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form. Jle has also endeavoured to for- and capital, remitted to proprietors in this ward the object of the committee, by country. The balance of trade in favour calculating how much should be deducted of this country, upon the face of the from the value of goods imported, on accome thus made up, was account of articles in return for which In 1805 about - 6,616 0001, nothing is exported. These deductions
10,437,0001, consist of the produce of fisheries, and of
5,866,0001. imports from the East and West Indies,
12,481,0001. which are of the nature of rents, profits,
The following is an Account of the official Value of our Imports and Exports with the Continent of Europe alone, in euch of the last five Years:
Balance in favour of
reckoned in Official Value.
1805 1806 1807 1808 1809
£ 10,008,649 8,197,256 7,973,510 4,210,671 9,551,857
£ 15,465,430 13,216,386 12,689,590 11,280,490 23,722,615
£ 5,456,781 5,019,130 4,716,080 7,069,819 14,170,758
The balances with Europe alone in becomes so low as to be likely to afford a favour of Great Britain, as exhibited in profit on the purchase and exportation of this imperfect statement, are not far these commodities, an actual exportation from corresponding with the general and nearly proportionate to the amount of more accurate balances before given. the bills drawn can scarcely fail to take The favourable balance of 1809 with place. It follows, that there cannot be, Europe alone, if computed according to for any long period, either a highly fathe actual value, would be much more vourable or unfavourable balance of considerable than the value of the same trade; for the balance no sooner affects year, in the former general statement. the price of bills, than the price of bills,
A favourable balance of trade on the by its re-action on the state of trade, face of the account of exports and im- promotes an equalization of commercial ports, presented annually to parliament, exports and imports. Your committee is a very probable consequence of large bave here considered cash and bullion as drafts on government for foreign expen- forming a part of the general mass of exo, dilure; an augmentation of exports, and ported or imported articles, and as transa, a diminution of imports, being promoted, ferred according to the state both of the, and even enforced, by the means of such supply and the demand; forming, howe drafts. For if the supply of bills drawn ever, under certain circumstances, and abroad, either by the agents of gnvern- especially in the case of great fluctuations, ment, or by individuals, is disproportio in the general commerce, a peculiarly onate to the demand, the price of them commodious remittance. in foreign money falls, until it is so low as From the foregoing reasonings relative to invite purchasers; and the purchasers, to the state of the exchanges, your comwho are generally foreigners, not wishing mittee find it difficult to resist an inferto transfer their property permanently to ence that a portion at least of the great England, have a reference to the terms fall which the exchanges lately suffered, on which the bills on England will pur must have resulted not from the state of chase those British commodities which trade, but from a change in the relative, are in demand, either in their own coun value of our domestic currency. But try, or in intermediate places, with when this deduction is joined with that which the account may be adjusted. which your committee have stated, reThus, the price of the bills being regu. specting the change in the market price, lated in some degree by that of British, of gold, that inference appears to be commudities, and continuing to fall till it demonstrated.
In consequence of the opinion which the course of the last year, risen as high your committee entertain, that, in the as 4l. 10s, or 4l. 12s. has that circumpresent artificial condition of the circu- stance been taken into consideration by lating medium of this country, it is most you, so as to have had any effect in diiniinportant to watch the foreign exchanges nishing or enlarging the amount of the and the market price of gold, your come outstanding demands?-It has not been inittee were desirous to learn, whether taken into consideration by me in that the directors of the Bank of England view.”. held the same opinion, ard derived from Mr. Pearse, now governor of the bank, it a practical rule for the controul of their agreed with Mr. Whitmore in this circulation; and particularly whether, in account of the practice of the bank, and the course of the last year, the great de- expressed his full concurrence in the pression of the exchanges, and the great same opinion. sise in the price of gold, had suggested to Mr.' Pearse.--" In considering this the directors any suspicion of the cur- subject, with reference to the manner in rency of the country being excessive. which bank-notes are issued, resulting
Mr. Whitmore, the late governor of from the applications made for discounts the bauk, stated to the committee, that, to supply the necessary want of bankin regulating the general amount of the notes, by which their issue in amount is loans and discounts, he did " not advert Su controuled that it can never amount to to the circumstance of the exchanges; it an excess, I cannot see how the amount appearing, upon a reference to the of bank-notes issued can operate upon amount of our notes in circulation, and the price of bullion, or the state of the the course of exchange, that they free exchanges, and therefore I am individuquently have no connexion.” He after- ally of opinion that the price of bullion, wards said, “My opinion is, I do not or the state of the exchanges, can never know whether it is that of the Bank, that be a reason for lessening the amount of the amount of our paper circulation has bank-noles to be issued, always underno reference at all to the state of the standing the controul which I have ale exchange." And on a subsequent day, ready described. Mr. Whitmore stated, that “the present “ Is the guvernor of the bank of the unfavourable state of exchange has no same opinion which has now been exi influence upon the amount of their issues, pressed by the deputy governor? the bank having acted precisely in the Mr. Whitmore. I am so much of same way as they did before.” He was the same opinion, that I never think ic likewise asked, Whether, in regulating necessary to advert to the price of gold, the amount of their circulation, the bank or the state of the exchange, on the days ever adverted to the difference between on which we make our advances. the market and mint price of gold? and “Do you advert to these two circumhaving desired to have time to consider stances with a view to regulate the gethat question, Mr. Wbitinore, on a sub- neral amount of your advances? I do sequent day, answered it in the following not advert to it with a view to our geneterins, which suggested these further ral advances, conceiving it not to bear questions:
upon the question." “In taking into consideration the Aud Mr. Hurman, another bank die amount of your notes out in circulation, rector, expressed his opinion in these and in liiniting the extent of your dis terms: “I inust very materially alter my counts to merchants, do you advert to the opinions, before I can suppose that the difference, when such exists, between exchanges will be influenced by any mo. the market and the mint price of gold?- difications of our paper currency." We do advert to that, inasmuch as we do The comunittee cannot refrain from noc discount at any time for those pere expressing it to be their opinion, after a sons who we know, or have good reason very deliberate consideration of this part to suppose, export the gold.
of the suhject, that it is a great practical “Do you not advert to it any further error to suppose that the exchanges with than by refusing discounts to such per- foreign countries, and the price of bulls sons ?-11e do advert to it, inasmuch as lion, are not liable to be affected by the whenever any director thinks it bears amount of a paper currency, which is upon the question of our discounts, and issued without the condition of payment presses to bring forward the discussion.
in specie at the will of the holder. That “ The market price of gold having, in the exchanges will be lowered, and the
price of ballion raised, by an issue of such in force. But your committee beg leave paper to excess, is not only established as to report it to the House as their most a principle by the most eminent autho- clear opinion, that so long as the suspenrities upon commerce and finance, but sion of cash payments is permitted to its practical truth has been illustrated by subsist, the price of gold bullion and the the history of almost every state in mo- general course of exchange with foreign dern times which has used a paper cur countries, taken for any considerable perency; and in all those countries, this riod of time, form the best general criteprinciple has finally been resorted to by rion from which any inference can be their statesmen, as the best criterion to drawn as to the sufficiency or excess of pajudge by, whether such currency was or per currency in circulation; and that the was not excessive.
bank of England cannot safely regulate In the instances which are most fami- the amount of its issues, without having Jiar in the history of foreign countries, the reference to the criterion presented by excess of paper has been usually accom these two circumstances. And upon a panied by another circunstance, which review of all the facts and reasonings has no place in our situation at present which have already been stated, your a want of confidence in the sufficiency committee are further of opinion, that, of those funds upon which the paper had although the commercial state of this been issued. Where these two circum- country, and the political state of the stances, excess and want of confidence, continent, may have had some influence are conjoined, they will co-operate and on the high price of gold bullion and the produce their effect much more rapidly unfavourable course of exchange with ihan when it is the result of the excess foreign countries, this price, and this de only of a paper of perfectly good credit; preciation, are also to be ascribed to the and in both cases, an effect of the same want of a permanent check, and a suffi. Bort will be produced upon the foreign cient limitation of the paper currency in exchanges, and upon the price of bullion. this country. The most remarkable examples of the In connexion with the general subject former kind are to be found in the bis: of this part of their report, the policy of tory of the paper currencies of the Bri- the bank of England respecting the tish Colonies in North America, in the amount of their circulation, your coin. early part of the last century, and in that mittee have now to call the attention of of the assignats of the French Republic; the House to another topic, which was to which the committee have been ena- brought under their notice in the coursebled to add another, scarcely less re of their enquiry, and which, in their judga markable, from the money speculations ment, demands the most serious consiof the Austrian government in the last deration. The bank directors, as well campaign. The present state of the cur. as some of the merchants who bave been rency of Portugal affords, also, an in. examined, shewed a great anxiety to stance of the same kind.
state to your comunittee a doctrine, of the It was a necessary consequence of the truth of which they professed themselves suspension of cash payments, to exempt to be most thoroughly convinced, that the bank from that drain of gold which, there can be no possible excess in the in former times, was sure to result from issue of Bank of England paper, so long an unfavourable exchange and a high as the advances in which it is issued are price of bullion. And the directors, re- made upon the principles which at preleased from all fears of such a drain, and sent guide the conduct of the directors; no longer feeling any inconvenience from that is, so long as the discount of mersuch a state of things, have not been cantile bills is confined to paper of un. prompted to restdre the exchanges and doubted solidity, arising out of real com. the price of gold to their proper level by mercial transactions, and_payable at a reduction of their advances and issues, short and fixed periods. That the disThe directors, in former times, did not counts should be made only upon bilis perhaps perceive and acknowledge the growing out of real commercial transacprinciple more distinctly than those of tions, and falling due in a fixed and short the present day, but they felt the incon- period, are sound and well-established venience, and obeyed its impulse; which principles. But that, while the bank is practically established a check and limi- restrained from paying in specie, there iation to the issue of paper. In the pre- need be no other limit to the issue of their sent times, the inconvenience is not felt; paper than what is fixed by such rules of aod the check, accordingly, is no longer discount, and that during the suspension
of cash payments the discount of good bills excess.” He considers “ the amount of, falling due at short periods cannot lead the bank-notes in circulation as being to any excess in the amount of bank pa. controuled by the occasions of the public, per in circulation, appears to your com for internal purposes;", and that " from mittee to be a doctrine wholly erroneous the manner in which the issue of banke in principle, and pregnant with dangere notes is controuled, the public will never ous consequences in practice.
cali for more than is absolutely necessary But before your committee proceed to for their wants." make such observations upon this theory Another director of the bank, Mr.' as it appears to them to deserve, they Harmon, being asked, If he thought that think it right to shew from the evidence, the sum total of discounts applied for, to what extent it is entertained by some even though the accommodation afforded of those individuals who have been at the should be on the security of good bills to head of the affairs of the bank. The safe persons, might be such as to produce opinions held by those individuals are some excess in the quantity of the bank likely to have an important practical in- issues, if fully complied with? he answerfluence; and appeared to your coinmit- ed, " I think if we discount only for solid tee, moreover, the best evidence of what persons, and such paper as is for real' has constituted the actual policy of that bona fide transactions, we cannot mateestablishment in its corporate capacity. rially err.” And he afterwards states,
Mr. Whitmore, the late governor of that what he should consider as the test the bank, expressly states, “The bank of a superabundance would be,“ money never force à note in circulation, and being more plentiful in the market.” there will not remain a note in circula It is material to observe, that both Mr. tion more than the immediate wants of Whitmore and Mr. Pearse state that the public require; for no banker, 1 pre "the bank does not comply with the sume, will keep a larger stock of bank- whole demand upon them for discounts, notes by him than his immediate pay- and that they are never induced, by a ments require, as he can at all times pro. view to their own profit, to push their core them.” The reason here assigned issues beyond what ihey deem consistent is more particularly explained by Mr. with the public interest." Whitmore, when he says, “ The bank Another very important part of the notes would revert to us if there was a evidence of these gentlemen upon this redundancy in circulation, as no one point, is contained in the following exwould pay interest for a bank-note that he did not want to make use of." Mr. “ Is it your opinion that the same se. Whitmore further states, “ The criterion curity would exist against any excess in by which I judge of the exact proportion the issues of the bank, if the rate of the to be maintained between the occasions discount were reduced from 5l. to 4l. per of the public, and the issues of the bank, cent.?" Answer.--" The security of an is by avoiding as much as possible to dis excess of issue would be, I conceive, precount what does not appear to be legiti- cisely the same.” Mr. Ptarse." mate mercantile paper.” And further, concur in that answer.” when asked, What measure the court of “ If it were reduced to 31. per cent.?" directors has to judge hy, whether the – Mr. Whitmore, “I conceive there quantity of bank-notes out in circulation would be no difference, if our practice is at any time excessive? Mr. Whitmore remained the same as now, of not forcing states, ihat their measure of the security a note into circulation.” Mr. Pearse. or abundance of bank-notes is certainly “I concur in that answer.” hy the greater or less application that is Your committee cannot help again calmade to them for the discount of good ling the attention of the House to the paper.
view which this evidence presents, of the Mr. Pearse, late deputy-governor, and consequences which have resulted from now governor of the bank, stated very the peculiar situation in which the Bank distinctly his concurrence in opinion with of England was placed by the suspension Mr. Whitmore upon this particular point. of cash payments. . So long as the paper He relerred “ to the manner in which of the bank was convertible into specie bank-notes are issued, resulting from the at the will of the holder, it was enough, applications made for discounts to supply both for the safety of the bank and for the necessary want of bank-notes, by the public interest in what regarded its which their issue in amount is so con- circulating medium, that the director's trouled that it can never amount to an attended only to the character and qua
498 Dr. Carey, on his Invention for Relief of Ships ix Distress. (Jan. 1, lity of the bills discounted, as real ones have got? And in the same manner, and payable at fixed and short periods. how many points A.A. get in the followThey could not much exceed the proper ing instances: when A. A. win one dou. bounds in respect of the quantity and ble and one single, and B.B. one single; amount of bills discounted, so as thereby when A.A. win one double and one sinto produce an excess of their paper in gle, and B.B. one double; when A.A. circulation, without quickly finding that win two doubles, and B.B. one double; the surplus returned upon themselves in when A.A. win two singles, and B.B. demand for specie. The private interest another single; when A. A. get vo douof the bank to guard themselves against bles, and B.B. none; and when A.A. get a continued demand of that nature, was two singles, and B. B. none: and whether,
sufficient protection for the public in any instance, it is possible for A.A. to against any such excess of bank paper, get only one point.
WHISTENSIS. as would occasion a material fall in the relative value of the circulating medium. To the Editor of the Monthly Magazine, [Ie should do injustice to our readers,
SIR, and to the able uuthors of this valuable AVING observed in the pages of Report, if we curtuiled it farther; vepro
your Magazine, * that Captain pose, therefore, to finish it in the usuul Manby has lately exhibited an invention Supplementury Number, published on the for the relief of ships in distress, by 15th of January.]
means of a ball and rope thrown from a
mortar on shore; for which invention he To the Editor of the Monthly Magazinc. has been rewarded by a parliamentary
grant of two thousand pounds, I hope SIR, 1
AM happy in being able to satisfy the that, with your accustomed candour and enquiries of your correspondent E. impartiality, you will permit me to state,
that, with the exception of a small and E. M., relative to
a method of pre- not necessary addition, the invention paring pencil drawings so as to pre originated with me, and was by me gravent their becoming obscured, or the strength of their shades lessened, by above seven years ago, through the me
tuitously communicated to the public Tubbing or exposure. The best known dium of the Monthly Magazine for method (and which is in use by many November, 1803, in a letter signed with artists) is to wash a solution of the best
my name. isinglass in warm water, all over the sur
Captain Manby's addition to my ina face; to be of a gelatinous consistence when cold, but used warm, and applied which I consider as not necessary, for
vention, appears to be only a grapple, with a soft brush. This will preserve the following reasons: 1st. If the ball do them perfect, and at the same time im
not exactly reach the ship, the grapple prove their appearance.
is wholly useless; whereas, according to Some artists wash their sketches with milk, to prevent the effects complained my original plan, if the ball and rope of, which answers the purpose so far;
come any where near the ship, the crew but prevents all tinting, or any applica- Captain Manby's ball do reach the ship,
may grapple them from on board. 2ly. If tion of colour to them afterwards.
in this case too the grapple is nearly useless, because, without its aid, the
people on board will, of themselves, be To the Editor of the Monthly Magazine. sufficiently alert in catching and securing SIR,
the rope, as the means of their salvation. I
SHALL be much obliged to any of At all events, Sir, allowing to Captain
your numerous correspondents who. Manby whatever praise may be due to may be well acquainted with the game of him for his addition of the grapple, which whist, to answer the following queries, as has so fortunately secured to him the I have heard them much disputed. parliainentary grant, I hope, at least,
The rubber is usually said to consist that the impartial reader will allow me of five points: I wish
know ther, sup some little share of credit for the original pose A.A. and B.B. are playing, and and principal invention-Sic vos, noiz A.A. win two double games and B.B. vobis,
J. CARHY. one single, how many points A. A. have Islington, Dec. 14, 1810. got? When A.A. win two doubles, and B.B. one double, how many points A. A. See Monthly Mag, for September, p. 151,