time for this purpose, than he could pos: off of their own accord, without being desibly have while he was going to the fron- feated, and even without being attacked. tier and coming back again ?-Behind -What victory is there thus far? What his lines at Lisbon, he would have had is there here to boast of? What is there the whole summer for the work of forming here to which the epithet glorious can be the Portuguese army; but, what time applied ? ----And, what has happened had he while advancing to, and retreating since the retreat of the French began? from, the frontier?-He wanted time, too, What victory has been gained by the perit seems to get re-inforcements from Eng. / son thanked? I have ofteu looked for the land. Well, and did bis going to the return of prisoners; but, I have yet seen frontier hasten these re-inforcements? Did none. If thousands were taken during he get them the sooner for going to the such a retreat, what would that be? It frontier?- To keep the war ut a distance, it was, would be hardly worth naming; yet, I rewe are told, necessary to carry the war to a peat that I have not seen any return of distance. But, did he keep the war at a prisoners.--I have observed, that, in the distance ? or did he let it work its de volumes of eulogies, written upon this ocstructive way to within a few miles of casion; that in all the boastings about the capital? It might be out of his driving the French out of Portugal, not a power to prevent this; but then, why word has been said about numbers. Yet, did he go to the frontier! or, being this is a most important point. It was there, why did he not retreat sooner?- said, in the debate of the 26th of April, in He foresaw, we are told, that these opera- the House of Commons, that we have now tions of his would reduce the enemy to 60,000 of our troops and 40,000 Portugreat difficulty in supporting their army ; guese troops in Portugal. Here are a and, in a future part of the speech, we are hundred thousand men ! We are not told told, bow completely this has been veri-how niany Massena has; but, it never was fied. Why, really, there seems to have pretended, that he bad more than 70 or been no great scope for foresight here. If 80 thousand when he entered Portugal; the French invaded Portugal and devoured and the eader knows well what dysenteries all the produce of the country, it was and fevers and starvations and desertions the pretty clear that they must go elsewhere French army has experienced. Is there, to get more ; and, it was also pretty clear, then, any glory in having seen such an that what was devoured or destroyed by army retreat before 60,000 English troops our army could not be devoured or destroy. and 40,000 Portuguese " as good as uny ed by theirs. But, all this while; all the troops in the world ?".

Why was not time this cool calculation about bringing this point of numbers rouched upon ? In the French into and letting the in eat them such a case it is every thing. Without it selves out is going on, we seem to forget who is to be able to estimate the merit what was the professed object of the ariny even of a decisive victory? The first ques. under Lord Talavera, namely, the defence tion always asked, in such cases, is, what of Portugal; the protection of Portugal was the force ? What was the strength of against the French.-- Starved out! Well, the two armies? Was the victor weakest, the French might be starved out, indeed, or was he the strongest ? And, in cases of when they had been suffired to be in Por-retreat, surely there can be no glory to the

tugal as long as there was any thing to be pursuer, if he be in point of numbers greatly found to eat. •What was the progress ? superior to the party pursued ? --Il to be

-The French came up to the Portu- the pursuing party in a case like this be guese Frontiers, where Lord Talavera and so greatly meritorious, was Massena enbis army lay. They took Almeida from titled to no merit when he pursued Talaa garrison that he had placed in it ; they vera ? Aye, but he was drawn after into a then marched against him; and he retreat. trap. Where is the proof of that? He is ed before them to within a few miles of in no trap now, and he has not been hurt. Lisbon. He there gets behind his lines ; And, who yet knows, what is to be the he receives reinforcement upon reinforce end of all these marchings and counterment, and supplies upon supplies. The marchings ? --The two armies are just French, he himself teils us, are destitute where they were a year ago ; except, thai the of all necessaries from the first moment of French still posse-s one fortress in Portugal, their arrival. Still there they lie for about which they did not then possess. ånd, what five or six months facing him; and, when has the cost been? The destruction of a they have eaten up the country, they go considerable portion of the country, which

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we professed it to be our object to protect, / so much more than a pound noie and a inany millions in tases upon the people of shilling, as it did in the recent case of the England, and many more millions added Mail Coach Guard who was examined ba. to the National Debt. What, then, are fore the Lord Mayor. It may be said these Thanks for ? There is no victory; however, that this is by no means irresistand as to the political consequences, even if ible evidence of a depreciation, as it is it were proper to thank a military com- possible that the Coin may bave increased inander for them, they have been, and are, in valoe while Bank Paper has remained

I am fully continced, such as we ought to stationary. Because my companion has Jament rather than rejoice at, and such as grown taller than myself, my height is we must lament, if we see the thing in its not in consequence diminished.-But I proper light; for, it is the lingering of confess this is a mere verbal quibble; for this war that we have to dread. What if I had preserved by me one hundred good has been done, if the French remain pounds in Gold Coin which I unfortunately facing our army now? Can we maintain exchanged for the same nominal amount an army constantly upon the Portuguese in Bauk notes, I should at this moment frontier? Can we carry on the war as have been richer by the difference be. principals in Spain and Portugal for any tween the present relative value of the Jenyth of time? As well might it be as- guinea and the note. In this case thereserted, that we could hold those kingdoms fore, having improvidently exchanged my as colonies. For these reasons, and Cain for Paper, I should be an absolute some others which I shall state another loser to the extent I have noticed ; and time, I would never have given my assent when we speak of the depreciation of to this vote of thanks; and, we shall see, currency, we have loss in view ; and thereThe wo are where they were a twelve- depreciation," or not, the fact is analmonth ago, and half Portugal, which we tered, and consequently all discussion wished to defend, has, since that time, been upon the word itself is mere idling; barlaid waste and ravaged. That alone is ing, however the mischief of removing us enough for me. I can, under such cir- from a fair consideration of the utility of cumstances (to say nothing about the cost), disadvantage of the present Issue of Paper, give no thanks either to the planners or instead of assisting us in the solution of the executers of the war.

that important question. Now Mr. CobWM. COBBETT: bett, as I am of opinion that you have as State Prison, Newgate, Tuesday,

clear a view of the principles of finance April 30, 1811.

as most men, not excepting that Polar

Star, Sir John Sinclair, I wish to trouble

you with a few remarks as they occur to

me, and shall feel thankful to be corrected Sir;-In perusing Mr. Hoare's Letter by your pen wherever I have entertained to the Bank, I was struck with the dis any idea that is erroneous. The mischief *cordant opinions which prevail in respect of a paper currency is not immediate, of the circulating medium; one párty, and therefore not directly discoverable, as he observes, contending that paper has but it arises from that laxity of public no influence upon exchange price, plenty, and private economy which a profusion or scarcity of Bullion, and the other op- or redundancy of wealth must invariably holding an opinion decidedly the reverse. produce.

produce. A large circulation of currency It is clear that men at all familiar with the has the necessary effect of suddenly inprinciples of finance could not differ so creasing the demand for the necessaries of essentially upon a point of such consider. | life, as well as all other articles of consumpable moment, if it were not for the ob- tion; and an increased demand, unless scurity and difficulty with which it is in- accompanied with a concurrent and coovolved; for if it admitted of any thing temporaneous supply, will unavoidably like a short mathematical demonstration, occasion a considerable rise in the prices. the confused and various opinions afloat If the effect of an extended circulating must long since have yielded to a clear medium were to afford the means of purintelligence upon the subject. That Bank chasing the necessaries of life to him who Paper carries with it very much the ap- otherwise could have no such opportunity, pearance of depreciation, must be ad- it might be hailed as a blessing; but this

goidea will exchange for is a very fallacious view of the subject :


the circulating coin of every commercial nothing more baneful or injurious to the country must be adequate (if not dissi- welfare of this country can be contempated by forced Issues of Paper) to the plated; and Bank paper is at this moment fair demand of necessaries; but the re- a species of bonus to those who will exert dundancy of a paper currency, converts themselves most in draining the country economy into extravagance, and the de- of its coin. This unnatural foreign trade, mand that was before only equal to the which the Bank paper tends so much to comforts of life is now enlarged to meet encourage, is of the greatest mischief in the calls of profusion and dissipation. In the present exigency of silver coin, as it some manufactures, this forced consump causes that traffic in bullion which leads tion may meet a supply, and here the to those competitions in the purchase of price of the article will not be materially coin, of which the guard is reiucreased; but with the necessaries of cently a proof; and so long as that traffic life in which the efforts of man are remains, all the Dollars that the Bank can less successful and less productive, à issue will be but as a drop in the ocean in very serious increase in price must even- the supply of silver coin, as they must tually be the consequence. The faci- necessarily, as it appears to me, vanish as lity which paper currency affords to soon as issued. Another alarining consepublic and individual extravagance is quence that this purchasing of bullion will evident : suppose, for example, that I create, is the public feeling as to the relacalled upon my neighbour for the loan of tive value of coin and paper ; for what an 1001. if coin were the only circulating extraordinary predilection for the former medium, it is not improbable that his cir- must be occasioned by the knowledge, cumstances might be of a nature not to that in exchanging some months since admit of such a floating sum in his hands one hundred pounds in coin for so much beyond a sufficiency to answer his own of paper of the same nominal value, the demands; and in this case I should be re- difference of five shillings in the pound fused; bút, at present, if he have no such has been lost to the owner of the coin. sum in notes, I have only to ask him to Let a man possess what depths of reason put his name to a Bill of Exchange for that ing he may; let him be as true a disciple amount, and I convert it with all imagi- as you please of that luminary of finance, nable case into the paper currency of the Sir John Sinclair, still he must, if he have Bank, which will answer all the purpose the choice, prefer coin to Bank paper ; of coin.' Can a greater, or more mis- but if he would do so, how much more chievous incentive to dissipation be ima- will such a disposition be cherished by gined? But is the evil limited to public those, who, unacquainted with any theoand individual profusion does it not poi retical speculations, are solely governed, son the very root of commerce, and pro- by passing occurrences: will you pervoke that reprehensible speculation which suade such men as these, who see that a has tended so long to disgrace our Ga- guinea has sold for twenty-five shillings, Zettes with bankruptcies, and ill the co- (and these men form the great mass of solumns of our daily prints with the ac- ciety) will you persuade them, to part counts of failures all over the kingdom? with coin for paper of a like nominal

With regard to the price of Bullion, and value; or if they happen to have more the exchange against this country, that coin than they want for immediate use, depends elearly (I should imagine) upon will you persuade them to buy stock with the extent of the exportation of coin for it? not even so sanguine a man as Mr. the maintenance of our armies abroad, and Randall Jackson could expect it. Then for the importation of the commodities of what is to prevent hoarding if Bank paper a foreign country which will not receive is to continue equal to a legal tender? and any commodities of ours in exchange. It if hoarding and exportation remain, what is evident that all importations under such human power can alleviate the present circumstances, should be as much as pos.,

dearth of silver, These remarks, I'am sible checked; but paper currency is the aware, are but hasty, and if they are falstrongest and most powerful of all engines, lacious, and distant from the causes of the for the continuance of such a disadvanta- present scarcity of com, and alarming geous trade, because it enables the mer. prices of the necessaries of life, as they chant to drain the country of coin to the probably are, you will oblige an old cor. last shilling, to pay foreigners for their respondent by pointing out his mistakes, merchandize. In this latter point of view, and infusing into his brain a small portion

of the financial illumination of the spirit., Queen Ann; and also during part of the I am, Sir, &c. W. F. S.-Lincoln's Inn, seven years war, and of the American April 27, 1811.

war; and during the war and scarcity of

grain in 1795 and 1790, when the diffi. PROPOSITIONS RESPECTING Money, Bul- culty increased to such a degree, that on LION AND EXCHANGES.-26th April 1811.

the 25th of February 1797, the Bank of

England was restrained from making pay. I. That the right of establishing and re- ments in cash by his Majesty's Order in gulating the legal Money of this King- Council, confirmed and continued to the dom haih at all iimes been a royal prero- present time by divers Acts of Parliament; gative, vested in the sovereigns thereof, and the Exchanges became afterwards who have from time to time exercised the still more unfayourable, and the price of same as they have seen fit, in changing Bullion higher, during the scarcity which such legal Money, or altering and varying prevailed for two years previous to the the value, and enforcing or restraining the Peace of Amiens. circulation thereof, by Proclamation, or in VI.-That during the period of 75 concurrence with the Estates of the Realm years, ending with the 1st of January by Act of Parliament: and that such le- 1796, and previous to the aforesaid restricgal Money cannot lawfully be delaced, tion whereof, with the exception of some melted down or exported.

small intervals, accounts are before the Il. That the Promissory Notes of the House, the price of Standard Gold in bars Governor and Company of the Bank of has been at or under the Mint price 34 England are engagements to pay certain years and 5 months; and above the said sums of Money in the legal Coin of this Mint price 39 years and 7 months; and Kingdom; and that for more than a cen- that the price of foreign Gold Coin has tury past, the said Governor and Com- been at or under 3l. 185. per oz. 31 years pany were at all times ready to discharge and 2 months, and above the said price such Promissory Notes in legal Coin of the 42 years and 10 months. And that during Realm, until restrained from so doing on the same period of 75 years, the price of the 25th of February 1797, by his Majes- standard Silver appears to have been at or ty's Order in Council, confirmed by Act under the Mint price, 3 years and 2 months of Parliament.

only. III.—That the Promissory Notes of the VII. - That the unfavourable state of the said Company have hitherto been, and are Exchanges, and the high price of Bullion, at this time, held to be equivalent to the do not, in any of the instances above relegal Coin of the Realm, in all pecuniary ferred to, appear to have been produced transactions to which such Coin is legally by the restriction upon Cash payments at applicable.

the Bank of England, or by any excess in iv.-That at various periods, as well the issue of Bank Notes; inasmuch as all before as since the said Restriction, the the said instances, except the last, occurred exchanges between Great Britain and se previously to any restriction on such Cash veral other countries have been unfavour payments; and because, so far as appears able to Great Britain: and that during by such information as has been procured, such periods, the prices of Gold and Silver the price of Bullion has frequently been Bullion, especially of such Gold Bullion highest, and the exchanges most unfavoure as could be legally exported, have fre able, at periods, when the issues of Bank quently risen above the Mint price; and Notes have been considerably diminished, the coinage of Money at the Mint has and to have been afterwards restored to been either wholly. suspended or greatly their ordinary rates, although those issues diminished in amount: and that such cir- have been increased. cumstances have usually occurred, when VIII.—That during the latter part and expensive naval and military operations for sometime after the close of the Amerihave been carried on abroad, and in tines can war, during the years 1781, 1752 and of public danger or alarm, or when lạrge 1783, the exchange with Hamburgh feil importations of Grain from foreign parts from 34. I to 31.5, being about $ per have taken place.

.cent.; and the price of foreign gold rose V.-That such unfavourable Exchanges, from 31. 178. 6d. to 41. 2s. 3d. per oz. and and rise in the price of Bullion, occurred the price of Dollars from 5s, 4 d. per oz. to a greater or less degree during the wars to 5s. 114d. and that the Bank Notes in carried on by King William the 3rd and circulation were reduced between March 1782 and December 1782, from 9,160,000l. referred to, previous to the commence. to 5,995,0001. being a diminution of above ment of the war with France in 1793, the one third, and continued (with occasional principal States of Europe preserved their variations) at such reduced rate until De- independance, and the trade and correscember 1784: and that the exchange pondence thereof were carried on conwith Hamburgh rose to 34. 6, and the formably to the accustomed law of naprice of gold fell to 31. 178. 6d. and Dol- tions; and that although from the time of lars to .58. 1{d. per oz. before the 25th the invasion of Holland by the French in February 1787, the amount of Bank Notes 1795, the trade of Great Britain with the being then increased to 8,689,0001. Continent was in part circumscribed and

IX.That the amount of Bank Notes in interrupted, it was carried on freely with February 1787 was 8,688,0001. and in several of the most considerable ports, and February 1791 11,699,0001.; and that commercial correspondence was maintainduring the same period, the sum of ed at all times previous to the summer of 10,704,000l. was coined in Gold; and | 1807. that the exchange with Hamburgh rose XIII.--That since the mouth of Noabout 3 per cent.

vember 1806, and especially since the X.That between the 25th of Febru- summer of 1807, a system of exclusion ary 1795, and the 25th of February 1797, has been established against the British the amount of Bank Notes was reduced trade on the Continent of Europe, under from 13,539,0001. to 5,610,0001. during the influence and terror of the French which time the exchange with Hamburgh power, and enforced with a degree of viofell from 36 to 35, being about 3 per cent., lence and rigor never before attempted ; and the said amount was increased to whereby allirade and correspondence be11,555,000l. exclusive of 1,542,0001. in tween Britain and the continent of Europe Notes of 1l. and 21. each on the 1st of has (with some occasional exceptions, February 1793, during which time the chiefly in Sweden and in certain parts of exchange rose 1Q 38.2, being about 9 per Spain and Portugal) been hazardous, precent.

carious and expensive, the trade being XI.- That the average price of Wheat loaded with excessive freights to foreign per quarter in England, in the year 1798 shipping, and other unusual charges: and was: 503, 3d.; in 1799, 673. 5d. ; in 1800, that the trade of Britain with the United 113s. 7d. ; in 180i, 1185. 3d.; and in States of America has also been uncertain 1802, 678. 5d.

and interrupted ; and that in addition to The amount of Bank Notes, of 51. and up atfected the course of payments between

these circumstances, which have greatly wards in 1798,about £.11,527,000

this country and other nations, the Naval under £.5

and Military Expenditure of the United 1,810,000

Kingdom in foreign parts, has for three

13,337,000 in 1799, about 12,108,500

years past, been very great ; and the under £.5

price of Grain, owing to a deficiency in the 1,053,800 14,062,300

crops, higher than at any time, whereof

the in 1800, about 13,421,900

accounts appear before Parliament, under £.5 1,831,800

except during the scarcity of 1800 and 15,233,700 I have been imported.

1801; and that large quantities thereof in 1801, about 13,454,300 under £.5 ... 2,715,100

XIV.--Tnat the amount of Currency: 16,169,400

necessary for carrying on the transactions

of the Country, must bear a proporyjon to in 1802, about 13,917,900

the extent of its Trade and its public under £.5 ... 3,136,400

Revenue and Expenditure ; and that the 17,054,300

annual amount of the Exports and Imports That the exchange with Hamburgh of Great Britain, on an average of three was, in January 1798, 38. 2; January years, ending 5th of January 1797, was 1799, 37.7; January 1800, 32.; January 51,199,1411. official value'; the average 1801, 29.8, being in the whole a fall of amount of Revenue paiii into the Excheabove 22 per cent.-- In January 1802, quer, including the Profit on the Lottery, 32,2; and December 1802, 3-4.; being a 19,495,9451. ; and the average amount rise of about 13 per cent.

of the Total Expenditure of Great Britain, XII.---That during all the periods above 42,855,111l.; and that the average amount

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