
 * Report, 3 : When the Committee reported the above opi- 
 nion to the House ; there lay before the Committee the sub- 
 joined Computations of the intelligent Mr. Greffulhe, on the 
 *i4th of March 1810; being A Statemknt of the xalue of 
 Gold, at Hamburgh, Amsterdam, and Paris, the foreign money 
 
 being reduced into sterling. 
 
 Per Ounce : 
 
 , At Hamburgh, - Price loi - Exchange 29/ - £.^ 17 © 
 
 At Amsterdam, - Price 14I - Exchange 31/6 7 „ ^ 
 
 Bank agio 1 p. cent. 3 
 
 At Paris, - - - Price 105 - Exchange ao/ - 419 o 
 
 Tlie prices of gold had been considerably higher, at those 
 places, in 1808, and 1809, than the prices, upon which this 
 btateuieat was made, in March i3io: For instance, at Ham- 
 burgh, in 1808 the price of gold fluctuated from 102, to 106,; 
 and from January to September 1809, the price of gold fluctu- 
 ated, from 103 to 104;^. See Appendix to Report, N° 56. 58. 
 and 60: At Amsterdam, the price of gold fluctuated, in 1808, 
 from 10 to 17; and, in 1809, from 14I to 20 above par. Ib- 
 N" 56 ; So the above values of gold would be increased, in 
 proportion to the higher prices in 1808, and i8og. 
 
 foreign
 
 BULLION^ AND CGTN ; ETC. Ill 
 
 foreign market ; and that generally the disposition 
 of the market, here, concurs with the prices, abroad; 
 because persons are willing to buy up to that price *, 
 This regulation of the prices, here, by the rise, and 
 fell, of the prices, abroad, might be expected, fron* 
 the fact, which has been already mentioned, that 
 'nearly all the gold, which is sold, in London, is for 
 export to the Continent, while the quantity sold, for 
 domestic use, is not a twentieth part of that sold 
 for export. Such facts, stated, by a broker, who 
 knows them best, do not, however, shake the belief 
 of the Committee, that it is the depreciation of the 
 money, which regulates the price of bullion, and the 
 rise, and fall of the exchanges : Neither did the in- 
 formation of Mr. Merle, the banker and refiner, 
 much avail, when he uiformcd the Couimittec, '•' that 
 " the price of gold, in England, is rather less, than 
 " it might be ;" considering the price on the Con- 
 tinent ; and he was positive, " that it is the pre- 
 " sent high price on the Continent, which carries 
 *' gold abroad." Mr. Hanuan, the banker, con- 
 curred with Mr. Merle, in saying, that very high 
 prices had been paid for gold, on the Continent, 
 lor particular pur{)oscs f ; alluding, probably, to 
 the great coinage of Dutch ducats; for Russia, 
 and Poland. Mr. Cnoftiiihc considered the fluctua- 
 tions, in the price of gold, on tlic Continent, du- 
 ring the last two years, to have arisen from vaiioys 
 
 * Repojt, 55. t 11^- 144- 
 
 «ausc».
 
 112 CONSIDERATIONS ON COMMERCE,* 
 
 causes *. Mr. Wliitmore, the Governor of the 
 Bank, being asked his opinion, what had become of 
 the greater part of our gold coin, which had dis- 
 , appeared, in the circulation, said, " that tlie high 
 r" price, abroad, had carried it out of this country f ." 
 4. Come we now to the last cause assigned for 
 the liigh prices of bullion, its scarcity compared 
 with the demand, in the London market. The 
 Committee has seen no evidence of any scarcity. 
 Is not the general complaint of scarcity evidence of 
 the truth of the thing complained of, as far as it is 
 a declaration of the popular voice ? Do not wars 
 create scarcity of bullion, by the multiplied de- 
 mands, for such an article ? Did not the wars of 
 1756, and the American war, contrary to the mis- 
 
 * Report, 101. 
 
 -}- lb. 121. But, the Committee, thereon, remarks, in the 
 Report, thi^t he produced no proof of the fact : Yet, is not the 
 affirmation of the Governor of the Bank good evidence of such a 
 fact; as he came there, as 9. witness, not as a party? Have 
 not exporters of illicit gold been convicted' of the fact, or ra- 
 ther of the Clime ? Have not the Custom-house Officers been 
 occupied, daily, in seizing such gold, on board of ships, in the 
 act of sailing ? The Sunday Observer, of the agth Ju}y i8io, 
 has this paragraph : " A deposit of 9,000 guineas was, on 
 " Thursday, discovered, in a snug recess, at the head of the 
 " mast, of a small vessel, in the Thames, which bad just dis- 
 .♦* charged a cargo of French wheat ; and another seizure of 
 *' 4,500 guineas was made, at Deal, on the preceding day.'' 
 But, is the Sunday Observer admissible cridevce, the Committee 
 asks? Yes ; on such a point oi general notoriety, as the export 
 of guineas, in every foreign vessel. 
 
 conception
 
 BULLION AXD COIN'; ETC. II3 
 
 conception of the Committee, produce such a 
 scarcity, and consequent runs upon the Bank? In 
 superaddilion to those causes, which arc common 
 to all wars, is tlicre not a malignity in the prcsfint 
 Xvur, that peculiarly creates such a scarcity? And, 
 whatever the Committee.may disbeliev^e now, did not 
 both Houses of Parliament, in December 1 803, ac* 
 upon the belief, that such a maligniti) would create 
 Such a scarcity of bullion, during the present hosti- 
 lities, as would al^ect both private, and public credit ; 
 as would fasten upon the fortunes of every individual, 
 and sap tlie foundations of the State ; and v\ as not 
 the Bank restriction then continued, during the war, 
 upon the belief of such a scarcity ? After those ge- 
 neral reasons, for believing that there did exist, in 
 the London market, a scarcity, during 1809, let us 
 liear what well-informed individuals say to the Com- 
 mittee. — Mr. Lyne, stated, " that in the course of 
 *' the last three years, there appears to have been 
 *' a great, and adverse difference, in the import of 
 *.' bullion to this country, froui foreign parts." 
 A. Ascher Goldsmid said, " that a considerable 
 " quantity of gold was formerly got from the Braiiih, 
 " through Lisbon ; but gold is now sent over to the 
 *' Brazils.;" and he added, "that this disadvantageous 
 *' change took place, in 1808, when the merciiants, 
 ** trading to the Ih-a/ils, and Portugal, purchased 
 " gold and silver bullion, [in London,] instead of 
 " scllini^ it, as before." These facts are confirmed 
 1 by
 
 114 CON'^IDERATIONS OX COMMERCE; 
 
 by the very well-informed Mr. Lyne, M'ho is ac- 
 quainted perfectly with the mercantile affairs of 
 those countries. Mr. Merle, the refiiler, and as such, 
 well acquainted with such a subject, said, " Gold 
 " is now, and has been very scarce ; so that we 
 *' can hardly supply the trade; the want arising 
 *' from the shortness of the suppli/, and the qumitity 
 *' smuggled out.'" Sir Fraricid Baring, having inti- 
 mated to the Committee the scarcity of bullion, 
 was asked, from what Circumstances he inferred, 
 there exists a' scarcifi/ of bullion ? To which he 
 answered, " From every information, that I have 
 " ever received, or tlio opinion of any one person, 
 *' with whom I have conversed on the subject *." 
 The inquisitive Mr. John Allan, who was in Spain, 
 and Portugal, from 1 802 to 1 80.5, and again, in 
 J 809, said, " that there is a scarcity of gold both 
 " in Spain, and Portuj^al, but there was no want 
 *' of silver) in circulation :' There was not so much 
 " gold to be had, last year [1809], when I was, in 
 " those Counti*ies, as there was in i8o4t-" from 
 the accounts of the American mines, which this 
 peculiarly well-informed gentleman had obtained, 
 with diligence, he stated, as the result of his en- 
 quiries, that, during the last half century, the quan- 
 tity oi' gold, from all the mines of South America, 
 has decreased, in the proportion of 6 to 5 ; and 
 that the quantity of 6?/x'cr, during the same period,, 
 
 * Minutes, 131. f lb. loc^^ 
 
 had
 
 BULLION AND COIN; ETC. II5 
 
 fcad increased, in the proportion of 2 to 31; *. Be- 
 lief, and increduUty, are like taste, about wliicli, 
 there can be no disputation. The twelve lawful 
 men, who are usuall}' summoned to settle facts, 
 nvould find, upon the concurrent testimony of such 
 intelligent, and respectable witnesses, when ,spcahbig 
 in their oxen art, \\\ki there was a scarcity of bul- 
 lion, in 1 R09. But, without entering further into 
 this question of belief, and incredulity, it nmy be of 
 more use, to show the more curious reader the /a-/- 
 libility of the Committee, on a most material point, 
 concernino; the true worth of different sorts of sold 
 coins : The Report speaks, of the value of Spanish 
 gold, as from 4 J to ^i grains better, than standard; 
 making about 4 s. per ounce difference, in value f : 
 Whereas, Mr. A. Ascher Goldsmid, who is quoted 
 upon the point, being asked, by the Committee, 
 " What is \\\G fineness oi Spanish gold coin?" an- 
 swered, *' From 41 to 4 1 grains worse, than stand- 
 " ard; making about 4^. difference in value," [in 
 every ounce :[;.] But, I have done! Enough has 
 been said, and shown, to the more intelligent read- 
 ers, for convincing them, that the Committee, as 
 assayists, or e.vchangers, as Calculators, or tran- 
 scribers, are not quite infallible : When we see 
 such fallibilities, in such men, is it not enough, to 
 
 • lb. 108-9 y ^"'1 see his accounts in the Appx. to tliK lie- 
 port, N" 21, to 28. 
 
 + IVpport 1. : Minutes, 35. ful. ed. 
 
 I 2 inculcate
 
 Il6 CONSIDERATIONS OX COSIMERCE j 
 
 inculcate on all men this moral lesson, that mode- 
 rate opmicns are most to be followed, as the safest ^ 
 m.theori/, and the bestj in practice? 
 
 — HI. — 
 
 OF BANK TfOTES. 
 
 We are thus led forward, by an easy transition.' 
 from the prices of bullion, at home, and abroad, to 
 an enquiry, with regard to the fancied depreciatiotf 
 of Bank notes. 
 
 (i.) Neither any pamphleteer, nor any Com- 
 mittee, has yet proved, whatever they may have 
 inferred, that the Bank notes have become, in fact 
 liepreciated : It has, indeed, been said, that the 
 «[reat issue of the Bank paper, during late times, 
 has produced unfavourable exchanges; that the 
 unfavourable exchanges have raised the prices of 
 bullion ; and that the high prices of bullion, by a 
 natural consequence, evinced a depreciation. Mr. 
 Kicardo, by a pamphlet, inculcated such doctrines : 
 Mr. Aluschet, by tables of prices, and calculations 
 of daily pars, has tiied to strengthen those ftuppo- 
 sitions -y and Mr. Blake, in the title-page of his 
 pamphlet, on E.vchanges, by speaking of " i\\Q pre- 
 sent depreciated state of the currency," avowed his 
 ©pinion, but disparaged his own logic, by taking for 
 
 granted
 
 BULLION AND COIN J ETC. II7 
 
 granted the very question, at issue. The Bullion 
 Committee seems to have assembled, Avitb the full 
 conviction, that our paper money was then in a de- 
 preciated state : And the great effort of the enquiry 
 was, to get the intelligent persons, who gave their 
 informations, to say, that bullion, when bought witli 
 Bank notes, was higher, than when it was purchased 
 Avith gold coins: This was attempted, after the 
 effluxion of 1 3 years, the prosperous period of the 
 Bank restriction ; while the gold coins were locked 
 up, by authority of Parliament, within the Bank : 
 Yet, no one undertook to say, whatever might be 
 wished, that Batik notes had been sold, at a dis- 
 count *. We may thus perceive, then, that there 
 is a sort of concert among tlieorists, in opposition 
 to the practical men, to tlie common practice, and 
 to the public good, for considering the paper money, 
 the Bank cash, and even the money of account, as 
 depreciated : But, the j'allaci) of their reasoning, 
 I A\ill not say sophistry, has been already shown, I 
 trust. 
 
 2. None of those theorists, however, seem to 
 
 • That experienced merchant, the late Sir Francis Baring, 
 in his Pam[>hlet, 1797, p. 4. says: " It there were more gold, 
 " tiian was wanted, .conlidence iu it, as a representative sign, 
 '^ would slacken, and it would no longer become a circulating 
 •' medium : If Bmifc notes were augmented, so as to be sold at a 
 " discount, confidence woijld vanish, and those notes be no 
 '' longer a circulating medium." During the late confusions, 
 iu Irukmd, Bank oj Inland notes uc/f sold there, at a discount. 
 
 1 .3 hav^
 
 Il8 CONSIDERATIONS ON COMMERCK ; 
 
 have been very studious to ascertain, from what 
 standard the present currency, the Bank notes, aad 
 pound sterling, are thus supposed to have fallen. 
 Some of them had learned, indeed, what I\Ir. Locke 
 had said, in iGyi, that an ounce of silver, whether 
 in coin, or bulhon, is, and eternally will be, of equal 
 value to the same ounce of silver, under what stamp, 
 or denamination, it might be in ; whether it appeared 
 in scarcity, or fulness, amidst the vibrations of 
 demand and supply. Strange ! that this position of 
 Locke, which intelligent men had reprobated, should 
 be again brought forward, as an axiom of truth, though 
 it be only an axiom of fallacy. What a lapse was 
 there, in the understanding of that philosopher ! An 
 ounce of silver always was, and ever will be, cheaper, 
 or dearer, according as silver is plenty, and scarce : 
 If many demanded ^Mr. Locke's ounce of silver, it 
 would be dear ; if few coveted the same ounce of 
 silver, it would be cheap. Mr. Muschet, howevei', 
 without considering much, perhaps, the fate of 
 Locke's fallacy, in respect to his ounce of silver 
 being the same, in every age, and under every cir- 
 cumstance, proposed as a substitute standard the 
 Mint price of bullion : Mr. Muschet seems not to 
 have adverted to the important fact, before njen- 
 tioned, how much, and how often, the price of 
 silver ha J varied, in tiio preceding yor/j/ years, and 
 had so seldom settled, at the .Mint price, as to admit 
 of coinage. Crolcl, also, in the same period, liad 
 
 oftcii
 
 BULLTOX AND COIN ; ETC. 1 1 ^^ 
 
 often fluctuated, without much fixation : What so«t 
 -of standard, tlicu, is that, which continually shifts it,s; 
 value ! He may suppose, perhaps, that 62 d. worth 
 of silver may form an wut of sufficient stablcness to 
 form a standard ; or that the Mint price of go/d, 
 which is also subject to the vibrations of supply, 
 and demand, may form something like fixation. 
 But, the silver standard has been overruled, by the 
 popular' voice, which is the genuine oigau, for an- 
 nouncing univei'sal price : And, the gold standard 
 has lon«; vci'ircd to its final fate, from the same over- 
 ruling cause : Thus, the same organ has already an- 
 nounced what the gold prices are, in the universal 
 market ; and how high they must continue to be, whil<3 
 revolutionaiy measures tyrannize over general trade. 
 The price of gold, during the last forty years, has 
 certainly been much more steady than that of silver ; 
 yet, enough of fluctuation, and much more unsta- 
 bleness, are now happening, from those revolutionary 
 causes, to evince, that we cannot soon see the gokl 
 prices, at Mint standard ; and, of course, the popular 
 voice, announcing general price, to be mucii above 
 the Mint price, v/ill close the system of mintage, ayi 
 to gold, as it has already done, hr silver. ^Vhen the 
 'Mint has performed all that can be done, in converting 
 bullion into coin ; yet, is coi?f, in the contemplation 
 ' of mankind, but a commoditij, which is subject,, in 
 tlie market, like other merchandizes, to the fluctua- 
 .tion of price, which daily arises from supply, apd 
 I 4 demand :
 
 120 CONSIDERATIONS ON CO M M E R.C f. ; 
 
 demand : ^Ir. Muschet, then, failr>, in supposing the 
 Mint price to be a standard, for measuring the 
 value of Bank notes, as ]\Ir. Locke had failed, in 
 giving a standard, for fixing the price of silver 
 bullion: When a recoinage took place, on Mr. 
 Locke's principles, at a prodigious expence to the 
 ■public, the people melted the new silver coins into 
 bullion again : So, will the popular practice again, 
 and again, put its own value upon gold bullion, from 
 the prevailing notions of plenty, or scarcity, whatever 
 Mr. Locke, or Mr. Muschet, can say, or the Bullion 
 Committee can do : Practice will defy theory, and 
 experience will overrule speculations, which, accordr 
 ing to Shakspeare, 
 
 " Are to. France the spies,--intelligent of pur state." 
 (3.) Failing, then, in showing a standard of prices, 
 which ^vould, incidentally measure depreciation, or 
 enhancement, all those theorists fail, spies as they 
 may be, in showing the real depreciation of Bank 
 %otcs. The popular voice says,-that bullion, in lact, 
 is dear : And, I have already shown a dozen distinct 
 causes, for that effect ; every one of which would 
 prodacQ dearness of bullion. The revolutionary 
 measures, which I have indicated, consisting partly 
 of force, and partly of fraud, have comple;tely de- 
 ranged, both the supply, and the demand, of the 
 bullion market ; and against fraud, and force, 
 theories, and metaphysicks, are opposed, in vain. 
 The same popular voice lias declared^ that there is 
 10 a grca^
 
 BULLION AND COIN; ETC. 121 
 
 a great dcniciml, for Bank notes, from the multiplied 
 uses of daily life : In fair discussion, then, is it not 
 absurd, to aruue, that Bank notes, which are greatly 
 demanded, are greatly depreciated ; since ekmandy 
 and depreciation, are contradictory qualities! Now; 
 upon all those grounds of fact, and experience, au 
 appeal properly lies to the popular Toice, from the 
 " bookish theorick " of the Bullion Committee. 
 
 (4.) If neither the ounce of silver, nor the pound of 
 gold, be proper standards of prices, because they 
 fluctuate themselves, in their value, from the daily 
 changes, which are eftected, by supply, and demand, 
 what is the standard ? The answer must be, tiie 
 pound sterling or money unit, which is recognized 
 by law, though disdained by metaphysicks : The 
 pound sterling is the King s lawful money ; ac- 
 counts are kept, in the pound sterling, with its 
 divisions ; debts are incurred, generally, though not 
 always, in the pound sterling ; the Courts of Justice 
 enforce the payment of such debts, in pounds ster- 
 ling, or lawful money, while Bank notes are recog- 
 nized, by the course of trade, and the declarations of 
 law, as money, as cash, full as much, as guineas 
 themselves : Add to those considerations, that the 
 whole exchanges of this commercial country are 
 made upon the pound sterling, and not upon the 
 golden guinea ; and being thus made, upon the 
 pound sterling, all foieigii bills are payable, and have 
 .been paid, since the iJank restriction, in current 
 
 money.
 
 i2^ CONSIDERATIONS ON 'C&MUKRCE; 
 
 aijoney *. And Bank notes have, from tiie epoch of 
 the Bcnih, been considered, by the Courts of Justice, 
 in Westminster-hall, as money, as cash. Is it fair, 
 then, is it fit, to say, in opposition to law, and in 
 i'ace of the fact, which is stated, by Sir Francis 
 Baring, and in contempt of tlie table of exchanges, 
 showing nine fa\ ourable years of exchange, against 
 four unfavourable, that foreigners did not give the 
 same number of schellings and grotes, jn exchange, 
 for the pound sterling, since the restric):ion ei^ 
 bcjore. 
 
 (5.) Some observations have been put into my 
 hands, by a commercial friend, which I will here in- 
 terweave into my text, as they ?ire acutely con- 
 cei^cd, and ably reasoned. 
 
 I. " The nation, since 1797, has made no dis- 
 tinction between Bank notes, and gold coins, till 
 now, that suspicion has been awakened, by the late 
 
 * The late Sir Francis Baring, writing on this subject, at 
 the end of the year 1797, and speaking of whdt foreigners said 
 upon this point, has this passage : " They were very much 
 '' astonished to find the total amount of notes to be sq snially 
 "' compared with the commerce, and wealth, of the country; 
 " and equally so, that after all, [the Bank restriction] BaiJc 
 "■ nafci continued to chxidate at par." Add to this jvhat I 
 have already proved, that in the 13 years which have elapsed, 
 since the Bank restriction [1797 to 1809] nine of those years 
 Jiave had favonrablc exchanges, and only four of theai have 
 f>e«n unfavourable. Moreover, has any oi>e come forward to 
 prove, that Bank notes have circulated otherwise, than at 
 par? Does any one say, that Bank notes are not money, are 
 not caah ? 
 
 enr|uiries
 
 13UL1.10N AND GCUX ; ETC. 1 23 
 
 enquiries of the Bullion Committee, wlio would per- 
 suade us, that Iknk notes are not worth, within 1.5 
 per cent, of guineas ; as a heavy guinea of standard 
 weight [^duts. 9fgr-] would sell [at ;/,'. 4. 1 2 .?. 
 per oz.] for 345. 6 d. in Bank notes, if it were legal 
 to sell it, as bullion, and that even a light guinea of 
 5 dwts. 7 gr. woidd sell for 24 shillings : But, it- 
 must be observed, that however higli the price of 
 gold Tnay he, the Ba?2k note only represents a guinea 
 of the standard value of ;^. 3. 17. io|. per oz. ; 
 and,, therefore, it is unfair, in argument, to compare 
 it with the bullion price ; since, the guineas them- 
 selves, if in circulation, would only pass, for 
 3^.3, 17. lof. per oz. ; and, it is, perhaps, better, 
 that they should be hoarded, as by this means, tliey 
 would remain in the country, though the holder:* 
 lose the interest on them : while Bank notes, which 
 are issued on undoubted security of 40.9. in the 
 pound commercial property, arc as good a circu- 
 lating medium, and more convenient, for general 
 payments. 2. Recollecting the recoinage of the 
 silver, during K. William's reign, ]\fr. Iluskisson 
 reasons, throughout his pamphlet, as if we lived in 
 K. William's times ; having freedom of trade, and 
 unrestricted iutercourses, with the neighbouring Con- 
 tinent ; whereas, for want of that unrestrained hi- 
 tcrcourse, which would take off our home manu- 
 factures, and Colonial products ; and thereby raise 
 the Hamburgh exchange, from 29. to 35, proba- 
 bly,
 
 114 COXSIDF-UATIONS ON COSIMERCK ; 
 
 bly, wc are thus prevented, from the chance of im- 
 porting gold, [as ill 1707, and 1798] or, which is 
 the same thing in substance, from obtaining bills, at 
 35 exchange, which bring down the price of gold, 
 at home, to the Mint price of j^. 3. 17. io|. per oz. ; 
 it being proved, in 1797, that while tlie Hamburgh 
 exchange was under 33. 4; gold must go out of this 
 countr^^, and vice 'versa y when it was at 2)^. 6, gold, 
 as certainly came into the country. But, in the pre- 
 sent revolutionary state of the Continent, Bonaparte, 
 robber like, is constantly exacting 40, or 50 per 
 cent, in specie, throughout Ciermany, on all British 
 manufactures, and Colonial products, or what he 
 pleases : How, then, can it be otherwise, but that 
 all the specie, either gold, or silver, that he can 
 seize upon, should not go to France, — or that it 
 should not be hoarded up, in Germany, to prevent 
 his seizure of it, by whatever means ? 3. If we 
 were, then, required to pay in specie, while the ex- 
 change is T 5 per cent, against iis, it is a physical 
 iirjpossibility; it would be a sure way of sending 
 {ill the money out of the country, and yet Mr. 
 Huskisson tries to persuade us, that it would be the 
 only way, ^0 bring it in: Our comfort, however, is, 
 that we can do as well without the specie, as with 
 it ; so long as v, e are certain, that the commercial 
 property of the Bank is twice as nmch as the whole 
 issue of Bank notes ; and certainly, the more gold 
 .is hoarded, the more Bank notes "ivill be wanted ; 
 
 since
 
 P.UILIO^^ AND coin; FTC. 12^ 
 
 since gold hoarded is of no more use, as a circulat- 
 ino; medium, than if it were not in existence. 4. Mr. 
 lluskisson will have it, that gold, and silver, are 
 the o?iij/ standards, by which all other articles are 
 to be measured. But, gold and silver, as gold and 
 silver, are no more standards, or measures, than any 
 other goods and chattels. Even when they are 
 minted into gold couiy and silver coin, they are not 
 the oiilif standard, or measures. The money of ac- 
 count, and pound sterling, or in otlier words, the 
 lawful money is the proper measure. And a paper 
 currency might almost as well be established on the 
 security of lead, tin, iron, or any other metal, or 
 thing ; provided there were a sufficient quantity of it 
 to secure the holders of such a currency against any 
 fluctuation of price, that miglit take place, in the 
 articles, which composed the security : Solid bills oi 
 exchange, and Government securities, are as good 
 guarantees,- as any paper currency can rest u[>on; 
 and such are the securities we have for the solidity 
 ©f Bank notes : The country Bank notes, on the 
 contrary, rest only upon tlie responsibility of the 
 issuers • and great pains are taken, to force them 
 into circulation : But, the Bank notes migiit be is- 
 sued to twice the present extent, if they were not 
 withheld, instead of forced, by the prudence, and 
 discretion of the Directors. 5. Mr. Huskisson ad- 
 verts to the state of Ireland, in 1 803, when the 
 exchange from Dublin to London was lyf per cent. 
 
 while
 
 126 CONSIDERATIONS ON COMMERCE; 
 
 while that of Belfast on London was only 7 -| pert 
 cent, and between Dublin and Belfast 9 per. pent. 
 llie Dublin exchange, he says, was corrected, -when 
 the over-issue of the Dublin Bank notes was' rc- 
 
 fiuced ; whereas, Mr. B assures -me, that the 
 
 issues of those notes never were reduced ; but the 
 high exchange was owing to the people about Dub- 
 lin, during the rebellion, and for some time after, 
 remitting their property to England, for safety, 
 which eventually went back, and the exchange was 
 then restored to its present level. I think it, however, 
 very probable, that if the Dublin Bank notes were 
 refused to be taken as cash, a part of them might, 
 during the rebellion, be called in ; and so would the 
 Bank of England notes, if they bore an agio 
 against guineas, in the general currency of people's 
 payiiients. 
 
 (C.) Although Mr. Huskisson confidently main- 
 tains, that if bullion [coins], were in general 
 circulation, every article would fall 20 per cent. ; 
 yet, this is more easily asserted than proved ; 
 two years ago, the exchange on Hamburgh was 
 nearly at par, and there was no want of gold ; and 
 yet every thing was tlien, as dear as it is noiv ; the 
 gold in bullio??, and the gold, in specie, being then 
 of the same value, people had no motive, for hoard- 
 ing up the guineas ; but now, that the Bullion 
 Committee has stated to the public, (and truly) that 
 a guinea, at the coined priceof ;^. 3. 17. luf. per 
 
 oz»
 
 Bullion ANf) coin; etc. 127' 
 
 t)Z. would, if allowed to be sold, as bullion, at 
 5^.4. 1 2s. per oz. fetch 24.9. 8^. the holders of guineas 
 naturally put this value of 24.V. Sd. upon thcni, and 
 withhold them, from circulation; but, notuithstand- 
 infT this, our Bank notes are not regulated, by the 
 advanced price of bullion, if it should even rise to 
 ^T. 10. per oz. ; they only representing the guinea, at 
 £. 3. 1 7. lof. or the Mint price ; at which the pub- 
 lic are not only willing to take them [the l^ank 
 notes] but are continually craving for more, than the 
 Bank Directors are willing to issue. 
 
 (7.) Whatever, then, may be the fluctuations 
 in the general vaue of gold, and silver, as bullion, 
 there is no fluctuation, in the money unit:, or pound 
 sterling, which, as the pound sterling, and money 
 unit, are neitlier coins, nor commodities, is not subject 
 to change : The pound sterling, therefore, is the true 
 standard of prices of both gold and silver, as 
 well as of bread, and beef, whatever Mr. Huskis- 
 son may say, idly, of bullion : ]3ut, is tliere not 
 such a circumstance as the depreciation of mojiey f 
 Yes ; certainly ; and I have, on a fcruier occasion,, 
 treated, at some length, of the depreciation 
 of money, of which vulgar historv is full *. It 
 was reserved, for the late Sir George Shuck- 
 biirgh, to reduce this enigmatical subject to a sort of 
 
 * See tlie last edition of ray Estimate, 333 — 36, for my ac- 
 count of the depreciation of money, which is only another -u.urd. 
 /or the rise in the prices of labour, necessaries, and land. 
 
 . , 3V:tem..
 
 128 co^'SIDERATrox3 ON commerce; 
 system *. But, the true, and the Parhamentary 
 language, is, that the prices of land, of labour, and 
 of the physical necessary, riscj sometimes more, and 
 sometimes less, in particular periods f . The value 
 of money, then, does not depreciate ; but prices rise : 
 And, therefore, the pound sterling remains fixed, 
 as a ^tajadard ought to be. Doth it not foUow, from 
 the foregoing facts, and circumstances, that, seeing 
 the pound sterling, and the Bank note, are identi- 
 fied, in the law, and usage of the country, that the 
 one is as stable, as the other. 
 
 (8.) If money, then, does not depreciate, and it is 
 prices, "vvhich only rise ; if the pound sterling he 
 fixed, and the Bank note be as stable as it, by iden- 
 tification, can it be said, in fair discussion, that the 
 
 * See his Table of the yippreciadon of Mon&y, m the Royal 
 Society Tiansactioiis, 1798, p. i/G. 
 
 t See the several Reports of the Secret Committees of the 
 two Houses of Parliament, in 1797. On the 3oLh of March 
 1797, Henry Thornton, Esq. Banker of London, was examined 
 before the Lords' Conmiiltee, thus : " Q. Helve you reason to 
 '^ think, there has heen a great increase, in the whole scale of 
 '' the public income and expenditure? A. Undoubtedly. Q. Has 
 '■' not a similar increase taken place, in the scale of private 
 " expendihire ^ A. If you include se.veral years Tp&9t, if cef- 
 " tainhf has. Q. Has there not been of late years, a rise in 
 " the price of provisions, and of labour ? A. Certainly. Q, Has 
 " there not been a great extension, in the manufactures, and 
 " commerce of the kingdom? A. Undoubtedly, &c. &c." The 
 whole of the examination of Mr. H. Thornton is of great 
 length, intelligence, and importance, which is the more in- 
 teresting; as there was no cross-questioning, and he spok« 
 what he knew. - 
 
 operations
 
 BULLION AND COIN; ETC. I29 
 
 operations of the Bank enter directly into contact 
 with prices, though they may cira.iiiou.slj/ *. We 
 may now perceive, that it is the plenty, or scarcity, 
 and other circumstances of supply, and demand, 
 which rule the prices, more than the plenty of money. 
 Magens, who is recognized, by Doctor Adam Smith, 
 as an experienced merchant, and intelligent writei^ 
 has argued this interesting subject, with great know- 
 ledge of things, and men. He insists that, " it 
 *' is with labourers, as with commodities ; the price 
 '^ is governed by plenty, or scarcity, more than the 
 " abundance of money : And we see, daily, he adds 
 *' that the price of grain is not ruled by the plenty, 
 " or scarcity, of gold, or silver, but, by its own 
 *' superabundance, or defect, where we raise more 
 *' than we can vend, or where we could vend more, 
 '• than we can raise : So, with labourers, we con- 
 " elude, when they are scarce, tliey command their 
 *' wages ; when plenty, the wages command them ; 
 ** that is to say, they will work for less gold, and 
 " silver, in one case, than in the other. Hence, it 
 
 • I have said, upon a different occasion, " that the Bank 
 " paper promotes industry, commerce, and circulation; that 
 *' all theee create wealth ; that riches beget luxury ; that lux- 
 " ury induces consunjption ; and consumption, by auginf ntirg 
 " the demand, necessarily tends to raise the prices of labour, 
 " and commodities." See my Estimate, 4-28. It is, in this 
 sense, that I mean to say, that the operations of the Bank 
 may, oircuituvsli/, come into contact with prices : But, the 
 operations of the Bank tend, also, to make us an enterprising, 
 commercial, monev-making, and free-spending people, 
 
 K i«
 
 130 CONSIDERATION'S Cm COMMERCE J 
 
 '' is evident, that gold, and silver, arc as much 
 " balanced, by the plenty, or scarcity, of other 
 ," things, as they are by goTd, and silver; and upon 
 "that balance depends the difference o-f prices*." 
 If these representations of Magens> be true, and 
 every man, m'Iio is as observant, as he was,, will 
 find an echo to his opinions, in liis own recollec- 
 tions ; may we not infer, that the clamour, which 
 we hear of Bank paper, and high prices, is more 
 feigned, than felt; and is, nierelv, an outcry of our 
 being an industrious and eoterprizing, a commercial 
 and opulent, a iK)bie. and generous people. 
 
 (9.) The converse of those conclusions is very 
 well argued, by one of the most accurate of writers f- 
 " Since tlie plenty of money, in a nation, which, 
 " has no mines of its own, is greater, or less, in 
 " proportion to its trade with other nations ; it may 
 " be asked, whether to promote trade, and conse- 
 " quently, to make a poor nation grow rich, money 
 " may not be settled, at a low interest, by law, ac- 
 " cording to the opinion of Sir Josiah : Child, and 
 " others ? I answer, that this cannot be done, v. ith- 
 *' out doing manifest injustice to all, those, who 
 " have their fortunes in money : Noi', need it be 
 *' done, if it be considered, that when a nation is 
 "poor, all commodities, particularly piovisions, 
 
 * Universal JNIei chant, 1753, xv — xvi. 
 t The late Dgctor Byaa Robinson, of Dublin, in his Essai/ 
 on Coins J 1757, p. 20. 
 
 " and
 
 BULLION AND COIN; ETC. l^T- 
 
 ''* and land, are cheap, and labourers, and nianufac- 
 " turers, work for low wages ; on which account* 
 " persons, who borrow money, at high interest, to 
 *' carry on trade, will have that interest repaid, with 
 " sufficient profit, when the commodities, which they 
 •'bought cheap, at home, arc sold dear, in the 
 ^* foreign markets of rich nations." When we com» 
 pare together those accurate representations of Ma- 
 gens, and Robinson, may we not infer, from them, 
 that if the object in question were, to obtain to 
 prices of land, and labour, of provisions, and com* 
 modities, the adequate means must be, to impede 
 the circulation, and oppress our commerce, to run 
 down private credit, and thus undermine the public 
 .'safety. Witii a slight deflection, from a people to 
 projectors, we may say, witli Dryden, 
 
 ** A party, loving gold, must rule this p!ac9, 
 " Our tt^tnples ruin, and our rites deface." 
 
 (lo.) We are, in this manner, conducted to an 
 <;xamination of the informations, which the practical 
 men communicated to the Committee, with regard 
 to the question, at issue, whether Bajik notes be 
 really depreciated : The late Ab. Goldsmid, who 
 %vas first examined, in this enquiry, being asked 
 pointedly, whether- he thought Bank paper depre- 
 ciated, answered explicitly, " I never considered 
 '* Bank notes, as depreciated */' Mr. W. C. 
 
 * Minutes of Evidence, 93. 
 
 K 2 CHAi^Bf.K^
 
 132 rONSTPERATIONS ON COMMERCE; 
 
 Chambers was asked, " Is it your opinion, that 
 ** the currency of England is depreciated ?" an- 
 swered , ' ' cey^tainly not *. " Mr. W . C u n n i x g h a m 
 was asked, " Do you consider the paper currency 
 *' of this country as depreciated?" answered, " I 
 *' do not:'" Bank of England notes bear the same 
 premium, as guineas^ compared v\ ith Bank of Ireland 
 notes f. Mr. Merle, the refiner, being asked, " If 
 " he could not buy gold cheaper Avith guineas, than 
 "with Bank notes,'' answered, ^' NO ; that he 
 " should pay the same price, in gtmieas, as in 
 " Bank paper X.^' Guineas are only of greater value 
 " if melted, and exported, contrary to law, to meet 
 " the great demand, owing to the high price of 
 " bullion, on the Continent §." Mr. C. Lyne said, 
 " Bills, on foreign countries, are here obtained,^ 
 " precisely, at the same rates of exchange, whether 
 *' they be paid for, in Bank 7Wtes, or in guineas ; 
 " and consequently, the remitter can place, by bill 
 " remittances, as many florins, in Amsterdam, or as 
 " many marks, in Hamburgh, with £. 1,000, in 
 *' Bank notes, as he can, with ^.1,000. in guineas ||/' 
 Mr. J. L. Greffuliie said, " In England, we 
 " have no forced paper ; no difference is made, in 
 *' favour of specie, in internal transactions ; and the 
 " high price of bullion against Bank notes is only 
 " owing to the demand, for eaportation ; in pur- 
 
 * Minutes of Evidence, 102. t ib. 130. 
 
 lib. 5^^. §Id. II lb. 61. 
 
 " cliasins
 
 BULLIOX AND COIN; ETC. I33 
 
 ** chasing a foreign bill, guineas will bear no superior. 
 " value to Bank notes : The high price of gold 
 " should not be ascribed to Bank notes, but, alio- 
 " gether to the foreign demand ; the deai'ness of 
 " gold cannot be called a discount on Bank notes* ^ 
 Mr. Abraham Goldsmid concurred with the very 
 intelligent merchant, Mr. Greffulhe, who was 
 quite equal to the whole question, in saying, that 
 '* in payment of a foreign hill, Baidc notes, and 
 " guineas, are the same ; the receiver takes them, 
 " as the currency, and pays them away, as the same " 
 [currency!.] Then came the last, but not least, Sir 
 Francis Baring, who said, " The /M/^tr of the Bank. 
 " of England has stood firm, for above a century, 
 " and flourishes, at this moment, with unabated 
 " confidence : The power reposed in the Bank is 
 " great ; their paper is the basis, on Avhich the best 
 " interests of the country rests; it is the iet'^, winch 
 " sei'ves to produce the whole of its commerce, its 
 " finance, and its agricultural improvements:!:." 
 Happy! had Sir Francis known the law upon the 
 point ; as it would have supplied him w itii more 
 adequate terms of definition, and panegyrick, than 
 paper, than basis, than seed ; and taught him never 
 to call Bank notes, by such an expression, as paper, 
 not even with Pope, " blessed paper money :" But, 
 for both, definition, and panegyrick, we must refer 
 to lord .Ma.nsfii.ld, the illustrious Chief Justice 
 
 * lb. 70—1. I lb. 93. : lb. I3i. 
 
 K 3 of
 
 134 C0WS1D£RATI0J^S ON COMMERCE; 
 
 of England, who, after argumctit, and consideration^ 
 declared Bayik notes not to be paper ; not to be- 
 goods, not to be securities, not to be documents for 
 debts, but money to all intents, but cash, as much as 
 guineas*. .And Bank notes, being thus, in con- 
 templation of law, viC7iey to all intents ; and being 
 thus cask, as much as guineas, are of course, by 
 operation of law, the laziful money of the kingdom, 
 as m\ic)\2L?>\he. pound sterling: (q.) But, Banknotes 
 were considered, under very different views, in the 
 Bullion Committee : The anonymous merchant was 
 the only examinant, by the Committee, who con- 
 sidering bullion [uncoined gold of the tower-mintage] 
 as a measure of merchandize, regarded Bank notes 
 as depreciated\\ because the market price of bullion 
 had risen : Upon the same principle, this anonymous 
 person must have admitted, in argument, that the 
 currencies of Hamburgh, of Holland, and of France, 
 are, also, depreciated, since gold bullion has greatly 
 risen above par, as we have seen, at Hamburgh, 
 Amsterdam, and Paris : Mr. W. C. Chambers, 
 in answer to a question, which was suggested, by the 
 conceit, of calling bullion a standard, made answer, 
 •' I do not conceive gold [uncoined gold, at our 
 " mint] to be a faii'er standard, for Bank of England 
 
 * Burrow's Reports, i. 457. — Cash;says Dr. Johnson, is )7io- 
 ney : properly ready money ; rxioney, in the chest, or at hand, 
 ft is something hcttvr, than money, we may thus perceive.- . 
 
 Minutes of Evidence, 76. 
 
 *' notes,
 
 Brr.LION'AND coin; ETC; 1^5, 
 
 ** notes, tliaii indigo, or broad cloth*:" The in-. 
 telliiicnt -Mr. Greffulue concurred, in this way of 
 thinking; saying, '* the low exchange, in my opinion, 
 *' does not arise, from our rcccivhig Bank notes, in 
 " payment, for bills;— Were the. circulation of this 
 " country confined to gold, and silver, the export of 
 '* which being prevented, it would produce no 
 *' ,ct!ect whatever on the rate of exchange, different, 
 '^ from wl^kit it is, now, the payments, being made, 
 ** in Bank notivi]:^' (3.) Iliere is no difficulty, ii| 
 this question, when the terms, gold, and silver, 
 money of aeeount, coin, biUliGn, and price, are pro- 
 perly ca'plaijied, and imderstood, as I iiave already 
 explained them, from Sir James StuarC"s polUlcal 
 economy % : And, the doubt ai'ises, only, wi^e^ 
 men, and writers, and reporters, use f?iich terms, ii,i 
 ambigiuius senses ; so as to speak of bullion, of gol(l, 
 and of silver, (uncoined at our niii'it) a* coins, wheu 
 •they arc xot; of those t^^rnis, as measi^resy qj' 
 standards, Avhen they ai'e not, or as any thing e/se, 
 than merchandizes, as Air. Cliambers considered 
 .[uncoined goldj to be, no more, a measure, or stand- 
 ard, than indigo, or broad ciodi : If I could possibly 
 conceive, that s«ch speaking, ^vritin^-, and reporting, 
 thus aml^iguons, and deceptive, wei'C designedly in,- 
 tendcd, to palter In a double sojsc, with ParliaiucnI., 
 and the pul)iic, on a question of so great interest to 
 e\-ery one's fortune, I should say, that such ambi- 
 • Jb. J02.: t Ife^yi^. { Bookiii.'xif. 5. 
 
 K 4 guou<<
 
 136 CONSIDERATIONS ON COMMERCE; 
 
 guous language is not onlyfljffl//^cy, but a pESPi* 
 
 CABLE FALLACY. 
 
 IV. 
 
 Of the Bank Affairs. 
 
 WE are thus led forward to some considerations, 
 Concexning Bank affairs, during late times, (i.) 
 *' It would be desirable/' said the late Sir Francis 
 Baring*, " for the purpose oi probing this question 
 " to the bottom, to ascertain what proportion the 
 ** issue of Bank notes has borne to the gradual 
 " increase of the commerct of the countri^ although 
 " the disclosure would not be prudent, in other 
 ** respects : But, I cannot think it possible, for the 
 " one, to require an augmentation of the other, in 
 " an equal degree ; and it remains to be proved 
 " that the amount of Bank notes, before the waf 
 " [of 1793] did increase in propot^tion to the in- 
 ** creased trade of the country, before the necessity 
 " can be admitted, for an augmentation to the cir- 
 *' culating medium, in consequence of the large 
 *'■ additions to our trade, during the war, although 
 *' such additions is accidental, and temporary." 
 This is certainly a very curious passage, written as 
 it was, by such a person, at the end of the year 
 
 * In his Cbscriatiojn on the Bank, 1797, p. 4. 
 
 ; . 1797>
 
 BULLION AXD COIJJ ; EtC. 137* 
 
 1707, some months after the epoch of the Bank 
 restriction: It was certainly written, with great 
 good intt-ntions, and even with simplcues^, compared, 
 with what we all know now of the vast, and per- 
 manent increase of our trade, and other important 
 circumstances of our circulation. The grand dis- 
 closure of our Bank affairs was made, about the 
 same time, by the Secret Committees of the two 
 houses of Parliament ; And what did that grand 
 disclosure amount to ? But, to tell the world that 
 the Bank had a surplus of effects, beyond all claims, 
 of ;{[. 3,826,890. sterling money j exclusive of the 
 debt, due from Government of £. 1 1,686,800 ; that 
 is, that the Bank, after paying twenty shillings, in 
 the pound, had a surplus of >r. 15,513,690, good 
 effects ; that the run upon the Bank, was owing, as 
 on former occasions of a similar kind, to the alarm 
 of invasion ; and that the only proceeding of tlie 
 Bank directors, w hich could be construed into misma- 
 nagement, was that, during t/ie run, they had drazvff 
 in their paper, instead of issuing it out : And, it 
 should seem to me, that the Secret Committees 
 rather inclined to lean to this last opinion. The 
 commercial doubts of good Sir Francis may be 
 cleared up, in the following manner; The three 
 years, preceding the war of 1 793, formed a period 
 of prosperity, beyond all examj)lc ; when the 
 greatest export amounted to £. 24,^05, 200 ; when the 
 largest issue of the Bank extended to ){^. 1 1 ,1 76, 770 : 
 
 But,
 
 138 CONSIDERATIONS O^ COMMERCE; 
 
 But, in 1797, the value of exports had risen tt> 
 ^.28^917,01,0; and the Bank issue had /r/Z/ew to 
 £. 10,403,000. We learn, moreover, from the in- 
 telligent Sir Francis, that foreign merchants were 
 surprized, at the smaUne&s of tlie issue, and at the 
 continuance of the Bank notes, at par ; not being 
 aware, that the Bank, after paying 20 s, in the pound, 
 had a clear surplus of £,. 1 5,500,000, sterling money ; 
 not being aware, perhaps, that Bank notes, accoixl- 
 ing to the course of l;rade, and tlie decisiom of law, 
 arc money, are cask, ami not securities, for money. 
 
 (2.) In the true spirit of Sir Francis Baring, for 
 probing this question to the bottom', for ascertaining 
 what proportion the issue of the Bank notes ha$ 
 boi'ne to the gradual increase of our commerce ; 
 I have formed a comparative state of. ten columns, 
 showing, tablezcise, when, and upon what motives 
 were issued the Bank notes, during the twenty yeai"» 
 ■ending with 1 809 ; w hether those issues were made 
 during peace, or war ; whethei* amongst many, or 
 few domestic enterprizes, which required much, or 
 little capital ; whether during a trade, increasing, or 
 falling off; whether the exchanges were favourable, 
 or adverse ; w hether bullion was plenty, or scarce *.. 
 From such a document, every reader, by an easy 
 inspection, may satisfy himself, without applying to 
 others, for information, whether the Directors, under 
 all circumstances, acted fitly, or not, for the com- 
 
 " * See the Appendix, IS" II. 
 ' mon
 
 BULLION AND COIN; ETC. 130 
 
 mbn benefit of the Bank, and the nation. This 
 statement comprehends twenty j^ears, the most 
 eventful, in our commercial annals. It begins, with 
 tlie three prosperous years, which preceded the 
 bankruptcies of 1 793, the epoch of the first French 
 war. The first column exhibits four years of quiet, 
 and sixteen years of Avarfare, the most malignant, 
 in the diversified motives of hostility. The second 
 column contains tlie number of Parlianientary pro- 
 visions, in every year, for making the domestic im- 
 provements of our island, which have been carried 
 on, with more activity, and success, during the 
 struggles of wae, than in any prior times of the 
 profoundest peace ; and as our struggles increased, 
 our local improvements became more numerous, 
 and more expensive. Connected with those do- 
 mestic entcrprizes, by which our island was enlarged^ 
 and meliorated, was the establishment of country 
 Ba?ih, district discounts, and reproductive capitals, 
 wiiile the Bank, by its accommodations, energized 
 all those national objects. The three following 
 columns represent the foreign commerce of the 
 country, with the world, in its shipping, its exports, 
 and its balance of trade ; sliowing, by their gradual 
 augmentations, that our foreign commerce, amidst 
 the efforts of war, has more than doubled, in its 
 advantages, Tind its gains; that the commercial capital 
 of the trad(!rs increased, perhaps, in the same ratio, 
 with the reduplications of their profits, and the 
 
 attenti\'eness
 
 140 CONSIDERATIONS ON COMMERCE; 
 
 attentiveness of their economy ; while the discounts 
 of the Bank gave to circulation facilities, and flow : 
 But, while the Mint, as it was over-ruled by the po- 
 pular values of silver and gold, coined but little ; 
 while the gold coin were retained in the Bank, by 
 parliamentary direction ; it is quite apparent, from 
 the sixth column, that the Bank notes, which were 
 issued, at the call of various demands, did not 
 keep pace with the augmentation of our enter prizes, 
 at home and abroad, and the flow of the circulation, 
 throughout the land. During those twenty years of 
 active trade, and vigorous hostilities, there appear, 
 in tlie seventh column fifteen yeare of favourable 
 exchanges, four of adverse, and one at par. The 
 Li^h prices of gold and silver, as represented, in the 
 eif^hth column, evince, with clear conviction, the 
 precariousness of the supply, and the constancy of 
 the demand ; as well as the important fact, that silver 
 was ratlier higher priced, in 1801, than in 1809, 
 and that gold was almost as high : And, we may 
 thus, perceive the price of gold, by being so much 
 higher, than the Mint price, during the last ten years, 
 had also over-ruled the Mint ; as the high prices of 
 silver had already shown to all intelligent mf n, tliat 
 the popular estimation of the values of the precious 
 metals will ever restrain the theoretick piinciples, 
 and usual practice of the Mint. This comparative 
 state, [App. No. 2.] then, must appear to all intelli- 
 gent readers, to be quite deciijive of the whole ques- 
 tion,
 
 BULLION AND COIN; ETC. I4I 
 
 tion, at issue before the public : For, it shows 
 clearly that, since the Bank restiiction, in 1797, 
 our local improvements had risen, in the ratio of 
 151 to 243 ; that our shipping outwards had risen 
 from 1,500,052 tons 102,230,902 ; that ourexported 
 cargoes had increased, in the i^atio, of £. 28,917,010 
 to £. 50,301,763; and 2/et, the issues of Bimk 
 notesy excluding post-bills, which are out of the 
 question, rose, only, in the r^^w, from ^.10,403,000. 
 to Ji. 1 8,015,700. deducting from this last sum the 
 whole gold coins, that had been withdrawn from 
 circulation ; and the void being filled, by coimtry 
 paper ; as the cou;itry banks cncrcased, in the mean- 
 time, from 230, the numbers of 1797, to 700 and 
 more, the numbers of 1 809 : And, it is thus quite 
 apparent, that the excessive issues are not in the 
 Bank notes ; as the Committee suppose, but, in the 
 country paper, as we have thus demonstrated. 
 
 (3.) In opposition, however, to thofe proofs, it is 
 insinuated, by some, rather than said by others, that 
 there is some laxity, in the management of the Bank : 
 But, when we look into the appendixes of the two Re- 
 ports of the Secret Committees, 1797, we may 
 perceive that, the daily transactions of the Bank are 
 duly recorded ; that the vast details are constantly 
 mmuted, by the appropriate officers ; and when 
 Parliamentary Committees ask, for information, the 
 iDOSt accurate accounts are readily given, from the, 
 Bank record, of. the most extensive transactions of. 
 
 its
 
 142 CONSIDERATION'S OX COMMERCE ', 
 
 its singular traffick : On this bead, the Luilion Re- 
 port, if we may judge, from the volmninous appendix^ 
 exhibits no want of documented information of every 
 kind. Thofe documents, tlien, preclude tlie suspicion 
 of relaxation, in the systematic management, w hich. 
 came down to tlie Bank directors, from their intelli-r 
 gent predecessors. The documents, \>hich were 
 before tliose Parliamentary Committees, evince a 
 vigilance of observation, in the directors, both as to 
 foreign, and domestic matters^ that was felt, by the 
 Chancellor of the Exchequer, and obviated by the 
 agents o^ foreign powers *. Sir Francis, hideed» 
 writing under the impression of 1 797, talks of "paper 
 ^* discounted, for Jictit'wuSy and stock-jobbing pur- 
 " poses '('." On the other hand, the Secret Com* 
 
 * See Mr. Boyd's printed Letter of the gtb of May 1794, tfli 
 Mr. Pitt; in order to shew the na«ister of Finance that, the 
 Jlmperor's Loan, as the borrowers might export goods, coulcj 
 pot affect domestic circulation, or give jealousy to the Bank. 
 Thi? letter is very ably written, though somewhat tinctured, hy^ 
 the motive, 
 
 f His Observations, p. 8. At tliat epoch, there were two 
 parties in the city ; one said, that the Bank discounted too 
 much ; and the other, that they discounted too little. The Go- 
 vernor, and Deputy Governor have now avowed the real mo- 
 tives of their predecessors, iu 1797. They cowsidered the Batik, 
 as a wealthy ship, in a violent storm : They deemed the safety 
 pf the ship, to be their first object ; and all other considerations, 
 to be merely secondary : They refused discounts, with deep re- 
 gret : but, they acted, from the necessity of the occasion ; an^ 
 not from ignorance of the sad effects, both to trade, and ths 
 State. See the evidence of the Governor and Deputy Gover- 
 por, in the Appendix to the Bullion Report. 
 
 ^ mittcc
 
 BULLION AND COIN ; FTC. 14;^ 
 
 mittee of the Commons, in their Jirst Report of the 
 3d of March 1797, submitted to the House, " tliat 
 " since the 25th of February last, considerable 
 .*' issues had been made, in Bank notes, both upon 
 " government securities, and in discounting bills, 
 .** the particulars of whicli could not immediat'sly 
 •V be made up; but, as those issues appear to you 
 " Committee to have been ru ide, upon correspond-* 
 *i iiig securities, taken zvith the usual cmXy and 
 ■^f attention ; the actual balance, in favour of the 
 " Bank, ilid not appear to your Committee, to have 
 •* been tiiereby diminished*." We thus see, tiiat 
 the discounts of the Bank were made upon security, 
 which had been taken, witii tlie i:mal care, and 
 attention, of the directors : Vre may observe, also, 
 tliat the Secret Committee did not, on that occasion, 
 consider the tnerc amount of the issue, as so for- 
 midable a point, as tlie Bullion Committee, v.itiiout 
 attending to our e.visting circmnstanccs., declare it to 
 be, conti'ary to fact, and experience; doing justice, 
 'however, to the present directors, — who have con- 
 tinued to conduct their business of discounts, and 
 advances, according to the ibrmer routine ; thougli 
 .witliout a sufficient watch over i\\Q foreign exchanges, 
 and tlie market price of bullion ; yet the fact is, that 
 there is now, as there has always been, a coinmitteie 
 of Treajsury, at the ^ank, for the very purpose of 
 »atciung eickafigeSf and tlie market prices of goid 
 
 * Printed Report of tb« 34 Mwcb 1^37. 
 
 \-i and
 
 144 CONSIDERATIONS ON COMMERCE; 
 
 and silver; neither is the Bank direction quite in- 
 attentive to the great excess of country paper*. 
 
 (4.) The mere mode of issuing Bank notes, hy 
 discounts to individuals, and advances to government, 
 se^ms to be disapproved, by the Bullion Comftiiltee, 
 while the Secret Committee, 1797, did approve of 
 that mode of issues, by discounts, and advances : 
 The Secret Committee, seeing the securities to be 
 taken, with the usual care of the directors, did net 
 consider the mere amount of any deep consideration ; 
 while the Bullion Committee differs from the S'ea^et 
 Committee, on this point, and even disapproves of 
 the directors conduct, to the full length of reprehen- 
 sion, while the directors acted, as their predecessors 
 had done, under that approbation of the Secret 
 Committee. Here, then, are clashing authorities ! 
 And, the question is, which of the two were right. 
 The Bullion Committee was, plainly, mistaken, in 
 supposing, that the Bank directors only take under 
 their consideration, the securities, which are daily 
 submitted to their consideration, for discount : The 
 Bullion Committee are wrong, in supposing, that the 
 directors have one point, only, within their contem- 
 plation, on such occasions : They have, constantly, 
 two considerations, and sometimes more, before 
 them; (1.) the securities ; (2.) the demands; and 
 (3.) another point of great moment, in this question, 
 the beu?id, beyond which the Bank will riot discount, 
 ■ ' * Eep. 8« ed. 35— 47* See my Appx. N' 3* 
 
 for
 
 BULLION AND COIN J ETC. I45 
 
 , for any one man, or any otic house of trade. They 
 thus see before their intelligent eyes the fitness of 
 the security, the amount demanded, by any one 
 j)art3% and the number of bills, which are daily 
 offered for discount; and by intuition, full as 
 much, as enquiry, they know the comparative extent 
 of the passing, with the passed day ; they have a 
 minute of the daily discounts ; and they have a 
 record of their weekly issue; and from the two, 
 they know, completely, the true state, both of the 
 demand^ and the securities*. The solidity of the 
 securities is a point of great consequence to the 
 Bank, as a Company, which carry on discounts, for 
 profit ; but, the amount of the demand, whether it 
 be great, or small, ardent, or weak, is a point of 
 still greater importance to the people, as a com- 
 mercial nation ; because while the demand continues 
 ardent, there can be no depreciation '; since, in fair 
 discussion, it is absurd to argue, that any thing can 
 be, in the least, depreciated, which is greatly demand- 
 fid, by many people ; and on this topick, the, popular 
 voice will overrule the Bullion Committee : But, is 
 it true, as we see it suggested, that the Bank does 
 not take into its contemplation the daily vibrations, 
 
 * From long experience, saith Sir Francis Baring, the 
 Directors of the Bank must understand, correctly, the amount 
 to whicli tlicir notos can circulate, without depreciation, or 
 discount. Observations, 1797, p. \lf 
 
 L in
 
 14^ CONSIDERATIONS ON COMMERCE ; 
 
 in the exchange, in the prices of bullion, and in the 
 other circumstances, which arc connected with both ? 
 NO: The Bank has a vvellknown Committee of' 
 Trensury^ whose very business it is, to advert to the 
 course of the exchanges, to Xho, prices of bullion, to 
 the import, and export of gold ; to the buying, and 
 selling of bullion ; to foreign loam, and to domestic 
 Treasury accommodations. All those points of vigi- 
 lance, we may see, in full vigour, from the Reports 
 of the Secret Committees, 1797. Upon all the 
 foregoing grounds, the popular voice concurs with 
 the Governors of the Bank, notwithstanding the 
 Committee's intimation, of the immediate connection, 
 between the Bank discounts, on the one hand, and 
 the course of exchange, and the prices of bullion, 
 on the other ; so as to influence each the other, as 
 cause, and effect. 
 
 (5O Under all those limitations, it may be allowed, 
 that the amount of Bank notes, in circulation, has 
 greatly increased, since the epoch of 1797: But, 
 have not the domestic enterprizes, the niauufactures, 
 the foreign trade, and general circulation, as well as 
 the pubhc revenue, doubled, and more than doubled, 
 since the Bank restriction was adopted, by Parlia- 
 ment, into our policy, and law ? Have not the gold 
 coins been locked up to whatever amount? When 
 we contemplate what has been thus abstracted, from 
 circulation ; and recollect what additional capitals 
 ^•ere demanded, for our domestic improvements, and 
 
 manufactures.
 
 ^ULLIOX AND coin; ETC. I47 
 
 manufactures, for our home, and foreign trade, for 
 the various, and augmented expenditures, private, 
 and public ; tlie average amount of Bank notes, a^ 
 particular periods, are but small ; and foreigners, as 
 we learn, from Sir F. Baring, expected much more : 
 Yet, small, as the whole issues appear, when com- 
 pared w ith the vast capitals required ; the discounts, 
 and issues of the Bank, are of prodigious conse- 
 quence, in giving flow, and facility to private ca- 
 pitals ; and it is this facility, and that flow, which is 
 commonly called circulation * : Without the facility 
 
 * " Any thing may become a circulating medium, said Sir 
 *' Fruucis Baring ; paper is as good a representative sign [circu- 
 " lating medium] as gold ; and in many instances, it is better ; 
 " as it is more easily managed." Observ. 3. In p. 42, he 
 adds, " Paper, a? a circulating medium, is more than conve- 
 " nient; for, in those enlightened times, it is necessary, and 
 " even indispensable." Sir Francis, however, never once men- 
 tions, throughout his whole book, that Bank notes arQ jnoney, 
 not securities for money, or a sign oi money. Sir Francis sets 
 out, p. 1, by saying, " Circulation, as the word implies, must 
 " hav'j a pivot f or a center, on which the whole can turn; and 
 " that center, as far as relates to Great Britain, is the Ban/c of 
 "■ England; whose notes represent that object [the center, I 
 " suppose] for every beneficial purpose." It would have been 
 fifty times more to the purpose, to have said, that Bank notes are 
 cash, rather than that, they represent money : Well ; Mr. Ihune, 
 the political philosopher, and JMr. Fox, the political orator, 
 said, they never could understand commercial circulation. It 
 may just be intimated to the followers of those great persons, 
 tliat tlicre was a folio book, publislied, at London, in 1650, 
 entitled, The Key of ff'eattk, by William Potter, who treated 
 the whi»le doctrine ofcirculation mo* t systematically : I grant, 
 I'olter'b Keif of ll'ealtli is a very rare book. 
 
 1. 2 of
 
 145 CON^SlDEItATIONS ON COMMERCE ^ 
 
 ef discounts, the same capitals could not carry on 
 such augmented conmierce, nor sustain such mighty 
 labours, as our local improvements :. Nor, ^^•hiler 
 tlie discounts contiiiue to Ire made upon adequate 
 security ;: while there is an urgent demand, for dis- 
 counts,, amidst additional undertakings, increasing 
 labours, and augmented trade,, the Bank notes cannot 
 depreciate. There is a very accurate rule, foi- 
 judging, when, and on what occasion, the daily issues 
 ■of the Bank are too many, or too few : If there be 
 a great demand for them, they are too few ; if 
 -there he no demand for thein, they are too many i 
 If the circulation be saturated, then will it cast 
 them out of the circle of commerce into the Bank : 
 . Jf Bank notes regorge , (to use an expression of Sir 
 J.Stuart, the political economist,) in the hands of 
 ihe holders, they will be immediately th^o^vn back, 
 from such.handsy into the Bank. Upon the payment 
 ©f the clivUkfuh; on settling for loans, and on other 
 such occasions, we may perceive how fast the Bank 
 Botes are returned into the depository, >v hence they 
 liad just proceeded. But^ from a view of all circum- 
 staaees, it is apparent, that there cannot be a legal 
 limit to the Bank issues ; as tlie same lin-iit would 
 impede the circulation of the country; Mould bound 
 its domestic enterprizcs ; and m ould cripple its 
 foreign trade. 
 
 (6.) But, is any aclditional limit to those issues 
 
 qecessary, or requisite B The Secret Committee of 
 
 7 tlie
 
 BULLION A^D CCIN ; XTC. 1 49 
 
 the House of Commons, in its Jirst Report, of 
 the 3d March 1797, did not suppose sucli a limit 
 •to be requisite, and the whole Parliament, at that 
 epoch, considered a full, and flowing, circulation, 
 to be more advantageous to an industrious people, 
 »than a scanty, and sluggish, circulation- On other 
 •occasions, I have shown the disachaRtage, and 
 danger, of an impeded circulalion to a con^mer" 
 cial .people: And, we have seen .tlie House of 
 Common.^, acting upon that convictien, whco it 
 granted Exchequer bills, as an aecon.nnodatioH to 
 traders, in 1703, and on every occasion, when Parr 
 liament has resolved, with true wisdom, to support 
 public, and private credit. 
 
 (7.) While such a limit, by Statute, to the issue of 
 Bank notes, is neither requisite, necessary, nor per- 
 haps possible, it may be proper to enquire, if there 
 be now, in circulation, any excess of Bank notes f 
 The best answer, which can be given to this ques- 
 •tion is, an accurate Statement of the Gold Coinage, 
 during the j)resent reign ; as we learn it, from the 
 officers of the Mint: 
 
 .1. From the begiiming of tliis reign, in Oc- 
 tober 1760, to the end of 1772, there 
 was coined, of golcl^ the amount of - £. 8,819,390. 
 
 -2. The rccoinagc, from 177310 1777, inclu- 
 sive, amounted to . - _ , ^9j591)833. 
 
 jj. Tlie coinage of gold, from J77S to 179G, 
 
 inclusive 2&,863,437. 
 
 Carried forward £. 57,274,fir)o. 
 1. 3 Bnju^ht
 
 150 CONSIDERATIONS ON COMMERCE ; 
 
 Brought forward £. 57,274,660, 
 - 4. The coinage of gold, from 1797 to 1809, 
 
 inclusive - - - _ _ 8,940,114*, 
 
 The total, which was coined, in this reign _^\ 66,214,774. 
 
 If we suppose, that only one half of ^^■hat was 
 coined, from 1760, to 1796, inclusive, amounting 
 to j^. 57,274,660, continued to pass, from hand to 
 hand, this amount would prove, that there re- 
 mained, in circulation, merely, ^T. 28,637,330; or, 
 in even numbers, £. 29,000,000. Well informed 
 men have stated the amount of our gold, which 
 continued, in circulation, at the epoch of the restric-? 
 tion, as about £. 30,000,000. Now ; the bankers, 
 traders, and brokers, who have been examined, by 
 the Bullion Committee, agree, in stating, " that 
 gold has almost wholly disappeared, from circular 
 tion." 
 
 In the 11 years, from 1788 to 1799, the gold coined, amounted 
 to - _^. 22,716,060, 
 
 Jnthe 11 years, from 1799 to 1809, the gold 
 
 coined amounted only to - - ^ •, 3.972,312. 
 
 This 
 
 * Of that last sum, nearly £. 5,000,000 were coined ; 
 viz. in 1797 ----- - ^.2,000,297. 
 
 and, in 1798 - - « ^ - 2,967,505. 
 
 £. 4,967,802. 
 
 The average of the subsequent years, from 1796, was indeed 
 greatly reduced, as we might infer, from the high prices of bul- 
 lion, which overruled the Mint^
 
 BULLION AND COIN; ETC. 15^ 
 
 . This statement fully evinces a deficiency, in tlie 
 o-o/^/ coinage, during the last penod,of;^. 10,000,000 ; 
 OAving chiefly to the high price of bullion, whicli 
 overruled the Mint. This defjciency could only 
 be supplied, by Bank notes, and Country paper. The 
 increase of Bank notes, during the 14 years, 
 which elapsed, in 1809, was only £. 8,000,000, 
 which consisted of J^. 3,000,000, and upwards, in 
 £. 5. notes; and the remainder,of about;^.5,ooa,ooo; 
 of ;^. 2. and ^.1. notes*. In this view of the 
 subject, can any one regard that augmented 
 number of notes, both great, and small, as too 
 excessive ; taking into consideration, also, what is 
 generally too much kept out of sight, the great in- 
 crease of our domestic employments, the vast au^r- 
 mentation of our manufactures, and the prodigious 
 addition to our foreign trade. The Committee, 
 then, in speaking of the excessive issue of Bank 
 notes, fail, egrcgiously, in the fact, whether the Mint 
 accounts be considered, or the vastly augmented 
 circulation be regarded, ov.ing to our domestic 
 
 * From all the accounts, wLicli have been laid before th$ 
 Secret, and Bullion, Committees, it appears, that the increase 
 of Bank notes of £^. 5. and up\vard;>, has not been great, 
 iiiice the restriction ; the amount of 1795 being j/^. 11,000,000, 
 and that of iSoc) bejng J^. 1 4,000,000; showing 
 an increase of the larger notes of about - £^. 3,000,000 ; 
 
 aiid of thf small notes of - - - - 5,000,000. 
 
 So that the whole augmentation is only - £. 8,000,000. 
 "^ L 4 enterprizes.
 
 132 CONSIDERATIONS ON COMMERCE; 
 
 enterprizes, our active manufactures, and our foreign 
 trade. 
 
 (8.) The transition is easy, from Bank notes, to 
 Country-hank paper. The epoch of banking is 
 referred, in Anderson's Deduction of Commerce, 
 to the year 1645, when the goldsmiths of London 
 began to receive, and to pay, cash. Those gold- 
 smiths' notes were the only paper currency, in 
 Britain, from that epoch, till the Revolution. The 
 goldsmiths may be deemed the first private Bankers. 
 Till the rise of the Bank of England, paper cur- 
 rency was considered, as a thing uncommon ; and 
 as a security for money, rather than money. The 
 Bank of England, which was established, in 1694, 
 under an Act of Parliament, with a capital of 
 ^. 1,200,000, circulated Exchequer bills, on a stated 
 allowance; issued Bank sealed bills, bearing an 
 interest, which were soon laid aside; and sent out 
 l^ank notes, without interest, payable on demand. 
 It is curious, as well as important to observe, that 
 in the infancy of Bank notes, it was ruled, by Lord 
 Chief Justice Holt, that they were money *. It 
 is said, by persons, who are otherAvise well informed, 
 that *' the practice of issuing paper currency, within 
 " the British dominions, first began,in Scotland," about 
 the epoch of the Union : But, we have seen above, 
 that the London goldsmiths' notes were ihe first 
 
 * Burrov/'s Reports, i. 458. 
 
 paper
 
 BULLION AND COIN; ETC. 1 53 
 
 paper currency, the cash -notes of the Bank were 
 the second ; and these last were immediately recoir- 
 nized, by law, as money. 
 
 (9.) The epoch of the Bank of Scotland, which 
 was founded on an Act of Parliament, was 1695, 
 with a capital of -rV of that of the Bank of Eng- 
 land. The Scots Bank followed the steps of the 
 former, though at a great distance behind. But, 
 owing to the want of capital, and circulation, and 
 commerce, in Scotland, thirty years elapsed, before 
 the J3ank derived much profit, from the country, or 
 the country much benefit, from the Bank. At 
 Edinburgh, hoAvever, were established, by the 
 King's Charter, The Roifal Batik, in 1727, and 
 the Linen Company, in 1 746 : The Aberdeen 
 Bank was set up, in 1746; and two Banks were 
 founded, at Glasgow, in 1750. The Aberdeen 
 Bank, and those Banks, at Glasgow, are the earliest 
 Country Banks, that I have any where seen. There 
 was some struggle, between the old Bank, and the 
 new, in 1727, which brought some embariassment 
 on the business of Edinburgh ; there was some 
 competition, between the Glasgow Banks, and that 
 of Aberdeen, which distressed themselves, and in- 
 commoded the country: But, real inconveniences 
 first arose, in 1762, from issuing more paper, than 
 the existing trade required, and fi-om the artifices 
 of individuals. But, some slight regulations of an 
 Act of Parliament, with the prudent management 
 
 of
 
 154 CONSIDERATIONS ON COMMERCE; 
 
 of the Chartered Banks, placed both the exchanges, 
 and the paper currency of Scotland, in such a state 
 of benefit, botli to the Banks, and the individuals, 
 as to beat once safe, and advantageous to a com- 
 mercial people*: Beyond the accommodation of 
 the cash acvouuts, which the Scotish Banks grant, 
 banking cannot easily be carried,, in its profits to 
 the Banks, and its benefits to the country. 
 
 (lo.) " The establishment of Country-banks, in 
 " England, is of modcrji date, and ivitli'tn my 
 " recollection, said Sir Francis Baring, in 1707. 
 " During the interval, bet\^een the failure of the 
 " Air Bank, in 1772, and the distress of 179;], 
 " a very material change had taken place: — Banks, 
 " he adds, had been estoiblished, in almost every 
 <' town, and even in villages, throughout the coun- 
 " try; and, in the larger towns, rival establish- 
 *' ments were formed. Whilst their circulation 
 
 * 5 G-. 3. ch. 49. See the informations of Mr. Mansfield to 
 The Committee of the Irish Exchanges, 1804, for the sakitary 
 fcffects of that Statute; and the information of Mr. Gilchrist to 
 the Bullion Committee, 1810, for the sane state of the whole 
 system of the Scotish Banks. From their informations, we may 
 infer, that banking, and Bank money, cannot easily be made 
 more safe, or more commodious, to an industrious people. From 
 Mr. Gilchrist we, moreover, learn, that there are, in Edin- 
 burgh, three chartered Banks, and two unchartered Bunks, 
 which issue notes ; in Glasgow, a branch of the Royal Bank, 
 and three others, which issue notes ; and in other towns, one, 
 or two and twenty, which issue notes : and all those Banks cir- 
 jculate notes to the amount of £. 2,500,000. 
 
 " was
 
 BULLIO!^ AND COIN; ETC. 15^ 
 
 *' was thus greatly increased; and its beneficial 
 *' effects enjoyed, by the commerce, manufactures, 
 *' and agriculture of the country; their circulation 
 " was founded on the most insecure principle, ^u6. 
 '' liable to the vwst instantaneous cotwulsion." 
 Thus fafj from the experienced Sir Francis Baring^; 
 with whom I concur, in thinking that, the Country 
 Banks, of England, like the Air Bank, may have 
 promoted the agriculture, the manufactures, and 
 the commerce of the country ; while their estab- 
 lishments were founded on the most insecure prin^ 
 ciple, and were liable to fall, from any convulsion. 
 We have just seen what happened to those Bank?, 
 in 1793. After that convulsion, there remained, 
 of those Country Banks, only 230 f. The same 
 §ort of Banks had again risen, in number, before 
 1808, to 600: and in 1809, to 721 |\ We now 
 
 perceive, 
 
 * Observations, 1797, p. 13 — 17. Vv'hfii I had this busi- 
 ness before me, in 1794, it appeared to me, that ot more thau 
 400 Country Ranks, which then existed, in Eixi^land, 100 
 etopt ; and all were Ahakcn : Of the whole nuuiber, there 
 were more than 279, whose notes were made payable, at the 
 Bank, whence they were issued, or at some other Bank, or 
 place, optionally. Estimate, 296 — 7. The Banks, at Exeter, 
 ys we learn from Sir Francis, and at other places, in the West of 
 England, issued their notes, " payable twe/itt/ dai/s, after sight, 
 with interest, from the date." Observations, 18. 
 
 t Mr. Ellison's Evidence to the Lords' Committee, 87 — S. 
 
 I Mr. Tritton's Evidence to the Bullion Committee: But 
 from the whole number of 721, ought to be deducted the 11 
 
 unchartered
 
 1;30 CON'SIDERATIONS 0>r COMMERCE; 
 
 perceive, that the Country Banks of England, from 
 a very obscitre origin, within lime of memory, have 
 risen, from 320, in 1 797, to 600, in 1 808, and from 
 tliis rmmber, in 1808, to 700, in 1809, which cir- 
 culate £. 20,000,000, at least, on very insecure 
 foundations; and, at various epochs, have occa- 
 sioned great convulsions, in our comnrercial policy. 
 From the number, and unstaWeness of those Coun- 
 try Banks, many of them must become bankrupts, 
 in every year ; and, in proportion, to the number, and 
 magnitude of such failures, must be the annual 
 discredit of the paper circulation -of this commer' 
 cial country. Some persons of knowledge, and re- 
 spectability, have mingled, in considering this sub- 
 
 uncbavtered Banks of Scotland, issuing notes, ^vhich I\Ir. 
 Tritton, improperly, mixed with the Country Banks of England; 
 improperly, I say ; as the Banks of Scotland stand upon a 
 •difterent footing, and are governed, by very difterent principles: 
 l^nd Mr. Tritton, very probably, supposes, that there may be, 
 in circulation, twe^ity million of the Country Bank paper. 
 Mr. Richardson, however, whose business leads him to great 
 knowledge of the Country Banks, assured the Committee, that 
 the present numbers of the Country Bujiks were from 720 to 
 730; that in the two last years, 1808, and iSog, they lu'id 
 increased about 200 ; that he had heard the whole amount of 
 Iheir promissory notes, calculated at £. 30,000,000. And, he 
 added, that owing to the vast augmentation of such promis- 
 ;Sory notes, the Bank of England notes are, at present, more 
 ■confined to the circulation of the metropolis and its neigh- 
 bourhood, than they were a few years ago. Report, 8° edit. 
 230 — 31. In this manner, then, were substituted promissory 
 notes, or a had security for money, in t-he room of cash; that 
 is had money, for good moMy I - 
 
 jcct.
 
 BULLION" AND COIN; ETC. I57 
 
 ject, the whole paper circulation, in one vast chaos 
 together ; m ithout considering that, the Bank of Eng- 
 land notes, and the Bank notes of the country, are of 
 quite different natures, and of very dissimilar stabiUties. 
 The Committee have thought proper to act, in this 
 mannet ; by treating of the whole mass of paper 
 circulation, as pretty much the same, in value, and 
 entirely the same, in depreciation ; and by trying, to 
 hang the Banks of the country upon the Baiik of 
 the metropolis. 
 
 (11.) In this view of an important subject, it is 
 proper to enquire, in what light the Committee con- 
 sidered ^^w/i woj^e^- ? *' TIk; Committee speaks of 
 "them, as paper currency; the Committee calls 
 " them paper ; Bank paper ; Country Bank paper ; 
 " Bank of England paper r" — The Committee re- 
 ports, as its opinion, " that there is, at present, an 
 " excess, in the paper circulation of this country."^ 
 If we look into the learned Commentary on this 
 famous Ileport, by ]Mr. Huskisson, we may sec our 
 doubts cleared up*. " The Bank of England, say& 
 " he, as every body knows, is a chartered Company 
 " of Merchants, wliose promisory notes, for more 
 " than a century, have constituted a very large pro- 
 *' portion of the circulating credit of this country ; 
 " From the institution of that Company, uj) to the 
 ." year 1797, there had been no interruption to th^* 
 " convertiOility of their notes into money." "VVe 
 
 • ills. Paniplilet^ 7. 
 
 now
 
 158 CONSIDERATIONS ON COMMERCE; 
 
 now perceive this Commentator's opinion to be, that 
 Banknotes are promissory notes, which, till 1797^ 
 \verc couxertibk into money : x\nd, from this Com-' 
 mentary, we may infer, that the Bullion Committee 
 did not regard Bank notes, as money, but only pro- 
 missory notes, convertible into money. Now ; is this 
 a sound opinion ; is it an opinion, consistent with 
 the custom of trade ; is it an opinion, according to 
 the law of the land? The Chief Justice of England 
 shall answer. On the 31st of January 1758, upon 
 an action of Trover, for a Bank note, after hearing 
 an ingenious argument, of Sir Richard Lloyd, and 
 taking time to look into the cases cited. Lord 
 Mansfield delivered the unanimous opinion of the 
 Court : 
 
 " It has been very ingeniously argued, by Sir 
 " Richard Lloyd, for the Defendant. But, the whole 
 *' fallacy of the argument turns upon comparing 
 '^ Bank notes to what tliey do not resemble, and what 
 '^ they ought not to be compared to, viz. to goods, 
 " or to securities, or documents for debts. Now, 
 '•' they arc not goods, oior secuiities, nor documents 
 " for debts : But, are treated as money, as cash, in 
 " the ordinary course, and transactipn of business, . 
 " by the general consent of mankind ; which gives 
 " them the credit, and currency of money to all 
 ." intents, and purposes. They are as much money, 
 *' as guineas themselves are, or any other current 
 " coin, that is used in common payments, as money, 
 
 *' or
 
 BULLION AND COIN; ETC. 150 
 
 *' or cdsli. They pass by a zvi/I, Mhich bequeaths 
 *' all the testator's money^ or cash ; and are iiex'cr 
 ** considered as securities^ for money, but as money 
 '* iisc/f. Upon Lord Ailesbury's will [1748] >C-900, 
 *' in Bank notes, were considered, as cash. On 
 *' payment of them, whenever a receipt is required, 
 *' the receipts are always given, as for money, not, 
 " as for securities, or notes. So, on bankruptcies, 
 " they cannot be followed, as identical, and distin- 
 '* guishable from money : But, are always consi- 
 " dered as money, or cash */' Such, then, was the 
 opinion of the Court of King's Bench : And, such 
 has been the law of the land, since the epoch of 
 the Bank, as explained by Lord INIansfield. 
 Where, then, is the learning -of the said Commen- 
 tator ; where, tHen, is the knowledge of the text 
 itself! When Lord jMansfield, and the Court, took 
 tiuie to consider the cases cited, for the purpose of 
 giving them a better answer. Lord ]\fansfield said, 
 " He would not wish, to have it understood, in the 
 " City, that the Court had any doubt about the 
 ^^ point ■\." Without the delicacy of Lord ^Iaxs- 
 FiELD, ]\Ir. Huskisson is studious, by publishing 
 his Commentary, in London, in Edinburgh, and in 
 Dublin, to have it understood, in those cities, that 
 he thinks, in opposition to the law of tl-c land, that 
 
 * Burrow's Reports, i, 452 — 57 : Lord Mansfield declartid, 
 rhat the Court were all of the sanic <)pinion ; arxd that Mr. 
 Jastice Wilraot coucurred.
 
 l6o CONSIDERATIONS ON COMMERCE ; 
 
 Bank notes are only securities ; depreciated seciiri' 
 ties, for money. The Committee sat three months, 
 to establish the same point, for the information of 
 the City, the Court, and the Parliament, in opposi- 
 tion, equally, to the tazv, and the circumspection of 
 Lord Mansfield. 
 
 (12.) As that great Judge showed tlie fallacy 
 of Sir Richard Lloyd's ingenious argument; so 
 may it be shown, with all the respect possible, 
 indeed, the fallacy of that Committee, to consist, 
 in several respects: (i.) The Committee does 
 not advert, sufficiently, that we are engaged, in 
 malignant warfare, with Bonaparte. (2.) It does 
 not state, with adequate particularity, that British 
 merchants cannot trade, within the limits of his in- 
 fluence ; that British merchants cannot send goods 
 to Hamburgh, nor can it be avow^ed, that they have 
 any credits there ; and of course cannot have any 
 exchanges, but upon such disadvantageous terms ; 
 that the exchange with Hamburgh, and Amsterdam 
 fell, in 1809, so low " as from 16 to 20 per cent," 
 say the Committee ; and being thus low, this re- 
 volutionary circumstance would alone, in the judg- 
 ment of all bankers, merchants, and brokers, and 
 as all experience evinces, drain this country of bul- 
 lion. (3.) That in addition to this drain, the Com- 
 mittee does not advert, sufficiently, to the great, and 
 constant demand, in the London market, for bul- 
 lion, from abroad, and at home, during a scanty- 
 supply;
 
 BULLION- AN'D COIN,* ETC. I6l 
 
 supply ; so that bullion has risen, in price, beyond 
 all calculation. (4.) Under all those circumstances, 
 the Bullion Committee supposes the cask to have 
 depreciated, rather than the price of bullion to have 
 risen : But, have not the prices of land, and labourj 
 of necessaries and of merchandizes, risen greatly, 
 during the last twenty years ? Do not prices fluc- 
 tuate more than cash : And, is it not, therefore, 
 the most egregious fallacy, in the text, and its com- 
 mentary, to argue, in opposition to all those cir- 
 cumstances, facts, and experience, that cash has 
 depreciated, rather than, tliat prices have risen? 
 The Secret Committees of both Houses of Parlia- 
 ment, in 1707, thought so, after examining the most 
 intelligent uitnesscs, and weighing circumstances. 
 (5.) But, that fallacy was committed, not only 
 against law, but in opposition to the evidence before 
 the Committee, and its Commentator *. 
 
 (13.) There is another fallacy, which runs through 
 an essential part of the Committee's Report: It 
 confounds, in one general mass, the whole circu- 
 lation of paper money, whether of the Bank of Eng- 
 land, of the Banks of Scotland, or of the Country 
 Banks of England. ((.) Nothing, as we have seen, 
 has been imputed to the Directors of the Bank of 
 England, as to laxity of management; as to the ex- 
 cess of their issues, considering the abstraction of the 
 
 * Report 93; lb. lOi; lb. 1-28 — 30; lb. 32: Burrow* 
 Reports, 452, Hilary Term 31 G. ii. Miller v. Race. 
 
 M gold,
 
 lG2 CO.VSirEItATIONS ON COMMERCE; 
 
 gold coins, from the circulation, and the augmenta- 
 tion of discounts, arising from the more numerous 
 cnterprizes, at home, and the vast enlargement of 
 our trade, abroad ; and adve ting, also, to the cir- 
 cumstance, that accoi'ding to la\v. Bank notes are 
 not securities for juoneij, but cash, or money in 
 hand. (2.) As to the Scolish Banks, it is quite evi- 
 dent, from the Statute, for ref.;rming them, and 
 from the evidence, which w. s given by Mr. Mans- 
 iield, in 1804, and by !\i>. Gilchrist^ in 1810 ; that 
 their present man.\i.einent is perfectly safe ; that their 
 issues are fully witiiin the demand of their circula- 
 lation*; that their principles are sound, and their 
 .practice most salutary (3.) The Country Banks of 
 England, which are obscurC; in their originals, and 
 doubtful, in their progress, which amount to 700 
 and more, and issue £. 20,000,000, and up- 
 wards, are undoubtedly too many, for permanence, 
 and circulate too much, for security : They are an 
 excrescence upon our commercial dealings of a dan- 
 gerous tendency; but not a superscructure on the 
 Bank of England, as the Committee say, without 
 autliority. (4.) If superstructure niean what is 
 raised upon sotnctliing else, there is little fitness, in 
 .saying, that they are superstriicted on the Bank of 
 -England, which has always resisted their operations, 
 :anvl constantly denied them suppoit. When a hun-^ 
 dred Country Banks became bankrupts, in 1793, I 
 remember it was commonly said, that the, Bank, by 
 
 refusing
 
 BULLION AND COIN'; ETC. 1 63 
 
 refusing to discount their bills, had contributed to 
 tlieir failures. Mr. Ellison, the Secretary of the 
 Country Banks, informed the Lords' Committee, in 
 1797» " that he had traced, in his own mind, the 
 " distrust, that had prevailed against the Country 
 " Banks, in the nrst instance, to the Dank of Eng- 
 " lands withholding its discounts, in the beginning 
 " of the year 1793*." Mr. Richardson, more re- 
 cently, has informed the iiullion Committee, that 
 the discounts, which the Bank give to tlie Country 
 Banks, or their connections, are but very scanty, 
 and uncertain'!'. Nov/ ; it is neither good logick, 
 nor sound law, to assert that, a structure has been 
 raised on any one's land, Avhen the owner has suc- 
 cesstuUy rcsi-^ted the builder. In this view of the 
 subject, it is not easy to perceive any privity, any 
 connection, far less any engagement, between the 
 Bank, arid the Country Banks, whatever the Com- 
 mittee may say of the structure of the Country 
 Banks upon the Town Batik, or of the convertibility 
 of Country Bank notes into Bank of England paper, 
 or the limitation of the Country Bank circulation, by 
 the amount of the Bank circulation, which are all as- 
 sumptions, that are contradicted, by tact, by expe- 
 rience, and by law. (>) It should seem, from the 
 mode of examining the inj'ormants, that the Com- 
 
 * Lords Committee, lleport, 89. 
 t Bullion Ktport, 8° edit. 179-80. 
 
 u 2 mittce
 
 164 CONSIDERATIONS ON COMISIERCK ; 
 
 niittee imposes upon itseli', in rcsi^pect to this im- 
 portant topick : Mr. Richardson was asked, as to 
 the discount Sy by Country Bankers, whether they 
 existed, before the Bank restriction ? He answ ered^ 
 Yes : "Were they practised, before that epoch, to a 
 similar extent ? No, he answered. What wak 
 tlie cause of such difference [of the greater extent 
 of Country Bank discount-iy since that epoch] ^Mr. 
 liichardson ans\Aercd ; " I believe it to be, on ac- 
 " count of the increase of the Country paper, and 
 ^^ also of the Bank of England paper.'' This 
 answer was admitted, as it suited the system of the 
 Committee ; to superstruct the Country Banks on. 
 the Bank of England ; as if there were some interest, 
 derived, by the one, from the others, to iiisinuatCy 
 rather than say, that the Bauk of England is an- 
 swerable, in payment, for the Country-bank paper : 
 Yet, is ISlw Richardson's answer, thus admitted, 
 without any explanation, unsound. The proper 
 answer had been, to say ; because, during the last 
 ■thirty years, and upwards, a great spirit Ikls gone. 
 forth, for improving tlie face of the country ; so as 
 to create much more business : The towns are im- 
 proved, the roads are made, or mended, canals,, 
 and harbours, have been constructed ; commons, 
 wastes, and fens, have been divided, manuranccd, 
 and drained ; and all those great country improve- 
 ments have been performed, by private persons, at 
 
 ail
 
 BULLION" AND COIV; ETC. l6.} 
 
 dii cxpence, whicli defies calculation*. But, fiuiii 
 uliat person, and place, was the money deriviMl ? 
 The Corporations, which busied themselves, in ini- 
 provinfT their towns, borrowed the money wanted, 
 liom capitalists, who had money to lend : Tiie 
 Trustees of the Roads, in the same manner, and un- 
 der the same authority, borrowed their money oi- 
 persons, who had money to lend. The construct- 
 ing of the canals, and harbours, brought into action 
 many personages of great importance, in every 
 view, the rich nobility, and country gentlemen, 
 whose lands Mere to be benefited, by such improve- 
 ments, who laid out their money, and inducetl others 
 to contribute|. The commons, wastes, and fens, 
 
 were 
 
 * In the lo Sessions, which ended with tliat of 1793, there 
 ■were 626 Acis passed, tor local purposes. From the Parlia- 
 niciitary record, it appears, that, there were enacted Statutes, 
 for making local iinproveinents, in Great Britain, in the 
 eight years, 
 
 Ending with 1792 - - - - 750 
 In D" 1802 - . - - - 1,124 
 
 In J)^ 1809 - - - - i»444 
 
 In 24 years, - - - - tlic N* 3,31 
 
 All those improvements of our country were made, with the 
 previous consent, and authority of Parliament ; and leave was 
 ;;iven by Parliament, to borrow money, for making those lucul 
 improvements; So that, there is a vwaY //royx://// in\o:.tC(l, in 
 those establishments, under the authority of ParliusneJiU 
 
 t At the dawn of commej-ce, in this island, the nobility, and 
 gantry, were the chief capitalists, the monied men, wliom, we
 
 i66 coNsir>ERATios^s ON- commerce; 
 were improved, by the money of similar parties. 
 (6.) We thus see prodigious capitals employed, in 
 every shire, in the most beneficial manner ; the coun- 
 try was thus improved ; and high profits were obtained, 
 upon the capitals, so employed : We now perceive 
 that, as 'money makes money, according to the 
 adage, so capitals, thus usefully employed, re|j-o- 
 duced other capitals : Hence, after all tho.-e im- 
 provements, in the several shires, had made some 
 progress, and personal property had been collected 
 into great masses, a strong foundation was, thereby, 
 laid, for the Country Banks, without any super- 
 structui^e on the Bank of England : Hence, also, 
 by a necessary consequence, the augmentation of 
 Country-bank paper was much less owing to the aug- 
 mentation of Bank notes, as the Committee sup- 
 poses, than to the vast extension of country busi- 
 ness, and internal commerce. The trade of the 
 country, thus augmented, and increasing, necessa- 
 rily promoted the dealings,- and traffick of the nie- 
 tropolis; And, hence too, the augmentation of Bank 
 notes, during the thirteen ycai's of the Bank re- 
 striction, may be also owing, greatly, to those vast im- 
 provements of a local nature, and the internal busi- 
 ness consequent thereon, full as much, perhaps, as to 
 foreign trade : From the foregoing detail, we may 
 
 see, in lists of all tlie great trading Companies, and colonial 
 Companies, during tlie reigns of Elizabeth, and James. — iNIy 
 Kstimate on this point. 
 
 at
 
 BULLION AND COIN; FTC. 1 6? 
 
 at length conclude, that Mr. Richardson, and the 
 Committee, suhstitated the effect fur the cause, 
 v.hcn they took it lor granted, that the augmenta- 
 tion ot country discounts, was o^\ itil; to the augmen- 
 tation of Bank notes, rather than to tlie augmenta- 
 tion of country ca[)itals, the necessary result of re- 
 prodaction, from those vast enterprises, in every 
 shire, for local meliorations. It was these capi- 
 tals, and that demand for money, which created the 
 Country paper, and those discounts, by Country 
 Bankers, during ll.e last thirteen years of .Iknk re- 
 striction, and national prospeiity, tenfold more, 
 than during ages of sloth, an;] inactivity. (7.) The 
 Committee, it should seem, can only contemplate 
 the Bank restriction, as an evil : But, all those 
 observations, with regard to the vast detail of 
 country aftliirs, apply equally to the augmented 
 business of our immense metropolis. Though tlie 
 Bank has improved its modes, and increased its 
 facilities ; though the private Bankers have tiiereby 
 acquired additional accommodations ; yet, such 
 is the vast augmentation of busiiicss; fronj change 
 of habit, in rich individuals ; tVojn the increase 
 of manufactures ; from the vas^ ai. .^mentation 
 of trade, domestic, and foreign ; thi • ttiere is 
 still an increasing demand, for Bank r- '. s, in A\q 
 form of discounts, and other accovumoddl.Lrs wf 
 business, to say nothing of the great public rcv^^uLiC, 
 and the constuiitoperatiiyns, in the money iiiariioc, of 
 31 4 the
 
 l68 CONSIDERATIONS ON COMMERCE; 
 
 the Sinking-fund Commissioners *. (8.) It had been 
 nearer the fact, if the Committee had said, with its 
 informants, that in a tiiousand instances, ^nd to a 
 large amount, the notes of the Country Banks had 
 superseded the notes of the Bank of England ; that 
 -thereby securities for money were substituted, for 
 cash ; and that a bad currency had been introduced, 
 for a good onef; Yet, this gross abuse was not 
 introduced, with the consent of the Bank ; but, in 
 opposition to the resistance of the Bank. Nothing 
 can be more incongruous, in argument, than con- 
 foundint; Banks of different kinds together : the 
 
 * All those points were examined into, by the Lords' Com- 
 mittee, in 1797 ; It was asked of Mr. Irving, the then Inspec- 
 tor General, " Must not such an increase in the quantity of our 
 " credits require a proportionate increase of capital ; and must 
 " not the employment of such increase of capital require an 
 *' increase, in the means of circulation ? The increase of trade, 
 *' the Inspector General answered, necessarily requires an in- 
 " crease of capital, and also an increase of money ; because, \ 
 *' conceive money is the representation of property ; and in 
 " proportion, as that property i.s increased, the necessity of in- 
 " creasing such representation follows of course : By money, I 
 " mean, either the precious metuls, or paper, which has a si- 
 *' milar value afiixed to it, by general consent." Report 48. 
 This answer, to a very important question, is solid, and well 
 worded. 
 
 t I have already jnoved this, by showing, that Bank notes 
 are not in fact, increased, since the restriction, considering the 
 defalcation of the gold coins, the increase of circulation, the 
 augmentation of trade, domestic and foreign, the extension of 
 of vast enterprizes, in every district, which created the Country 
 Banks, that supplied the mcdiiwi, which the Bank declined. 
 
 Bank
 
 BULLION AND COIN; ETC. 1 6l) 
 
 Bank of England, with the Banks of the Country ; 
 what is stable, with what is unstable : a Bank 
 protected, by Statute, from paying specie, with 
 Banks, that are not protected ; except, absurdly 
 mixing, by word, and writing, securities for money^ 
 with cash : According to the law of the land, as we 
 have seen, Bank notes are not securities for money ^ 
 but cash ; the notes of the Country Banks, according 
 to law, are 7iot cash, but securities for i?2oney ; and, 
 as the people have sometimes felt, very bad securities 
 for money : Yes ; say the Committee, " the notes 
 *' of the Country Bankers are convertible, at the 
 '^ option of the holders, into Bank of England 
 •" paper." But, how ? The answer must be, by a 
 lazv-suit. As the law, at present, stands, every 
 holder of the paper of the Country Banks, or of the 
 Banks of Scotland, has a right to demand payment of 
 such paper, in specie, neither of those Banks being 
 warranted, by Statute, like the Bank of England, 
 from paying in specie ; the Country Banker may 
 ofter, in consequence of such demand,. Bank notes: 
 The holder has a right to refuse them : And, being 
 thus, at issue, a law-suit must ensue ; the conscr 
 -quence of which must be, that the Court, and jury, 
 must determine, who is right, in his pretension ; and 
 of course, xvhether Count )y paper be convertible into 
 Bank notes : But, do this law-suit, and that alterca- 
 tion, constitute banking ! Again : It is in evidence 
 before the Committee, that there arc at least, live 
 
 million
 
 170 COVSIDERATIOXS' ON COMMKFtCE; 
 
 million of Couiitry paper, in circulation, more than 
 Bank notes : How, then, are those five millions of 
 Country notes Yo be drnwerted 'mX.o BunV, noces, that 
 do not exist ? Now ; is it not apparent, if there be 
 a deficiency of Bank notes, in circulation, to the 
 amount of five millions, admitting the convertibility 
 of the Country paper,' that tiie Country P.nikers, 
 if the nature of their securities do not entitle them 
 to Bank discounts, that they must collect the floadng 
 Bank notes, in the country, at a premium, or agio\ 
 so that, at this moment, Banknotes, instead of being 
 depreciated, are enhanced. We, at length, perceive, 
 from those facts, and circiinistances, that the posi- 
 tion of the Committee cannot be maintained, either 
 in its law, its fact, or its policy. 
 
 (14.) It has been already shown, that there is no 
 relaxed management of the Bank, which is con- 
 ducted now, as it has always been, with great 
 additional experience, and some real improvements : 
 It has been shown, that there has been no excess, in 
 the issue of notes ; considering the defalcation of the 
 whole gold coins from trade, in 1797, the increase 
 of commercial business, since that epoch, the aug- 
 mentation of the public income, and general expen- 
 diture, the operations of the Sinking-fimd Commis- 
 sioners ; and a§ a necessary consequence of all those 
 energizing circumstances, the vast increase of the 
 circulation, both in its amount, and rapidity, even 
 though means have been found, to make cash pay- 
 ments,
 
 BULLION AND COIN ETC. I7I 
 
 ments, among Bankers, less fi equent, and less cum- 
 bersome : (2.) The Bank restriction is not the effect 
 of the Bank desire, as the Comtnittee seem to ad- 
 mit ; bat, of the couskkraiiou of' Paiiunncnt *. 
 
 (3.) Whoever, 
 ♦ In November 1797, that point came under the considera- 
 tion of the House of Commons, when a Secret Committee was 
 appointed, " to enquire, whether it be expedient further to 
 *' continue the restriction of two Acts, in the preceding Session, 
 " respecting payments in cash by the Bank ;" and that Com- 
 mittee soon alter reported, among other matters, as follows : 
 " Your Committee further find, that thu course of exchange 
 *' with Hamburgh is, at present, iin-usually Javourahle to tliis 
 " country, and that, from the situation of our trade, there is 
 " good reason to imagine it will so confinuc, unless political 
 " circumstances should occur to affei t it. — Your Committee 
 " next proceeded to examine the Governor, and Deputy Go- 
 " vernor of the Bank, as to their opinion of the inconvenience, 
 " which may have arisen, from the restriction imposed on the 
 " Bank, from making payment in cash, and of the expediency 
 " of continuing such restriction; and your Committee lind, 
 ** that they are not aware of uny iucii inconvenience, ar.d that 
 " they are supported, in thitidea, by knowing that, the cankers 
 " and traders of London, who had a ri_iit, by ihe Act of i^ar- 
 " liament, to demand three-fourths of any dc,.,.sit, in cash, 
 " which they h;'d made, in the Bank, o{ £. 5^0 or upwards, 
 " have only claimed about one-sixtecn'./i : And, your Comniit- 
 " tee find, that the Court of Directors of the Bank, nid on the 
 ■*' 26th of October 1797, come to the following Res liution : — 
 " ' Rksolved, That it is the Opinion of this Court, i hat the 
 " Governor and Company of the Bank of Enpjand ;;re enabled 
 " to issue specie, in any manner, that may be deemed neces- 
 " sary, for the accommodation of the public ; and the Court 
 " have no hesitation to declare, that tlie affairs of the Bank 
 " are in such a state, that it can with safety resume its ac- 
 " customed functions, if the political circumstances of the 
 ** country do not render it inexpedient : But, the Directors 
 
 *' deeming
 
 17'iJ COKSIDEUATIOXS OX COMMERCE; 
 
 (3.) Whoever, then, pushes against the Bank re- 
 striction, strikes at the wisdom of Parliament; 
 which, after well weighing all circumstances, has 
 enacted, that it shall continue during the present 
 Mar, " the avowed purpose of the enemy being to 
 *' wound this country, by means of its public credit, 
 
 " and 
 
 " deeming it foreign, to their province, to judge of those points, 
 *' wish to submit to the wisdom of Parliament, whether, as 
 " it has been once judged proper to lay a restriction on the 
 " payments of the Bank, hi specie, it may, or may not, be 
 * prudent to continue the same.'" — " Your Committee having 
 " further examined the Governor, and Deputy Governor, as 
 *' to what may be meant, by the political circumstances men- 
 *' tioned, in that Resolution, find, that they understand by them 
 " the state of hostility, in which the nation is still involved ; 
 *' and particularly such apprehensions as may be entertained 
 *' of invasion, either in Ireland, or this country, together with 
 '^ the possibility there may be of advances being to be made, 
 *' from this country to Ireland ; and that from those circum- 
 *' stances so explained, and from the nature of the war, and 
 " ihc avoxced purpose oi the ennni/, to attack this country, by 
 " means of lis public credit, and to distress it, in its Jinancial 
 " operations, they [the Committee] are led to think, that it 
 " will be expedient to continue the restriction now subsisting, 
 " with tlie reserve, for partial issues of specie, at the discretion 
 " of the Bank, of the nature of those contained, in the present 
 " Acts ; and that it may be so continued, without injury to t/ic 
 *' oredit of the Bank, and xvit/i advantage to t/te Tuition : — Your 
 ■*» Committee, therefore, having taken into consideration the 
 •'^ general situation of the country, are of opinion, that notwith- 
 " standing the affairs of the Bank, both with respect to the 
 " general balance of its accounts, and its capacity of making 
 " payments in specie, are in such a state, that it might with 
 " safety resuiiie its accustomed functions, under a different state 
 ** of public affaii'S ; yet, that it will be expedient to continue 
 1 , . " the
 
 BULLIO:^ AND COIN; ETC. 1 73 
 
 *' and to distress it, in its fmanc'ial operations'* 
 (4.) And, as no commercial, or financial incon- 
 veniences had been felt, fi'om that restriction, in 
 November 1797, or in December 1S03; so none 
 has been made out, in evidence, on the late enquiry ; 
 the Country-hank system having existed before^ and 
 the abuses of that system having arisen, from very 
 different causes, than the Bank restriction, as we 
 have already seen, felt, and lamented. Every exa- 
 mination of fact, and every result of experience, 
 establish a very different position : May it not, then, 
 be asked, how far the domestic manufacture of the 
 precious metals has been lessened, or augmented!, 
 before, or since, the restriction ? The answer must 
 be, that it has greatly increased ; for, in the i o years, 
 ending with 1797, when there was no Bank restric- 
 tion, there were made into gold plate, lbs. 
 
 in this nation 10,1 7 e 
 
 In the 10 years, ending with iSoo, 
 when there zcas a Bank restriction, 
 there were made - - - - iG,Q42. 
 
 In 
 
 " the restriction, now subsisting on such payments, for such 
 " time, and under such limitations, as to the wisdom of I'ur- 
 " Hameut may seem fit." [This Report was ordered to be 
 piinted, on the 17th of November 1797.] In pui-suance of all 
 those considerations, the restriction was continued, from time 
 to time, till the 15th of December 1803, when by the Act, 
 44 G. iii. eh. i. the H.nk restriction was continued; during 
 Uifi preseut war, and for bix months, after the return of peace.
 
 174 CONSIDERATIONS ON COMMERCE; 
 
 In the ibt period, there was rnade 
 ofsikcr plate - - - - 919,283 
 
 In the 2d period, there were made 
 of the same ----- 1,130,451. 
 
 Such, then, was the increase of the domestic^ 
 nianufacture of plate, in the two periods : But, has 
 not every other manufacture equally increased, m 
 the last period, 7?iore than in thejw^t ? Yes. Has 
 not our foreign trade equally increased, in the last 
 period ? Yes *. Are not those proofs then, so many 
 results of experience, that our commercial affairs 
 have prospered, under that restriction ? The Com- 
 mittee thinks otherwise, contrary to this experience, 
 and to those proofs. 
 
 (15.) The Committee declares, that the rules, by 
 which the Bank makes its discounts, are " sound, 
 " and well established principles :" But, the Com- 
 mittee, also, says, '' that the opinions confidently 
 " expressed by the Bank Directors, and the mer- 
 " chants, as far as such opinions go, to prove that 
 " these rules cannot lead to any excess of Bank 
 *' notes in circulation, appears to the Committee 
 " to be. a doctrine wholly erroneous, in principle, and 
 " pregnant with dangerous consequences, in prac- 
 " tice j." The Committee goes on to say, that so 
 long as " the Bank paper was convertible into 
 
 * See ihe Curon. Table, Appx. N°i. for the most ample 
 proofs of the nation's prosperity, under the Bank restriction. 
 I Report, 21. 
 
 *' specie,
 
 BULLION AND COIN; ETC. I75 
 
 " specie, at the will of the holder, the rules, by 
 " which the Bank were guided, in making its dis- 
 " counts, and issuing notes, xvere sufficient; but, 
 " that since the suspension of payments, in specie, 
 " these are insufficient." Tlie Committee imme- 
 diately adds that, " to watch the operations of so 
 '* new a law, and to provide against the injury, 
 *' which might result from it to the public interest, 
 '•' was the province, not so much of the Bank, as of 
 " the Legislature; in the Ojmiion of the Committee, 
 *' there is room to regiet, thnt this house has not 
 " taken earlier notice of all tl)e consequences of 
 -" that law *." After reading those strong opinioi^is of 
 the Committee, both with i-egard to the LcgldaturCy 
 and the Bank, we may ask whether they be founded 
 in knowledge ; (1.) Did the Legislature, then, apply 
 no remedy to the grievance of that day ? The grand 
 grievance, which was then complained of, both by 
 the Bank Directors, and private Bankers, was the 
 vast, and coiist.int advances to the Treasury, which 
 prevented the abundance of discounts to the mer- 
 chants, and Bankers, for commercial purposes : Now, 
 the Restraining Act of 1797 f did, by an express 
 clause, provide, that during the continuance of the 
 restriction, the Bank should not, in any one year, 
 advance more than £. 600,000, for the public ser- 
 vice, on the credit oi' KxchvijULr biiis : Tiicii, what 
 
 * lb. 12—3. 
 t 37 G. iii. ch, 45 --^ IV. 
 
 was
 
 17t> CONSIDERATIONS ON COMMElXC£ ; 
 
 was the amount of the grievance, which was thus 
 remedied by the Legislature ? The answer must be, 
 an annual advance upon the Credit of Exchequer 
 bills, according to a six years aVerage, ending with 
 1796, of X. 5,531,983 *: We may now perceive, 
 that the above remedy did reserve to the Bankers, 
 and merchants, for their usual accommodation, an 
 annual sum, amounting nearly to Jive million of 
 •pounds : And, did not the Commons House take 
 early notice of the consequences of that law ? Yes ; 
 there was a Secret Committee of that house, which 
 sat,' "Bs! 'November 1796 [the above Statute was 
 passed in May preceding] to enquire into the ex- 
 pediency of further continuing that restriction; q& 
 we have seen above, whose Report was printed, on 
 the r7th of the same month of November, in favour 
 of the restriction, though the Directors offered to 
 open the Bank for payments, in specie; and this 
 Secret Committee laid before the House a very me- 
 morable fact, that those bodies of men, who had /a 
 right, under that Statute, tt) demand specie, did not 
 call for one-si xteeMh oi. what tliey were entitled to-: 
 The restriction, then, was continued, as it appeared 
 to be of great importance, as it might be^ done, 
 " without ^K\y injunj to the. credit of the •Bfink, and 
 *' rvith ackantage to the Jiation :" What, then, does 
 the outcry of the BuUion Comn^ittee amount to^ 
 but, that it thinks diiierently, with regard to the 
 i LDds'' Report, A'ppx. 13. 
 
 cr 
 
 edit
 
 ><UTTTON AND COtXJ ttC. I77 
 
 ci'edit oftuc "vink, and ihc advantage of the nation, 
 fioin tlie Secret Conit J littee of November 17)7; 
 and l)l'un<j5 the I esisiaUire of May 1 797, withoutjust 
 caiise: C ajparisons howevci, oi :;)en, and charac- 
 ters, are odious, says the ada^e. (2.) As to the se- 
 curity of the public ; we have already seen, that there 
 is every '''st motive, to rcstr m an excessive issue of 
 Bank notes : It is the hitercst ol ti.e Bank, not to issue 
 more, than the ciiculation of t!ie countr}', easily, re-*' 
 ccives ; it is the interest eif n-erchants, and Bankers, 
 not to ask, for more discounts, than they can make 
 an advantageous use of; and the richest merchant, or 
 Banker, is limited to a certain sum, beyond which, the 
 Bankwill notdiscount, for him : Neither does the Bank 
 discount for any one, but paper^ of a particular kind, 
 which comes round tlie circle, soon, and certainly, 
 to payment : The Committee was, also, assured by the 
 Governor, and Deputy Governor, that the Bank 
 never forces a note into circulation ; and there will 
 not a note more remain, in circulation, than is imme- 
 diately wanted ; and if the Bank were to i>sue notes, 
 beyond the real wants of circulation, the surplus 
 would immediately rttu n to the Bank : Now, these 
 facts point to the satisfactory security of the public, 
 against excessive issues, the daily vibrations of de- 
 mand, and supply ; because, a gi*eat demand, and a 
 small supply, would raise the value of the m^tes, in tho 
 circle ; but, a great supply, and asmaUdema:id, would 
 deteriorate them : It is thus, that the demand^ and
 
 ryS CONSIDERATIONS ON COMMERCE ; 
 
 mjpl!j, r.':iulate every murkct,- t?ven loi- tlie p, ccious 
 avctajs, as much a^ for any merchandizes, or otlier 
 goods : And, it was speciaUy stated to the Committee, 
 on this head, by tl]e Governors of the Bank, " We have 
 '^ daily evidence, in- our discounting, of the abund- 
 •^ ance, •<)*" scSA'city, of Bank Rotes, by the "applica■- 
 ^' Cation^fer discounts, for the reasons already 
 ^'* assigiWd ; which is particularly proved, by our 
 Mj Experience on the Tuesdays, and Wednesdays, ia 
 f^ievory week, in consequence of our discounting 
 -^■Ii;©iidou paper, on the Thiirndaiis enli/ ; pro- 
 *' ducih«,:';byftliat -operation, invariably, (a certaia 
 ,v^,^d€gree of scarcity, on the two preceding days, and 
 ^'' -a plent}?, on the following dciy *." The Committee, 
 r^ however, is of opinion, "'that mercantile dis- 
 i\, counts to whatever amount cannot be regarded 
 ^' as any other, than a great public benefit; and that 
 " it is only ihe excess of paper curi^ncy, thereU^' 
 -'" issued, aiid Kept out m circulation, which is to 
 
 - ■ <:i.,-^./,' .: be 
 
 t''-*Coi^. Minutes', 97 r up;— 121 ; 142-31— ttvyas the opi- 
 nion of.^he very int<iUige.nt 31r. Greti'ujhe, wiiQ sppk«, ithrougljr 
 ^ut, with the neutrality oi' a stranger, " that there does exist, 
 '" undt^r tlie llesirietion,' the same security against excessive- 
 »*' issuefe,t!mt tbeie did bct'o"r<?vit' the Baiik, strictly 'adhere to -thV 
 -*?.6y&:em^ of discounting, xvhiip)i Ijus been Jong in use/' lb-. 73. 
 .Sir F. Baring Jjeiiig asked his opinion,^ if any, adequate provjsiqa 
 could be uia.de iig:\inst excessiye issues, in a,' cotnuisrcial coun- 
 'trv^whiere the paper is riot coftvertibie into speciej- sfiid, " ■& 
 r^Mthis Goirtitry, itl may jtidg*"., from experience, 1 Khoiild doubt 
 *" it; but, if the Banic conduct, itself,, on the same principles, 
 " as fora^edy, I should think, that it may be fjafely left to th« 
 ■ ■ i ' " discretioa
 
 • " BiJT/iTdy AN^ coT^r; etc. • - 'ly^ 
 *^ be considered, u.-> thn «vil*." ' BuV, how t.a ciij(M,r 
 ihe-iiVod, ^v!tholIt the accompanying er//, is one of tii« 
 hardest-' task's of Inetaphysicks 'td prescribe.. Tlic 
 best things, are generally accompanied .witlt-. the 
 worst inconveniences:-'.' Liberty cannot be en joyed, 
 without someti'm6s-'feeIing. the inconvenience of liceiv 
 'tiousnc.ss : Relisrion' sometimes degenerate^ into 
 •superstition :'Yel,'suc1V disquisitions are more l>t for 
 the Schools, than'thc' Senate House. *. 
 
 The Committee' 'now* lament, that the Bank Di- 
 tectorsytiridei' th(* restriction, are invested with tiie 
 'full trust,- and tlieimportantcharge, of supplying th^ 
 •\^•hole country, ivith that quantity of circulnting 
 "medium, which is exactly proportioned to tlie occa- 
 sions, aiid -wants of the public ; but, it thinks this a 
 trust, wiiich is beyond the ability of the Directors, to 
 discharge, with' adequate proportion to the end -f. 
 'But, is this f?^i{e in point of fact? It is in evidence, 
 ■that there is, in circnlation, more paper of theCountiy 
 ■13anks, tlmn there is Bank cash, by Jive iiiillioji'^sX.GV- 
 iing : But, have the Bank Directors any thing to do 
 -iviththe direction, in the issucof five and tvicnty million 
 'of Country-bank securities for money? Thus, loosely, 
 'does the Committee report, when it tried to be meta- 
 physically precise. Butjthe Committee, on this head, 
 
 " discretion of the JBank." lb. 131. The Committee seems to 
 Icive out of tVie qiieflibnthfe' general superintcndaiice of Paf- 
 lian.eat over all such esta'iliolinient,. 
 
 ,• lb. 63. 8"-edit. 
 
 Is 2 entirely
 
 ltd COVSIDEHATtfONS QN COKJf ERCE ,' 
 
 'entirely overlooked the Country Banks ; and matJe 
 the Bank Directors answerable for all ; tliougb Mr. 
 ^tukey, wIk) said, he is a partner, in three Country 
 Banks, expi"essly stated to the Committee, that the 
 Country Baaks do not regulate their issues, by the 
 amount of the Bank notes, wbich are in the circle*. 
 But, who did not know this fact, befoi^e Mr. Stukej 
 informed the Committee of it ; who,, at last, did not 
 believe him ? It was thia Mr. Stukey, thus a re- 
 spectable partner, in three Country Banks, who told 
 the Conurtittee, moreover, upon being asked hi& 
 opinion, that the prices of all things are raised, by 
 the abundant circulation, but chiefly, by Bank notes.; 
 But, with submission to Mr. Stukey, is it rwt fair 
 to argue that, as Bank notes are cashy and Country 
 paper, hxA secui^lties iox nwney, every seller will give 
 his goods cheaper for cash, than for securities for 
 money. (6.) " The Committee, however,, declares 
 *' tiiat, in their judgment, the Directors of the Bank 
 " of England have exercised the new, and extraordi- 
 •* nary trust reposed in then>, since 1 797, with an in- 
 " tegrity, and regard to the public interest, accord- 
 " ing to their conceptions of it, and indeed a degree 
 *■ of forbearance, in turning it less to tlie profit of 
 " the Bank, than it would easily have admitted 
 " of, that merit the continuance of that confidence, 
 " whidi tlie public has so long, and so justly felt, i» 
 
 * MiiMites, 140. 
 
 '' th«r
 
 BVLLIO'Sr AND COIN J ETC. iSl 
 
 ** the integrity, with which its affairs are directed, 
 ^' as well as, in the unohuken stability, and ample 
 *' funds of that great establishment *." The proper 
 ^question, is, however, ^\ith submission, not whether 
 it be possible, according to fancied theory, to atljust 
 the quantity of circulating mediunj, exactly, but> 
 whether tlie practical rules, which are always acted 
 on, by the Directors, in making their discounts, and 
 issues, be right, and the best, that can, all circum- 
 stances consi(ier«l, be followed : The Bankers, and 
 merchants, who have been cxaadued now, and ior- 
 «ierly, in 1797, plainly state, tliat» ia theii' judge- 
 iiients, they arc so ; and tlie Bank Dii'cctors declare, 
 that practical experience has taught them, that they 
 are the fittest, and mo»t approved : Yet, docs the 
 Committee controvert the sufficiency of these prac- 
 tical rules t ; and insist, that a more sure criterion 
 must be resorted to ; and such a criterion, the 
 Committee professes to have already shown, which 
 is to be found, in the state of the exchanges, and in 
 the price of bullion J : Whereupon, /' tiie Com- 
 '* mittee reports it to tlic House, as their cle^r 
 ** opinion, that so long as tlie suspension of cash 
 " payments is permitted to subsist, the price of 
 " gold bullion, and the general exchanges with 
 *' foreign countries, taken for any considerable 
 ** period of time, form the best general criterion, 
 ** from which any inference can be drawn, as to the 
 * Report, t4. t lb. 22—3. X Iri; lb. 27. 
 
 X 3 ** sufficiency,
 
 i S2 COTS?Slt)ERATIOXS ON eOMMKHCF ; 
 
 • ' sufficiencv, or excess, of paper money, in circulcf* 
 *' tion ; and that the Bank of England cannot safely 
 '* regulate the amount of its issues, without havinir 
 " reference to the criterion, presented, by these two 
 " circumstances*." The whole reasoning of the 
 Committee, whereon is founded that dear opmiorr, 
 may be compressed into this brief formulary : Tlie 
 Committee assumes, that the increase of Bank notes 
 has produced the hijh' price of gold b'jllion, M'ith 
 the depression of the exchanges ; and vice xersa. the 
 'Committee infers, from a sort of cross <ded action, 
 'that the high price of gold bullion, with the low 
 exchanges, show the excess of Bank notes : But, as 
 ' jt has been proved, both, by test imoni/j, and the Jacf^ 
 tliat the amount of Banknotes, in circulation, has 
 •no eflect on the rate of tlie foreign exchanges, or the 
 ^ price ()f gold bullion, it is most clear, in .argument, 
 •tlrat- the circu nstances, 'wiiich the Committee . have 
 •reported to the House, "as the best general crite- 
 -*' rion," of the sufficiency, or -excess of paper, cur- 
 Tency, in circfiation, is a most mistaken criterion. 
 (7.) The Committee is more fortunate-,- in its opinion 
 ' of tlie Baniis advances to Government ; for it re- 
 ports, " that tliey have had an account laid before 
 ^' tiiem of advances made by the Bank to Govern-. 
 - ff' ment, on land, and malt, Exchequer bills, afid 
 
 * Report, 01. 
 
 ■\ Minutes, 6g, 71, 90—5, 96— 7, 'ii2, 143—4, &c. Appx. 
 Ilep. lSi° 47--H9 J my Agpx. N° 2, • ■.■. . 
 
 .'"'•■,■ " other
 
 BULLION- "AND : GOf N ; ETtT. ' I'SQ 
 
 -'• Other sccuiities, . in every year, since the susp^ n^ 
 *' sion of cash paylnenss ; iVoiii which, as coinpart>tl 
 •** with the accounts, laid hefore the Coinmitt3e3 ' f 
 *•' 1 797, antl wliich were then carried back for 20 
 *" years; it will appear, that the yearly advances of 
 •*' the Bank to Government have, upon an average, 
 .** since the suspension, been considerably lower in 
 '^' amount, than the avera'ze amount of advances, 
 '" prior -to that event ; and the aiuount of those adr 
 •^* vances, in the twQ last years, though greater in 
 " amount, tlian those of some year-, immediately 
 ■** preceding, is less, than it was, for anyof the six 
 *' years, preceding the restriction*:" These repre- 
 "sentations, then, exhihit to the House very impor- 
 tant facts ; as they prove that, the advances, by the 
 Bank, to Government, have been mucli smaller, aince 
 7/^c restriction ; while the expenditure of Govern- 
 ment, and the general circulation, and commerce of 
 the country, liave greatly increased : Now ; the 
 Bankers, and merchants, who were examined, both, 
 'in 1797, and in 1810, concur, in stating it, as a 
 point indisputable, that whatever diminution is made, 
 in tlie advances of the Bank to Government, must be 
 ' added, as a good, to general circulation, and trade, 
 domestic, and foreign, by enlarging the discounts to 
 merchants : So, on the other hand, any o;rcat rc- 
 'striction of the circulating medium would produce 
 ';jieat, and general public distress, by impeding cir- 
 
 " /l.epojt U5— 6; A[>[)s.. No. 45. 
 
 - . / N i culution,
 
 184 CONSIDERATIONS ON COMMERCE; 
 
 culation, the very worst evil, that can afflict a com- 
 mercial, and manufacturing people*. 
 
 (15). The Acts of Parliament, restricting the 
 payments, in specie, of the Bank, do not protect the 
 Banks, in Scotland, from paying, in specie, when 
 demanded t; nor, do the same Acts protect the 
 country banks of Englaad, from paying, in specie, 
 if required ; then, how are they protected, from 
 demands, for specie? they are protected, in no 
 other manner, tliaa all other persons are protected : 
 
 * See the Min, Lords Com. and of the Common's Com. 
 1797 ; and of the Bulhon Com. 18x0. 
 
 t The evidence of the Banker, Mr. Mansfield, to the Com- 
 mittee un Irish exchanj^es, Report, 51. "It will be convenient 
 " also, says the Bullion Report, in its concluding paragraph, 
 " for the chartered Banks of Ireland, and Scotland, and all the 
 " Country Banks, that they shoiild not be compelled to pay, in 
 " specie, until some ciaie after the resumption, of payments by 
 " the Bank of England; but, that they should continue, for a 
 *'■ short period, upon their present footing, of being liable to 
 *' pay their ow.n noles, dm demandi in Bank of England paper." 
 lleport, 8° edit. 78. We thns see, that the Committee was 
 of opinion, the Bunks of Scotland, and (he Ccuntry Banh,a.re 
 flow restricted from paying, in sr ecie, Idie the Bank of England, 
 and the Bank of Ireland. But, the Committee is mistaken, 
 Loth in the law, and the fact : For, the Banks of Scotland, and 
 the Country Banks, are not restricted, by any Statute, from 
 paying in specie; and any one may demand specie of either ; 
 and the recommendation of the Committee goes to protect 
 both, after the restriction shall be removed, from the BaiiU of 
 ^England. The Committee is, moreover, mistaken, in its law, 
 when it calls Bank notes^ paper, instead of cash. The whole 
 paragraph is aa egregious error, both in law, and policy. 
 
 (2.) Tho
 
 BULLION AND COIN; ETC. J8f 
 
 (2.) The Country Banks, if specie were demanded of 
 tlieni, may, and so may every one else, offer tba 
 amount of the demand, in Bank ?}otes, which, ac- 
 conling to law, are cash ; and it would be an absurd 
 -construction of the custom ofiraiky and of the com- 
 vion law, to say, under our circumstances, that 
 Bank notes, which, according to both, are cash, arc 
 not an acquittal, for any demand, except for some- 
 thing agreed on, by specific promise. (3.) When 
 Mr. Gilchrist was asked, by the Bullion Committee, 
 whether the Bank notes, in Scotland, had increased, 
 since the Bank restriction, he answered, like an in- 
 telligent man, " I think the paper circulation of 
 ** Scotland has increased, since that period ; in 
 *' consequence of the increased trade of tlie coun- 
 " try, and of the extensive agricultural improvc- 
 "ments of Scotland*." A similar answer might 
 be given, as to the augmented circulation of the 
 Country-bank paper, though I have shown the un- 
 soundness of the answer of Mr. Richardson, when 
 he attributed the augmented discounts to the in- 
 crease of Country-bank paper, and Bank notes : 
 Augmented dealings will require an augmented 
 circulation ; and augmented dealings, M'ith an au^ 
 nienied cu'culation, would naturally give rise to 
 additional discounts : Yet, none of those effects are 
 to be attiibuted, in fair discussion, to the Bank re- 
 striction; but, to country improvements, to extended 
 
 • Report, 8* edit. 160. 
 
 luanufacturci.
 
 1-86 CONSIDERATIONS ON COMMERCE; 
 
 manufactures, and to an enlarged trade, v/hich ne- 
 cessarily require more money, either good, or bad ; 
 and it has been shown above, that, as far as Bank 
 cask h'ds been excluded, by the substitution oi secu- 
 rities J ornwnei/, there exists, in our Country circu- 
 lating medium, a gross abuse; but, none in the 
 Ba?ik cask : The Committee, then, fails egregiously^ 
 in not pointing the attention of the House to the 
 Count ri) B j/h, rather than to the Bank of England, 
 in which there is no perceivable abuse, at least, in 
 the eyes of practical nicn, whatever there may be, 
 in the ketz of thcoretich men, " strech'd out to the 
 " amplest reach of {>rospect." 
 
 (i 6.) What, then, are the chief abuses of th6 
 Country Banks, there being none, in, the Bank of 
 ■England, or in. the Banks of Scotland ? (i.) Thfe 
 number of 700 Country Banks, and upwards, are 
 much too many ; as in such a number, of traders, 
 ten, ora dozen, must become bankrupts, in every year; 
 and when an impeded circulation happens, a hun- 
 dred may fail, as a hundred Country Bankers became 
 bankrupts,, in 1793.; so that proportional discredit 
 is. thus cast upon the whole system, of Banking: And, 
 ^hisis a terrible abuse, to wiiich some remedy ought 
 to beapplied.- (2.) If a Country Bank lends money 
 .«p;on .mortgage, or other securities, which cannot 
 hQ, ieadjly, .converted into cash ; this transforms such 
 itriiestabiishpi.ejj.tiinto a Land Bank : Z>Iqw^,. we.have 
 had Land Banks h\\^ in I^ngland j ^nd the Air Bank,
 
 - BULLION" AND-COI>f ; ETC. 1^7 
 
 an Scotland^ failed* ; because it was a Land Buf/kj 
 And land is an improper capital, for Banks, issuing 
 jiotes payable to bearer; uhicli require cash^ to sa- 
 tisfy daily demand.^, and not secu'ril/csj'or nioncif,, 
 (3.) In the same manner, notes payable to bearer, 
 .optionally, some days, after presentation, for pay- 
 ment, or at some other Bank, specified in the notes, 
 .may be good securities for money ; but, they are 
 • not moneif ; much less are they cash, like the Ba}ik 
 notes: (4.)- Let the practice of the Country Banks 
 .be put, by Statute, on the footing of the Banks, hi 
 -Scotland, and the specified abuses will evanish, as 
 such abuses disappeared, in Scotland, when such a 
 •■"Statute prohibited all elusory clauses,, and laxity of 
 ; practice! : It is quite wonderful, how the Goranjit- 
 .•tee, as we have seen, constandy runs ^X. the iiau4i 
 . of England^ in which there is no relaxation of nij^- 
 .uagement, or excess of any kind, as the CoinmitlQe 
 . acknowledges, while . it scarcely casts a sideloiig 
 ..glance at the Country Banks, in which prevail cver.y 
 ifibusc; the abuse oi numbers, the abuse of laxity; 
 
 * In 1C91, a Land Bank failed, in England, Anderson's De- 
 " ductiun, ii. 291. T!ie 'value 'of tlie lands., which were tfio 
 ■ grounds of the Air Bank, were of fifty times mure, than P;s 
 •debts: But, it failed; because it did not so much want «?- 
 curitj/, ixs cas/t : It finally paid every claim; since it had va- 
 lue enough, but wanted time*, to convert .<:ccuii('}es\uiWcask-' 
 
 t 5 Geo. iii. ch. 49. See Mr. .Man.sfield's evidence, in the 
 Report of thp C(niuuillee, on Irisl^ £.xfcliaiige.s. 
 
 :: the
 
 tli€ obscurity of their establishments, and the e» 
 i'css of their issues. 
 
 • (17.) Butj why close such strictures on the Bank 
 -♦f England, without any animadversions, on the 
 •Country Banks, which lie open to censure, by rccom- 
 ;«iending the removal of the Bank restriction, which 
 introduced so much positive good; and which the 
 Secret Committee of the Commons House said had 
 *!Xisted, without any injiirif to the credit of th€ 
 Bank, and tvith so much advantage to the nation ? 
 Was not the Bank restriction recommended, by se- 
 veral Committees of both Houses of Parliament, coft- 
 aisting of men of full as much knowledge, and expe- 
 rience, as any other Committee ever possessed? 
 Has not the wisdom of Parliament, after repeated 
 trials of its salutariness, determined, by a solemn 
 Act*, that the Bank restriction shall not be re- 
 pealed, doling a war, which is professedly carried 
 on against our commerce, our credit, both public, 
 and private, and Our financial operations. Is it not 
 -a fact, which stands recorded, in the proceedings 
 of Parliament that the bodies of men, who, under 
 the Restriction Act, had a right, to ask for specified 
 sums of specie, never applied, for one sixteenth 
 f)art of what Parliament had allowed them? What 
 m Jact is here, in support of ei'periencef which is 
 
 * 44 G. iii. ch. 1. 
 
 oppugned
 
 oppugned by vietaphysks ! Has the nation eve? 
 advanced niwe prosperously, in all that constitute 
 industry, agriculture, commerce, opulence, and 
 greatness, during the period of tlie Bank restriction, 
 tiiirteen years of malignant hostilities ! Havx) we cveir 
 executed, in any other period, so many local im- 
 provements? Were tliere ever more skill, and capital 
 omployed, in husbandry ? Had we ever so muchi 
 manufacture, before, even oi gold smd siher piate, 
 though not of coins? Did we ever export, within th« 
 year, the surplus products of our land, and labour, 
 to Uie real value of sixty-six millions? Did our 
 public income, in any age, yield so much into 
 the Exchequer? Did we ever obtain loans for 
 the state, on lower terms ? Did we ever, in such 
 a length of years, liquidate so much of the pub- 
 lic debts? Did the national securities, or stocks, 
 «ver rise so high, during former Mars, under dif- 
 ferent auspices, when hostilities Mere not waged 
 against our trade, for destroying our private credit 
 fibroad, and lessening the public credit at home? 
 The Parliamentary accounts verify the foregoing re- 
 presentations of truth, which iorbid tlie removal 
 of the Bank restriction; so as to allow tlie export 
 of gold, that would only have the effect, of making 
 gold bullion dear, at home, and cheap abrodd. 
 After seeing theoyy so often substituted, for expet- 
 'licHcCy M cU may we exclaim with Po()e ; — 
 
 ** bee Mt'tapliysK ks call, lor uid, on Sense." 
 
 Th*
 
 196 coNsiDfeRAtioNS *oi^ coMifencE; 
 
 The Conclusion. 
 
 The Committsej at lerfglh, after, deliberately^ 
 considermg this siibject, thmio;ht proper, to report 
 to the ('ornmoiis House, as- its opinion : ( 1 .') Tlrat 
 the svstem pfithe circdating mexiiu'qfi^ ©f this country 
 ouofht to be broujyht'back, with as much speed, as 
 is compatible, with a wise and necejsSary caution; 
 to the Original pTinciple of cask pay)Mnts, at the 
 option of the holder of Bank paper. (2.) Accord- 
 ino'to the. best judgment, which tlie Committee has 
 been able to form, no sufficient remedy; for the present; 
 or security for the. future, can be pointed out, except 
 the repeal of the lazv, which. nisp ends the cash. pay ^ 
 menls of the Bank of England : (3.) Under every 
 view, the Committee would suggest, that the restric- 
 tion of casii payments cannot, safely, be removed, at 
 an earlier period, than two years, fiom the present 
 time; but, the Committee was of opinion, that 
 earJv provision ought to be made, by Parliament^, 
 ■for terminating, by the end of that period, the opis* 
 ration of the several Statutes, which have imposed, 
 and continued the restriction ^^ 
 
 But, to this recommendation, and to those rea- 
 sons, may be objected the following considerations: 
 1. It is perfectly obvious, that the whole Repor^: of 
 the Bullion Committee is opposed by the two Re- 
 ports of the Secret Committees, of the Lords, and 
 * Report, 8" ed. 74~6. 
 
 Commons,
 
 : • BULLION AND C*Oty -^ "ETC. ' 101 
 
 Commons, i7P7j after enquiries of equal anxiety^ 
 and at length submitted to both Houses, with deli- 
 berate consideration, quite equal 'to that of the Bul- 
 lion Committee: This Report is also made, without 
 any notice of the Report of the Commons* Secret 
 Committee, in November 1797, which reported 
 these two strong grounds, for continuing the Bank 
 restriction, that it njitiht be done, witiiout injury td 
 the credit of the Bank, and zcith advantage lb 
 the nation ; considering, moreover, the e.visti/i<^ 
 hostility, -and nature of the war, as well as the 
 avowed purpose of the enemy, '* to attack this 
 " countr}', by means of its public credit, and to 
 ." distress it, in its financial operations :" Now ; all 
 those powerful motives, which have not been an- 
 swered, in any manner, induced tlie concentrated 
 %'isdom of-the whole Parliament, in December 
 '1803, t& continue the Bank restriction, throughout 
 the present war, and six: months, after its conclu- 
 sion : Here, tl^n, i^ a Parliamentary pledge to the 
 whole w'OfId, that the restriction, which had been 
 found to be salutary, should be so long enforced : 
 And, the commercial people of the united nation 
 of Gr(*at Britain, and Ireland, have,' in carrying'on 
 their fnercantiie affairs, placed their ftrni trust, in 
 •*hat solemn, pledge. .2.- The consideration of the 
 'Bullion Committee was directed to f/iree heads; 
 jtiie higk jjri'ce'. of goU bullion ; the joreign e.iv 
 * -.•-. -vi.-. •... .' • ■ . •• cha)/ges.;
 
 igi CONSlDERAtrbNS on COWJfEllCEJ 
 
 changes; the state of t!ie circulating medium r 
 And, of all these, in their order. 
 
 1. Willi regard to the py^ce of bullion^ th« 
 Committee represent that, " during the tueniy* 
 *' four years, preceding the restriction, the price 
 ** of Gold Bullion continued remarkably steady, at 
 " something below the Mint price, with a very fevf 
 ** exceptions, to a small amount '^" But, these v ere 
 " ordinary times," say the Committee ; and, with- 
 out liostility to trade, enmity to exchangers, and the 
 most insidious warfare on the private credit, and 
 public revenue of the British nation, the Committee 
 might have added. We are thus led on to enquire, 
 whether the Committee be founded, or unfounded, 
 in the assumption of the low prices of gold bul* 
 iion, before the memorable epoch of the Bank re-" 
 striction : M'e must always recollect, that the Mint 
 price of gold is j^*. 3. 17^. loft/. per oz.; nhile 
 the Bank price is X3. 17*« 6^, which, appearing 
 on the fece of the Bank statement of prices, to be 
 very inferior, probably misled the Committee*. 
 
 Now; 
 * Report, 4. 
 
 t L^-t us now esJamine the prices of gold, in the years pre- 
 ceding 1797: Mr. Giles, the Governor of the Bank, stated to 
 the Commons' Secret Committee, in 1797, " that in 1774, 
 ♦* the liauk bought some gold for X- 4- i- an^* £-4- -• P^ 
 cz. ; and, that more recently the Bank imported some gold 
 coin, from Lisbon, which cost them £.^. 6. per oz. and 
 which they sold again, for the most part, for export to the 
 West ludies, at ^.4. 4. [Minutes, 148.] Mr.Ab. >Jewland 
 
 stated
 
 BULLION AND COIN J ETC. 1 93 
 
 Now ; -asall those extraordinary- prices were previ- 
 ous to the Bank restriclion, when, according to. the 
 Cotnnnttcos doctrine, there could not be an excess 
 of Bank notes, it tbllo\\s, iVom the fact, that those 
 high prices could not have arisen, from the excess, 
 •and supposed depreciation; but, in truth, from 
 .tlie natural course. of trade, and the usual vibra^ 
 tions of demand, and supply, in the London mar- 
 ket, as settled by the popular voice : And, we may 
 tlius perceive, from all tliosc facts, and circum- 
 stances, -as to the high prices of gold, previous 
 to -the Bank restriction, that > the. Committee's doc- 
 trine is completely invalidated. Again : The Bank 
 notes ii^creased, from. /^, 9,985,220$ in, 1796, to 
 L io,403'P<^%'inri7f>7,vandio.;^.a2,6,95i97o, m 
 ) 798.;-: Augmentations -these, wiiich.y.5hould havo 
 produced,- apcording. to tlw Comn.iittec's doctrine a; 
 riscj in t^e\, price. of g&Ul bullion^; aod !yet;xvi^' 
 know from itiie fact, that tl\e price - of 'Bi^lisi^ 
 standard gold ivva.s in; i^7,98,and-.^ 799, ;^- 3- 19*. Cf/.- 
 
 stated to'lHe'lord^' CdTilrtiiftcc.,i'iiPi%'}, f Jiat' m'^varltoVs* 
 prior yfears, the Bank had given for g<>ld j(^. 4. 1, £,> ^. 2, 
 /. 4. 6, and once, about l795»-'i^»4- ^. per oz. ; but, that the 
 Bank selcjoiu -bouj^lii at these prjces; yet, that, within the' last 
 t\yo years, gold had befu at a higher price thaii\(^. 4. 4. per or,. 
 [Minutes, 67—8.] On the Blh of QctoVir 1795, ihe Govcfnoi'- 
 oi" the Bank stated, in a couimunicatiou to. the Chancellor of 
 the Excliecjuer, liial the price of gold thi.'n was £^. 4. 4. per ok-' 
 R^r. Hoare, ths Banker, btajcd to the Commons ComntitteOv- 
 in March 1707, that the price , of gold avis 9o hi^b,' that d-. 
 guinea was worth, as bulhi^n, from '2 2 ty .24 £hi!li.n!;6, abrond/V 
 [.Minutes,' 86.] 
 
 O per
 
 tg4 CONSIDERATIONS OX COMMERCE; 
 
 peroz. and of foreign gold £.4; uhile, in 179.;, 
 and 1796, before the restriction took place, gold 
 was upwards of £. 4. 4. per oz. and the average 
 mnount of the Bank notes was £. 9,985,220, to- 
 /,". 10,910,390*. From thcteie facts, we now per- 
 ceive, that while the amount of Bank notes was- 
 progressively increasing, the price of gold was pro- 
 gressively decreasing : And this striking contradic- 
 tion, to the Committee's theory, continued throughout 
 the six following years down to 1S08 ; For, during 
 the 5 years, from 1 S04 to 1 808, the market price oi 
 gold continued, at £.■4. per oz. \\'hi.k3 Bank notes' 
 increased to the average amount of ;/^. 16,673,710. 
 
 (9.) It was only, in the latter end of 2S08, that the 
 price of gold began to rise ; owing to a deficiency of 
 the supply, and a great increase, in the demand, from 
 the Continent. It was proved to the Committee, by 
 those who knevV the fact, that of the gold sold, ii> 
 the London market, less than a 20th part is sold 
 for exportation f ; and; that more than 20 parts is- 
 sold, for exportation .']:. And, it was, also, proved 
 to the Conimittee, that the prices of gold, in the 
 London market, are regulated, by the prices abroad §. 
 
 * In 1800 gold sold fer £. ^. 5. to ^.4. 6. per oz. : in 
 iSoi, foF/.4. 6, £.4. 5, X-4- 4- ^' £'^' 4. £-^- 3- 6, 
 ^..4, 3. and £. 4. '2. 6. per oz. j: and, in 180-2, gold sold for 
 £.4. 3. 6, and ^^.4. <l. 9. per oz. : Now; during these $ 
 years, the average amount of Bank notes, in the eircle, was in 
 1800 /. 14,563,740 ; in 1801, ;C- *5>459>05o; and in 1&02, 
 £. 16,320,950, 
 
 t .Minutes of Evid. 39. t '''• ^ ^'j- ^5- 
 
 The
 
 BULLION AND COIN; ETC. IQ', 
 
 The foregoing efficient facts clearly prove, that the 
 asmmcd theory of the Committee, as to the increase, 
 or decrease, of Bank notes, ruling the prices of gold, 
 is altogether unfounded, and I was going to say, 
 irrational. But, I have already exhibited this 
 topick of tht prices of bullion, in such a variety of 
 lights, that, I trust, every fair enquirer, must see, 
 that the late high prices may be attributed to any 
 other causes, than what tlie Committee has adopted, 
 as a theory. I will only beg leave to add the de- 
 liberate judgment of the late Joseph Harris, the 
 celebrated Assay-master of the J\Iint, on the ques- 
 tion, whether bullion can be regarded, as a standard, 
 or 7neasure* : "As bullion, says this able writer, 
 *' occurs much more than coin, in the transactions 
 " of merchants; some of them have been induced, 
 " from thence to think, that the price of bullion is 
 ** what governs, and ineasures, the ralue of all other 
 " things. But, from what hath been already deli- 
 " vered, it is very manifest, that the price oi bullion 
 " is governed as well as measured, by coiJi, or the 
 *' established standard of money ; and not sutieretl 
 *' to deviate much, from that standard. With 
 '* merchants, indeed, any commodity they deal in, 
 *' may be said, inditiereiitly, to be a standard, for all 
 *' tiie rest, as well as gold, or silver ; for they cpn- 
 *' sidcr all tilings ; as they will purchase more, or 
 *' less, of each the other, in this place, or in that ; 
 * Essay on Moriey, part ii, p. 64. 
 
 O J *' and
 
 196 CONSIDERATIONS ON COMMERCF- ; 
 
 " and Goius, which with the rest of the Morld is 
 " money, is ^ith them thrown into the general 
 " hotch-potcli, and no otherwise distinguished, from 
 " other commodities, but from the proportion, that 
 " certain quantities of one, or the other, will fetch 
 " of the rest ; and they join with us rather in lan- 
 " guage, than in idea, as to the use of coins : No 
 " wonder tlien, if such gentlemen treat the standard 
 " of money so slightly, and so disdain fully, as some 
 " of them do." We may tlius perceive, then, that 
 this great master had ex{)loded the absurd theory of 
 bullion being a standard, or measure^ more than 
 •fifty years, before the Bullion Committee adopted 
 it, in opposition to facts, and in contempt of ex- 
 perience. 
 
 (2.) From the doctrines of bullion, to the ques- 
 tion of the unfavourable exchanges, the transition is 
 easy : I have, already, in the foregoing sheets laid 
 before the inquisitive reader this perplexing ques- 
 tion, in almost every possible light : And, it has 
 been shown, distinctly, that the true equilibrium of 
 the exchanges is tiie c.vport of goods, rather than 
 bullio?i, when goods can be sent to the proper port ; 
 as we abound, in merchandizes, both native, and 
 foreign, which we can command ; but, bullion, 
 wliich we cannot command, does not by any means 
 abound, when compared with the demand : And 
 yet, have the Committee assumed, as a truth, what 
 has not been proved, as a fact, that the deprecia- 
 tion
 
 BULLION AND COIN; ETC. I97 
 
 tion of the Bank ?iotes has produced the depression 
 of ihe exchanges f however contiadicted, by proofs, 
 and by argument ; by theory, and practice : Al- 
 though, however, the Committee has assumed this 
 egregious errour, tliroughout the examination of the 
 evidence, and in various parts of the Report, yet 
 when they found that tiie facts were against them, 
 and came to explain their notion more specially, 
 they qualify it by admitting that, " on the whole, 
 " they are not of opinion, that a materia/ depression 
 " of the exchanges has been manifestly to be traced 
 " in its amount and degree to an augmentation of 
 " notes corresponding in point of time. They con- 
 *' ceive that the more minute and ordinary Huctua- 
 '' tions of exchange are generally referable to the 
 *' course of our commerce; that political events, 
 " operating upon the state of trade, may often have 
 " contributed as well to the rise as to the fall of 
 *' the exchange ; and in particular, that the first 
 " remarkable depression of it, in tlie beginning of 
 *' 1 809, is to be ascribed, as has been stated, in the 
 " evidence already quoted, to commercial events, 
 *' arising out of the occupation of the North of 
 *' Germany by the troops of the IVcnch Emperor. 
 ** The evil has been that the exchange, when fallen, 
 " has not had the full means of recovery under the 
 *' subsisting system*.'' It would have been more lit, 
 to have stated the ical fact, that the groat depression 
 
 * llepoil, p, 16. 
 
 O 3 of
 
 ig^ toNSiDEiiATrdNS On commerce; 
 of the exchange, in 1809, is to be ascribed, to com- 
 mercial events, arising out of the restrictions im- 
 posed by the French Emperor on our trade, and com- 
 munication with the Continent^ in consequence of 
 his occupation of the North of Germany; and that 
 it has not had the fiiU ineans of recovery, owing to 
 the continuance, and increased rigor of those re- 
 strictions ; whereby the export of goods, the proper 
 equihbrium, could not be apphed : Nor, will the 
 exchanges ever be restored, to a much more favour- 
 able state, till that equilibrium be effectually applied. 
 It has indeed been given in evidence to the Com- 
 mittee, that the Bank restriction was no cause (f 
 the unfavourable course of the exchange ; and that 
 the removal of this restriction zvould not Yemedy 
 the exchange-, also, that the increased amount of 
 Bank notes, which the Committee ascribe to this 
 restriction, has not caused the depression of the 
 exchange ; and that the diminution of Bank notes, 
 which the Committee wish to produce, by the re- 
 moval of the restriction, would not improve the 
 exchange * ; It has also been given in evidence 
 to the Committee, that, as the export of Our current 
 money is prohibited, the only effectual means of 
 recovci ing the exchange is by a free export of com- 
 modities f . 
 
 * See Minutes of Evidence, p. 112, 127, 7,1, 90, 95, 96 — 7, 
 143, IJ4, and passim. 
 
 f See ^iinutes of Evidence, passim. 
 
 (3.) AYith
 
 r.ULtlOX AND COIN ; ETC. lL)(} 
 
 (3.) M'ith rt'^ard to the supposed cx.ccss of the 
 circulaf big medium; I have ah'eudy shown this topick, 
 in such a variety of views to every iutelMgeiit reader 
 of the foregoing Considerations, that 1 trust, it has 
 appeared that there is really no excess in tlie Bunk 
 cash, whatever there may be in Country Bunk 
 securities for monei^ : Yet, as this is a subject of 
 great iinportance, I will beg leave to submit, that 
 the assumption of the Committee, on this head, 
 will appear to be wholly unfounded : Of all the 
 mercliants, aiid Bankers, who v;erc examined by tlic 
 Committee, on that most impoitaut topick, the late 
 Sir Fi'ancis Baring was the pnly person, who joined 
 in the Committee's opinion of there being any excess 
 pf Bunk cus/i, in circidation at present * : His ad- 
 mission, however, of the general j>roposition, which 
 was suggested to him in the question, that an in] 
 crease of capital, commerce, agriculture, aiv^ public 
 revenue, requires a proportionate increiise of circu- 
 lating medium, decides the questioji, againsi the 
 opinion he gives of an excess of Ikmk notes : for 
 the liank notes have not nearly increased, in the 
 same proportion, as the trade, and public revenue. 
 The Other merciiants, anrl Bankers, who were exa- 
 mined on this point, state ex[)ressly, that there is no. 
 excess of Bank of ijigfmd notes, and give very 
 satisfactory reasons for this : They even go furtiier, 
 ;uid state, that, while the Bank Directors adhere 
 * See the MimiU'S, i;^i, 
 
 O 4 strictly
 
 200 CO^SIDEUATIOXS ON COMMERCE ; 
 
 strictly to the practical rule by which they give 
 their discounts, and make their issues, there can be 
 no excess of Bank notes *. The Bankers and 
 merchants, who were examined by the Secret Com- 
 mittees of the Lords, and Commons, in 1797, also 
 stated, that the increase of capital, commerce, 
 manufactures, agriculture, public revenue, and 
 expenditure of this country, necessarily required, a 
 proportionate increase of circulating medium f. The 
 same indisputable proposition w as stated in evidence 
 before the late Bullion Committee. It was, also, 
 given in evidence before the Committee of 1797, 
 that our commerce, in time of war, requires a 
 greater capita!, to carry it on, than in time of peace J. 
 These propositions, then, being established, furnish 
 a scalci for trying the progressive amount of Bank 
 notes, whether they have been carried to an excess. 
 This test tiie late Committee have not chosen to 
 apply, but resorted to a theoretical inference, which 
 they drew from the pi-ice of bullion, and the slate 
 of the exchanges, without adverting much to the 
 
 * See Minutes, p. 69, 71, 7-2, 102, lai, and passim. 
 
 f See Minutes of both, passim ; and see, particularly, the 
 evidence of Mr. Henry Thornton before the Lords Committee, 
 Minute?, p. 71 — 'i, 82 ; the evidence of Mr. Walter Boyd 
 before the same, lb. p. 1 14, and beibre the Commons Com- 
 mittee, Minutes, p. 52, 57 ; and the evidence of Mr. Thomas 
 Irving, the Inspector General, before the Lords Committee, 
 Minutes, p. 48. 
 
 J See Minutes of Lords Committee^ p. 77, 114, &c. 
 
 evidence
 
 feuLLTOX AXD COIN^ ; ETC. '201 
 
 evidence, which was given betore them, on the point. 
 It vvas said, in evidence, betore the Committee, that 
 the increase of Bank notes was fully accoutned for^ 
 and justitied, by the great increase of commerce, 
 of tlie public revenue, and expenditurc5 and by the 
 increased payments, in the metropolis *, Mr. Whit- 
 irjore, the Governor of the Bank, stated to the Com- 
 mittee, that " the amount of Bank of Eag^land notes 
 " during the last year, 1809, have bo)ne exactly 
 *' the same proportion to the occasions of the pub*- 
 " lie, as in former times.f" He also stated, to the 
 Committee, that the payments made by the London 
 Bankers, in Bank of England notes, in the course 
 of one day, is considerably above five millions J. 
 The Committee give a statement of the " average 
 " amount of Bank of England notes in circulation, 
 " in each year," from 1798 to 1809, inclusive. In 
 this Statement, they improperly include Bank Post 
 Bills^ which cannot be considered, as current cash, 
 being merely lent, as remittances, and return directly 
 to the Bank for payment '|\ By this statement, the 
 
 * See Minutes passim, and particularly p, 71 — 2, 79, and 1 ly. 
 t Minutes, p. 79. J lb. 121. 
 
 X During these twelve years the Bank Post Bills increased 
 from about X. 645,000, the average amount, in 1798, to 
 ^■.895,815, the average amount, in i8og. This gives a pretty 
 strong intimation of the increased circulation, during this period, 
 and oJ" course the want of an increase in the circulating mediiuu. 
 It must be remarked, that the increase, of l?ank Post Bills is 
 altogether unmtluenced by the Bank restriction ; for whether 
 the Bank pay, in specie, or in Bank notes, the amount of the 
 Bank Post Bills will be the same, in correspondence. 
 
 Committee
 
 202 CONSIDERATIONS ON GOJIMEUCE; 
 
 Committee exhibits an increase of Bank notes, from 
 iC-1 3*334,752, in 1798, to /. 19,99 1,890, i» ^^"^09. 
 But, in tiiis la&t amount, there is a very great error ; 
 for, the real average amount of Bank notes, including 
 Bank Post Bills, in 1809, was ;{. 18,91 1,520, as may 
 be found, from the detailed statement of the amount of 
 Bank notes, and Bank Post Bills, throughout the year 
 1809, given in the Appx. to their Report, N° 37. 
 The real average amount of Bank notes, exclusive 
 of Post Bills, in 1809, was only - £. 18,015,700 
 The real average of the same in 1798 
 
 was - - , - , 12,695,970 
 
 ;^- 5,3 19.730 
 
 So that, the real increase of Bank notes, in 1 2 years, 
 from 1798, to 1809, inclusive, was only^^^. 5,319,730, 
 while the erroneous statement, which is given, by the 
 Committee, exhibits an in crease of ^T. 6,65 7, 138, being 
 an error, in excess, of ;^. 1,337,408 ; and giving, of 
 course, to this great amount, a false view of the in- 
 crease of Bank notes, in those 1 2 years. 
 
 If we compare the increase of Bank notes, from 
 1798 to 1809, with the increase, in the commerce 
 of the country, during the same period, we shall see, 
 that the increase of Bank notes does not come up 
 to the increase of commerce *. If we compare the 
 increase of Bank notes, with the increase of the re- 
 venue, and expenditure, during the same period, the 
 
 * See the Appx. jS° 2, of thcfe Confideratioiis. 
 
 result
 
 BULLION AND COIN ; KTC. 203 
 
 result is much mure strikmg, and shows that, the in-* 
 creases of Bank notes is very lar short, in proportion, 
 to the increase in the revenue und expenditure of 
 tlie countiy. 
 
 If the increase of Bank notes had even exceeded, 
 in proportion, the increase in the commerce, and in 
 the revenue, and expenditure ot the country, it would 
 by no means liave proved an excess in the an^ounfc 
 of Bank notes : For, of ;^. 5, 3 19,730, the whole in- 
 crease, in the 12 years, from lyqS to 1809, no less 
 than )^. 4,b;4i,8oo arc small notes of one, and tuo 
 pounds, leaving only an increase of the larger notes, 
 to the amount ot ^. 477,930, less than half a million* 
 The above amount of small notes was plainly issued, 
 to supply the defect of the gold coin, which had 
 been withdrawn, from circulation. 101798, there 
 was of gold coin, in circulation, upwards of 
 {^. 20,000,000*, which has almost disappeared from 
 circulation ; and there has, during the 1 1 ^^cai's from 
 1 799 to 1 809, been a deficiency, in the gold coinage, 
 to the amount of nearly ;{[.i 9,000^000 1. This 
 
 * The Coin Report, in 1798, .'Aipposes, that the gold coin, then 
 in circulation, amounted to j(^. 30,000,006. IMr. Whitinoru 
 stated, as his opinion, that the gold coin, in circulation, duimg 
 the three years, previous to 1797, ^va? rather helow than 
 iihove j^. 20,000,000. INIinutes of Evidence, p. 121. 
 
 t In the 11 years, from 178S to 1798, incluaive, the ^old 
 Cdintd , amounted to ----- j^. 'i2,7i6,ot5o 
 
 In tlie 1 1 years, from 1799 to 1809, inclusive, 
 :hc gold coined, amounted to - _ ^ 3,972,312 
 
 The deficiency in the ki&t 11 years is - ;C-^^'743'74^ 
 
 to
 
 204 eo^^sIDEKATIONs ON commerce; 
 vast vacuum, in the circulating specie, would justify 
 a much greater amount, than ^.4,841,800 of small 
 Bank notes, as a substitute, for the gold coins. From 
 the foregoing facts, then, and accurate estimates, I 
 submit to the judgment of all intelligent readers, 
 whether there be, as the Committee supposes, any 
 real excess of Bank cash, whatever there may be 
 of Country-bank paper. 
 
 (4.) We are now come, at length, to the ultimate 
 point of the Committee's recommendation, namely, 
 a repeal of those Statutes, for continuing, and en- 
 forcing the Bank restriction, which the wisdom of 
 Parliament enacted, after a just consideration, at 
 several periods, of our existing circumstances, com- 
 mercial, political, and hostile, with such an enemy* 
 But, such a recommendation may be opposed, by 
 the following considerations. (1.) Whatever there may 
 be in the Committee's theory, arising from abstract 
 reasonings, the free, and intelligent people of this 
 nation are not governed, by abstract reasonings or 
 metaphysical theories ; but by the most practical ex- 
 pedients of prudent government, from a considera- 
 tion of existing circumstances. (2.) Neither does our 
 balanced Legislature ever enact lav\ s, for the rule of 
 the most intelligent people on earth, from abstract 
 reasonings, or metaphysical theories : Such is the 
 invariable wisdom of our Parliament, that it does not 
 enact, for such a people, the best possible laws; but, 
 the best possible laws, all circumstances regarded 
 
 which
 
 BULLION AKD COIN,' ETC. 205 
 
 which the people ai*e willing to receive : For, such is 
 our happiness, that both the Executive Government 
 and the Legislative Power, are ultimately guided, by 
 t'le VOICE or the people. (3.) Then, the enquiry 
 must be, whether the woollen manufacturers of York- 
 shire, the cotton manufacturers of Lancashire, the iron 
 manufactures of Warvvicksliire, the linen manufactu- 
 rers of Scotland, and of L'cland, will be willing to re- 
 ceive an\ liw, which goes to impede the circulation of 
 a manufacturing people, which is the greatest evil, that 
 can afflict them. (4.) On this head may be submitted, 
 to the more judicious readers, the following evidence 
 which has been laid, at various periods, before the 
 successive Committees of Parliament : Mr. Whit- 
 more the Governor, and Mr. Pearce, the Deputy Go- 
 vernor of the IJank, stated to the Committee, that 
 the restriction of payments, in specie, in 1 797, was 
 a much m iser, measure, than that the Bank should 
 have persevered, in diminishing the discounts, and 
 issues of notes, which it must have done, from a re- 
 gard to its own safety, though this would have pro- 
 duced great public calamity, and distress. The 
 necessity, and great benefit, are, therefore, obvious. 
 Kven before this, for a considerable time together, 
 the discounts, and the Pank notes, were, greatly, 
 too much restricted, and this produced great distress 
 • among the merchants, Bankers, and manufacturers; 
 
 ' See .Minutes of Kvid. p. no, 111, So, fo. 95. 
 
 and
 
 ^06 CONSIDERATIONS O^ COMMERCE; 
 
 and, also, a gicat depression of the Government 
 securities *. On this head ; Mr. Henry Thornton 
 stated to the Commons Committee, in 1797, that it 
 was the u\ant of Bank notes, and 7iot of guineas^ 
 that was felt. Minutes, p. 1 39. lie also stated to 
 the Lords Goramittee the benefits which wouki 
 result, to trade, and public eredit, by augmenting 
 the quantity of Bank notes f. 
 
 (5.) The distress among the merchants, in 1 797, for 
 want of discounts, and Bank notes, was so great, that 
 a numerous meeting of the most respectable mer- 
 chants was held, in September 1796, for the purpose 
 of procuring relief, by obtaining discounts, and Bank 
 jiotes, on a more enlarged scale. They appointed, 
 for this purpose, a ^permanent Committee, m hich held 
 frequent meetings, down to the end of March 1 797 : 
 and they came to various resolutions, on the subject: 
 Among others, they declared, that " the capital em- 
 ployed, in the e^vport, and imjwrt trade of Great 
 Britain, evclusive of the internal consump- 
 J ton of the country^ amounted, upon an average 
 ■of the last si.v years, to 45 millions per mi- 
 mim'' A deputation of this Committee had various 
 conferences, at different times, both with the Minister, 
 
 * See Minutes of the Lords Committee, 1797, p. 72, 78, 
 113, 114; and JMinutcs of the Commons Committee, 1797, 
 p. 53» 68, 93, 140. 
 
 t See Mimites, p. 7-2-- 3.
 
 BULLION AXD COIN; ETC. 207 
 
 utid the Bank Directors, for the purpose of obtaining 
 mercantile discounts, on a more enlarged scale *. 
 
 (6.) The distress, in the metropolis, and particularly 
 among the Bankers, and merchants, Mtis so great, for 
 \vant of the necessary quantity of Bank notes, to 
 perform the increased payments, occasioned by tiie 
 increase of commerce, and manufacturers^ that the 
 Cankers, and some leading mercliants, formed apian, 
 for relieving it, by creating any additional circulating 
 medium : consisting of notes, uhich siiould be gua* 
 ranteed, by the whole, and pass current, in tiie me- 
 tropolis, by general consent : The Bank Charter 
 formed, however, an obstruction to this [)lan '[■. 
 
 (7.) It was, at tliis epoch, ofgeiiei^ distress, for want 
 of the necessary quantity of circulating medium, that 
 the restriction on payments, in specie, at the Bank 
 was imposed; and it produced general relief, by eu" 
 abling the Bank, to enlarge its discounts, and in- 
 crease the issue of Bank notes. After an experi- 
 ence of sevei'al years, the Governor, and Deputy Go- 
 vernor, of the Bank stated to tlic late Bulhon 
 Committee, tliat, under existing circumstances, the 
 restriction was found, necessary, and cvpcricnce had 
 
 * Sec the Evidence of William Lublungton, Esq. the Chair- 
 man of this Committee, given before the House of Cuminoiir. 
 Committee, tlie 6th April 1797. JNIiuutes, p.a44, ^. 
 
 t bee tlie Evidence of llcnry Thornton, Esq. before the 
 Lords Committee, 30th Murch 1797. ISliiiule.s, p. 72 ; and 
 before the House of Commons Comnuttee, 2-4th March, uiu\ 
 V»t April 1797, Minutes— p. 94, 137.
 
 2o8 CONSIDERATIOKS OX COMMERCE; 
 
 proved, that no injury results, or is likely t^ 
 result from it *. On this head ; Sir Francis Ba- 
 ring being asked his opinion, whether any certain, 
 and adequate, provision can be made againt an oc^ 
 casional excess of paper circulation, where that 
 paper is not convertible into specie, at the option 
 of the holder? answered : " In this country, if I may 
 judge from experience, I should doubt it; but if 
 the Bank conducts itself iipoji the same prin- 
 ciples, at presait, when they do not pay in spe- 
 cie, as they did, when they were compelled, to 
 pay in specie, I should think that it might be 
 safely left to the discretion of the Bank " f. 
 
 (8.) Now ; the Governor, and Deputy, stated to the 
 Committee, that the Bank does conduct themselves, 
 on the same principles, now, as tliey did, before the 
 restriction, with this beneficial difterence, that not 
 being exposed to great, and sudden, drains of specie, 
 they are not obhged, as formerly, to make those 
 violent contractions of their discounts, and Bank 
 notes, in circulation, which uniformly created public 
 distress : See the evidence of M\\ Whitmore, and 
 Mr. Pearce, in the Minutes. They botli stated, that 
 the restriction on the Bank was, undoubtedly, no 
 cause of the unsteadiness in the course of ex- 
 change X : And that the removal of the restriction 
 
 * Minutes of Evidence, p. ii'2 and 120. 
 t lb. p. 131. X lb. p. Hi. 
 
 would
 
 BULLIOll^ ANE> COtN; ETC. 2^'^ff 
 
 \<-ould not remedy the exchange*: They, also, stated 
 to the Committee, that the same causes, and even 
 much sti'onger ones, existed, now, for the continuance 
 of the restriction, as when it was first imposed. 
 And they gave the stron^^est, and most convincing 
 reasons, for their judgment '|'. 
 (i 0.) It thus appears, then, from the foregoing facts, 
 proofs, and circumstances, that the result of the 
 Committee's recommendation cannot be contem- 
 plated, with much satisfaction. When the Bank 
 restriction is removed, the gold coins will only come 
 out into circulation, to be melted, and exported. 
 Recoinage, after recoinage, must take place, in quick 
 succession, at an unbearable charge to the Bank, 
 and at an etiomious expence to the public. On 
 tKese two topics, may be submitted to the more judi- 
 cious readers what Mas said, by the most able Assay- 
 master, Harris, under the two following just conside- 
 rations; First, that coinages should, in nowise, b^ 
 forced; Secondly, that purchasing bullion, at an 
 advanced rate, for coining, is a "very weak, and 
 insignijicant measure : On the first head, he said, 
 *' the keeping of the Mint, perpetually, at work, 
 " seems to be the main drift of all the common 
 " maxims, about coins ; and the feeding thi., office 
 *' is professedly urged, as one of the reasons, iorde- 
 *' basing the standard of money : And it m'lst be 
 
 * ilinutes of Evidence, p. 127. f lb. p. 111, i'25, (5. 
 P ** owned.
 
 210 CONSIDERATIONS ON COMMERCE; 
 
 owned, indeed, that nothing could be more 
 effectual, for the compassing of that end. But, this 
 is proposing one evil, as a reason, for committing 
 another. The evils attending a general recoin- 
 age, which this scheme would inevitably bring 
 about, are many, and gi'eat ; but without entering 
 into a detail of those evils, at present, let it here 
 suffice, to examine into the merits of that notion, 
 which is, very generally, entertained, that coinages 
 are, by all means to be encouraged. 
 '' In one sense, coinage is a neutral, harmless, 
 and indifferent act ; for if it be left free, it nei- 
 ther enriches, nor impoverishes, the nation, one 
 single penny ; the coins just pay, for the bullion 
 whereof they were made, and the profits to the 
 Mint are spent amongst themselves. But, it 
 deserves well to be considered, that coining is, 
 nevertheless, an act of very great importance : 
 That a very great trust is thereby lodged in the 
 Mint ; that it requires very great care, and great 
 skill too, in those intrusted, to keep exactly to 
 the standard ; that a small deviation from it upon 
 each piece, would soon amount to a large sum ; 
 that coins are universal pledges ; and that the 
 credit of nations is greatly concerned, in the ex- 
 actness, and faithfulness of their Mints. When 
 these things are considered, will it follow, that 
 
 '• coinages are to be promoted unnecessarily ? 
 
 * That coins once fdithfiilly made of their due 
 3 " finenes*
 
 BULLION AND COIN; ETC. 211 
 
 *' fineness are to be melted into the unattested 
 " state of bullion, for no other purpose, than to be 
 *' recoined again ?" 
 
 And, on the second head, he said, " besides 
 " debasing the standard, anotlier expedient hath 
 " been hit upon, for feeding the Mint ; and that is, 
 *' the purchasing of bullion, at an advanced price, 
 " for coining, or the giving more per ounce, for the 
 " bullion, than it would be afterwartls worth, in 
 " coin. But; although this measure is very harm- 
 " less, as to any consequences attending it, except- 
 *' ingto those immediately concerned; yet it cannot 
 " be reckoned a very wise one : For, whatever be 
 " the cause, that prevents bullion, from coming into 
 *' the Mint; whilst that cause subsists, and coining 
 " will not remove it, the new coins will be melted 
 " into bullion again, and again coined; and so round 
 " in a circle, as long as a premium to the importer of 
 *' bullion into the Mint, is continued. And, after 
 " all this expence, and all the expectation raised 
 " from it, no new coins will be to be seen ; the 
 " same cause, that created a scarcity before, will 
 " carry all these away ; and nothing will be left, 
 " but the gains, that had been made at the IMint. 
 " After what hath been said here, and in the pre- 
 " ceding, it might be asked, of what use, then, is 
 " tlie Mint? To which, I answer, that a Mint, 
 *' rightly established, is a very useful, necessary, 
 " and important office ; an office, that tliosc at the 
 p 2 " head
 
 212 CONSIDERATIONS ON COMMERCE; 
 
 *' head of our finances should have due cognizance 
 *' o», as being answerable to the public, that its 
 *' operations are faithfully performed. The natural 
 " -waste, and dissipation of coins, require frequent 
 " supplies. This, trade, naturally, and abundantly, 
 " furnishes; and this vent for its bullion, when 
 " other markets do not invite, is also of very great 
 " advantage to trade ; it prevents a stagnation, and 
 " uncertainty, in a very considerable branch of 
 " commerce. No Mint can be kept constantly at 
 " work, unless coining becomes a kind of manu- 
 " factor}-^, for foreign commerce ; which is not the 
 • ' case here, nor could it be, witiiout very great loss 
 " to us, upon our present Mint establishment. But, 
 " the Mint, if left free to its own natural course, 
 " cannot fail of keeping up the national coins to 
 '' their due quantity ; what it does more, maybe 
 *' truly said to be labour lost ; and would prove 
 ^' mischievous, if trade did not step in, and sweep 
 " av,ciy the supertluous coin. What hath been 
 " here said, regards coining in general ; without re- 
 " specting tie disparagements, which either silver, 
 " or gold t'jins may lie mider, in particular, at the 
 " Muit, audit ujay serve, as a full answer, to those, 
 " w'hu aie for promoting coinages, by forced, andun- 
 " natiralmetiicds*." Thus far, the greatest Assay-mas- 
 ter, and oneoi thfe ablest writrs of his enligjitenedage! 
 TheConuniUfcehas, indeed, referred to thegreatrecoifl" 
 age 01 Silver, ju iviijg V\ iiliam's reign, as ^ proper pre- 
 cedent, 
 
 * Essu^ on Money, 66 — g.
 
 BULLION AND COIN; ETC. 213 
 
 cedent, for the coming recoinagc atrer recoinage of 
 the !iold. Of Mr. Montague, the Cliancclior of the 
 Exchequer, who carried through King William's 
 recoin.igL' 0I silver, it is recorded, that he avowed 
 on t'lat presiding occasion, " that he would rat her 
 " do >}i'i.s:hicf than }wth'wg'' Let us hope, how- 
 evej-, iiia! the poiilical wisdom of the present times 
 will say ta all theuittical projectors, that it is much 
 bdtiC) , to no not lung, than ntichiej. Of the vast 
 charge to the laiblic, for King William's coinage, 
 and what dis.innointuient was, in the result, need hot 
 be again told ; of what a sacrifice of justice to 
 theory, of the poor to the rich, was made, when Mr. 
 Montague did mischief, rather than nothing. Sir James 
 Stuart has clearly shown *. — All will be safe, and ' 
 sure, when the well-informed voice of the people 
 cries out, in the sentiment, and language, of 
 Addison, 
 
 " True fortitude is seen, in great exploits, 
 
 " That justice warrants, and that wisdom guides j 
 
 " All else is towering frenzy, and distraction." 
 
 Political Econoun
 
 APPENDIX: 
 
 VIZ. 
 
 I. — A Chronological Account of Commeecf., in this Island, 
 from the Restoration, to the year 1809, inclusive. 
 
 II. — A Comparative State, in ten columns; showing, ukeiif 
 and on what Motives, were issued The Bank Notes; 
 &c. &c. 
 
 ni.— On Country Banks j in three sections.
 
 Appendix,
 
 o[ COMMEECE, ill this Island, from the Ki;sTo,iATroN, lo the Year 1809, inclusi 
 
 7V Epxh. 
 
 The Ri-storation - - J j,,,;^ J 
 The Rciolulion - - iliSS 
 The Peace of Rysivick. 1697 
 The last years of >''""( 
 ■ilham'lll. - 'l ,) 
 
 TheTl'ai-sof Anne -| |J°^ 
 
 The firsi of George 1. \ M? ■ 
 
 ThcfirslofGeorgoII. J 27 > ■ 
 
 The peaceful ycais -\ ^T ( ' 
 
 The War of ■ - -j 1"} ' 
 
 C"743) 
 The peaceful years - , 50 > - 
 (50 
 0755) 
 The War of - - -J 5^} - 
 
 TliehrslofGco.III f h 
 
 Th- r„l,K „/■ (",..-,«■>■ Kyxir 
 
 95,i66 — 47,634 — 
 '9».533 — 93.267 — 
 I44,j6.i — 100,524 — 
 
 »73.693 - 43.635 - 
 
 31 7.3^3 
 
 "S.,,3.S 
 355.735 
 
 42'.43" — 2C.57.3 - 
 
 4j:,S3= ^ n.e^, - 
 
 476,941 — 26,627 - 
 
 sSJigi — 87,260 - 
 
 ,386 — 661,184 
 
 'd],] 
 
 - <1 593 — 
 
 7^7 
 
 
 71 34 
 
 7 6l 
 
 — 7 — 
 
 708 6 7 
 
 758 s 
 
 I^^IZ 
 
 8 1 31 
 
 
 
 76 8b 
 
 - 77j84- 
 
 83)77 
 
 
 
 
 8 6„ 
 
 - 6,V- 
 
 86, f7 
 
 877 4 
 
 - 66898- 
 
 94(0 
 
 9 34 6 
 8744 
 
 - 7 93 — 
 
 
 - 57 994 — 
 
 91 4 
 
 9 6 
 
 
 96J4S 
 
 88 70 
 
 - 68 34 - 
 
 9 I 3 
 
 87 8 
 
 
 
 8 7 67^ 
 
 - 638- 
 
 ) )7 
 
 73 » 
 
 - 93778- 
 
 
 49 4 — 79 
 
 54 - 88 3 
 
 - 7 775 — 7785 
 
 7 775 
 5 45^ 
 
 G 6 966 ' 
 
 451 66 -f- 574 
 I 8r-.-,87i 
 
 88689 
 7f 8 
 
 663,401 — 12,371,552 
 
 sf" 5—578 75 
 
 
 _ 
 
 3S95 
 
 
 
 
 
 
 
 ( 
 
 1 — 
 
 14 96 
 
 
 
 
 98 
 
 
 5468 87 
 
 90 
 
 — 
 
 734 6 
 
 
 
 6 7649 
 
 
 
 
 
 1 — 
 
 
 1.402,764 — 
 .,324,158 — 
 
 ,,480,275 - 
 
 1 8f 68 — 
 3 9 89 — 
 4671936 - 
 
 -f-TT- 
 
 48 S 
 
 4 (-77. 
 
 596S4 
 7 358 
 
 Tic Mmmj Coined. 
 
 9969647 
 
 1446 3 
 
 19877 
 
 ,5SS,ii.. By George I. - - -£.8,725,921 
 
 w^- 
 
 \x 
 
 is-: 
 
 2,629 
 
 - "5 
 
 
 .4^ 
 
 ?44.554 
 
 - 
 
 843.S33 - 
 
 .3-7.645 
 
 ,685.624 
 
 - 68 
 
 - 335, 
 
 .9<».2i9 
 ,006,350 - 
 .680,995 
 
 ,i^6:t?^ 
 
 - 3'5 
 
 - 254 
 
 876,795 - 
 698,074 
 
 - 62 
 
 4 r 50 — 663 659 . 
 
 5.599.087 
 7.53S.355 
 6.799.755 
 5.895.711 
 6,087,569 
 
 9.73 !,S>! 
 
 0.207,735 
 8.707.823 
 
 1,171,863 • 
 
 464!68o 
 2;967'5»; 
 
 i89!83; 
 450,240 
 
 437.'"9 
 596,4-15 
 7>8.397
 
 f -— 
 
 [issued the Bank No 
 d contains the numl^» ^"^^^ "^^ 
 I whole Shipping, outr '"^^'^"^' ^''"^ 
 3 Hamburgh ExchaiP^'^^^"' ' ^^'^^' 
 he amount of the Foit^^^ ^^^""^^ ^^^^' 
 ^ruary 1797. 
 
 Tlie 
 MBURGH EXCIIAXGE 
 
 The 
 L U E 
 of 
 
 (the Par being) -jreign 
 
 h. 8 G rotes, rou ^.1. Stert: BULLION 
 ported. 
 
 or 
 
 (7.) 
 
 "10. 
 
 ■3 2 A p.C o/j^r-d- P 
 
 '?'', 5f P.C' above I s. d. 
 
 or, si p.O above V^'' ^' "^ 
 37- 17- 6
 
 Appendix, N* 2. 
 
 
 A Comparative STATE, in ten colmims ; Ihowing wheiiy and on what motives, were issued the Bank Notes, witli the average Amount thereof, in each year, during the 20 years, ended with 
 1 809: The ist column shows the years, with the periods of War, and Peace ; the 2d contains the number of legislative Acts, which passed, in each year, for empowering the raising, and 
 expending much money, for local Improvemcnls ; the 3d, jth, and 5 th, represent the whole Shipping, outwards, yearly, the total Exports, and probable Balance of Trade of Great Britain; then 
 follow tiio Bank issues, (excluding PoU Bills), in tacli year ; next to these, stand the Hamburgh Exchanges, in each year, showing when they were favourable, or adverse ; the three con- 
 'iudlnsr columns exhibit the prices of Gold and Silver, the value of Gold coined ; and the amount of the Foreign Coin, and Bullion exported : The epoch of the Bank Bestrictioji is February 1 797. 
 
 
 ('■1 
 
 (2.f 
 
 snips 
 
 Cleiired Out 
 
 Brit^h & Foreign) 
 
 TON'S. 
 
 The 
 
 OFUCI.Vl, V.-VLUr, 
 
 of 
 
 EX POUTS. 
 
 (!■) 
 
 The 
 
 U A L .\ N C E 
 
 of 
 
 TRAD E. 
 
 (5-) 
 
 The 
 
 AVERAGE 
 
 A M U K T 
 
 of the 
 
 BANK NOTES. 
 
 (Poll Bills exctailid.) 
 
 (6.) 
 
 The 
 
 HAlriiUEGIl E.\CHANGES. 
 
 (the' Par being) 
 
 33 SJ,. S Grates, roK £.i. Stalhg. 
 
 {70 
 
 F 
 
 The 
 
 11 I C 
 
 of 
 
 ES 
 
 Tlie 
 
 VALUE of COLD 
 
 Cub,cd. 
 
 (9-) 
 
 The 
 
 F.rn.n 
 
 COINS S< BULLION 
 
 Exported. 
 
 (10.) 
 
 
 GOLD 
 
 (8. 
 
 SILVER. 
 
 
 < ^ 1 791 
 
 VS6 
 116 
 
 1.573.831 
 '.695.975 
 
 £■ 
 20,120,121 
 
 22,731.995 
 
 £. 
 
 989,235 
 3,062,212 
 
 £. 
 
 10,603,500 
 
 11,176,770 
 
 35-5. or, 5i p.C above Var. 
 35. 7i, or, 5 J p. C aioyf Par. 
 
 £■ s. 
 3. 17- 
 3- 17- 
 
 d. 
 6. 
 
 6. 
 
 s. cl. 
 
 5. 2i. 
 
 5- 3. 
 
 2,660,522 
 2,456,567 
 
 £. s. d. 
 1,523,831. 4. 0. 
 
 1,608,837. 17. 6. 
 
 
 ^ 1 .79^ 
 
 131 
 
 1.736,563 
 
 24,905,200 
 
 5.245,842 
 
 10,862,470 
 
 34. 5I, or, 2^ p.C above Par. 
 
 {VI: 
 
 6. 
 0. 
 
 5- 4- ■? 
 5- 6. S 
 
 1,171,863 
 
 1,998,984. 11. 2. 
 
 
 
 ' 1793 
 1794 
 
 171 
 136 
 
 1.427.234 
 1,600,243 
 
 20,390,180 
 26,748,083 
 
 1.133,463 
 4,459,189 
 
 10,914,300 
 10,150,000 
 
 36. 4 i, or, 8 p.C above Far. 
 35. 6{, or, 51 p.C afouc^ Par. 
 
 3- 17- 
 3- 17 
 
 6. 
 6. 
 
 5- 3- 
 5- ^l- 
 
 2,747,430 
 2,558,895 
 
 360,529. 5. 0. 
 840,89*. 17. 6. 
 
 
 
 1795 
 
 139 
 
 1,528,017 
 
 27.123.339 
 
 4,386,450 
 
 10,910,390 
 
 33.8, or, the Par. 
 
 ( 3-17 
 I 4- 4 
 
 6. 
 0. 
 
 t i. I 
 
 493,416 
 
 571,667. 4. 0. 
 
 
 
 1796 
 
 129 
 
 1,732,980 
 
 30,518,913 
 
 7.331.593 
 
 9,985,220 
 
 33.11 i, or, I p.C above Par. 
 
 f 3- >7 
 t 4- 
 
 6. 
 0. 
 
 t la 
 
 464,680 
 
 273,022. 10. 0. 
 
 
 5 > 
 
 1797 
 
 151 
 
 1,500,052 
 
 28,917,010 
 
 7.906,053 
 
 10,403,000 
 
 36.9, or, 9-^ p.C aftoye Par. 
 
 f 3- 17 
 
 t 4- 
 
 6. 
 0. 
 
 5- 7i-i 
 5- 0. S 
 
 2,000,297 
 
 142,531- 5- 0. 
 
 
 1798 
 
 107 
 
 1,684,870 
 
 33.591.777 
 
 5.743.888 
 
 12,695,970 
 
 37.7.!-, or, 1 1-5- p.C above Far. 
 
 i 3- 17 
 t 4- 
 
 9- 
 
 5. 0. 1 
 
 5- 2. j 
 
 2,967,505 
 
 1,264,287. 5. 0. 
 
 
 
 1799 
 
 129 
 
 I.717.325 
 
 33.640,357 
 
 6,802,925 
 
 13,397,820 
 
 34.10, or, 4 p.C above Fai: 
 
 f 3- 17 
 i 4- 
 
 9- 
 0. 
 
 5- 2. > 
 5. 8. 1 
 
 449,962 
 
 1,689,169. 15. 0. 
 
 
 
 iSoo 
 
 162 
 
 2,130,322 
 
 38,120,120 
 
 7.549,515 
 
 -14,563,740 
 
 31.8, or, 6 p.C 6f/oii' Par. 
 
 f 3- 17 
 1 4. 6 
 
 9- 
 0. 
 
 5- 51- > 
 5- 9- .) 
 
 189,837 
 
 614, M9- 3- 6. 
 
 
 
 iSoi 
 
 127 
 
 2,150,501 
 
 37,786,857 
 
 4,991.300 
 
 15.459.050 
 
 31.7, or, 6^ p.C" below Par. 
 
 f 4- 2 
 
 > i 6 
 
 6. 
 
 i: •:: ] 
 
 450,240 
 
 781,3,0, ,0. 0. 
 994,246. 17. 0. 
 
 
 P£ACi:: iiJo2 
 
 180 
 
 2,088,689 
 
 41,411,966 
 
 9,969,647 
 
 16,320,950 
 
 32.11, or, 2J- p.C 6<fo:ii Par. 
 
 C 4- " 
 
 y 3. '9 
 t 4- 3 
 
 9' 
 6. 
 
 6. 0. 7 
 
 5- 6. S 
 
 437.019 
 
 
 f 1803 204 
 
 1S04 i 127 
 
 2,027,608 
 2,05', 135 
 
 31.438,495 
 34.451.367 
 
 3.446,031 
 5.249,877 
 
 16,091,020 
 16,566,330 
 
 34.3, or, if p.C above I'm: 
 35.6, or, ^j- p.C above Vm: 
 
 3- 19 
 4. 
 
 9- 
 0. 
 
 5- 7- 
 5- 6. 
 
 596.445 
 718,397 
 
 1,616,612. 2. 3. 
 ,,,52,885. 17. 9. 
 
 1 
 
 1 X805 
 
 148 
 
 2,101,030 
 
 34.954,845 
 
 4,610,217 
 
 16,442,030 
 
 34.10, or, 3-?- p.C rtSoye Par. 
 
 5" 3- 19 
 
 t 4- 
 
 0. 
 0. 
 
 5- 5- 7 
 5. 10. s 
 
 54,616 
 
 2,065,268. 7. 3. 
 
 < 1806 
 ^ 1 ^So7 
 
 180 
 190 
 
 2,054,472 
 2,056,013 
 
 36.527.185 
 34,566,571 
 
 7,691,278 
 5.711.913 
 
 16,351,820 
 16.359,850 
 
 34.2, or, 1 1 p.C above Far. 
 36.61, or, 2i p.C above ¥a.\: 
 
 4. 
 4. 
 
 . 0. 
 0. 
 
 5- 71- 
 5- 7h 
 
 405,106 
 
 761,695. 3. 3- 
 207,232. 0. 0. 
 
 \ i8o3 
 
 ■" 
 
 1.654.955 
 
 34,554,268 
 
 4,924,915. 
 
 16,672,710 
 
 34.1, or, 1 1 p.C above Pav. 
 
 4. 
 
 . 0. 
 
 I 5- 10- i 
 
 371.744 
 
 910,716. 0. 0. 
 
 
 1 l 1809 243 
 
 2,230,902 
 
 50,301,763 
 
 14,046,553 
 
 18,015,700 
 
 29.91, or. III p.C below Par. 
 
 f 4. 6 
 i 4- 12 
 
 . 0. 
 . 0. 
 
 5- 7- ] 
 5. II. i 
 
 298,946 
 
 1,147,912. 0. 0. 
 
 PiiBted by Luke Hansard k Sons, near lincoln's-Inn Fitlds, London.— January iSii.
 
 21 
 
 A P P E N D I X. 
 
 Appendix, N* III. 
 
 FAR, from me, be the wish, of interrupting any 
 one's business, of hurting any one's feelings, or 
 of disparaging estabhshments, which may have done 
 good, and may be made salutary. But, the best things ; 
 the most sanctified, and most valuable of all things, 
 such as religion and liberty^ are liable to the worst 
 abuses of superstition, and licentiousness : Thus, are 
 more than sex>en /zi^;?^//^^ Country Banks a. prodigious 
 abuse. I am aware, however, that among so great a 
 number, there are many of solid capitals, and great 
 respectability : We might infer as much, from the 
 Evidence of Mr. Richardson^ who speaks of a 
 system of discou?ifSj by the Eastern Country Banks, 
 for the Western traders, w hich are of great amount, 
 and real usefulness, to the commercial world ; and 
 from Mr. T. Thomson's Evidence, which shows, that 
 there are Northern Country Banks, whose notes are 
 taken, by the people, in preference to Ba?ik notes^ 
 themselves. Yet, after fully investigating tlie whole 
 subject, of the Bullion Connnittee's Enquiries, and 
 Report, I am fully satisfied, that there is no real 
 abuse, in the whole linking system, and accustomed 
 practice of (Jreat Brititin, (with those of Ireland I 
 meddle 7io() but, in the Country Banks, of England, 
 , b which
 
 2l8 CONSIDERATIONS ON COMMERCE; 
 
 Mhich appear to me, to be too many, too obscure, 
 and too unsafe, for such a nation. -^Some years ago, 
 when [ had tiiis weighty subject before me, the two 
 follouing papers were communicated to me, from a 
 res|)ectable quarter, wliich lay open some of the 
 7)7anagcmefif, and artifice?, in so sti'ikinga view, that 
 I thought it, for the puhlic benefit, to publish them, 
 in tliis supplementary Appendix. 
 
 INSTRUCTIONS from a Banking House, in 
 London, to their Clerks, on their departure, 
 from Town, to open certain Banks, in the 
 Country. 
 
 You are authorized by us to manage a Bank at 
 under the firm of . 
 
 Tlie business to be, an exchange of paper, for 
 which you are to charge I per cent, stamp and 
 
 postage, and draw on the liouse of Bankers, 
 
 London ; and all bills so drawn, are to be signed in 
 the name of only for the above firm. 
 
 One guinea notes to be issued, and x per cent, 
 allowed to all those, who undertake to keep them 
 Oiit a month. 
 
 Good bills may be discounted, and cash notes 
 given for them, only at such times as you have a 
 ■surplus of cash in the Bank. 
 
 Also
 
 feULT.IO!^ AND COIN J ETC. 2ig 
 
 Also at all times you may discount London bills, 
 givirifT in exchange for them, drafts on our house at 
 21 D.D.* sending such bills up to us per first post. 
 
 You may also discount bills payable at 
 
 giving your shop notes for the same^ but this must 
 be done with caution ; and \i\o\i are not sufficiently 
 acquainted uith the responsibility of the persons 
 bringing such bill, they must bring a person v.- ho will 
 be accountable, or get the same indorsed })y jj. 
 respectable person residing on the spot. 
 
 You must at all times keep the house in London 
 in cash, avoiding as much as possible, throwing 
 them into any advances. 
 
 No person to have shop notes to issue, unless 
 leaving cash or Bank notes for the same. 
 
 You are not to advance any money on account, 
 unless authorized by the house in London to do it. 
 
 You are to get as many accounts opened as 
 possibly you can from the Kiders, giving them 
 drafts on us for the same, and if any expences 
 attend the same, you must charge it to the account 
 of disbursements ; also whatever expences attend 
 
 going from to any place, on account of the 
 
 house* to be charged. 
 
 ll, at any period, any merchant or tradesman wishes 
 to alter this n.oiie of doing business trom tlie above 
 plan luid down by us, y( u must acquaint the house 
 in London, and have iLcir aj probtttion lor the sanie. 
 
 * is not tbis usury ? 
 
 s 2 We
 
 220 COXISDERATIONS ON COMMERCE ; 
 
 We expect that you strictly follow the above 
 rules, keeping the Bank open for doing business 
 the ^arne hours as other Hanks. 
 
 All notes and drafts to be drawn dated 
 
 pavable in London only. 
 
 Provided merchants or tradesmen open accounts 
 with cash, Bank notes, or other casli notes, such 
 person to have shop notes, or cash, allowed them at 
 such times as they require it. 
 
 [Signed by the first Partner for the Firm.] 
 
 Extract of a Letter from the Managing Clerk, 
 
 ip M. A. 
 
 *' On the 6th of July, I opened a Bank at 
 
 and continued there fourteen days without one 
 guinea to commence with, since which I have 
 
 opened the Bank at ■ without a singls 
 
 farthing. There is nothing doing at either house ; 
 
 and we are d d by the people here : — I am 
 
 at present behind the counter, not capable of 
 giving cash for a single Bank note." 
 
 ii. 
 
 Copy of a Letter, dated, at Bristol, on the 25th 
 of Januaiy, 1802, from T. K. to S. T. in 
 • London. 
 
 SiK, 
 
 I consider myself highly honoured by your Secre- 
 trary's reply to my letter, under date 23d May; and 
 as I have been informed that there is a Bill pre- 
 paring,
 
 BULLION AND COIN; ETC. 221 
 
 paring, for tlie regulation of Country Banks, I 
 take the liberty of troubling you with the ioUouing 
 information: should it prove in tlie sliglitest de- 
 gree serviceable, it ^vill give me much pleasure-. 
 I have kept back tlie fjrni of the house, but, under 
 the seal of honour, if thought necessary, it shall be 
 disclosed. 
 
 I Avas some time since applied to by a house in 
 London, to superintend, once a week, a Banking con- 
 cern, Avhich was about to be established, in Bath ; 
 concluding every thing fair, I agreed with the party, 
 but, to my astonishment, when I went over and asked 
 the managing Clerk what was the amount, in cash 
 or Bank of England notes, Avith which he intended 
 to open, his answer was, that he had not a single 
 guinea ; but had brought a bundle of blanks, which 
 he was to sign for the firm, and with those alone, he 
 was to raise a capital, as engagements had been 
 made with people in the town, to circulate their, and 
 return, in lieu thereof cash or Bank notes, for which 
 they were to receive I per cent. 1 beg'd leave to 
 withdraw from so honourable an employment, and 
 the plan was at)andoned: Since v\hich, I received a 
 letter, from the managing Clerk, with copy of orders, 
 for opening sundry Banks, in the North, requesting 
 my opinion of the same ; and as I conceive the 
 Mholo to be a grand scheme of sw uidling, I do not 
 consider it any breach of honour to inclose you 
 copy thereof I have also been oifercd i [)cr cent, 
 s 3 if
 
 222 COXSIDF.RATIOXS ON COMMERCE; 
 
 if I vvoulcl undertake to circulate their notes, but of 
 course declined it. 
 
 Some time since a parncr, in one of the first 
 houses, in this city, told me he had made application 
 to a country grocer, for a debt of a few hundred 
 pounds, whose answer was, that he could not then 
 pay, but that as he was going to open a Bank very 
 shortly, he would make an early remittance. The 
 bankw^as opened — The remittance was made. The 
 increasing evil of Bankers of this description calls 
 aloud upon the Bank of England, to interfere, and 
 provide, a remedy, and it merits their most serious 
 consideration. 
 
 If ;^. 10,000, or ;^. 20,000, were to be deposited, 
 by every country, and town Bank, also in the Bank 
 of England, would it not effectually prevent men of 
 straw, and swindlers, from thus imposing on the 
 public ? 
 
 A circumstance happened at Wells, just before 
 the failure of the Banking concern there, which 
 will shew how much confidence was placed by the 
 country in them. A farmer received a Bank note 
 drawn in favour of Mr. Newland, and brought it to 
 the Wells Bank, to get one of their notes for it, ob- 
 serving, he knew nothing of Abraham Newland, but 
 he knew Master Bobby, there, pointing to Mr. Robt. 
 
 ■ , one of the partners : every endeavour 
 
 was made to persuade him to hold it, to no purpose. 
 
 Their failure a few days after aflbided him an oppor- 
 
 'l tunitv
 
 BULLION' AN^D COIN'; ETC. 223 
 
 tunity of judging more correctly which was best. — 
 In America, 1 have seen the best consequences flow, 
 from the establishment of what are there term'd 
 Brajicli Banks, or Bunks branched off fiom the gn at 
 National Bank, at Philadelphia, who have their Go- 
 vernors and Committees, of course, subservient to the 
 principal; how far the adoption of such a plan, in 
 England, would answer, you are best judge; but, 
 something ought to be done, to put a stop to prac- 
 tices, big with the fate of the trading part of society. 
 1 hope you will have the goodness to pardon this 
 intrusion ; my intentions are pure, and if my com- 
 munications have little worth, they have at least 
 truth for their basis. — But should you consider any 
 part of them worth the attention of your highly re- 
 spectable Committee, I must beg the favour, that my 
 name may not be mentioned. — I am in a public line, 
 here, as Accountant and Broker, and if it were known, 
 that I was the author of this address, it niigfit be a 
 very serious inj^O' to me; although it ought not, for 
 tliere is not a Bank in this city, but what is of the 
 lirst respectability. 
 
 I am, &c. 
 
 T. K. 
 
 P. S. I am happy to say, Sir, your stamping the 
 forged Notes hus given universal satistaction; as well 
 as the [)ublicaliou of the Clciks" names. 
 
 84
 
 224 CON^sIDERATIOXS OX COMAiERCE ; 
 
 With regard to the Country Banks, the fol- 
 lowing poi}2ts seem to have been laid before the 
 Bullion Com mittee, in Evidence : ( i .) As to the 
 prindnk of tlieir issues; (2.) Tim amount of their 
 ■JSiotes; (3.) Their oPTio>iAL Clauses; (4.) Their 
 wodes'oi leiuTmg Money; (5.) Their Discounts; 
 (6.) Their Compay^atiTe Stability; and (7.) The num- 
 bers, at succesive periods. 
 
 1. As to the PRINCIPLE of their issues; Mr. 
 Stuckey a partner, in three Banks, at Bristol, Bridge- 
 ^vater, and Lan^port, in Somersetshire, stated, that 
 tkcy j^eguiate their issues of notes, by the assets 
 they have, in London, to pay them, without much 
 reference to the quamity of Bank of England 
 notes, or specie, rvhich zee have, although we always 
 keep a qadotity of both the latter, in our coffers, 
 to pay occasional demands, made in ttie Country *. 
 He sai 1, they keep only a small quantity of Bank of 
 Eiigldfid notes ; but a lame proportion of guineas : 
 Tliey pay their notes partly in guineas 'f. 
 
 2. With regard to the amount of their Twtcs; tiie 
 Country Bank notes, in circulation, decreased con- 
 siderably, between 1793 and 1797 J. In 1810, their 
 
 * Minutes of Evidence, p. 140. f lb. p. 139. 
 
 X ^~('ti the Kvidpnre of Henry Thornton, Esq. before the Lords 
 Comui..toe, l-j-j-/, iMinules 74 — 5. 
 
 notes,
 
 liULLION AND COIN; F.TC. 225 
 
 notes, in circulation, ^verc supposcnl, to amount to 20 
 wilHons, i/ic/udhfg Scotland'-'. John Henry Tritton, 
 liaikker, London, concurred f. Mr. Richardson, tlie 
 Bili-biokcr, said, " I iiave lieard it calculated at 30 
 millions, (including Scotland) J. ]\Ir. Gilclirist sup- 
 posts the notes, in Scotland, amount to, from 2 
 to 2 1 millions §. 
 
 3. With regard to the optioned Clauses; Mr. 
 Kichardson said, tliat tlie Country Bank notes, zvith 
 optional Clauses, to be paid, at the Bank, or in 
 London, have greatly ine reused, during several 
 year past \\. 
 
 4. With regard to the mode of leiiding Money ; 
 ]\Ir. Stuckey, before mentioned, said, " ^\'e are not 
 " fond of lending upon mortgage, and seldom do 
 " it ; we generally issue our notes, by discounting 
 " good bills, or by lending cash, for a short period, 
 " to agriculturists, upon their own security, or the 
 " best, that we may tliink proper ^. 
 
 With regard to their Discounts; ]\Ir. Thomas 
 Richardson, the Bill-broker, and Agent, for Country 
 Banks, said, that he ncgociatcs the discount of 
 bills, xcith the Country Banks, to the amount of 
 
 • Before t!ie Commons Committee, 1797. — Minutos, p. 
 133—4 ; of '1 bomas 1 hompson, Ksq. before the liuUiun Com- 
 niittce, Minutes p. 95—6—7. And the Evidence of Mr. Klliseii 
 before the LoidsCommittee, 1797, Minutes, p. 88. 
 
 t Minutes of r.ullion Committee, p. 140. 
 
 X Minutes of I'.iiUion Comtnlttee, p. 149. § lb. p. 113. 
 
 II lb. 12.:: Mr.TnttoncoiKuired, lb, J41. i[[ lb. p. 139. 
 
 seven.
 
 \ 
 
 226 C0X5IDERATI0NS ON CO^fMEIlCE; 
 
 ^cvcfi, or eight millions, in the course oj a yeai\ Several 
 other persons Ao about a third as much more, [making 
 in all about ten millimis\'^\ Mobt of tliese bills are 
 sent, from various parts of the Country, up to 
 London ; and transmitted by him to various Country 
 Banks, in different parts, for discount'!"; he also 
 said he sent London bills, to the Country Banks 
 for discount. Of the whole bills, thus discounted, 
 by the Country Banks, at least txco thirds of them 
 arc such as the Bank of England would irfuse to 
 discount, on account of their having more than 65 
 days to runX: This practice of discounting, with 
 the Country Banks, prevailed previous to the re- 
 striction §. The sums of money, which he lends foi' 
 Country Bunkers, on discount, arc 50 times more, 
 than the sums borroiced for Country Bankers |I. 
 On this great discount of bills, by tiie Country 
 Banks, there have been but very small losses of 
 late. There were many more losses, in proportion, 
 before the Bank r€strictio7i%. 
 
 6. With regard to their stability; Thomas Thomp- 
 son, Esq. stated, that there have been fezver inter- 
 ruptions to the credit of Country-bank paper, since 
 the Mispcnsion of payments, at the Bank, than there 
 were before*^'. Mr. Tritton said, that, by the re- 
 moval of the restriction, the Country Banks would be 
 more liable to a run on them 'jf. 
 
 * Minutes, p. 123, 125. \ lb. p. 122. X lb. p. 123. 
 
 § lb, p. 123. I! lb. p, 122, 5[ Ib.p,i24.. 
 
 •** Minutes p. 115. -^t lb. p. 141. 
 
 Witli
 
 BULLION AND COIN; ETC. 2J7 
 
 7. ^Vith regard to their Number; it was said 
 that, tiieir number decreased, from about 280, in 
 the beginning of 1703, to about 230, in the begin- 
 ning oi 1707* . In 1 808, there were some more 
 than {'00 : By the list lately published ( i S 1 o) there 
 appears to be 721 j". Ijut, both these numbers in 
 1S08, & 1810, are incorrect; as they include all the 
 Banks, and branches of Banks, in Scotland; and 
 count some t>vice over. The Country Banks have 
 increased 100, within the last tico years: In 1810, 
 the number of Country Banks, in England, and 
 M^ales, were 646, including, 2 in Berwick, 3 hi 
 Guernsey, 2 in Jersey, and, 1 in the Isle of Man, 
 In 1810, the number oi Banks, in Scotland, were 
 ';^Q ; of this 36, there are 1 3 in Edinburgh ; viz. 3 
 chartered Banks, and 1 others ; and the number of 
 branches is someuhat more ; in all about 83. In 
 1810, the total number in Britain, exclusive of 
 London, ^as 729 ; there were then in London 66^. 
 But, the subjoined Document will be found more 
 specific, and satisfactory. 
 
 • Evidence of iMr. Ellison, Agent for the Country Banks, 
 Minutes of Lords Comraittee, 1797, p. 87. 
 
 t Evidence of Mr. Tritton, Minutes Bullion Committee, 140. 
 
 J See the Evidence throughout.
 
 22S 
 
 CONSIDERATIONS ON COMMERCE ; 
 
 A STAT EM EN T of the Numbers, and Places, of the Banks of 
 England, Wales, and Scotland; distinguishing ihe Nv tubers, with 
 the Population, in each District. [From tho printed List, 1810, 
 and other Authorities.] 
 
 
 Banks 
 
 Population 
 
 
 Banks 
 
 Population 
 
 
 ill 
 
 ill 
 
 
 in 
 
 in 
 
 
 1810. 
 
 180 i. 
 
 Midd'csex, exclu-')| 
 
 1810. 
 
 1801. 
 
 
 
 
 
 
 Bedfordshire - 
 
 4 
 
 63.S93 
 
 siie ol Londo' >; 
 
 2 
 
 89,567 
 
 JJtrksliire - - 
 
 lb 
 
 109.215 
 
 and Wesiininsti-r J 
 
 
 
 Buckit.ghamshire - 
 
 6 
 
 107,444 
 
 Moniiioiitlishirt; 
 
 4 
 
 4.5,.582 
 
 Carobridgeshire 
 
 JO 
 
 • 69M6 
 
 N.-rfolk - -■ - 
 
 17 
 
 2^3.371 
 
 Chehir<? - - - 
 
 10 
 
 191,751 
 
 NiirthampLonshirc - 
 
 8 
 
 131,7.57 
 
 Cornwall - - - 
 
 20 
 
 li^^^^69 
 117,230 
 
 iXortiuinibeiland - 
 
 5 
 
 14bi,9l4 
 
 Cumberland 
 
 12 
 
 Nottniijbanishjre 
 
 12 
 
 140,350 
 
 Derbyshire 
 
 11 
 
 161 14'2 
 
 O.xtokhliire 
 
 14 
 
 109,620 
 
 Devonshire 
 
 35 
 
 343,001 
 
 Rulland - 
 
 2 
 
 16,356 
 
 Dnrsetshire 
 
 15 
 
 115,.3l9 
 
 Shropshire 
 
 21 
 
 1€7,639 
 
 Durham - - - 
 
 8 
 
 160,361 
 
 Suinerfet - - - 
 
 34 
 
 273.7^0 
 
 Essex - - - 
 
 13 
 
 226,43? 
 
 Staffordshire - 
 
 21 
 
 239,153 
 
 Cloucestershire 
 
 34 
 
 250,B09 
 
 Suffolk - . - . - 
 
 13 
 
 210,431 
 
 JIa raps hire 
 
 oO 
 
 219,656 
 
 Surrey, txcln.'^ive of 7 
 Soulhwark - - J 
 
 14 
 
 201,595 
 
 Herefordshire ^ 
 
 6 
 
 8'.>,191 
 
 
 
 Ilerifoirdshire - 
 
 10 
 
 97,577 
 
 Sussex - . - 
 
 20 
 
 159,311 
 
 lluutingdonslikc 
 
 3 
 
 .^7,5(i.3 
 
 Warwickshire - 
 
 20 
 
 208,190 
 
 Kent 
 
 31 
 
 307,6.4 
 
 Westmorland - 
 
 2 
 
 41,617 
 
 Ijancasbirs 
 
 15 
 
 672,731 
 
 Wiltsliive - - - 
 
 17 
 
 185,107 
 
 Leicestershire - 
 
 11 
 
 130,081 
 
 Wurcestershire 
 
 13 
 
 139,333 
 
 Liacoliiihire - 
 
 21 
 Th 
 
 208,557 
 
 Yorkshire 
 
 51 
 
 8j>8,892 
 
 
 3 Totnl, in Enghnid . - - 
 
 Gi:i 
 
 7,548,237 
 
 
 Th 
 Th 
 
 e Total, in Wales - _ . 
 5 Total, in England, and Wales 
 
 25 
 
 541,546 
 
 
 63S 
 
 8,0«y,783 
 
 In Berwick 
 
 on Twe< 
 
 d - - . - . . 
 
 2 
 
 7,187 
 
 
 640 
 
 8,096,970 
 
 In London, 
 
 Westm 
 
 inster, and Southwurk ; being 66 ^ 
 
 67 
 
 877,876 
 
 Bankers ; 
 
 and Tl 
 
 e Bank of Englanu - - -5 
 The Total - 
 
 
 707 
 
 8,974,846 
 
 In the Isle ( 
 
 >f Man 
 
 
 1 
 
 
 
 in Uueriisc 
 
 y - 
 
 
 3 
 
 — 
 
 la Jersey 
 
 The go 
 
 neral Totid of all tliose Districts - 
 
 2 
 
 — 
 
 
 713 
 
 8,074,846 
 
 
 
 D" - - of Scoliand - 
 The Grand Total 
 
 83 
 
 l,6f8,303 
 
 
 7V'6 
 
 _ 
 
 lO,.593,Mi) 
 
 The
 
 liVLLlOV AND COIN I ETC. 
 
 229 
 
 The recapitulation of ENGLAND. 
 
 
 - Bedford Town 
 Biggleswade - - - - 
 Luton - - - - - 
 
 Total in Bedfordshire 
 
 Reading Town _ _ - 
 
 Abingdon - - - _ 
 
 Windsor 
 
 Newbury _ - - « 
 
 Walhngford - - - - 
 
 Other Banks in Berkshire 
 
 Total in Berkshire - 
 
 - Buckingham Town 
 Aylesbury - - - - 
 Other Banks in Buckingham- 
 shire . - - _ 
 
 Total in Buckinghamshire 
 
 Cambridge Town - - - 
 Other Banks in Cambridgeshire 
 
 Total in Cambridgeshire - 
 
 Chester City 
 Macclesfield Town 
 Other Banks in Cheshire 
 
 Total in Cheshire - 
 
 Banks 
 III iblO. 
 
 Pcpuiatioa 
 in 1801. 
 
 Bedfordshire - 
 
 1 
 
 a 
 
 1 
 
 3'948 
 1,650 
 
 3,095 
 
 
 4 
 
 ^3,393 
 
 Berkshire - - - 
 
 
 
 4 
 2 
 2 
 2 
 3 
 
 15 
 
 9^742 
 4,356 
 4,793 
 4,275 
 1.744 
 
 
 109,215 
 
 Buckinghamshire 
 
 1 
 
 2 
 
 3 
 
 2,605 
 3,186 
 
 
 6 
 
 107,444 
 
 Cambridgeshire - 
 
 3 
 7 
 
 10,087 
 
 
 10 
 
 89,346 
 
 Cheshire - - - 
 
 2 
 6 
 
 15,052 
 8.743 
 
 
 10 
 
 i9>,75i 
 
 Cornwall
 
 2:^0 
 
 COXSIDERATIONS ON COMMERCE; 
 
 
 
 - - Launceston the Comity Town - 
 
 FahTiduth _ - - - 
 Other Banks in Cornwall 
 
 Total in Cornwall - 
 
 - - Carlisle Town _ - - 
 
 Whitehaven - - - - 
 Workington - - - - 
 Other Banks in Cumberland - 
 
 Total in Cumberland 
 
 - - Derby Town ... 
 
 Other Banks in Derbyshire - 
 
 Total iu Derbyshire 
 
 - - Exeter City 
 
 Plymouth Town . - - 
 Other Banks in Devonshire - 
 
 Total in Devonshire 
 
 - - Dorchester, the County Town 
 
 Poole 
 
 Weymouth - - . - 
 Bridport . _ _ - 
 Blandford - - - - 
 Other Banks in Dorsetshire - 
 
 Total in Dorsetshire 
 
 - - Durham City . _ _ 
 
 Sunderland Town - - - 
 Stockton . - - - 
 Darlington - - - - 
 
 Total in Durham County 
 
 B«nks 
 ,11 1810. 
 
 Population 
 111 1801. 
 
 Cornwall - 
 
 2 
 
 3 
 15 
 
 1,483 
 3,684 
 
 
 20 
 
 188,269 
 
 Cumberland 
 
 4 
 3 
 
 2 
 
 3 
 
 10,255 
 
 8,74-2 
 5,71^ 
 
 
 12 
 
 117,230 
 
 Derbyshire 
 
 4 
 
 7 
 
 10,832 
 
 
 11 
 
 161,142 
 
 Devonshire 
 
 6 
 
 7 
 
 22 
 
 17,412 
 43,194 
 
 
 35 
 
 343,001 
 
 Dorsetshire 
 
 2 
 2 
 2 
 2 
 « 
 
 2,402 
 4,761 
 3,617 
 3,117 
 2,326 
 
 
 15 
 
 115,31P 
 
 Durham - 
 
 2 
 
 3 
 
 2 
 
 7' 5 30 
 
 12,412 
 
 4,009 
 
 4,670 
 
 
 8 
 
 160,361 
 
 Essex
 
 BULLION AND COIN; i.Tf. 
 
 2rA 
 
 
 CoU-hester - - - - 
 Chelmsford - - - - 
 Other Banks in Essex - 
 
 Total in Essex 
 
 Glocester City 
 r>ribtol City 
 'J'ewkesbury Town 
 Cirencester - - - - 
 Other Banks in Glocestershire 
 
 T'jtal in Glocestershire - 
 
 Hereford City _ - - 
 Other Banks in Herefordshire 
 
 Total in Herefordshire - 
 
 liertford To%vn - - - 
 St. Albans - - - - 
 Other Banks in Hertfordshire 
 
 Total in Hertfordshire - 
 
 - Huntingdon Town 
 
 St. Neots - - - - 
 Total in Huntingdonshire - 
 
 Canterburv- City - - - 
 
 Rochester City 
 
 Dover To\vn 
 
 Maidstone - - - . 
 
 Deal 
 
 I'aversham - . _ _ 
 KamsgHte - - - . 
 (■iravesend - - . . 
 Other Bunks in Kent - 
 Total in Kent - - . 
 
 Banks 
 inlJilO. 
 
 Population 
 inlHOl. 
 
 Essex - - - 
 
 2 
 9 
 
 11.520 
 
 3.755 
 
 
 »3 
 
 2-26,437 
 
 Cnoceslci shire - 
 
 4 
 11 
 
 2 
 
 2 
 
 15 
 
 7.579 
 
 63,045 
 
 4.199 
 
 4,130 
 
 
 34 
 
 250,809 
 
 ilerefordsLire 
 
 2 
 
 4 
 
 6,328 
 
 
 6 
 
 89,191 
 
 Hertfordshire - 
 
 1 
 1 
 8 
 
 3,360 
 3,03s 
 
 
 10 
 
 97,577 
 
 Huntingdonshire 
 
 2 
 
 2,035 
 1752 
 
 
 •5 
 
 37.50!i 
 
 Kent - - - . 
 
 2 
 
 2 
 
 3 
 2 
 2 
 2 
 2 
 IS 
 
 9,000 
 
 6,817 
 14.845 
 8,027 
 5,420 
 3.364 
 3.110 
 2,4«3 
 
 
 ;{« 
 
 .S<'>7,f.-.-4 
 
 
 
 
 LanciibiiirQ
 
 213 
 
 CONSIDERATIONS ON COMJrERCE ,* 
 
 
 - Lancaster the County Town - 
 JManchfstcr - - - - 
 Liverpool . - - - 
 Wigun 
 
 Other- Banks in Lancashire 
 
 Total in Lancashire - 
 
 - Leicester Town . - - 
 Other Banks in Leicestershire - 
 
 Total in Lecestershire - - 
 
 - Lincoln City - ► - 
 Grantham Town - - - 
 Boston . _ - _ 
 Staailbrd _ - - - 
 Other Banks in Lincolnshire - 
 
 Total in Lincolnshire - 
 
 - Uxbridge - - - - 
 Staines - - - - 
 
 Total, exclusive of London 
 and Westminster - 
 
 Monmouthshire Total 
 
 - Norwich City - - - 
 Yarmouth Town - - - 
 Lynn Regis _ - - - 
 Other Banks in Norfolk - 
 
 Total in Norfolk • 
 
 Banks 
 ill 1810. 
 
 I'opiilaMoa 
 in 1801. 
 
 Lancashire - 
 
 2 
 2 
 5 
 
 4 
 
 0,030 
 84,020 
 
 10,989 
 
 
 ^•5 
 
 (572,731 
 
 Leicestershire - 
 
 3 
 8 
 
 1 1 
 
 iC,953 
 
 i",o,'.8i 
 
 liucolnshire - 
 
 2 
 2 
 6 
 
 3 
 
 8 
 
 7,398 
 7,014 
 5,026 
 4,022 
 
 
 21 
 
 2oS,557 
 
 Middlesex- - 
 
 1 
 
 2,111 
 1,750 
 
 
 2 
 
 89,567 
 
 
 4 
 
 4',582 
 
 Jv^orfolk - - 
 
 5 
 
 2 
 2 
 
 8 
 
 17 
 
 , 
 
 36,^54 
 
 14,8+5 
 10,096 
 
 273,371 
 
 
 1 
 
 Northa 
 
 mptonshire
 
 BULLION AND COIN ; FTCk 
 
 
 233 
 
 
 Northimpton Town -' 
 Petei+iorough City 
 Other Banks in Northampton- 
 shire _ - - - 
 
 Total in Northamptonshire 
 
 Newcastle-on-Tyne 
 
 Morpeth . - - - 
 
 Total in Northumberland 
 
 Nottingham Town 
 Newark - - - 
 Other Banks in this Shire 
 
 Total in Nottinghamshire 
 
 Oxford City - - - 
 Henley Town . - - 
 Chipping Norton - - - 
 Other Banks in this Shire 
 
 Total in Oxfordshire - 
 
 . - - - Total - 
 
 Shrewsbury County Town 
 Wellington - - - - 
 Bridt^enorth - - - - 
 Liiiilow . - - - 
 Other Banks in Shropshire 
 
 Total in Shropshire 
 T 
 
 in 1810. 
 
 fupulation 
 in 1801. 
 
 Kortbamptonshire 
 
 1 
 
 5 
 
 7,02O 
 
 3,449 
 
 
 8 
 
 131,757 
 
 Northumberland - 
 
 4 
 
 1 
 
 28,366 
 2,951 
 
 
 5 
 
 '49,914 
 
 Nottinghamshire - 
 
 6 
 
 2 
 
 4 
 
 28,861 
 6,730 
 
 
 12 
 
 140,350 
 
 Oxfordshire - - 
 
 4 
 
 2 
 2 
 6 
 
 11,694 
 2,948 
 1,812 
 
 
 H 
 
 109,620 
 
 Rutland - - • 
 
 2 
 
 16,356 
 
 "Shropshire - • 
 
 3 
 3 
 
 2 
 
 2 
 
 11 
 
 14,739 
 7,531 
 4,403 
 
 3,897 
 
 
 21 
 
 167,639 
 
 
 
 Soaierset
 
 2.34 
 
 CO\-srT'F.TlATTf)yS ON" COMMERCE 
 
 
 
 
 ISai.k^ 
 
 PojUilation 
 
 
 
 
 111 1810 
 
 in 1801. 
 
 Somerset 
 
 - - - Bath-City - 
 
 . 
 
 6 
 
 27,700 
 
 V 4-r. 
 
 'i aiiiiton Town 
 
 - 
 
 3 
 
 5.7^4 
 
 
 BrJd^ewiiter, 
 
 - 
 
 3 
 
 3^634 
 
 
 Wiiicanlon - - - 
 
 _ 
 
 3 
 
 1,77- 
 
 
 WeHin_,ton - - - 
 
 - 
 
 3 
 
 4>o;33 
 
 
 Yeovil - - _ 
 
 - 
 
 3 
 
 ■2.774 
 
 
 Fronie . - _ 
 
 - 
 
 2 
 
 8,748 
 
 
 Other Banks in this Shire 
 Total in Somersetshire 
 
 
 1 1 
 
 
 
 34 
 
 273.750 
 
 •IIamp(lur( 
 
 J - - Winchester City - 
 
 
 3 
 
 6,069 
 
 
 Southampton Town 
 
 - 
 
 3 
 
 7,913 
 
 
 Portfmouth and Portfea- 
 
 - 
 
 3 
 
 32,166. 
 
 
 Ringwood - - - 
 
 - 
 
 •2 
 
 3,222 
 
 
 Andover - . - 
 
 - 
 
 2 
 
 3.304 
 
 
 BasiriHStoke - - - 
 
 - 
 
 2 
 
 •2,589 
 
 
 I-yminglon - - - 
 
 - 
 
 2 
 
 2,378 
 
 
 Iste of Wight 
 
 - 
 
 4 
 
 22,097 
 
 
 Other Bankb in this Shire 
 Total in Hampshire 
 
 re ^ - Litohfield City 
 
 - 
 
 9 
 
 
 
 30 
 
 219,656 
 
 Staffordsh 
 
 ^ 
 
 4.512 
 
 
 St .fiord Town 
 
 - 
 
 3 
 
 3.898 
 
 
 Wulverhath[)ton . - 
 
 
 3 
 
 12,565 
 
 
 Walsall 
 
 - 
 
 2 
 
 5.177 
 
 
 Uttdxeter . - - 
 
 - 
 
 3 
 
 2-779 
 
 
 Other banks in this Shire 
 Total in Stafibrdfhire 
 
 - -■ Ipswich, the CoiHity Town 
 
 - 
 
 8 
 
 
 
 21 
 
 239,153 
 
 Sufiblk . 
 
 2 
 
 11,277 
 
 
 Bury St. F^iiiund'a . 
 
 - 
 
 3 
 
 7.655 
 
 
 Stowmarket 
 
 - 
 
 2 
 
 1,761 
 
 
 Oth«r Banks in Suffolk - 
 Total in Suffolk 
 
 - 
 
 6 
 
 — 
 
 
 T? 
 
 210,431 
 
 Surrej
 
 BULLION AND GOTX t ETC. 
 
 235 
 
 Srwrrey 
 
 Suffex 
 
 Warwickshire - 
 
 AVestmoreland 
 
 Wiltshire 
 
 Guildford, Uie County Town 
 
 Croydwn 
 
 Faruham - . - 
 
 Other Bunk* in Surrey - 
 
 Total in Surrey, exclusi 
 ot Southwark 
 
 elusive 7 
 
 Chichester City 
 
 Brigliihelmston 
 
 Lewes _ _ ■ 
 
 Arundel > - . 
 
 Worthing - - - 
 
 Other Banks in this Shire 
 
 Total in Sussex 
 
 Coventry City 
 
 Warwick Town 
 
 Birmingham 
 
 Other Banks in this Shire 
 
 Total in Warwickshiie 
 
 Kendal 
 
 Total iu Westmoreland 
 
 Salisbury City 
 
 Dr\ zes Town -f 
 
 Wunniubter 
 
 Chi|.<periham 
 
 JMarlborouth 
 
 Other Banks in this Shire 
 
 Total in NViltshirc - 
 
 T a 
 
 Banks 
 in IbOl. 
 
 Pujiulai.on 
 111 1801. 
 
 •2,634 
 5,743 
 2,508 
 
 201,595 
 
 3 
 
 4w44 
 
 3 
 
 7.339 
 
 2 
 
 3>;>o9 
 
 2 
 
 1,855 
 
 •2 
 
 — 
 
 8 
 
 — 
 
 20 
 
 '59,311 
 
 5 
 
 16,049 
 
 3 
 
 5,775 
 
 7 
 
 73,670 
 
 5 
 
 — 
 
 •20 
 
 208,190 
 
 2 
 
 6,892 
 
 ! ^ 
 
 41,617 
 
 ^ 
 
 7,668 
 
 2 
 
 7.909 
 
 2 
 
 4,932 
 
 2 
 
 3>366 
 
 '1 
 
 •2,367 
 
 7 
 
 — 
 
 n 
 
 185,107 
 
 AVorcesiti skirt
 
 rON.SIDFRATIONS Q-NT COMMERCE 
 
 
 
 
 
 
 B>.(a..s 
 
 Populaliou 
 
 
 
 
 
 
 IMltJtO. 
 
 lu lt,01. 
 
 Worcestershire - 
 
 VN^nrcester City 
 
 . 
 
 _ 
 
 . 
 
 •i 
 
 iii47o 
 
 
 Ptidley Town 
 
 - 
 
 - 
 
 - 
 
 'i 
 
 10,107 
 
 
 Kidderminster 
 
 - 
 
 - 
 
 « 
 
 2 
 
 6,1 \o 
 
 
 ■ Be.wdley 
 
 - 
 
 . 
 
 - 
 
 2 
 
 3.671 
 
 
 Stourbridte 
 
 - 
 
 - 
 
 - 
 
 2 
 
 3,431 
 
 
 Other Banks in this Shire 
 Total in Worcestershire 
 
 York City - 
 
 - 
 
 - 
 
 3 
 13 
 
 
 
 139,333 
 
 yorkbbire - - 
 
 2 
 
 16,145 
 
 
 Leeds - 
 
 - 
 
 - 
 
 - 
 
 5 
 
 3'.,669 
 
 
 Hull - 
 
 - 
 
 - 
 
 - 
 
 5 
 
 •i9,i.0 
 
 
 Sheffield - 
 
 - 
 
 - 
 
 - 
 
 2 
 
 31-3I4 
 
 
 Huddersfield 
 
 - 
 
 - 
 
 - 
 
 \ 
 
 7,i68 
 
 
 Whitoy 
 
 - 
 
 - 
 
 - 
 
 3 
 
 7,4>^3 
 
 
 Plalifax 
 
 - 
 
 - 
 
 - 
 
 2 
 
 8,f-.~6 
 
 
 Wakefield - 
 
 _ 
 
 . 
 
 ^ 
 
 2 
 
 8>iSl 
 
 
 Mai ton 
 
 - 
 
 - 
 
 - 
 
 3 
 
 3,788 
 
 
 Rippon 
 
 - 
 
 - 
 
 - 
 
 3 
 
 3,211 
 
 
 Pontefract - 
 
 - 
 
 - 
 
 - 
 
 3 
 
 3^144 
 
 
 Doncaster - 
 
 - 
 
 - 
 
 - 
 
 2 
 
 5,697 
 
 
 Scarborough 
 
 - 
 
 - 
 
 - 
 
 2 
 
 6,6S8 
 
 
 Beverley 
 
 - 
 
 - 
 
 - 
 
 2 
 
 5,401 
 
 
 Knaresborough 
 
 - 
 
 - 
 
 - 
 
 2 
 
 3,388 
 
 
 I\ichmond - 
 
 - 
 
 - 
 
 - 
 
 2 
 
 2,861 
 
 
 Other Banks in this 
 Total in Yorksb 
 
 Shire 
 ire - 
 
 - 
 
 lO 
 
 
 
 5 + 
 
 85^,892 
 
 The recapitulation of WALES. 
 
 Swansea _ _ . 
 
 Carmurthen - - . 
 Haverfordwest 
 
 Wrexham _ - _ 
 
 Other Banks, in Wales - 
 
 3 
 
 2 
 
 2 
 
 16 
 
 23 
 
 6,099 
 
 5,548 
 2,880 
 2,575 
 
 541,546 
 
 The
 
 BULLION" AND COIN; ETC. 
 
 237 
 
 The recapitulation of SCOTLAND. 
 
 The chartered Banks in Edinburgh, - - 3 
 Other Banks, in Edinburgh, that issue notes -i 
 Bankers, in Edinburgh, that do nut issue notes 8 
 The Leilh Bank ; all in Edinburghshire - l 
 Banks, in Glasgow — in Lanerkshire 
 Banks, in Dundee — in Forfarshire - 
 Banks, in Aberdeen — in Aberdeenshire - 
 Banks, in Paisley - 
 B.inks, in Greenock 
 Batiks, in Falki k 
 
 D° - - in Stirling 
 Bank, in Cupar - 
 Fiteshire-Bank - - 
 Bank, in Avr - - 
 Bank, in Kilmarnock 
 Bank, in Perth 
 Gallowav-Bank 
 
 :} 
 
 in Renfrewshire 
 
 in Stirling-shire 
 
 in Fife-shire 
 
 in Ayr-shire 
 
 in Perth-shire - 
 in Kircudbri 
 Stewartr 
 
 ght7 
 tiy j 
 
 The Total of the Banks, in ScoTLA^'D 
 
 Of those 36, about 22 issue notes : There are 
 
 Branches of the Bank of Scotland - - 20 
 
 At Glasgow, a Branch of the Royal Bank - 1 
 
 Branches of the British Linen Company - 15 
 
 Total Branches of the Chartered Banks - 36 
 Branches of the Dundee, Aberdeen, and 7 
 Glasgow Banks - - - j 
 
 The whole Banks, and Branches, in Scotland 
 
 Banks 
 in 1810 
 
 Population 
 
 ill In .1. 
 
 114,124 
 
 150,690 
 
 99,127 
 122,279 
 
 79>89i 
 50,825 
 
 93,743 
 84,206 
 
 126,466 
 29,211 
 
 1,^18,303 
 
 F I N I S.
 
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 near Lincoln's-Inii Fields.
 
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