3d May 1811-AMENDMENTS on the PROPOSITIONS respecting MONEY, BULLION, and EXCHANGES, (dated, 26 April 1811.)

AMENDMENT to No. IV.

That, prior to the Restriction of Cash Payments, the Exchanges were never more unfavourable to Great Britain, for any length of time, than from 5 to 7 per cent. below par, the depression appearing to have never exceeded the whole expence of transmitting Specie abroad; except during a debasement of the Coins of the Realm.

That, prior to the said Restriction, the market price of Standard Gold in bars never rose above the Mint price more than 14 per cent. and that only for a very short interval; except in 1720, the year of the famous South Sea Scheme, when it rose to 4. 1s. 6d. per oz. and during the periods when the coins of the Realm have been debased.

That, in periods subsequent to the said Restriction, and particularly of late years, the Exchanges have been unfavourable to Great Britain much below the limit marked by the whole cost of transmitting Specie abroad, and have continued so for a considerable time together, being at present and having been for a considerable time more than 25 per cent. below par; and in the same manner the market price of Standard Gold in bars has been and still is more than 25 per cent. above the Mint price.

That the price of Standard Gold in bars never exceeded the Mint price, in any one year of the American War.

That, the Exchange with Hamburgh, which had been rather unfavourable to this country, during part of the year 1795, ceased to be so in March 1796, became more favourable in the month of October, and continued favourable till the 26th of February 1797, when the Restriction took place, and for some time afterwards.

That, there was no rise in the price of Standard Gold in bars immediately prior to the 26th of February 1797, nor for a considerable number of years before.

That, the state of the Exchanges, and of the price of Bullion, for two years previous to the peace of Amiens, was subsequent to the said Restriction.

AMENDMENT to No. VI.

That, with regard to the period of 75 years ending with the 1st of January 1796, from the year 1721 to 1758, the market price of Gold never at any one time exceeded the Mint price by more than 1s. 24d per oz. and seldom by more than half that sum; from 1758 to the recoinage of the Gold in 1773, the market price of Standard Gold in bars was always above the Mint price, and sometimes exceeded it by as much as 3s. 6d. per oz. being the period during which the Coins were in a debased state; from the recoinage in 1773 to the 25th February 1797, the date of the Restriction, the market price of Standard Gold in bars never exceeded That, during the wars carried on by the Mint price, except for part of the King William the IIld. the Exchanges years 1783 and 1784, when it rose 14d. did fall below the limit fixed by the ex- above the Mint price; since the year pence of transmitting Specie, and the 1804, the price of Standard Gold in bars price of Gold Bullion did rise very con- has been always very considerably above siderably; viz. during the debased state the Mint price, and from the end of the of the Silver Coin of the Realm; but, im-year 1808 to the present time, has been mediately after the reformation of the Coin, progressively rising (with occasional flucthe market price of Gold fell to the Minttuations) till it has been as high as the price, and the Exchanges rose nearly to unprecedented price of 41. 18s. per oz. par, although the circumstances of the as appears from Wetenhall's Tables. War and the foreign expenditure continued unaltered.

AMENDMENT to No. V.

That, between the reformation of the coin in the reign of King William and the 4th year of the Reign of King George the First, the Guinea passed by law for 22s.; during which period therefore the Mint price of Gold was 4l. 1s. 7d.

That, during the Seven Years War, and until the year 1774, the Gold Coin of the Realm was in a state of debase ment.

AMENDMENT to No. VII.

That, taking the issues of Bank Notes in circulation, not at their amount on a par ticular day, but on a fair average antecedent to any alteration of the Exchanges and price of Bullion, it does not appear, from the information which has been procured, that the price of Gold has been highest and the Exchanges most unfavourable when the issues of Bank Notes

had been considerably diminished, and have been restored to their ordinary rates subsequently to these issues being increased.

That since the said Restriction, the price of Bullion has been highest, and the Exchanges have been most unfavourable, at times subsequent to the periods in which the issues of Bank Notes have most increased.

AMENDMENT to No. VIII.

That taking the average of Bank Notes in circulation in the years 1782 and 1783, from their amount in the beginning of the months of January, March, June, October, and December in each year, and that of 1784 from their amount in the beginning of the months of March, June, October and December, (which are the returns before the House,) it appears as follows;

1782......
.......................... £. 7,599,570

1783

1784.

6,583,560
6,209,855

That the Exchanges with Hamburgb, and the price of Foreign Gold, during the same periods, were as follows;

1782.

June. 31. 5.

1784.

3. 19.
: 3. 19. 6.

4.

4.

2.

for G. £.it. 1.

3. 19.

1.

4. 2. 3.

3. 19. 6.

3. 19. 6.

for G.

AMENDMENT to No. X.

That the average amount of Bank Notes in circulation during the months of January and February 1795, was 12,452,4511. and the average amount from the 1st January to 25th February 1797, was 9,566,430l.; making a 2,886,0211. difference of

That this reduction in the amount of Bank Notes was principally effected be 1796, and the 25th of February 1797. tween the middle of the month of May

fell from 30 to 32.4 (its lowest depresThat the Exchange with Hamburgh sion during the period in question) between the 3rd of February and the 4th of August 1795, during which time the ave rage amount of Bank Notes in circulation during the time as high as 14,071,850l., was 11,464,1437., having been occasionally and even 14,876,5801.

That between the 4th of August 1795, and the first of January 1796, the Ex32. 7, during which period the average change with Hamburgh rose from 32. 4 to amount of Bank Notes in circulation was 11,415,6531.; and from the 1st of January to the 3rd of June 1796, the Exchange with Hamburgh rose from 32.7 to 34. during which period the average amount of Notes was 10,874,316/

That from the 3rd of June 1796 to the 25th of February 1797, during which period the amount of Bank Notes was gradually reduced to the sum of 8,640,250l., the Exchange with Hamburgh rose to 35.; and in the few months following the last reduction rose gradually to 38.

AMENDMENT to No. XIV.

That the average amount of Bank Notes in circulation, of 51. and upwards, for three years ending the 5th of January 1797, was 10,782,7801.; and for the years 1808, 1809, and 1810, was 14,265,8501.

That the average amount of Notes for 51. and upwards, in the year 1796, was 10,240,125l.; and in 1810 was 15,421,310).

BULLION DEBATE.

House of Commons, Monday, 6th May. 1811.-Mr. HORNER rose, and moved, That the House do resolve into a Committee of the whole House, and that the Report of the Bullion Committee, with the different papers relating to the foreign exchanges, and the exchanges with Ireland, be referred to the said Committee.

sert, that the only remedy was to resort to the exclusive use of the precious metals, and to the anterior state of things. He wished, however, to revert only to the doctrines and opinions of the ablest and most practical statesmen of this country previous to the period of the Bank Restriction. The principle of those doctrines was, that the circulation of paper was in itself beneficial, and sufficiently guarded against excess by its constant liability of conversion into gold. There was another feeling also abroad in which he could not

Mr. HORNER then proceeded to observe, that, in opening the subject before the Committee, it was his intention to separate the consideration of the last resolution of those he should submit, from the consideration of those which preceded it. The latter consisted of a statement of the law, of the alledged evil, and of its cause, the former suggested what he conceived was the most proper remedy. Many Gentlemen, who might coincide in the opinions expressed in the first resolution, might not perhaps be disposed to concur with him in the propriety of his last pro-join, a feeling of jealousy of the Bank as position. It would therefore, he conceived, be advisable for him to keep the two questions as distinct as possible. And here he begged leave to observe, that although he designed to enter pretty fully into the view which he took of the general question, it would not be necessary for him to enter into all its details, or into many of those minute and various statements which were contained in the papers already on the table. Some of those which were essential to a clear elucidation of the subject, would probably be examined by the Honourable Members, who would follow him, and were much more competent to draw from them whatever was requisite for a clear exposition of the question. At the same time, the outline which he proposed to describe must comprehend all the most prominent and material points at issue; and he assured the committee, that it should be his endeavour to compress them into as narrow a compass as they would admit. (Hear, hear!)

an institution, and a disposition to condemn it as an unfair monopoly. He could not help thinking that all those who regarded the liberties of the country with a due attention, and who justly appreciated their value and their importance, could not contemplate the origin of the Bank without connecting it with an æra memorable as the epoch when those liberties were secured, and placed on a solid foundation. (Hear! hear!) But beside this, all who had attended to the subsequent events of our political history must be convinced that at different periods, and on great critical emergencies, the Government of the country has derived from the Bank the most important assistance. If then the most extensive and essential resources had been drawn from that quarter for the greatest national objects, it was natural that with the present prospect of new difficulties to be encountered, and additional exertions to be made, we should look in future for a continuance of that aid, and of these resources, of which we had before availed ourselves. Having thus disclaimed all these contrary opinions, he must now declare, that his great and ultimate ob

circumspection as might be fairly claimed by partial and particular interests, but at the same time with as much promptitude as still more urgent considerations might dictate, the circulating medium to its original state-a state attested by a long experience to be not less favourable to private than propitious to public prosperity

Among all the various opinions entertained on the present and on former similar occasions, there had been some which proceeded to the most opposite extremes.ject was to restore, with as much care and Persons were not wanting hardy enough to assert, that a circulating medium, consisting entirely of paper, was perfectly adequate to the fulfilment of all the purposes of a metallic currency. According to their creed, the greatest of all modern discoveries in the improvements of commerce, was the exclusive substitution of a paper currency, founded, not upon the basis of the precious metals, but on the basis of confidence alone. On the other hand, there had been persons blind to all the experience of our commercial and economical history, blind too to all those important advantages practically derivable from the circulation of paper convertable into gold, who went so far as to as

a state, every departure from which must be injurious, in proportion to its extent. He could not here forbear to notice a prejudice which had been excited against him, and those who coincided with him in opinion on this subject; a prejudice that represented them as mere theorists, and as setting up their theory against the conclusions of practice and

experience. If he was indeed a theorist, | ject of the Committee had been to ascerhis theory was, however, that of those who founded the Bank of England (Hear, hear!) if he considered the convertibility of paper into specie as the fundamental principle of that institution, his opinion was in perfect unison with that of the most enlightened and practical statesmen who had conducted the financial relations of the country (Hear, hear!) and who concurred with the most eminent practical merchants of these times. They were consulted because it is the part of a states man to acquire information from all descriptions of men, not to take it upon credit from any particular class. Such a question as that before the Committee was one peculiarly fit for Parliament to decide, because it was the province of Parliament to compare and distinguish different kinds of practical information, and to determine by their collective wisdom, the due application of general principles. If it was a charge against him to have entered upon the investigation with some preconceived opinions respecting it, it was a charge to which he certainly must plead guilty. But without considering if it was possible to commence any such inquiry free from any such preconceived opinions, he would venture to say, not only for himself but for the rest of the Committee, that no investigation ever was begun with a firmer determination to make the most ample, accurate, and impartial scrutiny, and to suspend judgment till that scrutiny was accomplished. (Hear, heur !) The names of the Members of the Committee were a sufficient security perhaps for this, and rendered it unnecessary for him to repel any accusations on that score. It would have been convenient for him to have been informed, before he began the discussion, which of his principles were denied, and which admitted by his right hon. friend (Mr. Vansittart); but upon this point he was left entirely in the dark. If he looked at the last of his right hon. friend's Resolutions, he appeared to differ with himself only as to the remedy proposed; but when he turned his attention to those preceding it, he saw propositions directly controverting all the antient and received doctrines of economical science. The primary ob

tain the causes of the high price of gold. The House of Commons, struck with the appearance of a gradual rise in the price of bullion, had appointed the Committee to examine and report its cause. If this was the object of the House at that period, how much more imperious had that duty become by the subsequent and progressive rise which had taken place? He meant to state broadly here, that although there had been collateral causes, the operation of which he was most ready to admit, yet that the high price originated in and was perpetuated by an excess of paper circulation. The Mint price was 34. 17s. 10žd. the market price had first risen to 4/. 108. and since the Report of the Committee had reached as high a point as 41. 14s. being somewhat more than 20 per cent. of excess above the mint price. Now it was important to observe, that this excess was a departure to that amount from the standard value of our national currency, that standard consisting, according to law, of gold and silver of a certain fineness, weight and denomination. Bank notes were nothing more than stipulations to pay so much of this lawful money to the holder. The excess of the market price of gold proved, therefore, that bank notes purported to represent what they did not, viz. a, certain sum of standard value. Measured by the market price, a pound note was worth 15 shillings and a fraction. To this degree the paper must be considered as depreciated. The maintenance of the legal standard had always formed a principal feature in the legislative po licy of this kingdom. Parliament had hitherto, at all times, displayed the ut most vigilance upon the appearance of any dérangement or undue alteration of the value of the circulating medium. Some of our ablest princes had on particular occasions attempted to debase the legal coin, or to raise its denomination, but Parliament had never failed to raise its voice and check the progress of the evil. The last operation of this kind took place in the reign of queen Elizabeth, and since that period the standard has remained unaltered, both in fineness and in weight.

(To be continued.)

Published by R. BAGSHAW, Brydges-Street, Covent Garden :-Sold also by J. BUDD, Pall-Mall,

LONDON:-Printed by T. C. Hansard, Peterborough-Court, Fleet-Street,

VOL. XIX. No. 38.]

LONDON, SATURDAY, MAY 11, 1811.

[Price 15.

"It is in the last twenty years of the Funding System, that all the great shocks begin to operate."

-PAINE.

1153].

PAPER AGAINST GOLD:

BEING AN EXAMINATION

OF THE

Report of the Bullion Committee:

IN A SERIES OF LETTERS

TO THE

TRADESMEN AND FARMERS
IN AND NEAR SALISBURY.

LETTER XXIII.

Events since the Date of the foregoing Letter
-Bank Notice about the Dollar-Various
Symptoms of the Effect of that Mensure
Proceedings in Parliament relative to the
Bullion Report.

GENTLEMEN,

[1154

Nevertheless, as I wish that this series of letters should contain the whole of what I have thought, and still think, relating to this interesting matter; I shall treat of the question here spoken of, after I have recorded the events, which have taken place since I last addressed you; and which events are important to a degree, that few persons, comparatively speaking, appear to imagine.

When, on the 24th of December, I wrote my last Letter to you, I did expect, that the winter would not pass over our heads, without some striking change as to the circulating currency of the country. It appeared to me, as I had, upon former occasions, told my readers, quite impossible, that things could go on much longer without events that would strike the abudent partizans of the paper system dumb. The guinea had, for sometime, been a IN reviving my correspondence with marketable commodity; and, under such you, it will be necessary for me to revert circumstances, the paper could not confor a moment to the point, at which I tinue much longer without being openly broke off, which was in the preceding at a discount in all transactions. The volume of my work, at page 1291, where coin of every denomination grew daily I closed Letter XXII, in which, as you more and more scarce; till, at last, change will remember, it was shown, for the satis- for a pound noto was with difficulty obe. faction of two correspondents in the coun-tained; and, as these difficulties increased, try, that any man, having Country Bank people, of course, felt an increased incliNotes in his possession, had (and he still nation to hoard the coin. has, of course) the power of compelling the drawer of such notes to pay him in gold or silver, the lawful coin of the realm.

But, that Letter was a digression from the main track of our subject, which, at the close of Letter XXI, page 1224, was leading us into the great question as to the depreciation, that is to say, fall, of the Bank of England Notes; a question, which has caused more discussion than any other that has been agitated for many years past, and which, I think, we may now look upon as completely decided, seeing that, while the dispute was going on, the Bank Company themselves have done an act which can, in the mind of no man out of a mad-house, leave the smallest doubt upon the subject.

As a remedy for this evil, the Bank Company issued a Notice, raising the Dollar (which was in circulation at the rate of 5 s.) to 5s. 6d. and it was afterwards found, that this Notice had been issued with the advice and approbation of the PRIVY COUNCIL, or, at least, of a Committee of the Privy Council, appointed to watch over the affairs of Coin (1). This Notice, which was first published on the 18th of March, not only failed to produce the intended effect; but, it produced an effect precisely the opposite of that, which was intended by the Privy Councillors

(1) The Notice, and the Minute of these Privy Counsellors will be found at page 980 of this present Volume.