system of PITT has been thoroughly weighed in the balance, and is at length acknowledged, even by his disciples and panegyrists to be most notoriously found wanting!

All the evils arising from our enormously extended paper circulation, and which are so sensibly felt by the community in general, are ascribed by the committee," originally to the suspension of "cash payments which removed the natural and true controul." Let us then glance at the circumstances which attended the adoption of that famous measure of " the great statesman now no more," at the consequences which have followed, and the proposed remedy.

In the month of Feb. 1797, the public in general, and the mercantile world in particular, were thrown into a state of considerable alarm, in consequence of a notice from the directors of the Bank of England-That an order from his Majesty's privy council had been received by them, stating it as the unanimous opinion of the board "That as there was reason to apprehend a want of a sufficient "supply of cash to answer the exigencies of the public service, it "was the unanimous opinion of the board, that it is indispensibly "necessary for the public service that the directors of the Bank of "England should forbear issuing any cash in payment until the "sense of parliament could be taken on the subject." The measure was deemed so urgent, that a messenger was dispatched late on Saturday night, to his Majesty at Windsor, requesting his attendance in town. His Majesty accordingly sat off for London early on the Sunday morning, and the public prints of the day mentioned the circumstance as peculiarly affecting to their Majesties and the royal family. A privy council was held on his Majesty's arrival, and the order to the directors of the bank was immediately issued. Great consternation seized the public the following day, on being acquainted with the order, and the ready confession of the bank directors of the state of insolvency to which they were reduced by administration. The spirits of his Majesty, it was however remarked, were happily soon recovered, as he went in the evening to the theatre to see the comedy of the Rivals and the farce of the Doldrum, the exhibition of which excited those long and repeated bursts of royal laughter, so frequent on similar occasions!

The order of the privy council to the directors of the bank for suspending their payments in cash, the day after it was issued, was laid before the two houses of parliament: committees of the minister's nomination were immediately appointed, whose Reports corresponded with their instructions: bills were brought in to authorize the bank to continue its restriction, and to issue smaller notes; and notwithstanding the energetic remonstrances of Mr. Fox, and other members of the opposition, against a fatal perseverance in the system which had produced what they justly termed "an act of na

"tional insolvency," and although it was acknowledged by Mr. Lushington, one of the bank directors, that the bank had advanced "since it stopped payment a million to government," and stated by Mr. Grey that during the same period, 130,000l. had been ab. solutely sent to the Emperor of Germany IN SPECIE, the measures of the minister were sauctioned by the usual majorities. An issue of bank notes of Two and One Pound, together with an increased issue of those of a larger description were the immediate result; and from that period to the present the bank has only been able to fulfill its promise of paying it notes on demand, by issuing other promises of paying in a similar manuer. It is scarcely necessary to add on this part of the subject, that were any other house or corporation to be reduced to a similar situation; were they able to fulfil their promises of paying the bearer on demand in no other way than by issuing similar promises, and exchanging one slip of paper for another, such house or corporation would be deemed, and declared to be in a state of bankruptcy.

The licence thus given to the bank by the legislature, has, as might be expected, much increased the circulation of Bank of England notes, and, as the natural consequence, increased that of country bank notes; the amount of the former being increased ten millions, or nearly double, and of the latter between twenty and thirty mil, lions. The amount of paper money thus made at the different mapufactories, the Bank of England, and the country banks, is estimated at FIFTY millions; and so profitable has been the trade of paper money making, that the number of provincial manufactories (to pass over the proportionate increase of those of the metropolis) has since 1797, the year in which Mr. Pitt compelled the Bank of England to stop payment, been augmented from between 2 & 300, to between 7 & 800, of which upwards of 100, have sprung up within the past twelvemonths. To these masses of paper a large addition has been made by our principal merchants and traders of all descriptions: the amount it will be impossible ever to ascertain; but its magnitude may be justly concluded from the immense speculations in foreign commerce, which have been most rashly entered into, and the sad effects of which so many of the speculators are now feeling, and are likely to feel still more severely. Such is the system adopted by Mr. PITT,-a system, at the most distant prospect of which his predecessors, several of them his superiors by far in talents and virtues, trembled. So true is it that-

"Fools rush in where Angels fear to tread."

To enumerate the various aud complicated evils attending such a system would fill large volumes. The present age and posterity will have the sad subject perpetually before them, unless indeed a Revolution should arrest their attention, and a remedy be applied

so violent and dreadful, as almost to equal the disease: but it may, perhaps, be of some service to our countrymen to point out a few of the most prominent of those evils, in order that their progress may in any measure, if possible, be arrested, and peaceable reformation be the happy result. We, however, in this sentiment express our wishes, rather than our expectations. Confidence in public men, the leaders of opposition as well as the leaders of administration, has, by their own inconsistent and wretched conduct, of late been much diminished, if not totally annihilated, Corruption seems to have seized the majority of all classes and descriptions, political and religious. Partial complaints have at times been made, and wishes have been expressed for partial reformation by a few of our countrymen; but these complaints and wishes have in general sprung, it is easy to perceive, from a sense of interest, and not from a principle of patriotism. A decay of trade, the want of employment for our manufacturers, have at times engaged the attention of those most interested, and have induced them to petition for a redress of grievances; but the PRINCIPLE of the war, a sense of justice towards foreign nations, the importance of those pure and genuine sentiments which in their operation produce Peace on earth and good will towards men,—serious reflection on these important topics embracing the welfare not only of our own community but of the whole human race, seems almost banished from the minds of our countrymen :-a too certain prognostic of a falling empire!

The PRINCIPAL, the PRIMARY evil in our opinion, attending the paper system, although we fear the majority of our countrymen may entertain an opinion somewhat different, is the facility with which it has enabled the minister of the day, to engage in, and to persevere in war. Since Mr. Pitt entered on his career, this country has expended upwards of FIVE HUNDRED MILLIONS sterling in war, the major part of which, if not the whole, we are persuaded might have been saved by statesmen possessed of common ability, integrity, and patriotism. It is WAR which has drained us of our specie, and increased our paper circulation. At a recent meeting of the bank directors and proprietors, Mr. Randal Jackson, in a laboured apology (probably well paid for) for the system which has been pursued for these twenty years past, ad. dressed the proprietors of Bank Stock as follows:-"Without "entering into the question as to the propriety of the conduct you "adopted, I believe I may say that if it were not for the sacrifices "you made in 1797, our army must have starved in Flanders. "You besides made adrances to enable government to subsidize "our allies.... It is undeniable that the circumstances of the times, and the sacrifices you made produced the inconveniencies

you then suffered. Yet your wish was under all disadvantages to continue the issue of your specie. No less than twenty-nine "times in 1795 and 1796, your honourable board of directors "remonstrated with Mr. Pitt against the project of restriction." The learned gentleman would have been somewhat more correct had he stated, that these twenty nine remonstrances of the bank directors to Mr. Pitt, were not so much against the restriction project, as against sending so unch specie out of the nation in payment for foreign subsidies, &c. The directors were perpetually warning him of the consequence which they appeared to deprecate―Their being no longer able to pay their notes in specie. We cannot help remarking, that had the bank directors acted up to the light they had on this subject, they would not have suffered the minister to proceed in his extravagant career, but have materially checked him in draining the public of their specie for the purpose of squandering it on a set of imbecile allies, whose vicious and despicable goverments were hurrying themselves and their subjects to ruin. That the bank directors had power sufficient for the purpose, was acknowledged by one of the ministers of the day, Lord Grenville, who in a debate (Feb. 27, 1797) respecting the order of council restricting the bank from paying their notes in cash, observed— That he meant not to contend for the royal prerogative, as certainly the bank directors were not bound to obey it; it only went to request them; and by their acquiescence he thought they "had shewn their wisdom." Yes! the directors have taken due care to be deemed wise men in the opinion of ministers, as they have throughout the whole of their direction, scarcely presumed to have a will of their own, but have, even in spite of their better judgment, resigned their understandings to the guidance of the cabinet. Had they pursued a contrary line of conduct; had they not only represented to the minister the ruinous consequences of his measures, but have firmly refused being his accessaries, they would have merited the thanks of a grateful country. Our armies in Flanders and in other parts of the continent might have been compelled to return home for subsistence, or what would have been stil! better, have never been sent out of the country. A most happy circumstance would it have been for Britain, and for Europe, could Mr. Pitt have no longer found millions to squander. We firmly believe that the war in that case would have been of short duration; that we should not have brought ruin on so many of the continental powers, and that France would never have acquired that increase of dominion, that gigantic power which now renders ber the astonishment, the dread, and the terror of all Europe.

The inability of ministers to procure specie, has in all probability prevented them from engaging in many a foolish expedition, Du

ring the last session some of the members of opposition, when reprobating the Walcheren expedition, but who appeared to have no great objection to persevering in the war, provided their own party had the management of it, pointed out certain stations on the continent, where an army might have been of considerable service to our late ally, the Emperor of Austria. Now, although we are firmly of opinion that it was at that time, as it has been in all times past during the late and the present war, and as it will be at all future times, as long as the war shall continue to be per severed in, on the same principles, impossible for us to be of essential service to any of the powers on the continent in their struggle against France, yet we are willing to allow, that an expedition similar to that pointed out by the gentlemen in opposition would not have worn all the marks of wickedness and folly which charac terised the Walcheren expedition; and, judging by a speech of Mr. Huskisson's, ministers themselves were of an opinion somewhat similar. The right hon. gentleman, when apologising for their conduct, observed, "That an expedition on some part of the coast of "Germany might perhaps have proved a more powerful diversion, "but that it would have required half a million of guineas in “specie, and that it was found impossible to collect the quantity required." Would to God that the bank directors, instead of contenting themselves with whining and remonstrating "nine and twenty "times," had firmly resisted the minister's plans and orders. Britain would not in that case have been that theatre of crimes and follies, which it has been for these twenty years past.

The PAPER and the FUNDING systems united, have however, done much in forwarding the designs of British cabinets, and have enabled them to carry on most of their destructive schemes. As friends to the grand interests of justice and humanity, and to the peace and welfare of mankind at large, we most earnestly hope that Britain is the last country Providence will ever curse with an extensive paper circulation, and a large funding system. Were all the expences of war to be paid in specie, and within the year, and what would be a still greater improvement in government, were the friends of war, the lives and fortunes, and last guinea men, to be taken at their word, and compelled to be the supporters of the wars they are so warmly promoting, whilst the opposers and detestors of sach wars were exempted from contributing to the expences, how would the number of just and necessary wars, be, most surpri singly, and happily diminished!

The depreciation of the value of bank notes, and the disappearance of specie, are evils principally, if not solely, to be ascribed to our extended paper circulation. Mr. Jackson in his speech to the bank proprietors, labours hard to invalidate the just reasonings.