causes *. Mr. Whitmore, the Governor of the Bank, being asked his opinion, what had become of the greater part of our gold coin, which had disappeared, in the circulation, said, "that the high

σε

price, abroad, had carried it out of this country †." 4. Come we now to the last cause assigned for the high prices of bullion, its scarcity compared with the demand, in the London market. The Committee has seen no evidence of any scarcity. Is not the general complaint of scarcity evidence of the truth of the thing complained of, as far as it is a declaration of the popular voice? Do not wars create scarcity of bullion, by the multiplied demands, for such an article? Did not the wars of 1756, and the American war, contrary to the mis

* Report, 101.

Ib. 121. But, the Committee, thereon, remarks, in the Report, that he produced no proof of the fact: Yet, is not the affirmation of the Governor of the Bank good evidence of such a fact; as he came there, as a witness, not as a party? Have not exporters of illicit gold been convicted of the fact, or rather of the crime? Have not the Custom-house Officers been occupied, daily, in seizing such gold, on board of ships, in the act of sailing? The Sunday Observer, of the 29th July 1810, Iras this paragraph: "A deposit of 9,000 guineas was, on Thursday, discovered, in a snug recess, at the head of the "mast, of a small vessel, in the Thames, which had just dis

66

charged a cargo of French wheat; and another seizure of "4,500 guineas was made, at Deal, on the preceding day." But, is the Sunday Observer admissible evidence, the Committee asks? Yes; on such a point of general notoriety, as the export of guineas, in every foreign vessel.

conception

conception of the Committee, produce such a scarcity, and consequent runs upon the Bank? In superaddition to those causes, which are common to all wars, is there not a malignity in the present war, that peculiarly creates such a scarcity? And, whatever the Committee may disbelieve now, did not both Houses of Parliament, in December 1803, act upon the belief, that such a malignity would create such a scarcity of bullion, during the present hostilities, as would affect both private, and public credit; as would fasten upon the fortunes of every individual, and sap the foundations of the State; and was not the Bank restriction then continued, during the war, upon the belief of such a scarcity? After those general reasons, for believing that there did exist, in the London market, a scarcity, during 1809, let us hear what well-informed individuals say to the Committee. Mr. Lyne, stated, "that in the course of "the last three years, there appears to have been

a great, and adverse difference, in the import of "bullion to this country, from foreign parts." A. Ascher Goldsmid said, "that a considerable

quantity of gold was formerly got from the Brazils, "through Lisbon; but gold is now sent over to the Brazils;" and he added, "that this disadvantageous change took place, in 1808, when the merchants, trading to the Brazils, and Portugal, purchased gold and silver bullion, [in London,] instead of selling it, as before." These facts are confirmed I

by

by the very well-informed Mr. Lyne, who is ac quainted perfectly with the mercantile affairs of those countries. Mr. Merle, the refmer, and as such, well acquainted with such a subject, said, "Gold "is now, and has been very scarce; so that we "can hardly supply the trade; the want arising "from the shortness of the supply, and the quantity "smuggled out." Sir Francis Baring, having intimated to the Committee the scarcity of bullion, was asked, from what circumstances he inferred, there exists a scarcity of bullion? To which he answered, "From every information, that I have "ever received, or the opinion of any one person, "with whom I have conversed on the subject *." The inquisitive Mr. John Allan, who was in Spain, and Portugal, from 1802 to 1805, and again, in 1809, said, "that there is a scarcity of gold both "in Spain, and Portugal, but there was no want "of silver, in circulation: There was not so much "gold to be had, last year [1809], when I was, in "those countries, as there was in 1804 t." From the accounts of the American mines, which this peculiarly well-informed gentleman had obtained, with diligence, he stated, as the result of his enquiries, that, during the last half century, the quantity of gold, from all the mines of South America, has decreased, in the proportion of 6 to 5; and that the quantity of silver, during the same period, † Ib. 109.

* Minutes, 131.

had

had increased, in the proportion of 2 to 31*. Belief, and incredulity, are like taste, about which, there can be no disputation. The twelve lawful men, who are usually summoned to settle facts, would find, upon the concurrent testimony of such intelligent, and respectable witnesses, when speaking in their own art, that there was a scarcity of bullion, in 1809. But, without entering further into this question of belief, and incredulity, it may be of more use, to show the more curious reader the fallibility of the Committee, on a most material point, concerning the true worth of different sorts of gold coins: The Report speaks, of the value of Spanish gold, as from 4 to 4 grains better, than standard; making about 4 s. per ounce difference, in value † : Whereas, Mr. A. Ascher Goldsmid, who is quoted upon the point, being asked, by the Committee, "What is the fineness of Spanish gold coin?" answered, "From 4 to 4 grains worse, than stand"ard; making about 4 s. difference in value," [in every ounce. But, I have done! Enough has been said, and shown, to the more intelligent readers, for convincing them, that the Committee, as ussayists, or exchangers, as calculators, or transcribers, are not quite infallible: When we see such fallibilities, in such men, is it not enough, to

* Ib. 108-9; and see his accounts in the Appx. to the Re port, N° 21, to 28.

+ Report 1.

Minutes, 35. fol. ed.

12

inculcate

inculcate on all men this moral lesson, that mode→ rate opinions are most to be followed, as the safest, in theory, and the best, in practice?

— III.

OF BANK NOTES.

We are thus led forward, by an easy transition, from the prices of bullion, at home, and abroad, to an enquiry, with regard to the fancied depreciation of Bank notes.

(1.) Neither any pamphleteer, nor any Committce, has yet proved, whatever they may have inferred, that the Bank notes have become, in fact, depreciated: It has, indeed, been said, that the great issue of the Bank paper, during late times, has produced unfavourable exchanges; that the unfavourable exchanges have raised the prices of bullion; and that the high prices of bullion, by a natural consequence, evinced a depreciation. Mr. Ricardo, by a pamphlet, inculcated such doctrines ; Mr. Muschet, by tables of prices, and calculations of daily pars, has tried to strengthen those suppositions; and Mr. Blake, in the title-page of his pamphlet, on Exchanges, by speaking of "the present depreciated state of the currency," avowed his opinion, but disparaged his own logic, by taking for

granted