every day grow richer, and we shall grow poorer. 



Again, MR. ALISON, the able and distinguished histo- 

 rian, gives this testimony to the power and superiority of 

 Paper Money. " When sixteen hundred thousand men were 

 engaged in active warfare, on the two sides in Germany and 

 Spain alone, where nothing could be purchased but by specie, 

 it is not surprising that guineas went where they were so 

 much needed and bore so high a price. In truth, such was 

 the demand for the precious metals, owing to that cause, that 

 at length all the currency of the world, attracted to Germany, 

 as a common centre, could not supply it ; and by a decree on 

 September 30th, 1813, from Peterswaldau in Germany, the 

 allied sovereigns issued paper notes, guaranteed by Russia, 

 Prussia, and England, which soon passed as cash from Kam- 

 skatkha to the Rhine, and produced the currency which 

 brought the war to its successful issue. There was an in- 

 stance of the manner in which a paper circulation, based on 

 proper security, supports credit and supplies the want of specie 

 at the decisive moment. Whereas, according to the present 

 system, the paper would of necessity have been contracted, 

 when the specie became scarce credit would have been ruined 

 at the critical period, and the vast armaments of the allies 

 would have been dissolved for want of funds for their support." 

 England in 1815, and 1845. p. 76, 77. 



And in a recent edition of the History of Europe, he gives 

 this additional evidence of the important advantages which 

 EXPERIENCE HAS DEMONSTRATED to result from a Papei Cur- 

 rency. '-' To the suspension of cash payments by the Act of 

 1797, and the power in consequence vested in the Bank of 

 England, of expanding its paper circulation, in proportion to 

 the abstraction of the metallic currency and the wants of the 

 countrv, and resting the national industry on a basis not liable 

 to be taken away either by the mutations of commerce, or the 

 necessities of the war, the salvation of the empire is beyond 

 all question to be ascribed. 



A similar crisis, and from a similar cause, occurred in 1810, 

 but it led to no injurious results ; on the contrary, it was con- 

 temporary with the greatest exertions of the nation. The 

 prodigious absorption of specie for the use of the French and 

 Austrian armies during the campaign of 1809, joined to the 



