按键盘上方向键 ← 或 → 可快速上下翻页，按键盘上的 Enter 键可回到本书目录页，按键盘上方向键 ↑ 可回到本页顶部！
————未阅读完？加入书签已便下次继续阅读！
of equal value with the coins which they represent； or； in other
words； till the prices of gold and silver bullion shall be
brought down to their mint price。 I am well aware that the total
failure of paper credit would be attended with the most
disastrous consequences to the trade and commerce of the county；
and even its sudden limitation would occasion so much ruin and
distress； that it would be highly inexpedient to have recourse to
it as the means of restoring our currency to its just and
equitable value。
If the Bank were possessed of more guineas than they had
notes in circulation； they could not； without great injury to the
country； pay their notes in specie； while the price of gold
bullion continued greatly above the mint price； and the foreign
exchanges unfavourable to us。 The excess of our currency would be
exchanged for guineas at the Bank and exported； and would be
suddenly withdrawn from circulation。 Before therefore they can
safely pay in specie； the excess of notes must be gradually
withdrawn from circulation。 If gradually done； little
inconvenience would be felt； so that the principle were fairly
admitted； it would be for future consideration whether the object
should be accomplished in one year or in five。 I am fully
persuaded that we shall never restore our currency to its
equitable state； but by this preliminary step； or by the total
overthrow of our paper credit。
If the Bank directors had kept the amount of their notes
within reasonable bounds； if they had acted up to the principle
which they have avowed to have been that which regulated their
issues when they were obliged to pay their notes in specie；
namely； to limit their notes to that amount which should prevent
the excess of the market above the mint price of gold； we should
not have been now exposed to all the evils of a depreciated； and
perpetually varying currency。
Though the Bank derive considerable advantage from the
present system； though the price of their capital stock has
nearly doubled since 1797； and their dividends have
proportionally increased； I am ready to admit with Mr Thornton；
that the directors； as monied men； sustain losses in common with
others by a depreciation of the currency； much more serious to
them than any advantages which they may reap from it as
proprietors of Bank stock。 I do therefore acquit them of being
influenced by interested motives； but their mistakes； if they are
such； are in their effects quite as pernicious to the community。
The extraordinary powers with which they are entrusted enable
them to regulate at their pleasure the price at which those who
are possessed of a particular kind of property； called money；
shall dispose of it。 The Bank directors have imposed upon these
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 debasemen