1801.] 
Now, in order to folve this queftion, I 
with diffidence fubmit my opinion, that 
the praétice of throwing a number of {mall 
farms into: ove upon a large feale, under 
the management of a fingle individual, in- 
ftead of {everal, is the true caufe, both of 
the f{carcity of land, and the eagernefs 
with whica it is foucht after. * 
I fhall now make a few animadverfions 
upon the praétice of letting farms ‘by fe- 
cret propofais, if it be true that.a fpi- 
rited competition among farmers has tend-~ 
ed to raife the rent of land above its real 
value; and if landholders, finding it to 
their immediate advantage, do conrinue to 
avail themfelves of 7bat cireumftance, then 
the following confequences appear inevi- 
table:—We muft either fhut our ports 
again foreign grain, whenever its more 
moderate price would reduce that of our 
own, or farmers muft ferce, and ultimate- 
ly injure, the land, in order to produce 
crops equal to thetr overftrained rents, of 
fubmit to immediate ruin, fhould exten- 
five importation be permitted. In the for- 
mer cafe, the price of labour increafing 
_ with that of the neceffaries of life, mutt 
fall upon our manufa&tures, and produce 
incalculable mifchief. But I ceafe to 
trace any farther the confequences of . this 
alarming fy{tem, generated furély in the 
brain of fome defperate {pendthrift, at a 
moment when prefled for immediate fup-. 
plies ‘to fatisfy his clamorous creditors. 
Let the landholders, who alone can remedy 
the evil, apply,their fanative influence 
ere it be too late; but, at all events, let 
us not blame the farmers, who, as well 
as the reft of the community, are fuffering 
underthe preffure of a calamity theybave not 
the power of removing, AWN OBSERVER. 
/ 
To the Editor of the Monthly Magazine. 
SIR, 
Stand engaged to your readers to at- 
tempt an explanation of the manner and 
degree in which the reftri€tion upon the 
Bank of England from making payments 
in fpecie may have been detrimental to 
the nation. his engagement, with your 
permiffion, I will now perform.: 
But firt { with to obferve, that T did not 
intend to intimate, in my former paper, 
that this meafure was wholly produced by 
the motives which I then ventured to af- 
fizn. Under all the circumftances that 
exifted when the, fulpenfion of cafh-pay- 
ments took place, the mea‘ure might have 
been warranted by fomething like necef- 
fity. The Bank might doubtle’s have 
obtained gold and filver fufficient to an- 
Mr. Hauni’s fecond Letter on the Bank. : 
Sok 
fwer any demands:made upon it, .if the 
floating-debt due from government could 
have been reduced as much as the cafe 
required. , Government, however, was not 
, able, it feems, to make immediately any 
material repayments, and thence the Bank 
might have been placed in the fituation of 
a perfon who has lent more than he pol- 
fefles or can borrow, and whole debtor at 
‘the fame time cannot afift him. But the 
fagacity of the Bank-dire¢tors, and of the 
members of government, mutt, I think, 
have forefeen, that if the meafure in quef- 
tion fucceeded, it would produce the advan- 
tages totheir refpeétive concerns and to the 
mercantile intereft,which have refulted from 
it; and fucha confideration would have thee 
-force of a ftrong motive to the adoption of 
a proceeding which, as Mr., Allardyce 
fhews, could very probably have been 
avoided. 
Much argument, and more declamation, 
has been employed to ftigmatize the mea- 
fure of fulpending cafh payments at the 
Bank. I imagine, that, when fairly con-' 
fidered, it will be found to have produced 
effects of a mixed kind. In my opinion, 
the évil preponderates; but on fubjects 
that muft obvioufly partake of wncertain- 
ty, I dare not draw very pofitive general 
conciufions. If my ability qualifies me 
for executing my tafk, every one fhall be 
furnifhed with the means of judging for 
himfelt. 
Dr. Adam Smith haselearly fhewn that 
the precious metals uied as money area . 
dead ftock ; and that a well-fecured paper. 
currency may be fwb/iituted for them with 
great advantage. By means of fuch a 
paper-currency, a proportionable quantity 
of cafh might, and would. be, converted 
into.an active capital, and thus employed 
in maintaining productive labour, and im- 
proving the national wealth. The notes 
of the Bank of England are, beyond 
difpute, well fecured, and therefore the 
nation is benefited by the /jizele circum. 
ftance of their being /ud/iitured for gold and 
filver to a greater extent than former}y. 
It is obvious, that by the fulpenficn of 
payments in fpecie, the difpofeable fund of 
the Bank was augmented in a greater de= 
gree than itsiflue of notes. If thofe notes 
were exchangeable forcafh, a quantity of 
the latter article muft be held in refrve 
proportioned to the probable demand, and 
certainly much beyond the ambunt which 
the Bank is now under the neceffity. of 
keeping. Cath kept for fuch purpofes 
would be dead ttock, and the intereft upon 
it confequently loft. 
Dr. A. Smith has well obferyed, that it 
3 F2 : aS 
