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they did not consequently get any large "amount for some years subsequent to the passing of the act of 1819."

Now by this it appears, that not only was the demand for stamps reduced, but that a large amount of notes was taken out of circulation besides; showing that the contraction was much greater than even the Stamp Office returns indicate. And this, in order to prove that his table is more to be depended upon than the Stamp Office returns.

The inference to be drawn from this statement is, that if he could make such mistakes. in the explanation of his table, he may have done the same in its construction. This is further rendered probable by his account of the manner in which it was framed. Upon this point he is asked (Question 6161),

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"The Committee understand that the number "first given was a cabalistic number, and each in“dividual gave his issue in proportion to that "number." And his answer is, 66 that some of "them returned their actual issues; others as"sumed a number of their own, and stated a "centage or variation in each year." It seems, therefore, that the returns were not furnished upon one uniform principle, without which we should be disposed to say they cannot be depended upon.

We are the more inclined to this opinion, from

the circumstance of the Stamp Office returns corresponding with the general state of prices. The Bankers themselves admit that their issues fluctuate with prices; and it is impossible to believe that the prices of 1818, which were double those of 1822, could be maintained with a difference of only seven per cent. in the amount of the money in actual circulation. We must, therefore, withhold our confidence from Mr. Burgess' return until it be better explained.*

If, however, Mr. Burgess' explanation of his table was calculated rather to throw doubt upon it than otherwise, this was not discovered by the Committee. He appears to have been called a second time for the purpose of giving it, and after two or three questions, and these not at all disputative of its accuracy, they appear to have been perfectly satisfied; which, when we consider the importance of the fact on the one hand, and the very palpably erroneous nature of the explanation on the other, does not exhibit the acuteness of the Committee in any very favourable point of view. We might mention other instances of the same kind. But we shall merely remark that while the Committee on the one hand do not appear to have had the developement of prin

In these observations we have no wish to throw any discredit upon the general ability and intelligence of Mr. Burgess. He is employed in defending the cause of Private Banks against Joint Stock Companies, and the en. croachments of the Bank of England; and they are fortunate in having so able an advocate.

ciples for their object, they were equally deficient on the other in the developement of facts; which indeed almost follows as a consequence : for it cannot be supposed that we can be very precise in our inquiries respecting facts, of the use of which we have no very clear conception.

It will thus, however, be seen that the enquiries of the Committe into the principles upon which Banks of issue in the country are conducted have rather increased than diminished the obscurity which has for so many years hung over that branch of the subject.

But with respect to the Bank of England, more information was obtained. The Directors have certain principles by which they regulate their issues, which the Committee ascertained. And though the soundness of the principles themselves was not called in question, and the manner they were acted upon only very imperfectly enquired into, yet the evidence of the Directors contains information, fro n which we may draw important conclusions as to both these points.

Before directing our attention to this evidence, however, it will be proper to call to recollection, that previously to the year 1797, the Bank of England, and all the Banks in the kingdom, were liable to pay their notes upon demand in cash as at present, but that in that year this liability was suspended, and while all other Banks paid their notes upon demand in notes of the Bank of Eng

land, the Bank of England itself was not compelled to pay its own notes upon demand at all: that this state of things existed for many years, but that in 1810, an enquiry was made into its merits by the Committee called the Bullion Committee, who, after analyzing the principles. of the subject, determined that cash payments ought to be resumed generally; and that the Bank of England in particular ought to be compelled to pay its notes in cash upon demand; inasmuch as the foreign exchanges formed the only proper criterion by which to regulate the amount of its issues and with them those of the whole kingdom, and that by paying its notes in cash, it would be compelled to regulate its issues, and those of the whole kingdom by the foreign exchanges: and that finally, in 1819, these views were formally recognized, and an act, founded upon them, passed for the resumption of cash payments.

It will however be necessary to a proper understanding of the subject, to explain these views more precisely, even at the risk of being a little tedious.

The Bullion Committee considered that the circumstance of the exchanges being against us was an indication of a redundant currency, and their being in our favour, of a deficient onethat a redundant currency would cause an exportation, and a deficient currency an importation of specie; and consequently, that when the exchanges were against us, the Bank ought to con

tract its issues, and when in our favour to enlarge them. They further considered that the issues of the Bank of England regulated those of the country Banks, and that a proper regulation of the issues of the Bank would effect a proper regulation of the whole circulation of the kingdom. The influence of the Bank of England over the country Banks they thus describe:

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"Before your Committee proceed to detail " what they have collected with respect to the "amount of the country Bank paper, they must "observe that so long as the cash payments of the "Bank are suspended, the whole paper of the Country Bankers is a superstructure raised upon the foundation of the paper of the Bank of Eng"land. The same check which the convertibility "into specie under a better system provides against "the excess of any part of the paper circulation is, during the present system, provided against an excess of Country Bank paper, by its convertibility into Bank of England paper. If an "excess of paper be issued in a country district, while the London circulation does not exceed its due proportion, there will be a local rise of

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prices in that country district, but prices in "London will remain as before. Those who "have the country paper in their hands will prefer buying in London, where things are cheaper; and will, therefore, return that coun"try paper upon the Banker who issued it, and

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