The National Register.
London, England, 1811-05-12 00:00:00

S UNDAY, MAY 12, 1811.

N°. 176.

POLITICAL DISQUISITION.

No. 16.

BULLION.

'The grand bullion question has at length been
brought forward in the House of Commons, and
discussed as fully and as freely as the importance of
the subject appeared to require. The House sat
very late every night, and the warmth of the prin.
cipal speakers seems to have been in proportion to
the magnitude of the object held in view by the
two great parties. The Philosopher cannot but
observe with mingled feelings of wonder and regret,
the different views which men, reputed to possess
superior understanding, and acting from a sincere
desire to benefit their country, can take of the same
subject. On the one hand we are told " that if the
present system be persevered in, the system itself

will crumble into dust ;" and " that nothing can so
rationally be expected to save the country, as corn-
pelling the Bank to resume cash payments at the
expiration of two years, as recommer!ded by the
Bullion Committee." On the other hand we are
assured with equal confidence, " en 4 to adopt the
measure thus suggested, would be at once to sacri-
fice the agricultural interest to a wild theory, to

check the improvement of the country, and in a
word, at once to stagnate, if not to annihilate our in-
ternal commerce."—" That the measure proposed
is not
,practicable, and if it were practicable, would
prove most ruinous ;".—" that if adopted, it would
be adopted without any proof being given either of
its necessity or its expediency, against the evidence
given before the Committee, and contrary to the
examples afforded by fbrmer times"—and " that

the }louse of Commons in giving it their sanction,
would disgrace themselves for ever by becoming

the voluntary instruments of their country's ruin."
Without any wish to enter deeply into the subject,
we feel it our duty to offer a few observations on
that most important part of the question relating to
the depreciation, or to the supposed depreciation of

the Bank notes. Mr. Horner has stated the depreci-
ation to be so great, that the Bank of England one
pound note is worth no more than fifteen shillings
and ten pence. This is a very grave assertion, but
how is it made out ? Why is the one pound note
worth no more than 15 shillings and ten-pence ?
because it will pi ocure no more bullion than accord-

Vol. IV. CLXX VI.

PRICE 9,';1

ing to the existing reeulations is intrinsically worth •
that sum ! The cause df the present high pike of
Bullion is most clearly explained in •the words of the
Chanc . for of the Exchequer. " Our military ope-
rati.o
ke it necessary to send large quantities of
gold abroad. The law forbids the exportation of
coin, And therefore it is obliged to be sent out in
liars. This naturally causes a great demand for
bullion, and, in consequence, the price of gold rises
above the value of coin." Can any thing be more
lucid or distinct than this ? Is not the cause oldie
difference between Bullion and Coin naturally ex-
plained ? If then Bullion is thus, by the circum-
stances of the times, raised in its price in an extraor-
dinary degree, is it fair to form an estimate of the
value of our circulating medium from what it
.will
produce thus disposed of ? Is the possessor of a
Bank note necessarily obliged to lay out that note
in the purchase of the most expensive commodity t
The idea is ridiculous. If a man, for instance,
should think proper to lay out his Bank Note on
green peas in March, does it follow, because it pro-
duces but a very small proportion of mina it should
purebeee at the average price of former years, that
the Bank note is in that proportion depreciated t
It might with equal reason be said, because it will
purchase more of any one article which happens to
be uncommonly cheap than it would buy at the
averagetrice of that article, that the Bank note is
at a prilinium. Bullion is now from the circum-
stance, :ef the times raised greatly above its average
value. From the state of things above explained,
it is more difficult to procure in the market.---
The demand for it, increasing with its scarci..ye
causes it at present to bear a high price as a com-
modity, and because a less quantity is sold for one
pound than formerly, the depreciation of the Bank
note is assumed. Gold, however, is not merely
dear when purchased with notes, it is also dear if
bought with cash, and the guinea itself, as com-
pared with Bullion, may be said to be depreciated.
This we are told cannot be, because as Bullion, it is
intrinsically worth more than twenty-one shillings,
and persons ale to be found at any hour in the day,
and in every street in the metropolis, who will buy
it at a premium. We however repeat our assertion,
the guinea as compared with Bullion is depreciated
as well as the note, and the facti above stated afford
no proof to the contrary. Tlle premium so given is