The British Press; or, Morning Literary Advertiser.
London, England, 1826-10-16 00:00:00

NATIONAL POLITY AND FINANCE.

In the last Liternry Gm:Pile we opened to the public the
leading principles on which it was proposed to form an en-
tirely new national and sterling paper currency ; and we
pledged ourselves to enter so far into the detail:: of this plan
as to enable every man of common understabding to per-
ceive that its practicability was equal to its expediency, and
that its effects in execution were calculated to be not leas

important and beneficial to the country, in points iiteai-
tairiment of which arc earnestly &sired, than its general
scope and powers. In performing this portion of our task,
however, we have again to notice, that we labour under
certain disadvantages: we cannot (though perfectly con-
vinecd ourselves) go so minutely into all the ingenious and
striking inventions and ramifications devised by the author,
as either to do him justice or completely prove the case;
but this we are bold to say is oar misfortune, and not
the fault of the scheme, and we throw ourselves upon the
candour of our readers to believe that where we fail in ex-
plicitly showing its eligibility and great facility, or in
removing objections to it, the deficiencies are owing to our
circumscribed limits, and may readily be remedied when
and wheresoever this stupendous measure comes to be fully
investigated and discussed.
On resuming Mir exposition, we are glad to avail our-
selves of the admiOsien of a very influential Journal, and
one of high authority upon questions of this nature. The
Times of Monday observes upon the proposition, " This
would unquestionably furnish us with a more economical
circulation than that consistlng of the precious metals, and
one to which noreaconable Objection could he made on the
score of security ; but, on the other hand, it would be
one which, in times of embarrassment, when the tempta-
tion to abuse was strongest, the Government of the day
might depreciate by increasing to an infinite amount. The
idea, however, may bear discussion."
Upon this we may be permitted to remark, that it was
utterly impossible for any writer, possessed of a knowledge
of the subject, to concede more than is here conceded to the

statement-contained in our Gazette, which was simply ini-
tiatory, and entered upon none of the provisions by which
not only the apprehension of the possible evil cotist.quence
expressed by the Times must be completely dissipated, but
by which every contingency of creating political influence
—of admitting of partiality or injustice in administer-
ing the plan—of raising a superabundant circulating
medium—of being available for wild or monstrous specula-
tions—and of not fulfilling all its own pretensions in re-
lieving every class of the community, and especially lan•1-
owners, will be removed. And we will further declare that it

must lead to the almost total, if not total extinction of the

crime of forgery ;—that it Must render usury not merely
harmless, but, where legally sanctioned, advantageous to
all parties ;—that it must simplify all pecuniary transac-
tions throughout the kingdom, and in a way that will
render loss by carelessness or robbery impossible;—and
that, finally, it might raise a revenue equivalent to the
amount of all the assessed taxes, without being felt by one
subject of the realm. These may seem strong and even
paradoxical declarations, but we are prepared to demon-
strate them all—allowing us, as has, so far as we can
learn, been allowed to us, the soundness of the grand prin-
ciple which we have laid down as the fulcrum on which
the whole must move and act. That fulcrum is neither

more nor less than converting a certain proportitm of the
real wealth and capital of Great Britain into gold—repre-
sented by a national paper, and doubly, quadruply, or ten-
fold secured; and thus adjusting every transaction by a
measure of immutable and sterling value, hum ad of the
unsettled, fluctuating, unauthorized, rivatrly and indivi-

dually issued, and, in many instances, fictitious currency,
according to which the internal business and mighty com-
merce of the Empire has been and is at this day arranged.
Having established the heeds of our system, we now pro-
ceed to consider the means for its formation and operation,
its cheeks, guards, and limits. There Must be a fountain.
head, controlling the whole machine, itself controlled by
fixed and unchangeable laws. The responsibility would be
of the utmost char:cur, front the immense extent of the
interests at stake, and the purity demanded for the admi-
nistration of a nation's resources. But method awl the
division of labour would accomplish the first; and the im-
mutability of the governing rules, and everlasting publicity
in every branch, would guarantee the last. 'rite whole
should be a system of checks, the result produced by which
must be integrity in the conduct of the establishment, and
accuracy in all its parts.
An Argue (for names are of no consequence in explain-
ing our purpose) should have placed under its management,
be it individual, or hoard, or other organized body, by ap-
pointment, or election (under the watchful and constitu-
tional eye of the Legislature), the whole of the grera but
simple machinery requisite for the plan. There should
be, as we have stated, one Bank, the present Bank of
England being preferable to any other establishment
which could be framed de novo; and, throughout the
country, hundreds, or, if necessary, thousands of other
banks, in direct dependence upon and correspondence with
the principal. The more numerous these were, the better
would it be for the country ; the facilities of interchange
would be greater, the personal knowledge of responsible
agents mote generally diffused over the community, the
circulation carried more minutely into every corner, and
the guards against forgery or imitation made almost, if not
altogether, insuperable.
There should also be one Mint (say the existing Govern-
ment institutions), where all the gold, silver, and paper
currency should b coined and stamped. We do not dis-
guise our opinion, that the metals would very soon yield
to the superior utility and value of the paper.
The third grand feature of the plan should he one
Ledger ; affording cash credits to subscribing customers,
who, being freeholdets, or possessors of funded property,
perfectly unencumbered, and otherwise available, should
by their signature thereon pledge their estate or stock as a
security equivalent to double the amount t of their cash
account, each for himself respectively, and for so long only
as his account should remain open and nnsetth d.
It is obvious, on this point, that where mortgages or other
liens already exist upon freehold property, which the pro-
prietors desire to convert into currency, particular mea-
sures, consistent with the law of the land, must be taken
to free it, a priori, from all incumbrances ; for the public
creditor, the note-holder, must be the first as well as the
best secured.
The paper currency, founded on the pledges laid down,
should be made end originate with the Mint, and pass
thence to the Bank only, where it should be signed, and
otherwise protected ; and from the Bank be finally issued
to the authorized customers, who had drawn, at titbit.'
option anti conveniency, for so much, or for the total
amounts cf their credits. These notes, as a farther safe-
guard, should be transferable to the order of the customer
(whoee indorsement, without making him responsible,
would give confidence to the next holder) ; and with any'
such notes, or other Mint currency or bullion, the account
of any customer might be cancelled at will, and all his
responsibility removed.
Having thus far furnished the currency, and placed it at
the principal reservoir ready to be distributed over the
country, the next considerations presented for us are to
devise fit and easy means by which it may be made to flow
into its proper channels, may be confined within right
bounds, and may he safely returned when it has fultiled
the purposes for which it was issued. The machinery ap-
pears to be of a simple character. At the fountain is the
supreme head of Finance, with his subordinate establish-
ment, which, for distinction sake, we have called the
Argus of the system. In this official power we should re-
pose mighty trusts, requiring vigilance, fidelity, wisdom,
and firmness; whence the necessity for publicity to prevent
any possible abuse, or to check it. To this powvr we should
commit the charge to act, as sound policy dictated
under all important circumstances—such as the oc-
currence of foreign loans, the arrival of goad or bail na-
tional news, the falling out Of war, or the return of peace;
in short, whenever any public cause of panic, or of the

reverse, arose, so that the speculation; of intended gnome
polists might he defeated.
It should vigilahtly inquire into the necessities of the
country, generally, partially, or individually, and regulates
the issues accordingly be incr:asing or conseacting them.
It should scrutinize alt life pledges of freehold property.
of funded property, by rules laid down, and admit or re/tee
s corilingly.
It should prefer the smaller pledges, eepecialle, those that
originated in industry and economy, to leviathan pledges,
and thus multiply the supporters of Government, the
holders of national property, prevent combination, and
promote a more equable, more general, at.d more goveena-
hie diffusion of currency and property.
Next to these, the chief financial and political requisites
of the system, we should look to the perfection of the plans
as tunneled on the ledger credit, so called from its orients.
int; in sterling, tangible property, pledged in the public
national ledger, as a special security for half its bonaftele
value, by a solemn act of the proprietor, publicly recorded,
for the special purpose of obtaining a disposable capital, in
proportion to the amount of security available, in such awns
and at such times as his occasion might require, in order
to enable him to exert hi 3 enereiet, and employ his talents,
as a benefactor to society ; but, more especially, in his tine
mediate neighbourhood, where local habitsand local know•
ledge offered the most obvious and eetensive means of ren-
dering his capital useful and safe.
To this iailividual, or to any association, company,
trustees, &c. &c. having pledged property to the nation, it
now becomes necessary to forward the circulating inediuin
resulting from the ("edit so obtained. This should consist
of tokens, or pounds sterling, as being what their name
imports, sterling, an epithet by which this. genuine Eng-
lish money is distinguished fro,n all other monies, being a
legal pledge to the owner of tangible freehold or funded
property, free and in all respects unencumbered, mortgaged
by its proprietor, by his signature anal seal in the national
ledger, as a special security of at least Se. for 1/. held by
the CroWn in trust, and redeemable at will, but only by
his discharging the full amount or balance of the cash credit
for which the pledge was given.
Let us farther impress upon our readers, that its crea-
tion, duration, and suppression, being matters of con-
plete publicity, afford ample security to other creditors.
Surely a token of such sterling character, a representae
tive of real property, so sound and wholesome, and so void
of fluctuation, might fairly be considered a Axed standard
of value, even of gold and silver; and as the bullion et*
our soil, the bullion of our constitution (since with either
it must exist or fall), it might safely be recognised by
foreigners as the. genuine English pound sterling; and
thereby even become current over Europe as an universal
medium of exchange. . . _

With this gratifying se.pposition, our space obliges us
again to take our leave of the subject for another week,
when we shall return to its fur.hcr consideration and ex-
planation.