~ 
 punity. 
Tid 
One means, however, of alleviating 
its ultimate evils, will be to diminish 
a false confidence in -artificial esta- 
blishments, which cannot fail to be- 
come its first victims, and which, 
possessing no parliamentary security, 
must, in the possible event of their down- 
fall, involve in their fate the greater 
part of the industrious population of the 
empire. The notes of the Bank of Eng; 
Jand possess at least the countenance, 
not the. pledge, (query?) of parliament; 
but the adventurers in. many private 
banking-establishments, have often no 
claim to confidence beyond an imposing 
appearance, and the fears, hopes, and 
eredulity, of those who deal with them. 
_ Ina former paper, I pointed out a pal- 
Jiative for the evils with which the bank- 
ing and paper-money system threatens 
the nation. I proposed that the whole 
should be the object of legislative regu- 
lation, and that the bankers should be 
obliced-to give security for average ba- 
Jances, and for their issues of notes and 
acceptances. Such a system would re- 
invigorate commercial credit, and place 
the banking trade on a_ respectable 
and solid foundation, It might mor- 
tify the arrogance of the self-consti- 
tuted committee, or pique the pride 
ef coxcombs in the banking trade, but 
it would check adventurers, and be hailed 
by respectable and‘ truly wealthy bank-_ 
ers, as a salutary measure. and an 
honourable distinction. Let London 
bankers give securities, at the time 
they. take out their licences, for not 
jess than 50,0001. aud provincial bankers, 
who issue notes, for not less than 20,0001, 
and those who do not issue notes, for not 
jess than 10,000!. 
The confidence of the country, inthese 
establishments, would then -be restored 
and weil-founded, and the paper system 
might perhaps go on some years longer, 
without producing general bankruptcy. 
dlugust 6, 1810. Common SENSE. 
— Za 
To.the Editor of the Monthly Magazine. 
SIR, 
HE animadversions of * Common 
_ Sense,” on the calamities of the 
commercial world, are.too partial to 
escape reprehension ; and their tendency 
too dangerous to be indulged with im- 
Universal condemnation of a 
F indication of the Banking System. 
| _ (Sept. ts 
error has arisen from his ignorance of the 
banking business. It is not only “ the 
professed object of a banker to become 
the depositary of other persons’ spare 
cash,” but also to lend money ou, bills of - 
exchange, or on the credit of his cus= 
tomers; and if the latter become insol- 
vent, or the former are not paid, he in- 
curs bad debts, and suffers loss of pros 
perty. This proposition.is so plain, that 
it is wonderful “Common Sense” could 
not discern it. West-India merchants, 
for instance, obtain large advances from 
a banker, under the conviction of being 
enabled punctually to repay them: West- 
India produce however will not sell, 
foreign ports being shut against the Enge 
lish flag. _The, merchant declares his 
insolvency, the banker isyruined, and the ~ 
evil spreads as widely as your correspon- 
dent describes. But om whom should 
the judgment fall? On the merchant 
who holds property which he cannot sell, 
or the banker whose confidence has 
caused his own downfall? Or rather 
should we not place it to the account of 
awar which is destroying the vitals of 
the country, aud of a system of govern 
ent which wastes and dissipates all thas 
escapes the voraciousness of necessity. 
I do not know what description of 
traders . your correspondent has» assos 
ciated with. ‘ Men who-receive other 
peoples’ money,” but’ who seldom or 
never lend money, for any useful or be- 
nevolent purpose.” Men who “ do ndt_ 
live in the same relation to society as 
traders in merchandize,” Men not 
‘liable to bad debts,” but whose occu- — 
pation is in “tricks, maneuvres, and 
illiberal practices 1! 1” 
Quis talia fando temperet a lacrymis ? 
I have one other remark to notice: 
your correspondent seriously asks, [fit is 
not to be feared that not one banker in. 
ten would. now prove solvent; that not 
one in four would pay ten shillings in the. 
pound! Reader, there are seventy-nine 
London, and seven hundred and twenty- 
one country banks. Shall we conclude, 
because twelve banks stopt payment last 
month, that. seven hundred and twenty 
of the remainder are ‘liable +> be gazete 
ted? ‘due! 
The banking system has been too long 
under legislative, or in another word, mis 
whole body, for the crimes of individual nisterial regulation. It, bas been con- 
members, will ever be repelled with in- verted into a vast engine to stimulate, 
‘dignation; and accusations of insolvency, until it shall destroy the energies of the 
directed against any respectable class of country. Under this. regulation, gold. 
tradesmen, deserve the contempt of those has been wasted in foreign subsidies, the: 
_ they are intended to injure. > Rational debt has accumulated, exchange — 
A large portion of your correspondent’s with ‘foreign countries has become Unie 
s 4+ fe. 
