388 Jones—Relation of Economic Grises to Legislation . 
endure but for a few weeks. It was, however, continued from 
time to time, and although the bank made some moves toward a 
resumption in 1799, a second outbreak of foreign hostilities 
put an end to this, and it was not until 1819 that a law provid¬ 
ing for a gradual resumption of payments was promulgated. The 
end of the restriction period practically came on May 1st, 1821. 
The provisions of the enactment had allowed the directors consider¬ 
able discretion, with additional time and a gradual method of ap¬ 
proach to the final standard of equality of notes to gold coin. 
At this time there were private banking concerns in England, 
and also joint-stock banks having not over six members and un¬ 
der the principle of unlimited liability. 
The first disparity between gold and the bank notes showed 
itself in 1800, continuing to 1802. From that year to 1808 the 
difference was comparatively small but, beginning with 1809, 
the depreciation increased considerably, reaching thirteen and 
fourteen per cent, and even going above this. 1 
Before the period of restriction, the regulation of the currency 
had been a subject to attract little public attention. The prin¬ 
ciples laid down by Adam Smith in the “Wealth of Nations” had 
been widely received, but beyond this admirable exposition there 
existed very little work of value upon that subject. 2 * * * The un¬ 
certainty of the vlaue of money served again, as it had done be¬ 
fore in the history of political economy, to arouse the greatest 
attention to financial conditions. The policy of the bank, and 
the circulation of coin and paper became the subjects of the 
liveliest contention. These questions, and the “currency” 
theory in particular, brought into prominence the balance of trade, 
and consequently whatever influenced it. As is well known, a 
very exceptional importance was given to the discussion of for¬ 
eign trade during the period covered by the contentions over 
the Bullion Report and the Act of 1844. The English “Corn 
Laws” were brought more and more unto prominence, and 
1 Wagner “Lehre von den Banken,” p. 7 7 ,and “Peel’schen Bankacte,” p. 
39. The crisis of 1816-17 closed 89 provincial banks and destroyed their 
notes. The increased demand for Bank of England notes brought their 
value nearly to par. 
* Tooke, vol. iv., p. 83. 
