492 ■ Mr. Bakewell on the Ivjluence of Artificial Capital. 



made otiier remaiks, 1))' myself ovir- wliere Ihey mean to stoj) 

 Jookcd, I shall be 'lappy to liave sucL 

 introduced in your valuable work. 



Simeon Shaw. 

 Sitrslem Grammar School. 



To the Editor of the Monthly Magazine. 



SIR, 



PERHAPS at no period, since tlie 

 Orst history of civilized society, 

 has any thing been presented to the 

 contemplation of the political economist 

 similar in magnitude and importance to 

 the late extraordinary increase of capital 

 that has been created by the great rise 

 in the different public funds in Euro[)e. 

 The probable consequences and bear- 

 ings which may follow, appear to have 

 escaped public inquiry. Nor have the 

 probable cilects of the ' new era' (iis it 

 may be called) in the monied world 

 hitherto excited any attention. British 

 capKalists are now the chief supporters 

 of all the despotic governments in 

 Europe. Allow me to propose the fol- 

 lowing queries to any of your readers 

 " who can discern the signs of the 

 limes." 



The aggregate national debt of the 

 dillerent governments of Europe may be 

 stated at about twelve hundred millions 

 sterling, and it was borrowed originally 

 sit about 30i. paid down lor every 100/. 

 of debt ; but the funds being now nearly 

 at ])ar, an increase of from five to six 

 liuiidred millions of ca-pilal is created, 

 which the holders may realize if they 

 sell at the present priies. 



1. What eti'ect will this sudden in- 

 crease of capital have on national pros- 

 jieiity. as bearing on the different classes 

 of society ? 



2. Where the transactions are re- 

 stricted belwccn individuals of the same 

 nation, it may be said there is no real 

 increase of ciiculating capital; for, if A. 

 sell as much stork for 1000/. as cost him 

 «)nly 600/., B , the purchaser, must 

 withdraw 1000/. from citculalion to 

 make the purchase; but on this 1(,00/. 

 lie may obtain credit, so that a nominal 

 increased capital of 600/. is created, 

 available for commercial speculation. 

 Is not the nation made poorer by the 

 real amount of its debt being thus 

 increased? 



3. In 1820, the violent cry of jacobi- 

 nism was raised aj;ainst any one who 

 hinted at the propriety of reducing the 

 interest of the ^ational Debt; yet, two 

 j<ars aiterwards, ministers claimed 

 };reat credit for beginning the reduction 

 tiicniselvcs, and leaving it uncertain 



[Ju!^ 1, 



Who are 

 properly to be called jacobins and 

 levellers, the proposers or the actois ? 



4. Will not the experiments that are 

 making, in reducing the interest of the 

 different national funds, eventually 

 weaken future confidence in govern- 

 ment-securities, and thus have a benefi- 

 cial inlluence in preserving peace? 



On the other side of the question, 

 perhaps, we shall find in the present 

 stale of the moneyed market increased 

 iMcilitiesand temptations offered to am- 

 bitious governments to engage in war. 



6. Money is regarded as furnishing 

 the sinews of war, and liencc the great 

 capitals of our bankers and nierciiants 

 have been supposed to contribute 

 greatly to our national strength. But 

 our capitalists are now so eager to in- 

 vest their money in foreign fund.s, that, 

 were the members of the Holy Alliance 

 to project the final overthrow of the 

 British empire, our great loan-contract- 

 ors would readily engage to supjily them 

 with as many millions as they might 

 want, if the terms were thought advan- 

 tageous; and our merchants on 'Change, 

 who threw up their hats and huzzaed, 

 when negotiations for peace with France 

 were broken ofi', would instantly sub- 

 scribe to such a loan with a prospect of 

 profit before them. If our great capi- 

 tals are thus at the service of foreign 

 states, who, in all probability, may ere 

 long be arrayed against us; what ex- 

 clusive security do they afford? Capi- 

 tal beciimes a two-edged sword, as dan- 

 gerous to the nation which posse^ses it 

 as to the enemies of that nation. 



I should be greatly obliged to any of 

 your enlightened correspondents to ex- 

 plain any of the a|>parent anomalies iti 

 the piesint stale of ihe money-market 

 referred lo in the above queries. 



Robert Bakewell. 



Torrviyion square, iiloomsbury. 



For the Mouthiij Magazine. 



A TOUR in SEARCH vf the PICrURESQUE 

 at the ROYAL ACADEMY, SOMERSET- 

 HOUSE, lt)24. 

 rS'XHAT continual novelties are ap- 

 JBl pearing in this metropolis uo one 

 will deny. May, the poetical and influ- 

 ential season of Nature, the birth-time 

 of our immortal Shakspeare, of bis con- 

 temporary Cervantes, the heroic knight 

 of Spanish chivalry, — beautifies the tca- 

 tures of external existence, and pre- 

 pares tiic warm, and more calm, month 

 of Jusie, for the repast of the tnglisli 

 traveller and the unwearied agricul- 

 turalist. 



