The British Press; or, Morning Literary Advertiser.
London, England, 1818-05-26 00:00:00

HOUSE OF LORDS.

PROTEST, BY THE EARL OF LAUDERDALE.
AOAINIT THE SECOND RFA DIN o Of THE RILL FOR FUR-
THER CONTINUING Tits RESTRICTIONS ON rairsina
OF SASH NT THE BANK OF ENGLAND.
•••-•-•
Dzseevi TI ENT,

First, Because this hill for continuing the Restriction of
Payments in Cash on demand, fur another Year, has been in-
troduced and supported on the ground, that the raising of
foreign luaus would drain this t °unify of its coin ; an opi-
nion founded on groat misconception and ignorance of the
subject : fur the metallic'eurrency of am country can be em-
bassies', except by the substitution of • paper currency nut
payable in cash on demand, which is nufortunately the very
system it is the object of this Bill; at least for a time, to
establish.
To inch • degree does the ignorance of those who have
argued the necessity of this Bill, on the probability of great
foreign remittances, appear to me to extend, that it seems
to have escaped their observation that capital may be con-
veyed from one country to another in the shape of goods, as
well as of bullion ; and that the former is the mode in which
the great bulk of foreign remittances mast be made; for the
moment the exchange becomes uufavourahle by the forced
exportation of a small quantity of cola, it must gibe such
encouragement to the exportation of commodity, and
such diecouragemmit to the importation of them, that whilst it
is impossible, eunsisteut with the interest of the merchant, to
import commodities equivalent to the goods exported, it
must he his interest to make every o y remittance io
goods rather thin in coin.
It is, in truth, folly to imagine, that the exportation of
coin or Imllion, as a means of restoring the Weide of pay-
ments when deranged by a foreign loan, or asiy other source
of necessary remittance, can be long persevered in, either
ler this or any other country ; for, on the supposition that
those who have engaged to make remittances will consult
their own interests, the quantity of
time be withdrawn from the circulation of a country to ef-
fect this object is small indeed, as must be obvious to those
who reflect, that as soon as any portion of the gold or silver
coin is exported, the value of that which rentals, must 'a-
creage, or, in other words, the value et all the commodities
must diminish, which, of cuurse, will rearm to the con-
tractor for a foreign lman i state of thitsgs sisal residers the
exportation of gouda a More advantageous divans of fulfil-
ling his engagements than the exportation of ruin or bullion.
It is true, that the foreign market may be glutted with
those gnash, at the prite at which tyre merchant can afford
to sell them, and that bull may again became a source of
less expensiSe remittance; but the moment • little more
gold is exported, a further reduction of the price of commo-
dities must ensue, which calmed fail, once more, to create
an efficient demand for oar manufactures, and to render the
exportation of gold the least profitable means of conveying
capital abroad.
Thus, therefore, before any country can be drained or
its Kuhl by the necessity of remitting capital, in roue,
quence of fbreign loans, there most be a proportional do.
mend for, and exportation of, its commodities; and as gold
and commodities must become alternately the past expen-
sire means of remittance, so it mound he exhausted of its
coin, without supposing that it is possible that it should be
exhausted of all the goods of its growth and produce.
Secondly, berme,' this duettist, sonud in theory, is sup-
ported both by authority and experience.
From the authority of Mr. Wiuthorp, when examined be.
fine the frisk 'Exchange Committee, we learn, that it is im-
possible to denim any country of so mach of its rote es is ae-
ressaty to (prey on its traffic, unless by the establishment of
hanks, awl the issue of the paper of such beaks, made to
answer as • substitute for coin.

And frons experience we know, that at a time whea greet
foreign remittances were forced, both by the existence of the
Austrian loan, and large subsidies we hail agreed to pay to
German Princes, betwixt the years 1794 and 1797, tittle
nine. than 1,990,009 f. in specie was remitted by Mr. boyd,
the Agent for the Imperial loan whil.t it appear., by the
Report of the House at lords on the Bank of England,
1797, that the exports to Germany alone, to the years 1795,
1796, smounted so eight millions anoually, when, in tone
of peace tbry did not amount to unwire than 1,900,0001. In.
deed eight millions, the value of the goods annually exported
2,600.'