266 A. D. 1793. ' 



merce, a verv coniiderable proportion was inverted in machinery and 

 inland navigations ; objecls, which, though generally very productive in 

 due time, require a very heavy advance of capital, and depend for their 

 produdivenels entirely upon the general profperity of the trade of the 

 country. At this time alfo the concerns of both merchants and manu- 

 fadurers were much more widely extended, and were much greater, 

 than at any former period ; a natural efFed of increafmg profperity, and 

 fometimes a caufe of enfuing calamity. From the operation of caufes, 

 which I fliall not pretend to explain*, the unprecedented number of 

 bankruptcies in November 1792 was prodigioufly exceeded in number 

 and amount by thoie, which took place in the fpring and fummer of 

 this year ; 105 in March, 188 in April, 209 in May, 158 in June, and 

 1 08 in July. Many houfes of the moll: extenfive dealings, and mofh 

 eftablifhed credit, failed ; and their fall involved vafl numbers of their 

 correlpondents and connexions in all parts of the country. Houfes of 

 great refpedtibility and undoubted folidity, pofleffing ample funds, which 

 a6tually did in a fhort time enable them to pay every lliilling of their 

 debts, were obliged to flop payment : and fome bankers, who almofl 

 immediately, on recovering from the firft panic, refumed the regularity 

 of their payments, were obliged to make a paufe. Many whom the 

 temporary afliflance of even a moderate fum of money would have en- 

 abled to furmount their difficulties, could not obtain any accommoda- 

 tion -, for, in the general diftrefs and difmay, every one looked upon his 

 neighbour with caution, if not with fufpicion. It was impollible to 

 raife any money upon the fecurity of machinery or fliares of canals; 

 for the value of fuch property feemed to be annihilated in the gloomy 

 apprehenfions of the linking ftate of the country, its commerce, and 

 manufactures : and thofe, who had any money, not knowing where 

 they could place it with fafety, kept it unemployed, and locked up in 

 their coffers. Amidft the general calamity the country banks, which 

 were multiplied greatly beyond the demand of the country for circulat- 

 ing paper currency, (there being about two hundred and eighty, or, ac- 

 cording to other accounts, above four hundred, of them in England and 

 Wales f) and whofe eagernefs to pufli their notes into circulation had 

 laid the foundation of their own misfortunes, were among the greateft 

 fufferers, and coniequently the greateft fpreaders of diftrefs and ruin 

 among thofe conneded with them : and they were alfo the chief caufe 



* The writers of the times differ fo very widely made up at the time. The fmaller is from the cvid-^ 



in t)ie cau'e; they aflign for the commercial dif- ence of iVIr. ElHfon before the committee of fe- 



trefles of the year 1793, that it feems better to crefy, appointed by the houfe of lords to inquire 



leave them to the determination of a future age, into the ilate of the bank of England in the year 



when impartial documents, not now attainable, may 1 797. Mr. Ellifon dated the number of country 



be brought forward : for lometimes Tiuth cannot banks remaining in the year 1 797 in England and 



tread very clofely upon the heels of Time. Wales to be about 2 jO. 



f The larger number is taken from the accounts 



