The Statesman.
London, England, 1810-08-14 00:00:00

WE inserted the Letter of PAT9.ICII DOWLMI
yesterday, with the copy of a seven-shilling Bank
Note, as a matter of some curiosity. But this
subject leads to a veer important brainch of politi-
cal economy, which we believe is far from being
perfectly understood. The Report of the Cons.
mittee, respecting the higb price of Bullion, leads
to theistic topic ; and one or two eminent politi.
cal writers have lately directed their attention very
mach to the same pulut. The result of all the reseals.
inga of the political writers we allude to is-,that the
recent embarrassments in commerce proceed from an
excessive issue of paper-money; and the conclusion
to *Web -the above Committee has come, is—that
the same cause his produced the high price of But.-
lion) and its consequent• inconveniences.—We do
not exactly agree, either with the deductions of the
Political Writers who bare taken this course, or
the Report of the Bullion Committee. The execs-

sive issue of Paper Money..itas added to the evils
complained of, and has accelerated the hour of
their heavy pressure ; but it has not been the vole
nor even the chief cause. If the trade that "has been
carrying on since the Bank's restriction from pay.
ment in specie, had bean real and, usually pro-
fitable, there would have been little or no ex.
ems of Paper Money ; and if the Trade of Europe
had remained with us, as heretofore, the newly.ac.
quired Trade being added to it, and being profitable,
there Would have been the usual and more than
usual-pie-toy and cheapness of the precious metals,
notwithstanding tins unjust and improvident measure
of the Bank restriction. The cause of the present
and recent embarrassments in Commerce, and of
the dearness of Bullion, is the disappearance of real
and profitable Trade, the loud the Trade of Eu-
rope; and the substituting of a Trade that has not
paid, and that. will •not and cannot pay, even the
first cost of the Manufactures so eagerly, and often
fraudulently, pushed into it. Can you desire better
reasons and cause for embarrassments,than the loss of
all Trade that left profit, and the acquisition of a
Trade that never returned your capital, untouched?
Of course, we speak of the-aggregate of Trade, and
nut of individual, and very. isolated examples of
successful adventure. Where then is it you coull
wish to go for a solution of the question of your
mercantile difficulties, when you have arrived at
tho fact of the loss of your profitable trade, and
the worse than twin-brother, the discovery of a
trade with loss? And how better can you tepee
to account fur the high price of Bullion, Oen yam
have lost the balance of trade every where, tbit
to say, when your trade, if at all profitable, tepee.
Stable only to the extent of an exchange of yowl,
industry for things you want, and no where to tit•
extent of a surplus of exports on your part, to be
paid (in the only way such surplus or balance CIA;
be paid) by the foreign merchant transmitting to
you the pricious metals to make up the deficiency
of his sales to you ?—lt is for want of looking a
little at principle, in these things, that leads so wide
of the point, as many persons are wandering; it
is from the getting shut up among mountains
of detail, where the eye cannot survey the whole,
but is filled every successive moment with some
large object or other, for ever shutting out the
general view. if men would not bewilder them.
selves in these fastnesses, the thing is simple; and no.
thing is so easy as its developement. Try it, and you
will perceive how easily you arrive at palpable, and'
immoveable conclusions ! Begin with England, In
the natural course of trade, and unembeswaseed
with war. Her merchants trade with France, we
will say ; and England being superior, in industry,
. and improvements of machinery, can sell the met.
chants of France most of the manufactures of which
they have any want from a foreign market. Frage,
making less of her industry and ingenuity., seeds tut
back a great deal of raw produce for part of our
manufactures.—ln all this traffic, there is Pro.'
fit to England, because it commutes. the labour
and ingenuity of her artisans into something
existing for enjoyment, or to be applied to set this
new industry and ingenuity afloat, again to emits
profit in the same way. Now, wealth in enjoyment,
and wealth in capital, would arise and increase from
this, even while England only received commodities
in return for commodities—that is to say, the Eng.
fish and French merchants bringing their yearly ac.
counts to an exact balance, by their respective ex.
ports and imports. But, supposing England to ex.
port more merchandize to France than the amount
she wants bask in merchandize from France...
this, it is plain, must create a balance against
France, which cannot be paid in merchandise,
for the supposition is, that the French merchants
have already furnished the English market with all
it wants, and which can be bought of them. The

balance can, therefore, be paid in no way but by
the precious metals. If •Fraime wore to ,pay her
balance to England by good bills on. Russia, those
bills, it is true, might be provided for by sale in
Englund of Russian produce, instead of gold or 111.
rer. But if Russia also owes a balance, at the
year's end, to England, it is plain that the balance
against France must be paid at length in specie by
Russia (if Russia takes that balance upon herself, la
consequence of her 'transactions with Pro!eye), along
with Russia's own balance to Begland. Shift this
Where yea wHI, and how you will* the balance
which one country owes-aouthes, toast Ile paid ht.

THE STATESMAN.

. . .
tboltiietous metals. It can be paid (If at all paid)-ip
'Bathing else; because this balance mean is siirpliii
V on mon odities which one country has taltei frois4
kiviother, without having any mgrchaottrae ttgleit
foi that in return. Thus far is plain enougit„ there: I
fore, that any eauntry having many bolaticei-Itn..
mildly in its favour must be rich in the precious me- '
tats.. In such a country, if you were to aerie&
give large premiums to export gold and silver, you
could not keep them out, nor make them scarce. 4,
.--As long as things remained in this undisturbed
k
state, the course of commerce would bring byes
precious metals back again. -tut if you satilfi
how the precious metals become plentiful, it is easy
to tell how they may become scarce in the same
nation and place. Throw away, or contrive to lose
your Trade that brings balances, and these metals
gradually disappear—first, because there is no
longer an inflow of them through the balance of
Trade ; and secondly, because you cannot Trade
universally without a balance against you in some
places, and the influx being stayed, the balances
against you drain you continually of that amuse.
latioo you had made of the precious metals..
The present scarcity, and high price of :Dentists
is therefore accounted for, without talking of the
excessive. June of Paper.moucy. The latter may,
and.does aggregate the evil ; but it has not created.
it. It there had been a moderate supply only at
Paper-money, the Bullion would haverlisappeared,
nevertheless, ender the circumstaoces of our loss
of all balance of Trade.—Nor does the cum.
of Paper-muney any better account 'for the pre-.
sent commercial embarrassmehts.' Partial em.
barrassmeuts it may. account for, and has often
occasioned ; but thit adage from the impro.
vidence of INDIVIDUALS, and not from the na-
ture of paper-money, or its excesses. It our
trade had remained• as it was before the dissatrous
politics of the present Ministers and their political
parents, there would have been pleuty of gold and
silver its the country, and the excess of the issue of
paper money never would have hurt any but the
individual circulators of the notes, and the indivi-
deal speculators with them. Where mercantile
transactions are fouuded,and trade is profitable, there,
can be no excess of issue of paper money.- It is specu_
lotion only that makes the excess, and that makes the'
excess mischievous. It is true, that the excess gives''
a power to some at the expellee of others ; and ,
that the relative property of descriptions of per.
eons and individuals ii much and injuriously changed
by it. To instance, the dearness of provisions
arises much out of it. But there is great danger,
when you are looking for the cause of general
and sweeping national calamities, there is much
danger, and muck mischief, is ascribing them to,
partial evils, and to evils that, although they .eg.,l
gravate the distemper, did not bring it on. It is tlpi
policy of Ministers that has created all thiamin ofiell..l
They have done it, am] none bet them,. and •tlieli'
teachers in politics. They have deprived the Coun..
try of all profitable trade, which was evil enough,
with such a Government hi. lopport :I—,—Tber
have thrown our . blerebents into a wild sod
ruinous trade I They have left es' no returns
of profit from soy part of the Globe; and, in Pro-
portion -as the heart sickens et 'these things, or seeks.
for relief In extravagant 'Climes, they administer.
oew wounds upon the former unhealed and bleeding
SOM. These are truths, and- fatal truths. And:
let no man turn his eyes from them, to look
at excess of papersmoney, .that is an evil, and
ought to be cured, and is, in fact, curing itself.
But it is nut to be made a cause of diversion from.
heavier thoughts. Let that subject be developed
carefully, for It is little understood; but Id it be
subordinate to our other meditations, to our death.
like broodings over public political misery, public
poverty, and public ruin! Let us have no serious
, or lasting thought bat of those things, and the re.
medy for so many unmerited calamities !

,t...

A letters, •• diiiialtirl %i hoe
t '.
lowing :-- •.• • •
" The Bluck.'.finlie ratter was takes Is a ckt by' two large
privateers, and Carried into Algien. She was charged with dis-
"patches from Combietinopleand Alalla,.m writes wilts avetisted •
dispatcheSfroin India. There are 24 privateers of she wee de-
scription. mostly commanded by worth lessOessoese. w hick cruise
Setween Oren old Bona. They have lakes the Firpti, nine *Ts-
ai, which sailed from hence about weelui ago. A beautiful
American brig. the Amphitrise;whiddeft here shoot the mete
thee. hut shared the seam title; alseill4PY ulltett. The Prime
Ernest packet is considered is great peril ; rbeswill se sus.exeel.
tem prize f the., if they Wks with her isaviegwa immerse
queasily ef dollars on bused. flea:mil is wired from Al-
goers, with the Purtaguese /dental Beira aatense ne Weird.
He has purchased a pence With the Hey, is beiselfrif the Pup-
legume, fur two years, fee Which he is to psy 9010,00(1 dollars.
He proceeds frees hence to Lisboa, Mlle amiss, for the mo-
ney, as it is to be ;said immediately. Mr. DANIA means, wtris
accompanied the Pertageese Admiral teAlgieft, is else arrived
here t and, I believe, Will proceed with bias to Lisboa."
'lle defection of General SAILSASIS from his
friend and patron, the Gallic Emperor, and the
kind welcome that he has received in this country,
excite no small degree of setusiskinens IN the pub.
tic mind. lielhas even been invited to the tables of
• ministers, and received as much attention as if be
had been an acknewledged Aurbauadur rather than
a ranee soldier. Another singular arrival and sin.,
„
guar reception is manifested in the person of the
conductor of an Angltarench Newspaper, long
the vehtcle for libels and slender, foe abuse of every
kind against the British. Government, This MOM
also apmws at the table Of aStetesman, who is said
to be allowed WI. per day for each entre expeacer.
flurelys however, Gmntleolin may invite whom they
please to (heir tables • • • -
We eaderstand that Earl Rairitaarr • is certainly
to be Lard Lieutenant of Gloweestershire ; and she
Earl. of BrasitLet k to have the Militia.