continuance of such drains of bullion, ignorantly, selfishly, and unpatriotically, increased-to the extent of a certain estimate made by somebodythe issues of their paper-money*-but, in such speeches the Prime-minister suppresses the factthat the Bank of England (the directors of which affect that they have control over the state of foreign exchanges, and asseverate that they regulate their issues of the paper money of the bank

The following table, showing the amount of bullion in the Bank on the days therein mentioned, is made from the appendix No. 88, to the report of the Committee of Secrecy on the Bank of England Charter, ordered to be printed 11th August, 1832:

If the report of the speech of the prime minister be correctthe statement in the text made by him (which is taken from his speeches on the subject, published by Murray, p. p. 70 71.), as to the estimated increase of country bank-] -paper, between November 1823 and November 1825, is most unfair; because, even if the estimated increase were a real and true increase, a glance at the above figures shows-that the drain of bullion from the bank did not begin till after November 1824, and therefore if the country bank-paper had increased at that time to the alleged amount of 8 millions-it was not increased at all during the drain: and, at all events, was not increased during the drain by more, than the increase, if any, between November 1824, and November 1825.

having regard to such exchanges) not only always re-issued all the notes brought in for bullion exported, but, moreover, added to the issue of such notes ultra!!!

The directors of the bank, though they profess to agree in theory with the prime-minister-in practice act in direct opposition and hostility to that theory-for on occasion of drains they expand the issue of their paper-money, which issue, according to the theory of the prime-minister (in which they profess to concur), they ought to contract.

It is, perhaps, upon some suspicion of the sincerity of the directors of the bank, as to their belief in the theory in which they profess to concur and upon some vague notion of enforcing by law the contraction of issues of paper-money by the directors of the bank, when the Exchanges become what is called against the United Kingdom,-that there are inserted in the 2nd section of the bill (of which the marginal note is "Extent "and management of issue by the Bank of England,") the words following, viz.-" and upon

any diminution of the aggregate amount of coin, "bullion, and securities, in the said 'Issue-depart"ment' for the time being-the said governor "and company shall call in and reduce the amount of Bank of England notes in circulation to the 66 same extent."

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To what aggregate amount of coin, bullion, and securities? or to what time being, those words refer?—or which department of the Bank is to call in and reduce some, and what amount of notes in

circulation? or what those words mean?-is beyond the capacity of a common understanding.

The paper-money of a country bank circulates only within a certain limited district or sphereout of which, though it may occasionally be used, it is not current. A note of a banker of Exeter is not current at York; nor of a banker of York at Exeter.

The circulation of the paper-money of country banks of issue is local-and such paper-money is kept out, only by the dissemination of it by the customers of the bank, whose connexion with the bank is personal.

If any bank or banker of issue were to attempt to force out paper-money beyond the demand for it within the sphere or district of the bank, it would be immediately returned or sent in for payment.

An erroneous notion or delusion prevails-that banks and bankers of issue not only possess, but also that they exercise, the power of forcing out and keeping out paper-money in excess-but by what means that can be effected is not, because it cannot be, stated.

Banks of issue, and all issuers of paper-money payable in coin to bearer on demand, must have always in reserve a stock of coin sufficient to meet any demand which may be made upon such bank or issuer of such paper-money for payment thereof.

The profit arising from the issue of paper money is, therefore, the interest made on the quantity of paper-money issued-minus the interest on the dead-stock of coin kept to answer all demands for payment of such paper-money-the cost of the

paper with the stamp duty thereon paid to the public revenue-and the expenses of the bank or establishment for the management of the issue and circulation of such paper-money.

In the huge volumes of evidence annexed to reports of numerous committees of the Houses of Lords and Commons, on the subject of coin-of the Bank of England, and of Country banks-there is not a tittle of evidence to show that a single sovereign was ever withdrawn from the particular district or sphere of any country bank, in consequence of Foreign-exchanges being what is called against the United Kingdom: and it may safely be asserted that no country bank ever possessed a pound of bullion,—and therefore that no supply of bullion for exportation can ever be drawn from Country banks.

The fact is—that the effect of Foreign-exchanges operates upon bullion and coin in the metropolis (i. e. on the Bank of England and other bullion merchants in London) only, and in no other city, town, or district of the United Kingdom.

The coin and paper-money circulating in each city, town, and district of the country, having found its level, remains there-and such coinbeing all necessary for their own use-will no more be parted with by the inhabitants of any such city, town, or district, to meet a demand in any foreign country for gold-than the gold plate of such inhabitants will be parted with to meet such demand.

The evidence of every country banker examined -and very many of such bankers were examined

before such committees of Lords and Commons, is uniform and consentaneous-that in the issues of their paper-money they pay no regard to the state of foreign exchanges-because they know by experience, that Foreign-exchanges do not affect the circulation of their paper-money.

But, says the Prime minister in his speeches"Go to: ye are ignorant;-I know your trade better "than ye do; and that the Foreign-exchanges "do affect it,-and I will therefore have a law made "to restrain your issues of paper-money,-so that they shall not, at least for the next 12 years to come, exceed what they were on the 6th day of May last."

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Upon the assumption that 72 millions, or any other given sum of circulating medium,-composed of a mixture of coin and paper-money, is necessary to be always OUT, for the circulation of all other commodities in the United Kingdom,-it is obvious that such quantity of circulating medium, composed of coin and paper money OUT, being once established, would not, and could not, be affected by the import or export of bullion into or from the United Kingdom.

If any part of the bullion, or if all the bullion in the bank were to flow out of it, and again into it, twenty times in a year, that would manifestly not in any manner affect the coin in the bank, or the circulatimg medium of coin and paper-money out in circulation in the United Kingdom. If such influx and efflux of bullion, into or out of the bank, could be effected (which it cannot be) without