acknowledge, that they cannot | Michaelmas for ten pounds a year, ascertain the cause of this, as they the wheat being 5s. a bushel; and, if the paper-money makes, during the year, wheat rise (every thing else rises along with it) to 10s. a bashel, my master, though he pays me the ten pounds in name, pays me, in reality, but five pounds. Thus were the labourers' really robbed by the issuing of a call it, unaccountable depression. Hear ME, then, Fathers and Mo thers, who have what you call money in the funds," or, who have any thing, of any sort, to do with Funds, Scrip, Shares, or with any sort of paper-money: hear ME explain the true cause of this alarming fall, and then, if paper-money. you plunge yourselves and your 6. But, now mark this stop children into beggary, take the page of gold payments at the blame wholly to yourselves, and Bank took place in time of WAR? endure as you can your own mi-you will please to bear that in series and the just reproaches of mind. The pretence for it was your degraded and starving off spring. : that the" enemy" was at work to get our gold away; though you 5. Until 1797 (29 years ago) will with me, wonder, I dare say, the Bank of England had always how that enemy, who never set paid in gold. In that year the his foot on our shores, should be Bank had out so much in notes, able to "get our gold away." that it could not take up those However, such was the pretence; notes in gold. The Ministers first, and, in order to keep up appearand then the Parliament, stepped ances, the Act of Parliament forward, first by an ORDER IN which authorized the Bank to stop COUNCIL, and then by AN ACT, paying in gold, provided, that it authorized the Bank to stop pay-should begin to pay in gold again ing in gold, and made its notes at the end of six months after pass as money. Now, for the peace should be made. So that first time, England saw one pound the people naturally believed, that Bank notes, which were, how-the stoppage was merely to keep ever, necessary, there being no the hands of the enemy from our gold to circulate. Hence England chests of gold. Pray mark, that became a country of paper-mo this Peace came in 1801, five ney; and, as is always a conse-years after the stoppage at the quence in such cases, every thing Bank; and the end of six months rose enormously in price, and, of came; but, before it came, anocourse, people's rents and wages ther Act was passed, putting off fell in real value. If, for instance, gold payments for a year. That Flet a farm for a hundred a-year, year ended, and theman Act was and the quantity of the money in passed, putting off gold payments the country be so increased as to for another year. That year ended, make wheat 10s. a bushel instead and the same thing would have of 5s., my year's rent will be worth been done again; but, now, we only half as much as it was be- were at WAR AGAIN, and now fore. Thus were thousands of the enemy might come again to men really robbed of their est ates. take away our gold out of the IF bargain with my master at Bank; and soy an Act was now in 1803, passed to authorize the not clearly understand how these Bank to refuse to pay in gold un-gold-payment measures produced til six months after the next these melancholy effects. Pray, peace. Pray bear these things in then, lend me your ear, while I endeavour to explain this matter mind! 7. This peace did, however, at to you. You have seen in the last, in 1814, come: the BoUR-latter part of paragraph 5, how BONS were restored; the "enemy," the landlord and the labourer are vain BONEY, was imprisoned for ruined by the increase of paperlife, and could not possibly come money. The farmer must, of to take away our gold out of the course, be ruined by its decrease, Bank. The six months expired; because (supposing the increase there was now no pretence left to be one-half) he has to sell for not paying in gold; but, the twice as much wheat to pay his Bank did not pay in gold: it was, rent as he had to sell before. The year after year, still protected landlord now gains; but, this gain from paying by repeated Acts of is not long; for the farmer is Parliament, till, at last, in 1819, ruined, and the landlord gets no Mr. Peel brought into that same rent at all. A new lease, at any Parliament, which refused to in-rate, must take place, and the quire into the 16th of August af- landlord (while all his taxes refair, and which passed Six Acrs, main as high as ever) has only a Bill which goes by his name, half the sum to live upon that he and is called PEEL'S BILL, to had before. Monstrous was the compel the Bank to pay in gold in ruin. The Bank, and all the four years from that time. Please country banks, drew in their pato attend to this transaction: ac- per (we shall see why and how cording to Peel's Bill and its ap- presently), to be ready to pay in pendant Acts, and to the small-gold; one-seventh part of the note law then in force, there were country banks broke, and more to be gold payments at the Bank than half of the remainder shut on the first of May, 1823, and, up shop. Prices fell. A farmer's neither the Bank, nor any country wheat rick, that used to be worth bank, was to issue any note under 2001. perhaps, was not worth 2007. five pounds, from and after that A shop-keeper's goods that he first day of May. had given, or bargained to give, 8. You remember what hideous 5,000l. for, perhaps, were not ruin followed these laws. You worth 2,0001. How was he to remember how it swept away make good his payments? The merchants, manufacturers, shop-banks were compelled to lessen keepers, and tradesmen; how it the quantity of their paper, in orbrought the farmers and their der to bring it within the probable wives and children to the poor- sum that they could get in gold, house; how it drove the nobles ready to pay with in May, 1823, to mortgage their estates to the according to law. This made Bank; how, in short, it beggared money scarce, made prices fall, a large part of the landowners and and, as we approached the day of their tenants. You remember this gold payments, money became very well; but, perhaps, you do less and less in quantity, and prices became lower and lower, while (and you will well observe this) the taxes remained always the same in name, but were, in fact, tripled in amount, and, therefore, the fundholders were receiving three times as much as they ought to receive. people in general not knowing that the Bill of Peel had not been wholly repealed; relying upon the mass of the people not knowing that they could still demand gold for notes; and relying also upon the influence of tax-gatherers, army-people, navy-people, and so 9. If this had continued only forth, who are all necessarily upabout ten years longer, almost holders of the paper-system. Paevery landowner in England and per, therefore, came tumbling out Scotland and Ireland would have again; new banks arose all over been a real ragged beggar. It was the country; prices got up from surprising, that men, who had in wheat at 4s. a bushel, to wheat at their hands the absolute power of 9s. a bushel; the Ministers bragmaking the laws, should have suf-ged of the "prosperity," the landfered things to go to this extent; lords were delighted, "money but, at any rate, they resolved to let became superabundant, and the them go no further, to submit to funds rose to 97. no further ruin. Now, therefore, 11. But, this "prosperity" was in July 1822, (nine months from false; it was bottomed, not on the day when all small notes were, solid gold but on flimsy paper. by law, to cease,) the landlords It could exist for only a certain had clearly demonstrated their period; and, now I will tell you fired resolution to take off taxes why. Gold is a thing of real to a very great amount (which value; paper a thing of imaginary must have produced a sweeping value. When a country has a away of a large part of the debt), paper - money beyond a certain or, to have high prices again. At extent, gold will leave that counthis point the Minister gave way; try, and go to other countries, and in July 1822, when the paper- leaving the paper-money behind money was reduced to a small it. Now, unless our paper got quantity, and when wheat was out to a great extent, it would not come down to 4s. a bushel, they passed the NEW SMALL NOTE BILL, which authorized the issuing of small notes by all the banks, great and small, for eleven years longer; that is, as they thought, for ever. This was a part repeal of Peel's Bill; but, it did not go so far as again to protect the banks against payments in gold: and this, as we are now going to see, was the distant cause of the present full of the funds."" 10. The new Small Note Bill made the banks believe that they were now safe, relying upon the raise prices high enough to enable the land-owners to pay the present taxes, and keep their estates too. So that, it was absolutely necessery to put the paper out to a great extent; yet, if this were done, the gold would leave the country; because, then, the market value of gold in England would rise as well as the market value of corn (both being bought with papermoney), and there were all the banks (as they now are) compelled to give gold for their paper, at no rise of price at all. So that, when the paper intended to raise prices, had raised them to a cer 13. But, say you, "Why should tain extent, away went the gold; this make them fall?" That is and it has now been going, for the very question which I wished about pine months, to the melt-you to put; and now you shall see ingpots at Paris and elsewhere." why;" and also see the gulf that There is a regular trade in it with is yawning to receive the means Paris; the sovereigns are there of you and your children. The melted down by the gold-refiners, great Bank, finding itself pressed made into bars, and sent to the for gold, and likely to be further French Mint, where the bars are pressed, must adopt means to save coined into Charles Dixes. The itself. It has no way of doing this English Bank Notes, which get to but stopping its paper from comParis, are bought (by persons coming in to take the gold away. This ing home) for 3d. each less than it cannot now do by law. It must, a gold sovereign. A man with therefore, use some other means, 10,000. may, by repeating the It must send out, and get in its operation 36 times in the year paper. Its principal means of (which he may easily do), turn doing this consists of the Exche the 10,0007. into 16,000l. and up-quer Bills which it holds. It sells 'wards, in the course of the year, a parcel of these, and thereby if he clear 3d. on each; and, if he takes up a parcel of its notes; and clear only one single halfpenny down fall Exchequer Bills from on each, he will turn the 10,000%. such a large parcel being offered into 11,0007, and upwards, in the for sale. It puts a stop to its loans course of a year. Is it possible, to merchants and bankers, and then, that gold will remain here, thereby stops a great lot of its while a great quantity of paper is notes from coming in to demand out, while the banks are all com- its gold. Then those merchants pelled to exchange their paper for and bankers are compelled to sell gold on demand, and, now, too, stock, in order to supply, the place when every man in England and of the discounts; and, down fall every woman too (thanks to Mr. the funds. The country bankers JONES of Bristol) knows this fact are pressed; they must sell stock; as well as the Jews themselves? the manufacturers, the farmers, Is it possible, that, when it is as the traders, all are refused disnotorious as the sun at noonday, counts, or advances, by country that people are actually making bankers, whose credits in London rapidly growing fortunes by mere-are shortened by the fall in the ly going to the banks and ex-price of the stock which they have changing notes for gold; is it pos-pawned with the London bankers: sible, that, in this state of things, all these must sell stock, if they other people should not prefer have any, and, if not, they must gold to notes, for the purpose of sell their houses, lands, or goods; Leeping; is it possible that the ruin sweeps about in every direc banks should not be pressed for tion, and only lays its first fatal gold; and, if they be pressed for grip upon the funds, these being gold, is it possible that the funds and all English securities," as they are called, should not fall in price! 66 sort of property, that can, in an instant, be transferred with a word, and even in a whisper. 14. Such is the feal cause of the fall. This fall, arrested, now standing of any sensible father or and then, by some temporary ex-mother. Such father and mother pedient, must go on, till the drain have, in the present state of things, of gold be stopped; that drain can- but one safe course to pursue; and not be stopped unless the paper be that is, whether they hold stock, reduced to a very small amount, Exchequer bills, bonds, scrip, compared with its present amount; shares, or bank notes of town or this reduction cannot take place country, to TURN THEM INwithout bringing prices down STANTLY INTO GOLD, and about one half from their present wait a little to see what turn things. height; prices cannot thus fall will take. I cannot lay down my without spreading ruin all over pen without thinking of thousands. the kingdom, and without plung upon thousands that will be beging poor Ireland again into actual gars from their rejection of this starvation; and, yet, if the drain advice. I have now done my of gold be stopped by another duty, and must leave things to protection of the banks against take their course. the demanders of gold, the Bank Notes will, in fact, be assignals; the dividends will be paid in a greatly depreciated paper; and, perhaps, in less than a year, a hundred pounds of stock will not yield enough of interest to pay one single week's wages of a labourer. 15. I think I hear yon dull and conceited father, and yon pert and thoughtless mother,, exclaim: "Ah! well, as long as I can buy "all I want with my dividends, 1 "shall not be uneasy." Yes; but if your dividends will buy you nothing? Answer me, however, this one question: What is the cause that the French funds remain unaffected by all this alarm? It is simply because they rest on gold and silver, and not on bits of paper. How is it, that all foreign loans made in England, that all bonds, scrip and shares, either greatly fall, or wholly disappear? Because they arose out of this paper-money; and because they cannot stand if it be drawn in. 16. This matter is now all so plain, that to bestow more words on it would be to insult the under WILLIAM COBBETT. FREE-TRADE PROJECT. (Continued from p. 447.) ADDITIONAL ARTICLES. ARTICLE I. From and after the first of October of the present year, French vessels shall be allowed to sail from any port whatever of the countries under the dominion of his Most Christian Majesty, to all the colonies of the United Kingdom, (except those possessed by the East India Company), and to im port into the said colonies all kinds of merchandise, (being productions, the growth, or manufacture of France, or of any country under the dominion of France), with the exception of such as are prohibited to be imported into the said colonies, or are permitted to be imported only from countries under French vessels, as well as the merthe British dominion; and the said chandise imported in the same, shall not be subject, in the colonies of the United Kingdom, to other or higher duties than those to which British |