On the High Price af Gold Bullion. 
is illustrated by the account which has been 
already given of the excess, and sub- 
sequent limitation, of the paper of the 
Scotch banks, about the year 1763. If 
the bank of England paper itself should at 
any time, during the suspension of cash 
payments, be issued to excess, a corre- 
sponding excess may be issued of country 
Number of country bank notes exceeding @l. Qs. 
ip Wi 
bank paper which will not be checked ; the 
foundation being enlarged, the superstruc- 
ture admits of a proportionate extension. 
And thus, under such a system, the excess 
of bank of England paper will produce its 
effect upon prices not merely in the ratio 
of its own increase, but in a much higher 
proportion. 
each, stamped in the years 
ended the 10:h of October 1808, and 1 (th of October 1809, respectively. 
Exceeding 21. 2s. aud not exceeding 51. 5s. 
Exceeding 5]. 5s. and not exceeding 201. 
Exceeding 201. and not exceeding SOI. 
Fxceeding 
Lxceeding 50!. and not exceeding 100. 
Assuming that the notes in the two first 
of these classes were all issued for the lowest 
denomination to which the duties respec- 
tively attach, and suchas are most com- 
monly met with in the circulation of country 
paper, viz. notes of 51. and 101. [although 
in the second class there is a considerable 
number of 20].] and even omitting altoge- 
ther from the comparison the notes of the 
three last classes, the issue of which your 
committee understands is in fact confined 
_ to the chartered banks of Scotland, the 
_ result. would be, that, exclusive of any 
. 2s. the amonnt of country 
increase ju the number of notes under 21. 
bank paper 
stamped in the year ended the 10th of Oc- 
. tober 1809, has exceeded that of the year 
_ ended on the 1th of October 1808, in the 
suin of 3,095,340. Your committee can 
form 10 positive conjecture as to the aniount 
of country bank paper.cancelled and with- 
drawn from circulation in the course of the 
jJast year, But considering that it is the 
. interest and practice of the country bankers 
to use the same notes as long as possible ; 
that, as the law now stands, there is no li- 
mitaton of time to the re-issuing of those 
not exceeding 21. Qs. ; and that all above 
that amount are re-issuable for three years 
from the date of their first issuing; it ap- 
pears difficult to suppose that the amount 
_of notes above Ql. 2s. cancelled in 1809, 
. could be equal to the whole amount stamp- 
ed in 1808 ;. but even upon that sapposi- 
_ tion, there would still be an increase for 
1809 in the notes of 51, and 101. alone, to 
- the amount above specified of 3,095,340I , 
to which must be added an increase within 
the same period of Bauk of Fagland notes 
_ to the amount of about 1,500,0001., mak- 
’ 
a 
ing in the year tS09, an addition in the 
whole of between four and ‘five millions to 
the circulation of Great Britain alone, de- 
_ ducting only the gold which may have been 
withdrawn in the course of that year from 
Moninix Mac. No, 208. : 
301, and not exceeding 50]. = 
1808. 1809. 
No. No. 
666,071. 929.073: 
ie 198,473. 580,006. 
- 2-0 2,425. 
we RL el Po 6A, 
so jade i BOs 
actual circulation, which cannot have been © 
very considerable, and also making an al- 
lowance for some inerease in the amount of 
such country paper, as, though stamped 
may not be inactual circulation. This in- 
crease in the general paper currency in 
last year, even after these deductions, 
would probably be little short of the - 
amount which in almost any one year,since 
the discovery of America, has been added 
to the circulating coin of the whole of 
Europe. Although, as your committee 
has already had oc¢asion to observe, no 
certain conclusion can be drawn from the 
numerical amount of paper in circulation, 
considered abstractedly from all other cir- 
cumstances, either as to such paper being 
in excess, or still less as to the proportion 
of such excess ; yet they must remark, that 
the fact of any very great and rapid in- 
crease in that amount, when coupled and 
attended with all the indications of a de- 
preciated circulation, does afford the 
strongest confirmatory evidence, that, 
from the want of some adequate check, the 
issues of such paper have not been restrain- 
ed within their proper limits. 
Your committee cannot quit this part of 
the subject without further observing, that 
the addition of between four and five mil- 
‘ Jions sterling to the paper circulation of 
this country, has doubtless been made at 
a very small expence to the parties issuing 
it, only about 100,0001. having been paid 
thereupon in stamps to the revenue, and 
probably for the reasons already stated, no 
corresponding deposits of gold or Bank of 
England notes being deemed by the coun~ 
try banks necessary to support their addi- 
‘tional issues. Thése parties therefore, it 
may be fairly stated, have been enabled 
under the protection of the law, whith vir- 
tually secures them against such demands, 
to ereate within the last year or fifteen 
months, ata very trifling expence, and Ue 
4Z 
