G8] ANNUAL REGISTER, 1818. 



was first proposed. He should 

 perhaps be told that the restric- 

 tion was first proposed in a time 

 of war and danger, and that the 

 measure was rendered necessary 

 in consequence of the advances 

 made to a foreign power, under 

 the guarantee of government. 

 This was true, but still it did not 

 counterbalance the greater extent 

 of the operations at the present 

 time. The imperial loan amounted 

 only to four millions and a halt ; 

 but besides the loan of last year 

 to France, thirty millions might 

 be necessary for that country in 

 the present year, and five millions 

 had, besides, been raised for 

 Prussia. Even if all those loans 

 were to be negociated abroad, 

 there wJs no reason to suppose 

 that capital was so abundant on 

 the continent, as that a large pro- 

 portion of the money would not 

 come from this coiuitry. 



He wished it to be distinctly 

 understood, that he did not pro- 

 pose to continue the restrictions 

 in consequence of any circum- 

 stances in the internal state of the 

 Bank, which he believed was fully 

 prepared to make good its pay- 

 ments ; but on account of those 

 external circumstances which 

 would render such an operation 

 extremely dangerous at the pre- 

 sent moment. He hoped, how- 

 ever, that another measure which 

 he should have the honour to 

 propose /night have the effect of 

 considerably/alleviating the evil 

 of the restriction, and place a 

 great part of our paper currency 

 on a more secure footing than 

 ever. This part of the subject 

 he would now endeavour to ex- 

 plain as shortly as possible. It 

 was his intention to propose that 



the. Restriction act should be con- 

 tinued for another year, namely, 

 to July 1819, and that in one 

 year from that period the opera- 

 tion of this new plan should com- 

 mence. There could be no doubt 

 that the most perfect and desir- 

 able currency was a mixed one of 

 specie and paper. Many plans 

 had at different times been in 

 contemplation respecting the best 

 means of security from the abuse 

 of paper currency. It had been 

 proposed that paper should be 

 issued on the security of various 

 deposits, as of landed and other 

 property. The great objection 

 against issuing paper on the de- 

 posit of property was, that what- 

 ever value the property deposited 

 might possess at the time the de- 

 posit was made, it could be con- 

 verted into money only under 

 favourable circumstances, and 

 that when attempts were made to 

 convert it into money under other 

 circumstances, it often fell so 

 much in value, as not to realize 

 the sum advanced on the security 

 of it. All land banks were par- 

 ticularly liable to this inconve- 

 nience ; and from the many diffi- 

 culties attendant on the convey- 

 ance of landed property, had 

 generally been unsuccessful. This 

 sort of uncertainty, however, did 

 not exist with regard to another 

 description of property which 

 existed in this country to a gi-eat 

 extent, namely funded property. 

 It was not, indeed, free from 

 fluctuation, but it might always 

 be considered available to a cer- 

 tain extent. If on the deposit of 

 a certain amount of stock, a cer- 

 tain amount of paper had been 

 issued, such paper would have 

 J?een free from the insecurity of 



the 



