The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1848-11-21 00:00:00

MANIFESTO.

The Committee of the Liverpool Currency Reform
Association have been led, by their consideration of the
commercial phenomenon of periodical excitement and
depression, to inquire whether this extreme oscillation,
productive of so much evil, be the necessary consequence
of extensive commerce; and, if so, within what limit of
productive enterprise ought a commercial people to be
restrained ; for if the calamities that have been ex-
perienced by this nation within the last twenty years be a
necessary effect of extended trade, it behoves the Legis-
lature immediately to impose restraining measures that
shall prevent such frightful ruin and devastation in our
domestic trade, as well as relieve from so cruel a scourge
the commerce of the whole world, which, from the magni-
tude of our transactions, becomes involved in our mis-
fortunes. _
_ _

In pursuing their inquiry, they have carefully examined
the evidence brought under the consideration of the com-
mittees of both Houses of Parliament, appointed to in-
quire into " the cause of the present national distress."
After the most deliberate consideration of the evidence
therein stated, and the uniform agreement of all other
facts and information they have been able to collect, they
are of opinion, that the cause of periodical excitement and
depression is not necessarily involved in extensive com-
merce, but that the sole cause of our commercial crises is
to be found in the absence of a steady measure of value
and of an insufficient medium of exchange, or, in other
words, in the inefficiency of our present monetary system,
an inefficiency further proved by its inadequacy to sus-
tain a system of credit, so necessary to the development
of the productive energies of this country.
From the evidence above referred to, two all-important
facts are established beyond question :—First—that there
was at one period a superabundance of the present medium
of exchange, and at another not a sufficiency for the
ordinary necessities of trade. Secondly—that the measure
of value has, within the last three years, fluctuated from 14
to 12 per cent.
Here we have under the gold standard, an enormous
alternation hi the value of money, which, by inciting
speculation at one time, and prostrating credit at another,
causes extreme changes in the prices of commodities, and
disturbs the relation between debtor and creditor.
THE OBJECTS REQUIRED IN A MONETARY
SYSTEM ARE A STEADY MEASURE OF VALUE,
AND A SUFFICIENT MEDIUM OF EXCHANGE.
It is necessary, for the facility of commerce, to adopt
some description of property, of admitted value, which shall
be used as the standard by which to measure the value of 1
all other property, and it is imperative that the property 1
so used be of a description least liable to variation. The
Association therefore propose—
THAT THE NATIONAL FUNDS BE TAKEN
FOR THIS PURPOSE, AND THAT GOVERN-
MENT BE EMPOWERED TO ISSUE MONEY
ON CONSOLS,
which represent a bona fide amount of capital to the ex-
tent of eight hundred millions, guaranteed by the property
of the British nation, whilst the national revenue is
pledged to the payment of the interest thereon, so that
both the capital and interest are perfectly secured. What
better or safer basis, therefore, can there be, whereon to
found a national currency ?
Thus, by adopting the funded property, we obtain two
essentials—a sufficient medium of exchange, and a steady
measure of value for the pound in account ; so that the
relation between debtor and creditor will be definitely
fixed, that the former may not, at the expiration of his
credit, have to refund a greater or a less value than was
implied in the pound in account at the time of the con-
tract.
These facts were so forcibly brought before the public
by the Memorial of the Merchants of this Town, addressed
in October, 1847, to the First Lord of the Treasury, that
this Association feel emboldened to offer, for considera-
tion, a monetary system which they believe will prevent
the recurrence of such evils. _

The plan by which the Association propose to carry
their system into political operation is as follows :
THE ESTABLISHMENT BY ACT OF PARLIAMENT, OF A
NATIONAL BANK, AUTHORIZED TO ISSUE BANK
NOTES ON THE RECEIPT OF CONSOLS, such notes
varying from one to a thousand pounds, to suit the
convenience of the receiver.

THESE NOTES TO DE THE ONLY LEGAL TENDER
throughout the United Kingdom, and to be convertible
into value ; that is to say, into Consols, on demand, at
the National Bank.

THE CONSOLS TO BEAR A FIXED RATE OF INTEREST,
which will, of course, cease during ti,e time they are
in the Bank.

By this plan, when money became scarce and exceeded
the fixed rate of interest, the consols certificates would
flow into the National Bank, and the currency be ex-
tended to the relief of our commerce ; while in periods of
prosperity, when money is abundant, they would be with-
drawn, and the circulation proportionately contracted ;
thus securing a principle of self-adjustment, which would
preclude the possibility of any great fluctuation in the
value of money, leaving the price of commodities subject
to the natural law of supply and demand.
It may be objected that, under this system, the whole
amount of the national funds might be converted into
money, and the country be oversupplied. The Associa-
tion has no such fears, feeling convinced that, as the de-
mand for money is necessarily limited by the ability of
employing it profitably, the supply of it may be left to
adjust itself to the requirements of trade.
In conclusion, the advantages offered by the proposed
system of currency are these—
A SECURE BASIS that cannot be disturbed.

A READY CONVERTIBILITY of the legal tender note
into value.

AN EQUABLE SUPPLY OF MONEY.
To which may be added a NATIONAL SAVING of in-
terest on the Consols while in deposit.
In bringing forward this very important subject, the
Association would earnestly invite the active support of
every individual who may be friendly to their views,
whilst they hope to elicit from those who may differ from
them a candid expression of their objections to the pro,
posed system; as they are only wishful for the establish-
ment of a self-acting principle that will give steadiness to
the value of money.
JAMES HARVEY, HON. SEC.
Brown's Coffee-house, Clayton-square,
Liverpool, 20th Nov., 1848.

The Earl of Clarendon is to have the vacant garter.
A new edition of the Babes in the Wood has just been
published, illustrated by the Marchioness of Waterford.