IN

N contemplating the condition of the country, as resulting from the baneful and uncompensated war from which it has just now seemed to emerge, the mind detects itself in tracing analogies of every description which imply a feeling of safety not unmixed with apprehension. We are led, for example, to view our political convalescence with a caution similar to that which a physician feels with regard to a patient who has passed the crisis of his malady, but whose state of recovery needs, to say the least, as much skill and watchful attention as his disease. Nor can it be ascertained, for a considerable period, whether there be sufficient stamina in the sufferer to encourage the hope of complete restoration. Whether this be, or not, a faithful representtation of our circumstances in the seventh year of peace, we will not determine; it may not probably be denied, however, that an illustration is afforded to the subject from the case which we have imagined. To describe the rapid progress to exhaustion and ruin, not to say to political dissolution, which no very long extension of the war would have exhibited, is not indeed the object of this paper; it has only to follow the events of the last

The

year as they have been connected with the currency of the country, and to detail those measures which have either been projected or adopted for its security and improvement. The first part of our plan would appear to demand some notice of a prevalent opinion, one, indeed, fraught with mischief, as it is supposed, not by fair deductions from correct premises, but by partial and biassed views of a subject on which, at the present moment, it is of high importance to obtain accurate notions. opinion alluded to is, that the general and almost unsupportable pressure on the agricultural classes is the result of that change in the currency which was so ardently desired, but which seemed hardly within the range of expectation, by every portion of the community. And now that the great revolution has been accomplished, and the auguries of national bankruptcy arising inevitably out of the paper system have been falsified, we are told by a certain description of writers, that distress and misery are the necessary consequents of this momentous operation. Without adverting particularly to what might, on another view of the subject, be adduced as the causes of the depression of the farming in

terests,

estimated, however, that the total of Bank of England and country notes, between the years 1810 and and 1819, varied from about 42,000,000l. to above 48,000,000l. -the highest sum occurring in 1814-the lowest in 1816. The gold coin in circulation before the year 1797 may be taken at about 25,000,000l. the notes of the Bank at that period at 10,500,000l. -the country notes, including those of Scotland, at 7,000,000l. giving a total of 42,500,000l. The difference between this amount and the highest, therefore, will be 5,500,000l., the mean difference however will be about two millions and a half. From the year 1817 to the last year there were twenty-two millions and a half of gold coined, and seven millions and a half of silver, giving an average of six millions a-year; there was besides an accumulation of gold and silver bullion beyond the public demand. The issues of Bank notes, since the resumption of cash payments, have fluctuated between 16 and 20 millions, the mean amount being 18 millions, which added to six millions will show the average total of the currency in the intervening period. But when Mr. Peel's bill was passed the Bank issues did not exceed 25 millions, we have therefore a comparatively trifling reduction in the currency to account for results, to produce which a cause of far greater extent and importance would be required. Besides, it is a gratifying consideration, that a confident expectation of immediate improvement may be entertained. average of the Bank paper in circulation in the last year was 18 millions, and the gold between

The

The

eight and nine millions. country bank paper appears to have fallen, yet in some districts it is increasing. The average issues of those banks before Mr. Peel's bill took effect was about 17,167,000l.; for the three succeeding years the average gives one-third less. therefore has taken place cannot be denied; it is indeed acknowledged, and the friends of government have allowed, that, as compared with the year 1814, the deficiency may be taken at 10 per cent.; but on the mean average it will be but 4 per cent., and this, we contend, is by no means a sufficient ground of argument for the raising that fabric, which is indeed as yet incomplete, but whose solid foundation, the metal currency, having been so safely and, it is hoped, permanently laid, will soon exhibit an edifice of national prosperity and happiness.

That a reduction

It will therefore, we trust, have been seen that whatever may be the depressed condition of any portion of the community, it cannot be with truth affirmed, that it results from a contracted currency; for the currency has not been contracted in any degree proportionable to the depression.

If, however, it were allowed, that the actual extent of reduction has been attended with corresponding effects of the kind contended for, we say, that little is gained to the argument of those who are calling for the return of the paper system, inasmuch as the reduction has in reality been in so small a ratio.

It is, indeed, a striking proof of the vastness of our resources, that notwithstanding the reduction of the public expenditure to the ex

tent

tent of two millions, the reduction of the dividends on the 5 per cents; the military and naval pension measure; by all which the circulation of the country would be supposed to suffer a diminution: yet with all these items procuring a remission of more than three millions of taxes, the currency, it may be said, has been but triflingly contracted.

But as it is obvious that, however small the degree in which, on a general scale, such a diminution might operate, yet in particular cases it may be felt to a much greater extent; and it is clear that if the country banks were obliged to pay in cash at the time of the depressed state of agriculture, the consequence might be their own immediate ruin and the distress of the district in which each bank is situated. The chancellor of the exchequer, therefore, adopted the plan of granting to country banks the privilege of issuing notes until the year 1833. The second plan for assisting the currency was the forming of joint stock banks at the distance of sixty miles from London; this measure was designed, too, for the security of the public, as it was supposed, that by uniting the property of a larger number than usual in the projected banks a better guarantee would be afforded to individual depositors in the respective neighbourhoods. An

other measure to assist the circulation was the issuing of two millions of exchequer bills for public works. The throwing also of 2,600,000l. into circulation by paying those holders of 5 per cents. who dissented from the terms proposed by Mr. Vansittart, the amount of their capital in bank notes. And the last measure,

which was intended to assist the operations of commerce, was to procure the adoption of a resolution at the Bank to discount at 4 per cent.; moreover, to take bills of three months, and to facilitate the transmission of money, of not less than 3000l. at one time, by sending them without charge to any part of the country.

In thus giving a compressed view of the circumstances of our currency during the past year, we have thought it desirable to select what seemed to bear most strongly on the subject, rather than to induce a variety of particulars, the consideration of which might with greater propriety be referred to a more general view of the finances of the country. The subject of Foreign loans, however, is certainly connected with the present discussion, but the earlier contracts having come fully under our notice in former volumes, will preclude the necessity of repeating statements which refer to facts sufficiently obvious to every one. It cannot be required to adduce proof that, if the precious metals leave the country, whether in the character of loans to foreign powers, or in the case of the balance of trade being against us, the effect is the same. It may, however, be observed, that although injurious in a high degree in a national point of view, there is little doubt that to the individual capitalist such speculations may prove still more mischievous. Experience has indeed confirmed, within a very few months, to its fullest extent, the sentiment just expressed.

The plans proposed by the then chancellor of the exchequer have in this paper been merely enume

rated,

rated, the full discussion of them requiring more space than the notice of other important topics will allow.

In the course of our remarks we have had particular reference to two pamphlets which may be regarded as containing the chief facts and arguments on both sides the agricultural question; on this account, therefore, we thought that they might be fairly selected. It may be remarked respecting them, that the one on the ministerial side has been supposed to emanate ex cathedrá, which however has been denied; and, that the other, a decidedly opposition work and a reply to the one just referred to, is from the pen of Mr. Joshua Collier; the portion of ability manifested in both is very considerable. In the latter, however, we discover too much that is characteristic of the political partizan, rather than of the advocate of truth. It will be observed that we have not alluded to the various county and other local meetings recently held on agricultural distress, there being so general a coincidence in their respective resolutions and petitions with the doctrines and statements which we have drawn from the pamphlets referred to, that to have replied to them would have been merely to reiterate the ideas we have attempted above to suggest.

May we not, however, on the review of our case, call for the congratulations of our fellow countrymen on the degree of actual prosperity which we enjoy ? Great

and obvious as are the privations and sufferings of a numerous and important class of the community, yet the aggregate of improvement in our political condition, we think, must be equally obvious.

we

In an improving revenue have the basis of our expectations both of a reduction of debt and of taxation, nor are these expectations to be deferred to a distant period; they are already realised to a certain extent, it must be confessed as yet extremely limited, but such as is sufficient to constitute a pledge of the dispositions of government on the one hand, and on the other, a proof of the unexhausted and growing energies of the state. The promotion and maintenance of unanimity at home and of peace abroad must appear to every lover of his country to be of essential importance in promoting the very desirable objects we have just contemplated. War must indeed be deprecated as an incalculable evil, especially at the present crisis, nor can the national progress to the former point of elevation among the European states be effected, embarrassed and retarded at every step by the hateful dæmon of discord. But with the union of energy and skill undoubtedly possessed by the British people, and the absence of those direst curses of human society to which we have just alluded, may we not, without presumption, confidently affirm the moral certainty of the return of national happiness and prosperity ?

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