The Statesman.
London, England, 1810-01-31 00:00:00

- 14 IV MUM&
..144% • • 4 aw.. woe
that Mr. RICA Roo hfl>s endeavoured to awaken the
attentiun of the Public to this inpoeitititsabjeca. .1
*agree with him in his 'Main Posittoi, sit. that the
present price of bullion is a proof ether depteci.
alien of Lank-notes. 1 differ- from him as t 9
to•ne other less important peahens ;1)14.1 tree,
ble at the remedy he propoies in one present eir,
cumstances, tit. that the Bank should dintinish•llok
number of its notes, by diminishing its disci:terra,
wish that there had been less subtletz' ivy blrl
Itteattoo's reasoning : his discussion would haw,
been more intelligible to common readers.
will endesenur to recal your attention to those
facts obit+ immediately preceded the Rank
Restriction 13.11 in February, 1797. The balance
usually doe from foreign countries to Great Bri.
Lain had been diminished from the coninteneement
of the waroin 1703, by subsidies granted to foreign
Powers, by the expenditure of our armies on the
Continent, and by the extraordinary demand fur
corn to supply the deficiency of the had har-
vest of 1795. lo this situation, Mr. PITT corn.
:sot, A !shoed Sur distress by perntitting Ute Austrian
Geternment to make a loan in this country of
seven minium. These various formula Occasioned
the Itaianee'of trade to bo against 'this country..
Whit that was our situation, sod no snore British
eummodities could ho tended in forejga countries,
it was neeeenty that gold Ihnuld be sant abroad
to dist-Image. our debt. I-believe that it win be.
found • upon inquiry; that the balance of trad.•
bad • been against Ghat Britain during the
greater part of tire yeara 1/05 and 1796,,
tend that, its cansequene of this, the price
of bullion ha.l, during the same period,• been I
higher than the' price Of gold in coiir. I am led,
to be of this opinion, because 1 find by •the
colorize paper for twelve years ending with the
year 179(1, the lank had coined 2,500,000 pounds
a year during the first ten years, and only 500,000.
pounds a year during the last two years but this.
omission to c•tin, could only karepreeoudetl from
the price of bullion being higher than the price of
geld in coin, viz.—from the Pence pi:bullion
coinage alloy being uorth more than three,pounds,
auvunteen shillings, and ten-pence halfpenny, the
rate at whitilt the...nista of cobalt gold is delieered
from the Mint. I agree with Mr. Ricardo, that
a political alarm was the imniediate cause of the
Tut* upon the Haul( ; and [ agree with him that they
had no ()tension to resort to the irleofOre,hich was
adopted ; in truth, I do not believe that the Rink
Art cturs were eVer consulted upon the subject. .1.
believe that Mr Pitt mitt for them, andtnid Aar
that the Blink ikestriction Bill was a measure on
which his Msjustfi. Goverment had decided. If I
am mistatest as to this fart—ff, le troth, the Bank-
Restrictfon pin *is a measure solicited by the
Bunk Direetore, there aro Still lir lug some of thos
Gentlemen, who were at that date sank Directors,
who can hstnblisb- the feet, 'lt/ tic Bank .1119-
sttietien Bill, Mr. Pitt intienited if establish Niter
money; his motiees were to keep up the futidsij
end make his tam Prodective., In the progress
set the Bill through the tiOulle'oreovntrons, his plan
•stgas aulicieotly disclosed ; ul daub reading of
1411,a Member temittked.ttKintecetlently
the stoppage of the Bank, tharbffissl been a naeural
limit to the issue. of Bank pepeii
tet,C teat if book
soles were lasted to a greater **ova than the mei. j
lot required, the owes were carried' in, sod gold
demanded, he obser;eal that this natural limit would
be taken away by the•Billthen-before,the 11ortio;
and he proposed to substitute air artikial, limit,,
in liew of Om natural limit, which was about to
be taken away. With this view', he, moved fur
leave to bring op a claus4 restraining the issue
of Beak Paper to the sum of thirteen millions,
being the largest amount wbith the Bank appeared,
ever to have hail in circulation at gone time. Mr.'
Pyre negatived this :notion, • Without fontlescond.
ing to give it any other anssier. his design of
establishing paper money was thew seen+ he was
reproached with the rashness of his nratflliro.
While American Paper, and French Assiguats,
were still fresh in every man's recollection, tie .was
asked if he thottglit it suossible to keeP:Wp the price
of •the keels without keeping up the ptice of keef
and mutton at the same tissue ? lint the measure was
decided on, it was part of that system which thii
Mica! Charlatan cal letl"his solid system of 'lce."'
At the sane d lie that the Bank Restriction Bill was
passed, 'power was giseu to the Bank, and to
every other Banker, to issue notes of the value of
one pound ; before that time, both the Bank,
and the Reekirs had been restrained from issuing
notes payable to bearer, for a lets sum than five
UP P 42.. Titgt paper potstty ilacamkg.ebtdidieigiesi.l
Funds, lands, houses, rents, and every article
became doubled in price. Esperittece might bagel
shown the Minister, that this would be the ease;
fur the same consequence had followed . eon the
establishment of American paper, and French i
.td, does nut experience she*, that
when there Is air increase army commodity it be.
Caine of left val4e. The Circulating anetlium wait
increased ht quantity, it was •Therefore of less
'she; and the thipitttuiwi of its valise was *hewn
by a greater quantity of it' being given for every
article. I fret the cifitatity bristled on the
country by the Beek ltestriction Bill as Pronely
as .Ir. Itiotarto can feel and 1- epee with
him, that if the tniseliie fis nritisiiitedily ninedied,
it Will be fatal. But 1 hesitatil4Cn'theladoption 4
the reesedy recommended bi— it4l6. RICARDO,
that the Bank should dimitilah'rtliti entotost
ashes its cis ethanol', by dleiiiikhiffs Itelltsconntss
I tremble at the sodden chtibigid'. ittUfiek tiol b ,p•
measure might predate. I think Aftwootelthe far
roues: advisenble that the Beakvaltwold xlintintsh,
its advances to Government. But even' this men.
sure is‘ 'old probably he of little eifttlity irrthe
&wintry hanks were to itnitinne to isene.pcie
pe0,141 notes. I see no effectual .rtotealy but by
repealiu4 the Bank ReitricliDo Bill, and by ro.,
straining the Bank and Balkan' [rum issuing ne
phobic notes fur less than five•pounils ; and I
admit that during time continuance of the war this
measure would bo perilous. But is it not a strung
meson to induce us to make peace ? The coati.

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