"EXPERIENCE," says Dr Johnson, "is the great test of truth, and is perpetually contradicting the theories of men." "If an empire," said Napoleon, "were made of granite, it would soon be reduced to powder by political economists." Never was there a period when the truths stated by these master minds were so clearly and strikingly illustrated as the present; never was there an epoch when the necessity was so fearfully evineed of casting off the speculative dogmas of former times, and shaping our course by the broad light which experience has thrown on human transactions. If this is done, if wisdom is learnt by experience, and error expelled by suffering, it is yet possible to remedy the evils; though not before a frightful and yet unfelt amount of misery has been encountered by the people.

For the last thirty years, the liberal party have had the almost uncontrolled direction of the affairs of the nation. One by one, they have beat down all the ancient safeguards of British industry, and given effect to the whole theoretical doctrines of the political economists. So complete has been their ascendency in the national councils-so entire in general the acquiescence of the nation in their direction, that without one single exception ALL their doctrines have been carried into practice; and the year 1847 exhibits a fair, and it may be presumed average result of the liberal

VOL. LXIII.NO. CCCLXXXVII.

system when reduced into execution. The result is so curious, its lessons so pregnant with instruction, its warning of coming disaster so terrible, that we gladly avail ourselves of the opening of a new year, to portray them in a few paragraphs to our readers.

The first great change which took place in British policy was in 1819, by the famous Bank Restriction Act, passed in that year. Every one knows that the obligation on the Bank of England to pay in specie, was sus pended by Mr Pitt in February 1797; and that under that system the empire continued to rise with all the difficulties with which it was surrounded, until in the latter years of the war it bore without difficulty

an

annual expenditure of from £110,000,000 to £120,000,000 annually. But under the new system introduced in 1819, the currency was restricted by imposing on the bank the obligation of paying its notes, when presented, not in gold or silver, but in GOLD ALONE. The currency was based on the article in commerce most difficult to keep, most easy of transport, most ready to slip awaythe most precious of the precious metals. The result has been that the nation, which, with a population of 18,000,000 of souls, raised without difficulty £71,000,000 annually by taxes, and from £30,000,000 to £10,000,000 annually by loans in 1813, 1814, and 1815, of which at least a half was sent abroad, and

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