The Peel Bank Act of 18^. 
889 
passed through a long and trying stage of alteration to final re¬ 
peal in 1846. 1 These causes may be deemed of some importance 
in explaining why the bank discussion became finally a subord¬ 
inate part of the wider one on international trade. The latter 
was advancing to soon become the question of paramount im 
portance to Great Britain. 
The subject of depreciation was first fairly presented in Mr. 
Ricardo’s pamphlet, published in December, 1809, entitled; 
" The High Price of Bullion a Proof of the Depreciation of Bank 
Notes. ” 2 As the discussion grew more and more important, 
and the reason for it became more obvious, the “Bullion Com¬ 
mittee” was appointed by the House of Commons in 1810 to in¬ 
vestigate the monetary conditions. 3 The report which they pre¬ 
sented was not adopted, although it affirmed in the clearest 
terms an existing depreciation of the bank notes in circulation. 
On the contrary, Parliament adopted resolutions to the effect 
that there was no depreciation. 4 In addition to this, but a 
curious commentary upon it, a law was passed in 1811 making 
it illegal to deal in coins of the realm at any other than their 
normal ratio to the notes of the bank. The effect of this legis¬ 
lation was to disguise all such transactions, and so to afford an 
appearance of reason to the arguments of those who held that 
no difference of ratio existed. 5 
The Bullion Committee, adopting the views of Mr. Ricardo, 
1 Agitation for free trade was prominent during the period covered by 
the restriction, and almost continuous during the period following it. 
The laws were altered in 1773 and 1791, and in 1804 a sliding scale was 
adopted, which considerably increased fluctuations. An attempt at 
legislation was made in 1814, change was secured in 1815 and 1822. In 
1828 a new sliding scale was adopted, another in 1843. The end of the 
com laws was practically in 1846. This continual alteration brought 
about the greatest uncertainty and distress. As manufacturing Eng¬ 
land prevailed over the agricultural interest, the disturbance of the con¬ 
ditions of foreign trade became more distressing. Cf. Sydney Buxton, 
“Finance and Politics,” vol. 1, ch. iv; also McCarthy, “Hist, of Our Own 
Times,” vol. 1, ch. xiv and xv. 
2 Tooke, vol. iv, p. 98. 
3 Members were Horner, Huskisson and H. Thornton 
4 Tooke, vol. i, p. 316. 
5 Wagner, “Peel’schen Bankacte,” p. 42. 
