The enquirer. [volume] (Richmond, Va.) 1804-1815, 1810-10-16
mo. 40


changes lately suffered must have resulted.
not from the state vt trade, but from change
IN the relative value of our domestic curren.
cy. hut when this, deduction is Joined with
that which your committee have stated. res.
pectlng the change in the market price os
gold, that inference appears to be demon.
! stra, Cd
III. The committee mex. enquire, whether
the bank has regulated it's issues of paper
by the Course of exchange: and "particu-
Early, whether, in the course of the last
year, the great depression of the exchanges,
ana thc great rise in the price of gold, had
suggested 20 the directors any suspicion of
the currency otthe country being excessive 7"
L he evidence upon this head is given. and
turns out to he in the negative Upon this,
however, the committee remarks
ne Committee Cannot refrain from ex
| pressing tito be their opinion. after very
deliberate consideration of this part of the
SUBJECT, that it's great practical error TO
suppose that thc exchanges with foreign
countries. and the price of bullion are not
i'aoie to be affected By the amount of pa
per currency, which is issued with u, he.
condition OF payment in specie a the will
OF the holder That the exchanges wis be
lowered, and the price Of bullion raised, by
an issue OF such paper TO excess is not only
established as principle by the most emf.
nent authorities upon commerce and finance
OUT It's practical truth has been illustrated
ny me history OF almost every state in mpd.
,eth times winch has used paper curren-
cy: and in all those countries. this pr;nci !.
pie has finally been resorted to by their
statesmen.as the best criterion to Judge by.
whe!ner SUCH currency was or was not ex.
cessive.'
his subject is thus concluded -
lie suspension of cash payments has
had the effect of committing into The hands
OF the directors of the bank of England to
DE exercised by their sole direction, the inn
portant charge OF supplying the country with
mat quantity OF circulating medium which,
IS exactly proportional to the wants and oc-
casons OF the public. In the Judgment ofs
'he committee. that is trust which il is UNI,
reasonable to expect that the directors of-
the bank of England should ever be abl,. 70.
discharge. The drec ors of the bank OF
England. IN the Judgment of ynur committee.
nave exercised the new and ex rraortlinaryG
discretion reposed in them since 1877 with
an integrity and regard to the public in
terest, according to their conceptions of it.,
and indeed degree, of forbearance IN turn
lAS IT. less to the proit of the bank than IL
"ouio easily nave admitted of, that merits:
the continuance of that confidence which shr.
public has so long and so Justly felt in he.
integrity with which its aff4iIs are dirscte ed
as wen as the mistaken stability and a. iule-
iuhos OF that great establishment That
their recent policy involves great PRACTICAL,
errors, "h'cn IL is of the utmost public I'M
PoFtanee TO correct, your committee are full,
~ convinced but those errors are less to,
oe imputed TO the bank directors than tor
os sta'en Dis me effect of new system, Of
which, however it originated. or was rem
dered necessary as a temporary exned;ent.
lt might nave been we'll if parliament had
sooner taken into view all the copseoupn.
ces.
when your committee consider that this
discretionary power OF supplying the king
oom with circulating medium, has been eS.
eiS,Seu unHer an opinion that the paper
Coniu not be issued to excess If advanced in
discounts 10 merchants in good bills payable
at stated periods, and likewise under an O.,
p'nlon that neither the price of bullion mn.
the course OF exchanges need be adverted tn,
as aHordihg any indication with respect to
'"e Suncfency or excess of such paper. ysur
1o."ihittee cannot hesitate to say, that these.
opinions OF the bank must be REGARDED
as IN great measure the operative ca,,ses
of the continuance of the nreeen, a.,c
things u
~. This head relates to the progressive.
increase and present amount of the paner
circulation" That of country banks e NOT.
easily ascertainable, The increase of bank.
VI England circulation in the last ten wears.
may oe iald at about six millions. amount
Ing row, IN the whole TO twenty one milf.
ons TWO hundred and forty nine thousand
pounds
The remedy for all the evils sustain.
eo, or apprehended from the present high
price OF Bullion, ii thus siven -
Upon review of all the facts end rea
soRnes which have been submitted to the
Consideration of or committee in the
course OF their enquiry, hey nave formed an
opinion, winch they submit 80 the house
mat there is at pres ut an excess in the
paper Circulation Of this untry, of which
tle most unequvoCal symptom is the very
h'gh price OF Balloon and NEXT to that the
10" state OF the continental tx hanges that
thlS excess is TO be ascr bed to he want of
check and control in The issues Of
paper from the bank OF England and. ORR
S'naiy' to the suspension Of cash payments.
whICh r. moved the Datu' al and tru control.
OF upon general view ofthe subiect, your
committee are OF opinion. that no safe. GER
tam and constantly adequate provisions a.
I'M an excess OF paper currency, either
occasional or permanent, can be found ex-
,ept M the convertisility OF all such Oaper
1910 specie -FOUR committee canno there.
Iore' but see reason to regret that the sus-.
pension OF cash payments, which in the most
favorable light ~ which il can b. viewed
vas only temporary measure, has been
Continued Sd long End particularly, nat
BY The manacr IN which the present en- M
ling act is framed the cLarao,a -