The British Press; or, Morning Literary Advertiser. — London, England, 1810-08-17 00:00:00

vernor of the Bank, Mated vev dibilutttiphit ton. currauce in opinion with Mr. W....hi5...re upou this particular point. He referred 4s to the 'teenier io which Bank notes are issued, resulting - from the applications made for discounts to supply the ne cessary Want of Bank notes, by which their issue in allionnt is so controlled that it ena never difitOnat to an excess." Ile considers ." the amount of the' Bank notes in circulation eta being controlled by the otta,iotis 6f the public, for internal purposes," and that " from the mintier in which the issue ut Bank notes is controlled, the public will never call fur more than is absulut4ly necessary for their wants." Another Director of the Wank. Mr. Harman. being asked. If he thought that the sum total of discounis applied for, even though the accommo dation afforded should he on the seentity of good hills to aide persons, might he such as to produce 1.0411 r races in the quantity of the Bank issues if fully complied with? He masa ered, 1 think if afr Miscount only for solid persons, and sub . paper as is fur real Irmo fide transactions, we cannot materially try." And he afterwards states, that afloat he should consider as the test of a sit per.bund. once would be, money bring more plintiful iu the market." It is material to observe, that both Mr. Whit more end Mr. Peeves Rtato, that `• the Bank does not comply with the abide demand upon them for discounts, and that they sire never induced, be a view to their own profit, to wish their issues Ire. youd what they deetu consistent with the public in terest." Another very important part of the evidence of theee Gentlemen upon this point, is contained in the following extract:— • " Is it your opinion that the same security would mist against any excess in the Mines of the Bank, sf the rate of the discount were reduced from I. to 41. per cent. !" Answer.—" The security of ■n excess of issue would be, I conceive, precisely the same." Mr. Peerse.—" I concur in that answer." " If it were reduced to 31. per cent. r—Mr. Whitmore, " I conceive there would be no diff.- ►enre if our practice remained the same as cow, of not forcing a note into circulatioo." Mr. Pears— " cancer ill that enswer." Your Committee cannot help again calling the attention of the House to the view which this Eel dance presents of the consequences which have re volted from the peculiar situation in which the Bank of England was tamed by the suspension of Cash payments. So long as the paper of the Bank was convertible into specie :it the will of the holder. it was emsagh, but for the safety of the Bark mid for the public interest in whit regarded its circulating medium, that the Directors attlided only to the character and quality of the bills discounted, as real ones, and payable at fixed mid short period.. They could not much exceed the proper hounds in respect of the quantity and amount of bills discount ed, so as thereby to produce an esccsss of their paper in circulation. without quickly finding that the surlrins returned upon theniselres in demand for specie. The private interest of the Bank to guard lb. ioselves against a continued detains(' of that na ture. MIS a sufficient protection for the public ageism any oneh enress of thank paper, as would occasion n instetisl fsil• in the relative value of the circulat ing mr buns. The reste*tion of cash payments, es has already been sheen, haring rendered the same preventive policy no longer necersary to the Bank. has removed that check upon its issues which was the public security against as excess. When the B Ink Directors were no longer eitpo•ed to the in. cquiteisience of a drain 111111011 them for gold, they naturally felt that they bad no such inconvenience too giisrd against by a more restrained system of discounts and advances: and it was very natural for them to pursue as before (hut •ithant that sort of K issed and limitation which teatime( become no. tierces try to their own 'trinity) the same liberal sod passivist system of coinutereint R4'4111(111 from watch the prosperity of their nen establishment had ste-selte I, as well as in a greet degree the rummer- Pal prosperity of the whelp country. It was !wh eel liar the Bank /rectors to believe, that noihing low hesselit e sold accrue to the public at large. e bile they s ra the growth of Bank profits go baud in hand with the aceo timodations grant d to the merchants. It was hardly to he expected of the I h.tetor. of the Bank, that they shout I be fully as is -a o f the consequences that might result from p et er perecing, after the auspeurion of cash pay. twssism. the same system which they had found a safe sue lwfore. To watch the operation of money a 1 sw , and to provide against the injury which might r stilt from it to the putahe inieresto, was the pro- voter, not so ustseh of the Bank as of the Legis • lattice : &owls in the opinion of your Committee. there ie season to regret that this House has not inked ratty notice of all the consequences of that law. Ry far eic moat important of those conseqiienees i., that while the convertibility into specie no iouger e.i.ts ea 'a check to an over twee of paper, the Bank Directors hare not perceived that the re moval of that check rendered it possible that suth on exams might be Waited by the discount of per fectly good bias. So for from perceising this,your , Committee have shewn that they maintain the con trary doctrine with the utmost coutidence. however it miy be qualified occasional some of the it expressions. That this doctrine is • very fallaciou. one, your Committee cannot entertain a deth% The fallacy, rpm which it is founded, lies in nut i+iiiinguishing between an lidva.ice of ca.•i:al In and an addetiol of sootily s•f c,ir: rote the general maw of circulating If the advance of capital only is considered, ■. m a de to • who are retitle to employ it in ■n* productive audertakings, it is evident there need be so other limit to the total amount .f advances than abet the means of the lender. and his prudence in the oclectimi of borrower.. may impose. Wit, in the present situation of the Book, intrusted as it is with the functiop of supplyinz the public with that paper currency which forma the Firms of our emulation. cud at the same time not .uhj•cted to the liability of ciinvertingthc paper into speci►. eve n advance which it makes of capital to die mer chants, in the shape of discount, 'becomes as addi tion also vs the mass of circulating medium. to the fPiit in-donee, when the advance is made by notes paid in discount of a bill, it is undoubtedly 110 much eapital.so much power of ma k int! purchase., placed ia the hands of the m►rchart who receives the tones ; amid if those Lands ...e t..fe, !be Gioetatiol is so far, etc) in this Its Gfs Ara. Useful and pro re tire to the public. But as soou as the portion of circulating medium, in which the advance was thus made, performs in the head* Of hits to whom it was advanced this its first operation ms capital, as Bobo us the antes areexchatiged by him for w ine other article which is norcapital,lhey fall into the channel of circulation as so. much circulating me diate, and form an addition to the mass of cur. ivory. The iteressary effect of every inch addition to the moat, is to diminish the relative value of any given portion of that arse iu exchange for commo dities. If the addition were made by notes conver tible into specie, this diminution of the relative va lue of any given portion of the whole mass would speedily bring back upon the Bank, which issued the notes, as much as ass excessive. But if by kw they' are not so convertible, of coarse this excess will not be brought back, but will remain in the chenillel of circulation, until paid in again to the Batik itself in discharge of the bills which were ori ginolly discounted. During the whole lime they remain out. they perform all the fitnctions of circu lating %medium ; and before they come to he paid in discharge of thaw bills, they have already been followed by a new issue of notes in a similar opeta tion of discounting. Each surceasive advance re peats the seine prioress. If the a hole sum of dis counts continues outststanding at a given amount, there will remain permenently out in circulation a corresponding amount of paper ; and if the amount of discounts as progressively increasing, the 'moults of piper which retuaina out in circulation over and above abet is otherwise wanted for the oceablous of the public, will progressively increase also, and the money prices of cominolties will progressively rise. This progress may he as indefinite as the range of speculatiou and adventure is a great commercial country. It is necessary to observe, that the law, which in this country limits the rate of interest, and of course the rate at which the Bank can legally discomet, eNpobes the Bank to still more extensive demands for commercial discounts. While the rate of com mercial profit is very considerably higher than five per cent. as is has lately , been in many brooches of our foirigu trade, there is in fact no limit to the de mands which merchants of perfectly good capital, and of the most prudent spretwit 'ftetirprire. may ' be tempted to make upon the Rea fee *retort sae dation and facilities by disorient.. ;Nor can any argument or illustration place in a more striking point of view the extent to which such Oahe Rauk Directors, as were examined before the Committee, seem to have in theory embraced that doctrise upon which your Comuottee have made these ob servation., as well as the practical consequences to which that doctrine may lead in periods of a high spirit of commercial adventure, than the opinion which Mr. Whitmore mid Mr. Primo have deli vered ; that the mine complete security to the public against any excess in the issues of the Batik, troold vest if the rate of discount were redoced from dive to four, or even to three per teat. From the evidence, however, of . the kite Governor and Deputy Governor of the Bata, it appears, that though they stale the primcipletanuah, that there can be no excess of their eircu;ation if issti,.l or.- cordiug to the r rules of docooot, art i hey .tt,E1.,;,. the idea of actiog up to it in its *hole c:oeitt ; though they stated the applications' for the al. ..... t of legitimate bills to he their so!ir criterion of abun dance or searcety, they gave your Cosonottee to understand, that they do not discount to thc fall extent of snchlipplications. lit other .sords, the Directors& not art np te the iiihriple which they represent as one perfectly sound end safe, and must Ire considered, therefore. es possessing no di,tioct end °troth' rule to guide their discretion to con trolling the amount of their circulation. The suspension of cash payments has had the ef fect of comintifing i o ta the hands of the Directors of the B tt.k of Englund, to he exercised by their sole discretion, the imporiatit.chorge of swpptyinq the country with that quantity of circulating me dium w hich is exactly itroportomed to the wants and mg:winos of the pubic. to the judgment .of the Crentmttee, that is a trust, which it is unreasona ble to oiliest that the Directors of the Bank of Englant should er-r be sale to discharge. The most detailed k no. le bp: of the actual trade of the country, combined with profound science in all the principles of money and circulation, would not erudite any men or set of mew to ddjust, and keep always adjusted, the right proportion of circulatiog isWdmro in a country to the wants of trade. When the currency consists entirety of the precious me tals, or of paper convertible at will iuto tl.e per. china metals, the natural process of commerce, by establishing exchanges among all the different emintries of the world, adjust , in every particular Cottorri, the proportion of circulating mcdtuut to its actual occasion., according to that supply of the tin-chins metals which the mines furnish to the ge neral market of the world. The proportion which rs tines adjusted and maintained by the natural operation of commerce, cannot be stijitsted by any human wisdom or skill. If the natural eastern of currency sod circulation be abandoned, and a dia. cretisteery issue of peeper money substituted to its stead, it is vain to think that may rules can be de vised for the exact ex-rcise of such a discretion though some cautions may be pointed out to check aid control its consegnences, such as are incit e teed by the effect of an excessive issue upon es. disoues and the ;wire of gold. The Directors of the Bank of England, in the jsedginent of your C., innittec, hii.e exercisal the new and extranr dm Iry discreti repn.eil iii them vine': 1707, with as iricgrity and a regard to the public inn-lest, ac cordttig to their conceptions of it, anal hotrod a de gretof forbearance in turning it less to the proiit of the Bank then it wou:d easily hair edinitted of, that merit the continuance of that cui.tidroce which the priblir• hea so long end so justly L It in the in tegrity with abich i s ;Unita :Ire direcied, as well us in the unshaken bual•ility and ample rands of that ore it establishment. That ti n recto policy in soles's great preetwal errors, which it Is of the it , - tn sot public importance to correct, your Comm.t• tee are fully convinced; but those errors are less to be imputed to the Bank Directors. than to hest :led as the effect of a new sy,trio. of aural , ltoneier it otigumted, or Wei, rendered taint ...m.l as a tt moo. iary esio.rlient, it might hoer Feet well if Path,- inn lit had M.O. at r IlliU stew sll the cons• - rosetire.. When )afar C•miniittee ca.:.•ider that ' 116.1 Jemet.m...%. j, nor ..1 rita.p:y le.g tin; kind el*to milt cir, elating osediteiMi be 6 eterbisei udder an opiates .that the paper could not be issued to excess if advitsced iu iAticounts to mer chants as good bills payable at atated periods; :mil likewise under an opinion that neither the price of bullion, not the course of exchanges, need be ad verted to, 119 rifordnig any indication with respect to the sufficiency or excess of such paper ; your Committee cannot hesitate to say, that these opi nions of the Batik must be regarded as in a great measure the operative cause of the continuance of the present stste of things. Your Committee will now proceed to state, from the information which has been laid before them, what appears to have been the progressive increase, and to be the present moonlit of the paper circula tion of this country, consisting primarily of the notes of the Batik of England uut at present con vertible into specie; and, in a secondary manner, of the notes of the Country Bankers which are con vertible, at the option of the holder, into Batik of England paper. After having stated the amount of Batik of England paper, tour Conimiitee wi:l explain the reasons which induce them to think that the nuniercirl amount of that paper is not alone to be considered as decisive of the question as to its excess: and hrfure stating the amount of Country Bank paper, so far as that can he ascertained, %our Committee will explain their reasons for thinking, that the amount of the Country Kink cireolatiou is limited by the amount of that of the Bank of England. I. It appears from the accounts laid before the Comeuitteeupon the Bank affairs in 1797, that fur several years previous to the year 179si, the average *meant of Rink notes in circulation was between 40,000,000. anal 11,000,0001. hardly ever falling below 9,000,0001. end not often exceeding to any grr4t amount 11,000,0001. The fullooing ahatract of the I acconnts re ferred to fur' Committee, or ordered by dour Committee from the Bank, silll shew the prot:re,- sive increase of the notes from the year 17ou to the end of the last year. Average amonnt of Rank of England Notes in circulation in each of the fallowing y rani:— Nun s et :11. oust upis arta. its eluding Bank Poet Bill.. 1792....1 1. 11,337,•2.1•1 1-13,334,753 :799 • • • • 1J,5u2,r.24 14;61, 47 11100.... 13,198,18;0 11,831,032 1801.... l 13,134,307 16, ttinou4 1500.... 13.617,977 17,831,451 1507.... 11,08:4477 10,2 17,519 1801.... 13,011,310 17,314,080 111113.... 11. 6 07,3i8 17,141,933 14,814,170 ' 17,1330,1 u 18 0 7.... 1.1,331,958 4,18.".,013 17,403,501 1•.4.... I 13,404.160 4,131,190 17,534,54 n 1400.... 14.133013 4,9614475 19,16400 Taking from the accounts the last half of the rear Ittu9, the average will be found higher than for the whole year, and amounts to 1,9,860 310. Nuts under LI L1,8r1,1U2 4,644.20 , .1 20143,466 4,715,161 3,136077 3,864,114 S 4,743,674 4,:;44,5104 4,241,14 U TolaL The aceissats in the Appendix give vet, detailed returns for the tint four mouths of the present year, down to the 12th May. from %Mich •it formal that the amount was then increasing. parti cularly in the smeller notes. The shot, amount of flank mites i.n circulation. exclusive of Ym1,9001,. of Bank-no-4 hills. will ka found ou the surveile of the two returns for the sth and lith May last, to be found ou the average of the two retains for the sth and 12th May last, to he 14,136,6101. in notes of 31. and upwards. and 6,173,3901. in notes under 51. making the sum of 20,309 9.01. and. including the Sauk post bills, the sum of 1114-1!1,980.1. [To be ctroiirtaed ) STATE Oh !WIMPS. Nu VI. [Cuacluded In regarding the aspect of u:Tit:rs in France, 'acting our usn country, the chii f, and. indeide almost the sole metiers hich is presented for femur coosideration, is the question of Peace or War.— Its England there has loog Oren two parties, hold ing diametrically opposite opinions on this import ant subject—the one affirming, that it is impossible to obtain • secure peace, while the power of Bona parte is of so overwhelming • nature as at present— and the other tiaintaining, that it is in vain to contend any longer, sod that a period ought to be put to war, for the sake of our commerce aid ii.- ternal tnanufactiares. It is not necessary to say any thing on • topic which has bei II .o voluminously and laboriously discussal on both ; and the only new point of view left for us is that a hith has been very strangely left out of the consideration of all parties, viz. IVhat would he the condition of the Bonaparte d ) nasty, were the Government tf Uii taln to accede to a peace, and put it out of the power of her enemy to au,ert way longer that she alone stood between t h e world and happiness, the advocate for interminable ear' Were each an event as a general paciaciatioe to take place, it would prove more dangerous to the Usurper thou 'seri the most serious reverses in any war he was prosecuting. For • short period, indeed. the splendoer olio great and desirable an act might dazzle the world, and with its brilliancy shed se cut it r round his head. But the novelty would soon subside ; ■nd its the minds of men became nunetu pled with the chances and •peculation in which more busy time• had engaged them, reflections most bound to • person in the situation of Nat a leoo are sure to succeed. People, who have keen 611 away by the rapidity and splendour of his pro gress, would then enjoy more calmness, and, with ; their tett.e4 disengaged from the wonders of his 4 , rise, every comparison that would be erode would Ire , hos,lvantngeous to the L'i,sturt. This mental state of the world (if we may use the figure), being further aided by the injury of the uew order of things, and by the moral feelin,:s which the late open atrocities of Bloaparte in Spliu and Holland have exc'teil. would contribute iu no small deg►ee to alt.ke the stability of his throne. Hut the greatest danger of all he would have to encounter. would be L!a oats sJlilitry,..n2tri peewit had given to idle. Sista Vets. Ind 5i10.% Aid 4iumphs, r ,111 144 tibfy them for a titre; but tilie rretless I:0,11 by a military life. its enemies' countries. engaged frrita any pursuit, is of a ll ot h rta the 4,44 to be dreaded in • Government founded e. i tary strength. floAnute..itilist.be.tutare of ands in our opinion, is as bristly d etermuied on ft .,' lasting war, to avoid the peril. Lib thr in t „ t etas advocate in this country is fur that sy.k tb. From ull onr premises, vie would reupitaish the folios ing conclusions That the Princes of the Confedersiein un t Rhone, not having any further adsaitts e . to 04 44 , 'ives in view, are not better affected to than 'compelled to be by his superior {rimer, 'Elfin Spain is, tutl must be, decide,ny him ; And tfiat even its ultimate connu s u scl yisld fur years only a barren acquisiCon, , 'That the spirit of resistance is stron g it, and that the minds of all men ore spirm Usurper. This lost is the most immintut to him; as, notwithstanding political aoel fear of his power may fur u period Le l , Sovereigns of countries is sullveuois ; rrt I streugth of the people, actuoted by these prim p., will ultimately be turned mote torr.o.y to 1.1, titruction. That Russia, however seemingly frierully designs, is jealous and shinned at nis Mena., power. But the greatest phyeical danger of ell cerili.,! T results from that which appears his ma, safety ; °wkly, his brier;; the al jest of terro r . Cr this prinviple, it is must difficult to ntai..tai% h„,, • ever serviceable it is to attain. activioivii • 4tarkllPl Or luve eanuot co.exiot with it ; asd the %mar t 1.4.. rite means must be cootiomd to prewrir, hare . been wed to svpiire, authority. Upon these short grounds it is total itt.t 6, 4 Priweely coMbinations) that we venture to c.tzt look of hope through the rlatB horizon oi E ms . 1)111111 Polities, and entertain as tappe•a las though not immediate, the day of retnbatios far di.tant. Foarth Nigl4 el Hie New Grand Muck-lieron. lientGan Railet. crertr.v THEATRE --MMUS" OPEN!. ?IBS EV ENING, FRIDAY, Attrat 17, m perfumed (111 , 4 Dose. a kelt Comic Opt; oil TRICKS L'PA?i TRAVELLERS. After whieb (rut the fit time) a New Origami lidk tierio•Catioic Rano of ;kraus, raged JACK THE GIANT-KILLER. With ticketed Mimic, new Scenes, Dresses, end Hermitic,. (The Balkt coder the direction of Mr. Broiling Tu-tourrow, the Comic Opera of EA, Alarms, ta cYi Mr. Bratitiu will prr;litot the part of &lett, (beer sight of his ralpctiatut) sod is which character be wiSti. trudure Itir lia of " My Ilemt with IA .if hratiag," , ir duet of " Vire r Rut!' with llies hull,; rod ilfreceidand soot of " The Lail Worth of Maranon. ' floe Conde Opera of The Anuntx4 'lrArer, in witie. Ur. bralrmo performed the part of lord koint leo received List night with rapt omit* applau !e : orniAnt; modicum, will he repented oa Nondov next. A New Melo-Dramatic Opera, or dome nets, is its Auld, TB E BRITISH PRESS. -~- LON DON, FRIDAY, Aoeurr 17• By a vessel which arrived on Wednesday fia France, inudligence has been received ~f penance th the Commercial World, iu the ' IMPLRIAL DECREE. " neroLtox, &C. " A flier having attended to the Report of oar Ceer. - 1 the Adoriuiattatiou of Fittattere, (erotica ou the plea ro tett); stud oho to etc Report of our Mmister of the ludo; we have deemed, and de decree ao " The Ditties on Wares and blerchandine Itendle named, nee determined to be according to the sabre mn rates ; that a to any—. S( Deana, Cayenne, Surinam, Demerara, nod throve, ... - 411 Cu'tun ... All fiber asita, (Naples except. reliaiur glasject to the old dolvso Torte, C°ffte " " AII other am la Rao Sugar ..... clayed i, ros . t Tea G r eer ( Other wear InJig() Cocoa Cocbitbod ( White P. PP er '• • • Bieck China Cinnamon ceyka Clove, at mega ~ ~ 190 Mahogany Pernanibscu Wood Canspcseby Wood ................ Dyer's %Vets's, ground on es my too kilogrammes, equal to not; tft. MVO twe " NAPOLI ON, ' Esecated at our Cliatabco of Cormarrre..l.....tb 4o; to•' Caton 'nuking at the tarf of duties. we " them extremely high indeed, and if our rei , still take tbe trolble to &nictitate the warn thew, they will find the.n Brazil folios wall pay a dot) 0f.... o a p, Other cotton. Turkey refire I Warr rolne Has Sots ... • . H ysun 'lca (kern (►►bc► TeAs net Casuan.nn. I, 1% nt Foxv nrclamtal...• I iroccn Closes Tme duLies upon c ~ ~: 0 7: .:;~ tt all tri itrA, 0 hitt