forcibly exemplified in 1847, will recur with increased 

 violence under the Free Trade system, and will be felt by 

 the agriculturist to an extent of which he has as yet had 

 no experience. 



Were the law which fixes the price of gold abolished, 

 these evils would at once be prevented. 



II. But if gold were allowed to find its price in the 

 market like other commodities, it would be necessary to 

 provide a substitute for home circulation. 



This might be done in various ways. Pitt did it, during 

 the war, by the Act which restricted the Bank from paying 

 its notes in gold at a fixed price. It might be done by 

 allowing the Bank to issue notes on government securities, 

 when a drain of bullion occurs ; and by giving the Bank 

 power to refuse to purchase more gold, at the fixed price 

 when it has a large stock in its coffers. This would 

 prevent panics on the one hand, and over speculation on 

 the other ; and an adequate circulation of paper being 

 provided, prices would rise to their fair level. But there 

 is perhaps no plan more simple in its operation and 

 correct in principle than the establishment of a National 

 Paper Money, of 1. and upwards, based on the revenue 

 of the country, and never exceeding the amount of the 

 annual taxation. Such money being receivable for taxes, 

 would be as safe as the government could make it. It 

 would never be too much, It would never depreciate in 

 value. It would not be hoarded. It would not be ex- 

 ported. It would be issued in payment of public works 

 and services, and in discharge of the interest of the debt, 

 and it would return gradually for payment of taxes, and 

 be cancelled. It is the business of those who administer 

 the affairs of the country, and who manage its finances, to 

 supply the details of such a plan and the best method of 

 its practical working. But it is the business of all classes 

 in the country to advocate the extreme importance of 

 having a safe, abundant, and unfluctuating Paper Cur- 

 rency. This would secure to both the manufacturer and 

 the farmer a remunerating price for the commodities in 



