the high price of bullion- 第9部分

holders　of　money　all　the　evils　of　a　maximum。　To…day　it　is　their



pleasure　that　4　l。　10s。　shall　pass　for　3　l。　17s。　10　1/2d。；



to…morrow　they　may　degrade　4　l。　15s。　to　the　same　value；　and　in



another　year　10　l。　may　not　be　worth　more。　By　what　an　insecure



tenure　is　property　consisting　of　money　or　annuities　paid　in　money



held！　What　security　has　the　public　creditor　that　the　interest　on



the　public　debt；　which　is　now　paid　in　a　medium　depreciated



fifteen　per　cent；　may　not　hereafter　be　paid　in　one　degraded　fifty



per　cent？　The　injury　to　private　creditors　is　not　less　serious。　A



debt　contracted　in　1797　may　now　be　paid　with　eighty…five　per



cent。　of　its　amount；　and　who　shall　say　that　the　depreciation　will



go　no　further？



　　　　The　following　observations　of　Dr　Smith　on　this　subject　are　so



important；　that　I　cannot　but　recommend　them　to　the　serious



attention　of　all　thinking　men。



　　　　〃The　raising　the　denomination　of　the　coin　has　been　the　most



usual　expedient　by　which　a　real　public　bankruptcy　has　been



disguised　under　the　appearance　of　a　pretended　payment。　If　a



sixpence；　for　example；　should　either　by　act　of　parliament　or



royal　proclamation　be　raised　to　the　denomination　of　a　shilling；



and　twenty　sixpences　to　that　of　a　pound　sterling；　the　person　who



under　the　old　denomination　had　borrowed　twenty　shillings；　or　near



four　ounces　of　silver；　would；　under　the　new；　pay　with　twenty



sixpences；　or　with　something　less　than　two　ounces。　A　national



debt　of　about　a　hundred　and　twenty　millions；　nearly　the　capital



of　the　funded　debt　of　Great　Britain；　might　in　this　manner　be　paid



with　about　sixty…four　millions　of　our　present　money。　It　would



indeed　be　a　pretended　payment　only；　and　the　creditors　of　the



public　would　be　defrauded　of　ten　shillings　in　the　pound　of　what



was　due　to　them。　The　calamity　too　would　extend　much　further　than



to　the　creditors　of　the　public；　and　those　of　every　private　person



would　suffer　a　proportionable　loss；　and　this　without　any



advantage；　but　in　most　cases　with　a　great　additional　loss；　to　the



creditors　of　the　public。　If　the　creditors　of　the　public　indeed



were　generally　much　in　debt　to　other　people；　they　might　in　some



measure　compensate　their　loss　by　paying　their　creditors　in　the



same　coin　in　which　the　public　had　paid　them。　But　in　most



countries　the　creditors　of　the　public　are　the　greater　part　of



them　wealthy　people；　who　stand　more　in　the　relation　of　creditors



than　in　that　of　debtors　towards　the　rest　of　their



fellow…citizens。　A　pretended　payment　of　this　kind；　therefore；



instead　of　alleviating；　aggravates　in　most　cases　the　loss　of　the



creditors　of　the　public；　and　without　any　advantage　to　the　public；



extends　the　calamity　to　a　great　number　of　other　innocent　people。



It　occasions　a　general　and　most　pernicious　subversion　of　the



fortunes　of　private　people；　enriching　in　most　cases　the　idle　and



profuse　debtor　at　the　expence　of　the　industrious　and　frugal



creditor；　and　transporting　a　great　part　of　the　national　capital



from　the　hands　which　are　likely　to　increase　and　improve　it；　to



those　which　are　likely　to　dissipate　and　destroy　it。　When　it



becomes　necessary　for　a　state　to　declare　itself　bankrupt；　in　the



same　manner　as　when　it　becomes　necessary　for　an　individual　to　do



so；　a　fair；　open；　and　avowed　bankruptcy　is　always　the　measure



which　is　both　least　dishonourable　to　the　debtor；　and　least



hurtful　to　the　creditor。　The　honour　of　a　state　is　surely　very



poorly　provided　for；　when　in　order　to　cover　the　disgrace　of　a



real　bankruptcy；　it　has　recourse　to　a　juggling　trick　of　this



kind；　so　easily　seen　through；　and　at　the　same　time　so　extremely



pernicious。〃



　　　　These　observations　of　Dr　Smith　on　a　debased　money　are　equally



applicable　to　a　depreciated　paper　currency。　He　has　enumerated　but



a　few　of　the　disastrous　consequences　which　attend　the　debasement



of　the　circulating　medium；　but　he　has　sufficiently　warned　us



against　trying　such　dangerous　experiments。　It　will　be　a



circumstance　ever　to　be　lamented；　if　this　great　country；　having



before　its　eyes　the　consequences　of　a　forced　paper　circulation　in



America　and　France；　should　persevere　in　a　system　pregnant　with　so



much　disaster。　Let　us　hope　that　she　will　be　more　wise。　It　is　said



indeed　that　the　cases　are　dissimilar：　that　the　Bank　of　England　is



independent　of　government。　If　this　were　true；　the　evils　of　a



superabundant　circulation　would　not　be　less　felt；　but　it　may　be



questioned　whether　a　Bank　lending　many　millions　more　to



government　than　its　capital　and　savings　can　be　called　independent



of　that　government。



　　　　When　the　order　of　council　for　suspending　the　cash　payments



became　necessary　in　1797；　the　run　upon　the　Bank　was；　in　my



opinion；　caused　by　political　alarm　alone；　and　not　by　a



superabundant；　or　a　deficient　quantity　（as　some　have　supposed）　of



their　notes　in　circulation。（12*）



　　　　This　is　a　danger　to　which　the　Bank；　from　the　nature　of　its



institution；　is　at　all　times　liable。　No　prudence　on　the　part　of



the　directors　could　perhaps　have　averted　it：　but　if　their　loans



to　government　had　been　more　limited；　if　the　same　amount　of　notes



had　been　issued　to　the　public　through　the　medium　of　discounts；



they　would　have　been　able；　in　all　probability；　to　have　continued



their　payments　till　the　alarm　had　subsided。　At　any　rate；　as　the



debtors　to　the　Bank　would　have　been　obliged　to　discharge　their



debts　in　the　space　of　sixty　days；　that　being　the　longest　period



for　which　any　bill　discounted　by　the　Bank　has　to　run；　the



directors　would　in　that　time；　if　necessary；　have　been　enabled　to



redeem　every　note　in　circulation。　It　was　then　owing　to　the　too



intimate　connection　between　the　Bank　and　government　that　the



restriction　became　necessary；　it　is　to　that　cause　too　that　we　owe



its　continuance。



　　　　To　prevent　the　evil　consequences　which　may　attend　the



perseverance　in　this　system；　we　must　keep　our　eyes　steadily　fixed



on　the　repeal　of　the　Restriction…bill。



　　　　The　only　legitimate　security　which　the　public　can　possess



against　the　indiscretion　of　the　Bank　is　to　oblige　them　to　pay



their　notes　on　demand　in　specie；　and　this　can　only　be　effected　by



diminishing　the　amount　of　bank…notes　in　circulation　till　the



nominal　price　of　gold　be　lowered　to　the　mint　price。



　　　　Here　I　will　conclude；　happy　if　my　feeble　efforts　should



awaken　the　public　attention　to　a　due　consideration　of　the　state



of　our　circulating　medium。　I　am　well　aware　that　I　have　not　added



to　the　stock　of　information　with　which　the　public　has　been



enlightened　by　many　able　writers　on　the　same　important　subject。　I



have　had　no　such　ambition。　My　aim　has　been　to　introduce　a　calm



and　dispassionate　enquiry　into　a　question　of　great　importance　to



the　state；　and　the　neglect　of　which　may　be　attended　with



consequences　which　every　friend　of　his　country　would　deplore。







NOTES：







1。　They　might；　strictly　speaking；　rather　exceed　that　quantity；



because　as　the　Bank　would　add　to　the　currency　of　the　world；



England　would　retain　its　share　of　the　increase。







2。　This　is　strongly　corroborated；　by　the　statement　of　Mr　Rose；　in



the　House　of　Commons；　that　our　exports　exceeded　our　imports　by　（I



believe）　sixteen　millions。　In　return　for　those　exports　no　bullion



could　have　been　imported；　because　it　is　well　known；　that　the



price　of　bullion　having　been　during　the　whole　year　higher　abroad



than　in　this　country；　a　large　quantity　of　our　gold　coin　has　been



exported。　To　the　value　of　the　balance　of　exports；　therefore；　must



be　added　the　value　of　the　bullion　exported。　A　part　of　the　amount



may　be　due　to　us　from　foreign　nations；　but　the　reminder　must　be



precisely　equal　to　our　foreign　expenditure；　consisting　of



subsidies　to　our　allies；　and　the　maintenance　of　our　fleets　and



armies　on　foreign　stations。







3。　It　has　been　observed；　in　a　work　of　great　and　deserved　repute；



the　Edinburgh　Review；　that　an　increase　in　the　paper　currency　will



only　occasion　a　rise　in　the　paper　or　currency　price　of



commodities；　but　will　not　cause　an　increase　in　their　bullion



price。



　　　　This　would　be　true　at　a　time　when　the　currency　consisted



wholly　of　paper　not　convertible　into　specie；　but　not　while　specie



formed　any　part　of　the　circulation。　In　the　latter　case　the　effect



of　an　increased　issue　of　paper　would　be　to　throw　out　of



circulation　an　equal　amount　of　specie；　but　this　could　not　be　done



without　adding　to　the　quantity　of　bullion　in　the　market；　and



thereby　lowering　its　value；　or　in　other　words；　increasing　the



bullion　price　of　commodities。　It　is　only　in　consequence　of　this



fall　in　the　value　of　the　metallic　currency；　and　of　bullion；　that



the　temptation　to　export　them　arises；　and　the　penalties　on



melting　the　coin　is　the　sole　cause　of　a　small　difference　between



the　value　of　the　coin　and　of　bullion；　or　a　small　excess　of　the



market　above　the　mint　price。　But　exporting　of　bullion　is



synonymous　with　an　unfavourable　balance　of　trade。　From　whatever



cause　an　exportation　of　bullion；　in　exchange　for　commodities；　may



proceed；　it　is　called　（I　think　very　incorrectly）　an　unfavourable



balance　of　trade。



　　　　When　the　circulation　consists　wholly　of　paper；　any　increase



in　its　quantity　will　raise　the　money　price　of　bullion　without



lowering　its　value；　in　the　same　manner；　and　in　the　same



proportion；　as　it　will　raise　the　prices　of　other　commodities；　and



for　the　same　reason　will　lower　the　foreign　exchanges；　but　this



will　only　be　a　nominal；　not　a　real　fall