The Sun.
London, England, 1819-02-04 00:00:00

national prospffity.

" It may here be necessary to give those unacquainted with
money transactions some idea of the extent of credit which
the issuing of one Bank-note upon discount establiShes. To
say that a note so issued upon a bill at us ince or sixty days
for-10001. forms a credit equal to sixty times its amount,
would be narroWing its sphere of action ; it possibly may
reach three hundred times its value ; that is, supposing' it to
pass into five hands in the course of each day (for a•Bank-.
note is transferred from band to band with a velo,oty not ge-
nerally comprehended); 'it pays at least one bill due on each
succeeding day, which at the usanee would alone extend the
credit afforded to sixty times its Amount ; for when once a
bill is paid, a fresh one is given for asimilar period. and
thus the credit is generated. A very small portion of Bank-
notes remain for a day inactive, and it frequently- happens,
that, by paying the note into a banker'S bands, fire, six, or
even ten bilis are discharged by checks, and adjusted at the
settling house, thus, in some degree, illustrating the fore-
going'position of credit-so created being equal to threo hun-
dred or even three hundred and sixty times the amount of
the first note so issued from the Bank; or, in other words,
it pays five or six bills in the 'course of each day. This is no
hypothesis, but a circumstance of daily occurrence—strange
as it may appear that it should not • have, been treated of
before.

" Is there any Minister who would be bold enough—nay,
mad enough, to venture upon a measure which must overturn
this state of thine 4 ? It Fecal. to metnory an anecdote of two
persons dkcour..ing on religious faith; the one liad every as-
surance in Religion—the other none. If I am wrong, said
the man with faith, I am but where I ant; bat if right—where
are you ?
" The extensive operations of a single Bank-note, as sup-
petting credit, explain what' has been an enigma to many,
who, without this explanation, -could never form a concep-
tion as to what was ilie'cia.st-of a daily or, weekly plenty or
scarcity of money ; any one ,e ho now considers the subject
attentively, will instantly Perceive, that the Bank's refusing
to issue a few hundred thousand pounds.on discountable hills,
in the course of the weeic; Will produce the latter effect; the
occasional extension of discount, or issue '-of paper, either
by the Bank or the Government, ol,the withholding it, tiring
rise to, or checking a credit, at the lowest computation, in a
sixty-fold ratio. Thus 100,0001. would give ~a daily credit,
amounting in the whole to 6,000,000, or take up bills to
the amount of 100,000 daily, for sixty successive days, before
the original Bank-note because repayable into the Bank. For
instance, A. obtains money, say 10001., on his bill, discounted
at sixty days date, given for goods the ::inh October, with
three days grace added, Which three days are supposed to
have run off before the Bill is converted, and due the Ist of
January,. on which day 'it to he repaid. On the Qd No-
vember, ,A. pays it to 8., who with it takes up his acceptance
before given—on the 3d, C. does the same—on the 4th, D.
the same, and soon for sixty clays; thus giviin.r, in the way of
credit, sixty times the actual amount of the note ; or, what
is the same thing,. contributing to the general operations of
commerce 10001. for each of sixty ditys.
• _ . . .•

" The payment of Duties on any particular day, on West

or East India prot.luce,intn the Bank, on account of Govern..
Ment, causes a temporary scarcity. In like manner the ac-
cumulation in the public coffers from taxes to pay the quar-.
kerlx .dividends, uniformly creates, a scarcity for the thus
):I•eig, which would 13e most severely felt, did not the neces-
sities of the Bankers and merchants carry them to the Bank
with theil hands to have their wants relieved.;
when, ere a few hours have expired, the circulating wheel is
again- set in motion, and all goes on prosperously, to the com-
fort and, satisfaction of the majority of the monied world ;
bence it happens,that money is more plentiful on Fridays ;
Thursdays being appropriated for discoontin.; London drawn
hills. On Wednesday preceding the day for general dis-
counts, money is usually more scarce.

" It may be adduced in opposition to this argument, that
whenever muneyis in abundance, the discounts at the Bank
are less, proceeding not•from a want of bills, but that the
merchants do not so freely apply to the Bank for assistance.
" This fact being granted, still the money e. bank
notes) almost invariably flows in the first instance from the
Bank, whence in general it can only proceed; for it rarely
occurs that the profit upon merchandize can by itself be so
considerable as to make money plentiful ; if it had that effect,
the exchange would instantly turn in favour of England, and
the price of gold would decline."

Recollect !—Next Tuesday !—HAZARD and Co.
sold the last 30,000/. Prize ever drawn, and all
the Thirty Thousand Pound Prizes in the Lottery
before list. Next Tuesday Lottery begins and
.finishes, containing Two Prizes of Twenty
Thousand Pounds, &c. &c., and only 6000 Tickats.

PAR LTA NIENT.

ITO USE OF Lottns, FallitUAltY 3.

The 1-louse proceeded n Appeals...-The ostbA
were administered to Lord Grenville and Lord
borough.

Th. ])itke of WELLING,TnNT preQPntect a Peti-
tion from the Guilt! of Merchants of Dublin
soinat the Roman Catholic Claimse..Ordered to
be ',eon the table.
Lard Stostotrrit laid *Ton the tahle, by corn.
wand of hitt Royal Highness the Prince Regent,
• Petition (with the accompanying doeutnenta)
btu, the Earl of MountoorriQ, cluiming the titles
of 'Carl ni Analesea, Viscount Newport, &c.—
Ordered to be referred to the Committee of Pri-

Tulle's Divorce Bill was read a first time, an
ordered to be read a •eeonri time to-morrow fort
liiglit.

PIMATE BILLS.

On the motion of the Earl of SIT4FTMItiRY it
trAg ord:•red, that n,, Petitions for Privdte liilla be
received alter Thursday the 4rh of larch nel;t, nor
any Reports of tire' Judges upon such Pe.itions
after Thursday the Bth of April.