IhaveomittedasmuchofMrPearse\'spaperasregardedtheamountofbanknotesincirculationbeforetherestrictiononbankpayments，becausewhilstthepublicpossessedthepowerofobtainingspeciefortheirnotes，theexchangecouldnotputbemomentarilyloweredbytheamountofthebankissues。
Theaverageamountofbanknotesfromtheyear1797to1809
inclusive，inthefollowingtable，iscopiedfromtheReportoftheBullionCommittee。Theratesofexchangeareextractedfromalistpresentedbytheminttoparliament。TherehavebeenthreereturnsmadetoparliamentbytheBank，oftheamountoftheirnotesincirculationintheyear1810；thefirstforthe7thand12thofeachmonth；thesecondaweeklyreturnfromthe19thJanuary，1810，to28thDecember；andthethirdalsoaweeklyaccountfromthe3dMarchto29thDecember，1810。Theaverageamountofnotesabove5l。includingbankpostbills，accordingtothefirstaccountis*15，706，226ofnotesunder5l。*6，560，674
Second……16，192，1106，758，895
Third……16，358，2306，614，721
3）48，256，56619，934，290
Generalaverage16，085，5226，644，763
Intheyearsmarkedthus*thevalueofsilverascomparedwithgoldexceededthemintvaluation，-thiswasthecaseparticularlyintheyear1801，whenlessthan14oz。ofsilvercouldpurchaseanounceofgold，-themintvaluationisas1to15。07；thepresentmarketvalueisas1to16nearly。
AverageamountofBankofEnglandNotesincirculationineachofthefollowingyears:
Notesof5l。andupwards，includingBankPostBills；Notesunder5l。；Total；HighestrateofExchangewithHamburgh；LowestrateofExchangewithHamburgh1798；*11，527，250；*1，807，502；*13，334，752；38。2Jan。；37。4Dec。
1799；12，408，522；1，653，805；14，062，327；37。7Jan。；31。6Oct。
1800；13，598，666；2，243，266；15，841，932；32。5May；31。0Feb。
1801；13，454，367；2，715，182；16，169，594；31。8Oct。；29。8Jan。
1802；13，917，977；3，136，477；17，054，454；34。0Dec。；32。0Feb。
1803；12，983，477；3，864，045；16，847，511；35。0Dec。；34。0Jan。
1804；12，621，348；4，723，672；17，345，020；36。0Dec。；34。8Feb。
1805；12，697，352；4，544，580；17，241，932；35。8March；32。8Feb。
1806；12，844，170；4，291，230；17，135，400；34。8Dec。；33。3Jan。
1807；13，221，988；4，183，013；17，405，001；34。1March；34。2
Sept。
1808；13，402，160；4，132，420；17，534，580；35。3July；32。4Dec。
1809；14，133，615；4，868，275；19，001，890；31。3Jan。；28。6Nov。
1810；16，085，522；6，644，763；22，730，285；31。2June；28。6Dec。
1811；；26。6Jan。；24。0MarchTheBankhavemadeareturnoftheamountoftheirnotesforeighteendaysinthispresentyear1811。Theaverageamountofnotesof5l。andupwardsincirculationforthoseeighteendays，includingbankpostbills，is*16，286，950
Andofthoseunder5l。*7，260，575
Total*23，547，525
\"If，\"saytheReviewers，\"considerableportionsofthecurrencyweretakenfromtheidle，andthosewholiveuponfixedincomes，andtransferredtofarmers，manufacturers，andmerchants，-theproportionbetweencapitalandrevenuewouldbegreatlyalteredtotheadvantageofcapital；andinashorttimetheproduceofthecountrywouldbegreatlyaugmented。\"Itisnodoubttrue\"thatitisnotthequantity\"ofcirculatingmediumwhichaddstothenationalwealth，\"butthedifferentdistributionofit。\"If，therefore，wecouldbefullyassuredthattheeffectsoftheabundance，andtheconsequentdepreciationofthecurrency，woulddiminishthepowersofconsumptionintheidleandunproductiveclass，whilstitincreasedthenumberoftheindustriousandproductiveclass，theeffectwouldundoubtedlybetoaugmentthenationalwealth，asitwouldrealizeintocapitalthatwhichwasbeforeexpendedasrevenue。Butthequestionis，willitsooperate？Willnotathousandpoundssavedbythestockholderfromhisincomeandlenttothefarmer，beequallyproductiveasifithadbeensavedbythefarmerhimself？TheReviewersobserve，\"Oneveryfreshissueofnotes，notonlyisthequantityofthecirculatingmediumincreased，butthedistributionofthewholemassisaltered。A
largeproportionfallsintothehandsofthosewhoconsumeandproduce，andasmallerproportionintothehandsofthosewhoonlyconsume。\"Butisthisnecessarilyso？Theyappeartotakeitforgranted，thatthosewholiveonfixedincomesmustconsumethewholeoftheirincome，andthatnopartofitcanbesavedandannuallyaddedtocapital。Butthisisveryfarfrombeingthetruestateofthecase，andIwouldask，Donotthestockholdersgiveasgreatastimulustothegrowthofthenationalwealthbysavinghalftheirincomesandinvestingitinthestocks，therebyliberatingacapitalwhichwillultimatelybeemployedbythosewhoconsumeandproduce，aswouldbedoneiftheirincomesweredepreciated50percentbytheissuesofbank-notes，andthepowerofsavingwereinconsequenceentirelytakenfromthem，althoughtheBankshouldlendtoanindustriousmananamountofnotesequalinvaluetothediminishedincomeofthestockholder？Thedifference，andtheonlydifferenceappearstometobethis，thatintheonecasetheinterestonthemoneylentwouldbepaidtotherealowneroftheproperty，intheotheritwouldultimatelybepaidintheshapeofincreaseddividendsorbonusestothebankproprietors，whohadbeenenabledunjustlytopossessthemselvesofit。IfthecreditoroftheBankemployedhisloaninlessprofitablespeculationsthantheemployerofthesavingsofthestockholderswouldhavedone，therewouldresultareallosstothecountry；sothatadepreciationofcurrencymay，asfarasitisconsideredasastimulustoproduction，bebeneficialorotherwise。
Iseenoreasonwhyitshoulddiminishtheidle，andaddtotheproductiveclassofsociety。Atanyratetheeviliscertain。
Itmustbeaccompaniedwithadegreeofinjusticetoindividualswhichrequiresonlytobeunderstoodtoexcitethecensureandindignationofallthosewhoarenotwhollyinsensibletoeveryhonourablefeeling。
WiththesentimentsoftheremainderofthearticleImostcordiallyagree，andtrusttheeffortsoftheReviewerswillpowerfullycontributetooverturnthemassoferrorandprejudicewhichpervadesthepublicmindonthismostimportantsubject。
ItisoftenobjectedtotherecommendationoftheBullionCommittee，namelythattheBankshouldberequiredtopaytheirnotesinspecieintwOyears，that，ifadopted，theBankwouldbeexposedtoconsiderabledifficultyinprovidingthemselveswiththerequisiteamountofbullionforsuchpurpose；anditcannotbedenied，thatbeforetheRestrictionBillcanberepealed，theBankwouldbeinprudenceboundtomakeampleprovisionforeverydemandwhichmightbypossibilitybemadeonthem。ItisobservedbytheBullionCommittee，thattheaverageamountofBanknotesincirculation，includingBankPostBills，intheyear1809，was19millions。Duringthesameperiodtheaveragepriceofgoldwas4l。10s。exceedingitsmintpricebynearly17percent，andprovingadepreciationofthecurrencyofnearly15percent。A
diminutionthereforeof15percentintheamountoftheBankcirculationin1809，should，ontheprinciplesoftheCommittee，raiseittopar，andreducethemarketpriceofgoldto3l。17s。
101/2d。；andtillsuchreductiontakeplace，therewouldbeimminentdangertotheBankaswellastothepublic，thattheRestrictionBillshouldceasetooperate。Now，admitting（whichwearefarfromdoing）thetruthofyourprinciples，saytheadvocatesfortheBank，admittingthataftersuchareductionintheamountofBanknotes，thevalueofthereminderwouldbesorised，thatitwouldnotbetheinterestofanypersontodemandspecieattheBankinexchangefornotes，becausenoprofitcouldbemadebytheexportationofbullion；whatsecuritywouldtheBankhavethatcapriceorill-willmightnotrenderthepracticegeneralofdiscontinuingtheuseofsmallnotesaltogether，anddemandingguineasoftheBankinlieuofthem？NotonlythenmusttheBankreducetheircirculation15percent。ontheirissuesof19millions，-notonlymusttheyprovidebullionfor4millionsof1l。and2l。noteswhichwouldremainincirculation，buttheymustalsofurnishthemselveswiththemeansofmeetingthedemandswhichmaybemadeonthemtopaythesmallnotesofallthecountrybanksinthekingdom，-andallthiswithintheshortperiodoftwoyears。Itmustbeconfessed，thatwhethertheseapprehensionsarelikelyornotlikelytoberealized，theBankcouldnotbutmakesomeprovisionfortheworstthatmighthappen；andthoughitisasituationinwhichtheirownindiscretionhasinvolvedthem，itwouldbedesirable，ifpossible，toprotectthemagainsttheconsequencesofit。
Ifthesamebenefitstothepublic，-thesamesecurityagainstthedepreciationofthecurrency，canbeobtainedbymoregentlemeans，itistobehopedthatallparties，whoagreeinprinciple，willconcurintheexpediencyofadoptingthem。LettheBankofEnglandberequiredbyParliamenttopay（ifdemanded）allnotesabove2ol-andnoother，attheiroption，eitherinspecie，ingoldstandardbars，orinforeigncoin（allowancebeingmadeforthedifferenceinitspurity）attheEnglishmintvalueofgoldbullion，viz。3l。17s。101/2d。peroz。，suchpaymentstocommenceattheperiodrecommendedbytheCommittee。
ThisprivilegeofpayingtheirnotesasabovedescribedmightbeextendedtotheBankforthreeorfouryearsaftersuchpaymentscommenced，andiffoundadvantageous，mightbecontinuedasapermanentmeasure。Undersuchasystemthecurrencycouldneverbedepreciatedbelowitsstandardprice，asanounceofgoldand3l。17s。101/2d。wouldbeuniformlyofthesamevalue。
Bysuchregulationsweshouldeffectuallypreventtheamountofsmallnotesnecessaryforthesmallerpaymentsfrombeingwithdrawnfromcirculation，asnoonewhodidnotpossesstotheamountof20l。atleastofsuchsmallnotescouldexchangethemattheBank，andeventhenbullion，andnotspecie，couldbeobtainedforthem。GuineasmightindeedbeprocuredattheMintforsuchbullion，butnottillafterthedelayofsomeweeksormonths，thelossofinterestforwhichtimewouldbeconsideredasanactualexpence；anexpencewhichnoonewouldincur，whilstthesmallnotescouldpurchaseasmuchofeverycommodityastheguineaswhichtheyrepresented。Anotheradvantageattendingtheestablishmentofthisplanwouldbetopreventtheuselesslabour，which，underoursystempreviouslyto1797，wassounprofitablyexpendedonthecoinageofguineas，whichoneveryoccasionofanunfavourableexchange（wewillnotenquirebywhatcaused）wereconsignedtothemeltingpot，andinspiteofallprohibitionsexportedasbullion。Itisagreedbyallpartiesthatsuchprohibitionswereineffectual，andthatwhateverobstacleswereopposedtotheexportationofthecointheywerewithfacilityevaded。
Anunfavourableexchangecanultimatelybecorrectedonlybyanexportationofgoods，-bythetransmissionofbullion，orbyareductionintheamountofthepapercirculaiion。ThefacilitythereforewithwhichbullionwouldbeobtinedattheBankcannotbeurgedasanobjectiontothisplan，becauseanequaldegreeoffacilityactuallyexistedbefore1797，andmustexistunderanysystemofBankpayments。Neitheroughtittobeurged，becauseitisnownolongerquestionedbyallthosewhohavegiventhesubjectofcurrencymuchoftheirconsideration，thatnotonlyisthelawagainsttheexportationofbullion，whetherincoinorinanyotherform，ineffectual，butthatitisalsoimpoliticandunjust；injurioustoourselvesonly，andadvantageoustotherestoftheworld。
TheplanhereproposedappearstometounitealltheadvantagesofeverysystemofbankingwhichhasbeenhithertoadoptedinEurope。ItisinsomeofitsfeaturessimilartothebanksofdepositofAmsterdamandHamburgh。InthoseestablishmentsbullionisalwaystobepurchasedfromtheBankatafixedinvariableprice。ThesamethingisproposedfortheBankofEngland；butintheforeignbanksofdeposit，theyhaveactuallyintheircoffers，asmuchbullion，astherearecreditsforbankmoneyintheirbooks；accordinglythereisaninactivecapitalasgreatasthewholeamountofthecommercialcirculation。InourBank，however，therewouldbeanamountofbankmoney，underthenameofbank-notes，asgreatasthedemandsofcommercecouldrequire，atthesametimetherewouldnotbemoreinactivecapitalinthebankcoffersthanthatfundwhichtheBankshouldthinkitnecessarytokeepinbullion，toanswerthosedemandswhichmightoccasionallybemadeonthem。Itshouldalwaysberememberedtoo，thattheBankwouldbeenabledbycontractingtheirissuesofpapertodiminishsuchdemandsatpleasure。InimitationoftheBankofHamburgh，whopurchasesilveratafixedprice，itwouldbenecessaryfortheBanktofixapriceverylittlebelowthemintprice，atwhichtheywouldatalltimespurchase，withtheirnotes，suchgoldbullionasmightbeofferedtothem。
Theperfectionofbankingistoenableacountrybymeansofapapercurrency（alwaysretainingitsstandardvalue）tocarryonitscirculationwiththeleastpossiblequantityofcoinorbullion。Thisiswhatthisplanwouldeffect。Andwithasilvercoinage，onjustprinciples，weshouldpossessthemosteconomicalandthemostinvariablecurrencyintheworld。Thevariationsinthepriceofbullion，whateverdemandtheremightbeforitonthecontinent，orwhateversupplymightbepouredinfromtheminesinAmerica，wouldbeconfinedwithinthepricesatwhichtheBankboughtbullion，andthemintpriceatwhichtheysoldit。Theamountofthecirculationwouldbeadjustedtothewantsofcommercewiththegreatestprecision；andiftheBankwereforamomentsoindiscreetastooverchargethecirculation，thecheckwhichthepublicwouldpossesswouldspeedilyadmonishthemoftheirerror。AsforthecountryBanks，theymust，asnow，paytheirnoteswhendemandedinBankofEnglandnotes。Thiswouldbeasufficientsecurityagainstthepossibilityoftheirbeingabletoomuchtoaugmentthepapercirculation。Therewouldbenotemptationtomeltthecoin，andconsequentlythelabourwhichhasbeensouselesslybestowedbyonepartyinrecoiningwhatanotherpartyfoundittheirinteresttomeltintobullion，wouldbeeffectuallysaved。Thecurrencycouldneitherbeclippednordeteriorated，andwouldpossessavalueasinvariableasgolditself，thegreatobjectwhichtheDutchhadinview，andwhichtheymostsuccessfullyaccomplishedbyasystemverylikethatwhichishererecommended。