¥796.) 
fo much danger from the funded debt, as 
from the immenfe quantity of Bank- 
notes, which he afferts, have been manu- 
faétured and introduced into circulation 
for the ufe of government. Thefe’he has 
multiplied to the fum of fixty millions, 
for which he has produced certain data, 
which do not prove, to my mind, that 
there is a fixth part of that fum in cir- 
culation. But whatever that fum may 
be, it is certain, that it is no more than 
the exchange of property admits to be 
made in paper of fome denomination, 
otherwife it would flow into the Bank 
and be exchanged for cath. 1 agree with 
him, that if all the holders of bank-notes 
were to call for their money in one day, 
they could not obtain it; but this is no 
more a proot of the infolvency of the 
bank, than a merchant not being able to 
pay all his acceptances in one day, is a 
proof that he cannot pay them all in 
proper time, and have a large fortune 
left; this would be a ftoppage, indeed, 
which might impeach his credit, and pro- 
duce, examination, but there might or 
there might not be infolvencys cutis 
To fupport the idea of there being 
Aixty millions of bank notes in circulation, 
he afferts, that England requires eighty 
millions of cafh or paper money to tranf- 
act her bufinefs; that there is but twenty 
millions in gold and filver, therefore, the 
remaining medium muft be-in bank 
notes ; but here he choofes to forget the 
‘large amount ‘of merchant’s draits, in 
which almoft all the commerce of the 
nation is carried on, the amount of 
which, in conftant circulation, I appre- 
hend, far exceeds the amount both of 
the gold and filver, and the bank notes. 
‘The property of the bank confifts in 
a quantity of the precious metals coined 
and uncoimed, of fecurities from indi- 
viduals for bills difcounted, and of fe- 
curities from government. The quan- 
tity of the precious metals in their 
poffeflion is not known to the public; 
whatever its amount may be, it is a*part 
of capital entirely unproductive, and-pro- 
bably does not amount to a great many 
millions.—T he fecurities from individuals 
amount toa very large fum at prefent, 
although the affiftance formerly given 
by the bank to commerce is very much 
contracted ; but the principal part of the 
property of the bank muft confit of their 
itock in the funds, and other government 
fecurities, for which they receive an 
intereft, and for which they have the 
fame fecurity, that all the other creditors 
of government poffels, no more, viz. the 
Englifh Syfiem of Finance. 
549 
good faith of the nation, pledged in the 
moft fulemn manner, for the due pay- 
ment of the intereft, but not tor the pay- 
ment of the principal, which they can 
only obtain by felling their ftock in the 
markets as other proprietorsdo. Admit 
ting, for a moment, that the lofs on that 
fale was very conliderable, ftill it would 
not affect the creditors of the bank, or 
the holders of their notes, until it had 
{wallowed.the whole capital which the 
proprietors of bank {tock have advanced 
to carry on their bufineis as joint traders, 
amounting to about twelve millions, a 
fum not much inferior to the whole 
money wich they have advanced to 
government. 
The national debt I confider to be 
aclaim, which the holders of ftock hava 
upon the whole property of the nation, 
for the intereft of the money which has 
been advanced to its government, and for 
which intereft, all the produce of the 
permanent taxes are pledged to them in 
preference to any other fervices. > If 
they prove efficient, the amount will be 
upwards of feventeen millions, befides 
the produce of the land and malt taxes 
voted annually, which will make the 
whole about twenty millions fterling. 
The demands upon this fum confit, 
firft, of the intereft of the national debts 
and fecondly, of the expence of the peace 
eftablifhment. Admitting the war tobe 
brought to a termination at the end of 
this campaign, the amount of the debr 
cannot be much lefs than four hundred 
millions, when all the expences are 
funded; the intereft, at three per cent. 
would be twelve millions per ann.; bat 
as partof the debt bears four, and part 
five per cent. the whcle intercf{ mutt 
amount totwelve millions and a half: ic 
would be ufelefs to be very exaét in num- 
bers when they are changing every day. 
The amount of the peace eitablifhmene 
is ftill to be added; and, IJ fear, it cannot 
be eftimated at lets than feven millions 
and a half, which would make the annual 
outgoing equal to the income, without 
leaving any thing to be applied to the 
reduction of the debt during a peace ; 
a fubject often much dwelt upon in 
theory, but never much proved by 
prattice—the liquidation of the debt in 
the laft ten years’ peace, not having 
equalled even a moiety of this year’s ex- 
pences of the war. 
The amount of the peace cftablifhment, 
however, will always depend very much 
upon the talents and integrity, or the 
extravagance and difhonefty, of thofe Naa 
ave 

