20s. some say for 12s. a quarter, in Poland, to cope, in the English market, with the English farmer, whose taxes and outgoings made it necessary for him to secure 80s. a quarter. The English farmer, of course, was brought to the brink of ruin; and, had not the legislature interfered and forbid all importation till the price rose to 80s. agriculture must have been nearly abandoned in this country. The mischief was not perceived in time by the government, and years of severe distress, which affected manufactures as well as agriculture, ensued.

The second period of distress is, perhaps, entirely to be attributed to the change which took place in the value of the currency, towards the end of the war. About the year 1807, the taxation of this country was at the highest.. From this period, the pressure of the war was supported chiefly by the issue of an excessive quantity of bank paper, the holders of which could not demand the payment of the note in specie. The paper fell in value, step by step, till the depreciation amounted to about 30 per cent.

During this period of depreciation, the debt of the country was increased by above 300,000,000l..

The expenditure of 1813 alone caused an addition to our debt of 77,000,000l., and that of 1815 another of 65,000,000l. The burden of the interest of these loans was not much felt during the war, as (besides appropriating great part of the sinking fund to pay the interest) the weight of taxes was, in fact, diminished by the alteration of the value of the currency, and the vast expenditure of capital which took place caused trade and agriculture to flourish. The new money created by the Bank produced new speculators and new customers in every branch of industry, thus raising the price of all produce, and causing an apparent prosperity throughout the country. But when, by the operation of various causes, and at length by positive statute, the currency was reduced to its original value, all these agreeable symptoms disappeared. The merchant or speculator, not receiving money from the Bank of England, is unable to purchase the produce of the farm. The farmer, at the same time, is obliged to sell at low prices, to pay the country banker

*

* See Hume's Essay on Money.

the money which he had borrowed to enable him to improve his land, and meet the increased demand of the war. Corn falls in value far below the price which the change in the value of the currency would indicate. The market is overstocked with labourers, created by the former demand and the injudicious administration of the poor-laws. They become a burden upon society, and form a body of unproductive labourers, many times more numerous than the army and navy of the highest war-establishment. The nation, to use a homely comparison, is like a man reduced by fever from, a state of robust health, whose clothes are too large for his weakened and attenuated frame.

After the peace, 18,000,000l. of taxes were abolished. This was a diminution of 25 per cent. on the whole taxes, but at the same time the currency was increased in value 30 per cent. so that no relief was obtained. Not long afterwards, 3,000,000l. of new taxes were laid on; so that we have now more taxes than ever. The 300,000,000l. raised in depreciated money, is to be paid in good currency; that is to

say, about 70,000,000l. at the least more than we have borrowed; or, in other words, we pay more than 3,000,000l. a-year for money that we have never had.

In order to avoid this evil, Lord Lauderdale recommended, in 1814, that we should coin guineas of the value of 21s. of paper-currency. Had this advice been adopted, we should have avoided the misery that we have since suffered, and that, too, as we see, with a very small breach of the national faith.

Perhaps, indeed, the fundholder would have had reason to bless the day on which such a measure was adopted, for it would have retarded the period which, some time or other, will, in all probability, arrive, when the payment of the full dividend and the safety of the state shall be found to be incompatible.

Our only consolation for not having adopted, or not adopting, this course, is, that the country gives an example of scrupulous faith, and unbending honesty, rare at all times amongst nations, but most so in our own times and among the nations of Europe.

233

CHAP. XXVIII.

PARLIAMENTARY REFORM.

It is true that what is settled by custom, though it be not good, at least it is fit. And those things which have gone long together are, as it were, confederate within themselves. Whereas new things piece not so well; but though they help by their utility, yet they trouble by their unconformity. All this is true if time stood still; which contrariwise moveth so round, that a froward retention of custom is as turbulent a thing as an innovation; and they that reverence too much old times are but a scorn to the new. It were good, therefore, that men in their innovations would follow the example of time itself, which, indeed, innovateth greatly, but quietly.

LORD BACON.

We have hitherto said scarcely any thing of the constitution of the House of Commons. From the time of Edward I. it has been composed of knights, who represented the freeholders or landed property of counties, and of citizens, and burgesses, who represented the commercial interests of cities and boroughs.