The Statesman.
London, England, 1810-08-15 00:00:00

STATESMAN.

• • 7

~.- -,

gold, would he not give 16 per cent, more in ex. tion of paper,..as productive of the. Scarcity
change? ' He certainly would if he could receive" bullion.
gold with thclibcrty to export it. . Supposing there isidheen no such restriction upon
So that if Bank paper and gold exchanged, even foreign trade as yon =have described, but that to
the currency to the foreigner Would be 16 per cent. suspension of cash payments at the Bank had con.
better, would it not ? if a person were at liberty tinned in force, do ydu edisceive 'that the increased'
to export English gold, he certainly would get 16 circulation of paper; to which you have adverted in
per cent. more than if he exported foreign gold. your former answer; would have had the effect of
raising the price.of all commodities, and
.agnongst WILLIAM MERLE, Esq. examined.
Taking the price of n
nea ")hers of bullion, and also df lowering the course
is a current ninety shillings an ounce,
worth ? Tweet four
of exchange ? The question extends much beyond
g y. ui -
what I conceive that stated before; I think that
shillings and a penny.
you cannot perfectly define what is the cause' or
What do you conceive was the average of the gui.
causes but that I stated the two I have mentioned
neas when they were last in circulation ? Five
as the most prominent, dot that either the one or
penny-weights seven grains and an half, about three
pence less
9d. s in value; they produced from 11, Os. Bd.would produce any given effect.
to 11. the other From
what circumstances do you infer there ex-
Os.
IVhat do you conceive would be the average
ists a scarcity of' bullion ? From every information
weight, if you were to take the mass of guineas that that I have ever received, or the opinion of any
are iu circulation now ? I should apprehend they 'one person with whom I have converged on the
subject.
would weigh about five penny-weights seven grains
and a half; if it is only a fraction of a sixteenth un-
In what way do you conceive that the increased
der five penny-weights eight grains, they are consi-
circulation of paper conduces to the scarcity of but_
shred as light. lion ?—Tlie one is issued and substituted in the room
When all guineas were weighed, and the of the other, which is withdrawn, and which
price of gold was about the standard price, 31. 17s. cannot be conimAnded by the heklers of paper.
Would nut the removal of the restrictions upon
10-14. were guineas frequently refused if they were
trade diminish the price of bullion !—Tile removal
a fraction of a grain below that. Yes, when cash
Of the restrictions upon trade would produce an ex_
was in circulation they were always refused if they
portation of merchandiseand facilitate the means of
were under five penny-weights eight grains) how-
ever trifling, only just a move of the scale on the importing bullion.
weight side. Are you of opinion that any certain and adequate
provision can be ma
the against an occasional excess'
No gold has been seen in circulation lately? No.
How long has that been the case? It has been of paper circulation in any couetry, and especially
growing worse every day.; ball suppose for the in a commercial country, where that paper is not
last six months,
convertible into specie at the option of -ibis holder ?
•
In this cutintry,' if I may judge front experience, I
In the six months preceding it, what was the ave.
rage weight of the good guineas in circulation ? , should doubt it ; but if flue Bank conducts: itself
upon the same principles at present when they do
They must have been five penny-weights eight grains I
and upwards. nut pay specie, us they did when they were corn.
Can you state the proportion of gold which is pulled to pay in specie, I should think that it might
he
in circulation in ordinary dealing's at this time, to be safely left to t discretion of the Bank.
What do you mean by that experience in this
the proportion of Bank notes ? No, I cannot;
'
we see no gold now ; my clerks, who arc (mice!.
and some years preiious tnthat,
lecting every (lay, do nut perhaps bring me a seven-' country which leads you to doubt it I. I mean that
ill the year 1797,
, the issue of the bank notes lies not' more, than.
shilling-piece.
' eleven millions steding •; • I have*. seen a printed.
In a very large receipt ? Yes ; they bring. no-
- 4 thing but stamped dollars now, paper, which has been laid before the House, in
'which it is stated that the circulation at present of
Do you ever receive gold, as a banker, from any
bank notes exceeds twenty-one millions; lam de-
Dorchesterquarter ? No, hardly ever : there is a house at
eidedly of opinion that it is more than can circulate
sent me up 500 guineas, but they have
•me ii. id with safety to the general circulation of the country.
been iu store ; I always keep some gold by
can. Are yod not aware that thniiiuing of notes under'
five pounds has jiicreased materially the whole
The Bank gives you out a stock of half guineas
and seven shilling pieces, do they nut? Not I amount of notes issued; and do you nut believe
.
that the amount denial! notes should be left out of
have gold lying at the Bank* in guineas, which has
been lyingever since the stoppage at the Bank )cotethe account* in callipering the present amount of
enotes in circulithfir with that Wasting at * the period
place, and cannot get half guineas and seven.shif.
ling pieces for them. yow have alluded_tO ? The swill uotes arc equally
Tin within a very short period has not the Bank
paper, and they add tot s • ,: s iot haok,nutes,be.
fore in circalatibit; they . ' lin the same manner
' been in the habit of issuing to bankers a certain
in exchange-fell p(iblic or 4`:. T. aocuritio : instead
quantity of half guineas and seveu-shillingpieces ?
go aft usitinx Isom ate ; •*,vitiw,lllearlhey
No ; formerly they would perhaps change me fifty 'of bei
ratber tend tnliWrease thodifficatity more thin their
guineas of seven-shilling pieces; now they do not '
due proportion; because they
.c,annot.lie withdrawn
do that ; it is a regulation they have wade within
`without an issue of specie to an 091)0:Trituount and
these three months. s
therefore stand in the front* Ofs tlio altlc.
Till within these three months the Batik have is.
sued gold to bankers? Half guineas and seven. You have stated, that you 'conceive an. eacess of
- '
paper, circulation' may be irertied aai in
shilling pieces, provided you paid them heavy gui:
country if the Bank condi:as itself, ungdernst the i
re.
neas in return for them,
sa.tri.:ictieitt, trpa' Who same print lea which governed
Do not they give a certain portion of gold in ex..
.s wltirit . they Wail cotepelled to pay in
change payments in paying dividends and.so on,?*`'t In"
cash ; what do you conceive
,ia the principle by
For dividends, if you have a warrant that is for
which Ike-Batik' should' noir regulate its issues, as
641. lOs. they will pay you 41. 10s. iu money; an.
well as thelest t vherioti by which to juclge of eny
der 51. they will pay in money.
excess, and the best eprreiciisai of that evil ? Be-
Not for each dividend warrant? No, the ba.
fore the reeteltottolOnt.expetl— once of, above a ten.
s
lance upon the whole.
tury provii:thatahe administriffon Oljthe affairs of
What is the cause of the present price of silver
•The the( Bank haebeen -whit and correct; the public have
bullion being higher than the coinage price?
beset satisfied, the country hitilfourished, and I am
demand :* I have a great demand for dollars, and
persuaded that the Baisk of` England has proved' a
perhaps I must give ss. 7d. on Monday, because
most iutportant invaluable- itleirument in promoting
they are wanted to go out, and I therefore must get
its prosperity. This experience points out the only.
them at the best price I can ; perhaps that may last
principle on which the public can rely with con&..
for a month, or perhaps only for a week ; dollars
<fence namely, to return again to payments in spe.
vary every week an halfpenny or a penny au ounce. . '
me whenever it shall be in the power of the Bank
You know that at the time we are coining gold at
31. 17s. 101 d. per ounce, we are coining silver at to do so.
'DU you conceive that the Bank of England will.
Ys. 2(1. per ounce, that the proportioes between
gold and silver are such that the silver will always effectually guard against the possibility of any ex-
buy more than the gold ? Yes, certainly it will. cols it, the circulation of the country (as well their
Therefore, it is not possible that muck silver
own as the paper of country Banks) if they regu-•
ts
• •
should remain as the coin of the country ? iN, ter. late their issues by the demand for discounts of
good bills founded on real mercantile transactions,
Are not the bankers in the habit of giving a pre-
r
tainly not..
as the occasions of the public may appear to e.
quire ? It has been ascertained, by long experi.
nil= for silver ? We used to do it till we got the
once, that wherever piper has circulated under the '
stamped dollars; I have given an, hundred and one
pounds for a quantity of coin wtorth sixty if it was power or influence of Governtnent on the Con.
tinent, that it hd. aer of th
melted down, though passing for an hundred, but
Bank of Englandas hasfaile stood firm The for p
abpove a cen.e I have given that premium to get
,it, bad as it its,
it is
alwityk
very tury, and flourishes 'at this moment with una.
particularly at 'batten time;
bated confidence. The .power reposed in the
scarce then. •
Bank is great ; their paper• is the basis on which
* 1 ;--
It comes back slain afterwards ? Yes, some of
it; but we hate given one and an half per cent. fur
the
the best interests of the country rests ; it is
it, notwithstanding, seed which serves to produce the whole
of its commerce) finance, agricultural improve.
•
Sir FRANCis BARING, examined. Tents, &e. &c. Such a poiier*may remain with
Are you aware that the exchanges with the Con. safety so long as the Bank is liable to discharge their
tinent of Europe have been greatly against this collo. notes-in specie, because that ciecumstance came.
try for many months, as much asliont 15 to 20 per tutee a complete counteraction to.• any disposition
cent. and that the market price of gold has been (if it should be entertained) to encrease the circus
above the mint price in nearly the same proportion ? letion beyond 'a
reasonable and safe limit, and, un.
—Certainly. der that circumstance, things (foreign exchanges,
Do you think the exchange would have been so &c.) will find their proper level. The question is
very unfavourable if gold coin had been circulating too. general in speaking of good bills founded on
in this country in the same manner as before the real mercantile transactions, &c.; there are many
Restriction Bill.? The circulation consists of pa. instances of clerks not worth 1001. establishing
•f
.per and bullion, and the course of exchange is- the ' theinselves as merchants, and receiving *(sinew the
seegulator of the one and the -other in all quiet and • ret(riction) an accommodation from the Bank' by'
Iturrent times : by quiet times, I mean of peace; distounting what is called good bills to ,U 4
..by current times, I mean war, free from restriction 'amount (probably) of five or 10,0001. ; snail
of every description upon trade with foreign phrts: demand I am inclinid, to. consider as CM
-During the seven years war there were fro restrictions by the Bank, and, not arising out of a regale
upon trade, the same operations to perform on the course of trade,. such 'at; would exist if the re.
Continent of remitting. money from 'hence to, pay "striction was removed. This circumstance is ins.;
for the increased quantity of naval and milltiry "portant, if my opinion, That the circulation of tag
Snores ; and yet in no ono instance was there'aiivint country cannot be perfectly safe until tlierestrictioig;
of bullion. The same was the case during the Attie.' -is removed, is Well founded. There is no infortne.i,
Jinn war; through the whole of it there. wait 'no "'lion in what manner the Bank employed the penal
want of bullion. And, therefore, I think that If we 'duce arising from eleven millions of. notes ; I matt'
'could continue our payments in specie, as hereldfioe, 'therefore suppnie a case, and say four millions in
.and there had been no restriction upon trsdertlie bullion four millions to Oovernment, and three
.course of exchange would not be unfavourijile tie -141004 commercial bills. Thecirculation of Bank
the country. I, therefore, consider the two'greah ''ll.9tei npw amounts to twenty .one millions ; deduct
circumstances which afect the exchange to" iiiihn 'frofiiihence the bullion in•its increased extent, to;
restrictions upon trade, and the increased clicuie.i"wtich it Tay be supposed toemovat.in coasequesesi,
• ti
. . , . .

1
t,

._ .

1

. Arnolog a 9:6.A.

a

df the resfrktien9 ti will iiifireAti il-tiZtih Wee ,
sum-to be employed in .public or private securities.
Public securities may create a temporary difficulty
and embarrassment, which can easily be relieved, by
funding. But if any embarrassment shall be produced
by an excess of private securities, a reductien, dur-
ing the alarm, is impossible, and an increase for a
time will become indispensable, whilst the excess of
both or either will contribute to prolong the period
of the restriction. I consider thu opinion enter.
tained by some persons, that the Bank ought to
regulate their issues by4he public demand, as 4.4.-
gerous in the extreme, because I know by experi-
ence, that the demand for speculation can only be
limited by a want of means ; and I think the
Bank would not be disposed to extend their issues
beyond three-fourth parts of its present amount, if
the restriction was removed. It may prove dan.
gerous to impose any positive restraint on the Bank
by law or otherwise, for cases may and will arise
when an excess will be proper, and that it would
be culpable to with-hold it. But if the House shall
be disposed to entertain an opinion, and will pro-
nounce it distinctly, I think the Bank may he left
with full power to act under their responsibility.