362 
community require; that it is a quantity 
which has no definite rule or standard; and 
that its true amount cart be ascertained only 
by the effective demand. In countries where 
the currency is carried on by the precious 
metals, the quantity is regulated, as in all 
other cases, by the skill and attention of indi- 
viduals who are versed in this particular 
branch of trade; or, in other words, by the 
bullion merchant, who, in case of a redundant 
currency, withdraws the excess from circu- 
Jation, and employs it in foreign commerce, 
or, in case of a deficiency, procures a new 
quantity of the metals to be converted into 
coin. Where the currency consists of paper 
convertible into specie, the excess or defi- 
ciency isin the sime manner prevented by 
the demand ‘of the public either for cash or 
notes as circumstances may require. A 
paper cireulation which cannot be converted 
into specie, is deprived of this natural stan- 
dard, and is incapable of admitting any other. 
The persons to whom the duty of regulating 
such acirculation is entrusted are in danger, 
with the very best intentions, of committing 
perpetual mistakes. The greatest possible 
degree of skill and integrity can pen protect 
them against gross errors. ‘They will not pro- 
bably in ong instance be exactly right. 
ee That the experience of the officers of the 
bank may in some respects have furnished 
them with the proper skill and knowledge 
of the regulation of such a currency (if It 
ought in any case to exist) it would be in- 
justice to deny ; but it may very reasonably 
be doubted, whether they possess sufficient 
firmness for the proper and independent ex- 
ercise of so important and difficult a trust. 
Whatever respect may be due to the charac- 
ters of the directors as individuals, it is im- 
possible, after the transactions of 17.6, to 
acquit them of blame in their corporate ca- 
pacity. During the present restriction of 
payments in po they are obviously ex- 
posed to great temptations. Political influ- 
ence may occasion an improper increase of 
their accommodations to the executive go- 
vernment; and their direct interest im the 
profits made by the bank furnishes a con- 
stant inducement to the extension of their 
notes beyond the proper limits. It is the 
object of the following pages to shew, from 
indisputable facts, that there are strong rea- 
sons for believing that the directors of the 
bank of England, and. in a still greater de- 
grec, those of the bank of Ireland, have in 
Axr. LIX. Remarks on Currency and Commerce. 
HISTORY, POLITICS, AND STATISTICS. 
reality yielded to these temptations, and that 
they have made an undue and improper use 
of the powers nies to them by Parlia- 
ment.” 
It deserves notice, that in 1797 the 
circulation of English bank notes usually 
amounted to ten or eleven millions 
only: and that this circulation now 
amounts usually to fifteen or sixteen mils 
lions. The hank therefore circulates 
half as much again, in consequence of 
having obtained the patent for not pay- 
ing in cash. ‘The profits on an addi- 
tional circulation of five millions of ca- 
pital amount, at five per cent., which 
in discounting is the usual rate of ins 
terest, to two hundred and fifty thousand 
pounds yearly. It would be reasonable, 
that the bank should allow the country 
half this gain, as an indemnity for the 
risk which our whole public prosperit 
runs by tolerating the privilege. The 
bank would thus have to pay out of its 
profits, one hundred and_ twenty-five 
thousand pounds yearly in the form of a 
tax. Mintsters have committed a dere- 
liction of public duty in not obtaining 
some such allowance. A _ circulation 
adequate to the wants of London could 
probably not be furnished by any indi- 
vidual company, without the privilege 
of witkholding specie. Were there no 
bank of England, but imstead of it a 
great number of private banks, the cir- 
culation would indeed always be propor 
tioned to the effectual demand. Where, 
on the contrary, there is only one com- 
pany, panics may annihilate at once the 
only circulating medium, and withdraw 
exactly when it is most wanted, the 
whole pabulum of commerce. Against 
such panics the restriction is a nm pro- 
tection. So long as the system of a mo- 
nopoly-bank is entitled to endure, so 
long probably’it will be found expedient 
to tolerate this portentous restriction, 
which embarks, on the reputation for 
solvency of one institution, the solidity 
of all the forms of metropolitan trade, 
By Joun Warattey, Esq. 
Svo. pp. 268. 
THE art of book-making improves by 
practice. It was formerly expected from 
an author, that he should collect his 
materials and draw his inferences in his 
closet, and present the result of com- 
pared facts and antagonist arguments 
to the public after the mvestigation. 
But now, the opinions intended to ‘be 
maintained, are first announced in a 
crude pamphlet, then corrected into 
consistency by help of the hostile com- 
mentaries of reviewers, and finally gar- 
nished with such corroborating facts, as — 
a few years of desultory reading cannot — 
