down to its own level, all circulation of paper credit, all paper money of whatever description, and with that all monied prices.

"Such is the evil under which we are labouring. We have been occupied in effecting alterations in our pecuniary system; and it is precisely since the time in which we have been so occupied, that these pecuniary difficulties have been felt. The alteration we have effected has been this-that for a particular purpose-for the purpose of reducing the price of gold, we have diminished the quantity of money which we found existing in circulation. That is the nature of the alteration we have effected; and the nature of the difficulty experienced is, that it is only a reduced amount of money, that can now be obtained in exchange for property and commodities. And it would be strange, if it were otherwise. Most strange, indeed, and extraordinary would it be, if that money, which we have ourselves caused to be withdrawn from circulation, and returned upon the issuers, should still be found exist ing in circulation as before, and be given as before, in exchange for property and commodities. The extent of reduction in money, which has been effected, is towards one half; it is near one half of that part of the circulation, occupied in supporting agricultural and commercial prices. The agricultural and commercial community find, that they are able to obtain for their productions but little more than one half of the amount of money which they obtained before this alteration took place. Money being reduced in quantity, the quantity of property and commodities remaining the same, monied

prices fall. These prices falling, but pecuniary engagements remaining, then commences that state of difficulty and embarrassment which we witness-the difficulty of supporting burthens and discharging engagements, when the money is withdrawn, by the agency of which they were contracted and imposed. This is the origin of that state of things, which, in its result, leaves the land-owner without rent, the merchant without profit, the labourer without employment or wages, which revolutionizes property, and deranges and disorganizes all the different relations and interests of society."

An objection to Mr. Attwood's views presented itself in the wellestablished fact, that, before the enactment of Mr. Peel's bill, the issues of the Bank had been greatly diminished, and the currency had risen considerably in value; whence it might be inferred, that the resumption of cash payments could not have been the cause of the alteration, which had taken place in the value of money. To meet this difficulty, Mr. Attwood stated, that, as a preliminary to the resumption of cash payments, it had been necessary to repay to the Bank a great part of the advances which had been made to government, and that this repayment would necessarily produce a diminution of the Bank issues. We must remark, however, that the honourable member did not, by any clear analysis establish the latter proposition. Loans from the Bank to government increase the quantity of paper in circulation; therefore, the repayment of these loans must cause a diminution of that quantity: such was Mr. Att

wood's argument; and it is by no means conclusive.

Mr. Attwood summed up his views of the subject in the following manner :

"I maintain, first, that that old standard, which we have re-established, is incapable of sustaining any higher scale of prices, than that which now exists, and which has accompanied its re-establishment; that the law which reestablished that old description of money of the value of 31. 17s. 10d. re-established also the old scale of prices generally; and that with respect to agricultural produce in particular, the evidence is distinctly before us, that no higher average rate of agricultural produce than the present ever has existed, or can be with reason expected to exist, in conjunction with our present monied standard.

"I state next, that the amount of money, which we have withdrawn from circulation for the purpose of preparing for the introduction of the old standard, such as has been must necessarily have occasioned a fall of prices as great as that which has been experienced; that the fall of prices is general; that it is simply an increase in the value of money occasioned by its lessened quantity:

"And lastly, that the repayment of the Bank advances by government has been the measure on which this reduction in the quantity of money, and the consequent increase in its value, has been founded. We found existing high prices-money in great quantity, of low value, of a depreciated, a debased value, as compared with a description of money which had formerly existed. Our public money had been thrown into cir

culation, and retained there by means of advances made by those who issued it to the government. We caused those advances to be repaid and reduced. We lessened, by that means, the quantity of circulating money; we raised its value to a level with that of the old standard, and caused a proportionate fall in prices, and, finally, by the act of 1819 we established permanently by law that standard and those prices which we had thus introduced. These are the proceedings, by which we have reduced prices, regular, systematic, effectual. Their existence, their operation, cannot be disputed or denied. I am perfectly persuaded that no honourable gentleman will venture to deny, with respect even to this last operation, that if the Bank were to advance again the 15 millions repaid it by the government since 1817, and were. enabled to do so by the necessary alteration in the act of 1819; it will not, I am persuaded, be denied, that that advance would be at once followed (in spite of all the influence of excessive production, to whatever extent it exists), by a scale of prices as high as that which existed in 1818, and which existed during the war.

Mr. Peel supported Mr. Huskisson's amendment. He did not enter, like Mr. Huskisson and Mr. Attwood, into the merits of the question, but contented himself with making some sound, though desultory remarks, on the still more desultory observations with which Mr. Western had introduced the subject.

After Mr. Brougham had spoken in support of the motion, and lord Londonderry against it, the House divided: 30 voted with Mr. Western, and 194 against him. Mr.

Huskisson's amendment was then put and carried.

Mr. Western, not discouraged by this signal failure, brought the subject again forward on the 10th of July, in eighteen resolutions, which he submitted for approval to the House. Mr. Attwood and sir Francis Burdett supported him. Mr. Ricardo and lord Milton argued against any new tampering with the currency. Mr. Peel thought it unnecessary to enter into any argument: it was enough to appeal to the decision, which the House had come to on the subject only four weeks before. The resolutions were negatived without a division.

Though the rate of profit on manufacturing capital had fallen considerably, yet the general state of our manufactures was tolerably prosperous, and did not furnish matter for parliamentary discussion. The secretary for the home department obtained, towards the beginning of June, returns of the condition of the manufacturing classes in Bolton, Rochdale, Manchester, Leeds, Glasgow, Huddersfield, and Nottingham; and the general result of these accounts was to the following effect. At Bolton, an immense quantity of goods had lately been manufactured; the working population was well provided for; but the profits of master manufacturers were low. At Rochdale, the spinners were said to have plenty of employ ment; the working weavers had never been in better circumstances. At Manchester, the profits of master manufacturers were said to be smaller upon the average than they had been in former years; but from the contraction of credit, and the improved quality of paper circulation, the risk of loss was also

less: speculation and adventure were less common; consequently, profit, though smaller than heretofore, was more secure; there was abundant employment for the working classes. At Leeds, more cloth was making than had been known for many years; but profits were comparatively low: the working classes were generally employed; their nominal earnings were less, but their comforts greater, than they had been formerly. From Glasgow the account was equally favourable. At Huddersfield, the profits were low, but the whole population was employed; good workmen earned from 16s. to 22s. per week. At Nottingham, all was prosperous except the silk stocking trade. These statements admitted the rate of profit to be low, but it was high enough, evidently, to induce persons to enter into trade, otherwise the workmen would not have been (as they were) fully provided with employment.

The plans, which Mr. Wallace had, in the preceding year (See Vol. LXIII., p.76-81), announced, were carried into effect in the present session: five bills,* emanating from the inquiries, and introduced with the recommendation of the committee on foreign trade, were passed into laws. They did not become the subject of much public discussion, yet their importance was vast beyond all question, not only from the direct effect of their enactments, but from the nature of the system, of which they mark the commencement; this being the first instance in which practical statesmen have professed to act under the more liberal principles of political economy.

* 3 Geo. IV. c. 41, 42, 43, 44, and 45.

The first, and the least important of the five bills, though by far the longest, as it embraced a curious assemblage of the venerable absurdities of former times with respect to commercial regulation, was intituled "An Act to repeal divers Ancient Statutes, and Parts of Statutes, so far as they relate to the Importation and Exportation of Goods and Merchandise from and to Foreign Countries." It included such acts as were passed between the reign of Edward III. and the date of the navigation law, 12th of Charles II., and which, though inconsistent with subsequent acts, or rendered unnecessary by them, had hitherto remained unrepealed. The most of the laws thus erased from the Statute-book, having previously fallen into disuse, and being only known to antiquarian research, produced as little effect as those against sorcery or witchcraft.

The second bill was intituled "An Act to repeal certain Acts and Parts of Acts relating to the Importation of Goods and Merchandise," and cancelled statutes, and parts of statutes enacted during and since the reign of Charles II., "in order that other regulations relating to importation may be declared consolidated and comprised in one act." After a preamble stating this object, it proceeded to repeal the third clause of the navigation law, which enacted that 66 no goods of the growth, product, or manufacture of Asia, Africa, or America, shall be imported into England, but in such ships as do truly belong to English people, and are navigated by a master, and three English mariners;" and the fourth, which enacted, that "no goods or commodities of foreign growth, pro

duction, or manufacture, which shall be brought into England, otherwise than in ships built and navigated as above shall be shipped from any other place but the place of their growth, production, or manufacture, or from those ports where they can only be, or usually have been brought," together with the 8th section of the same act, which relates to the importation of goods from Russia, and certain enumerated and Turkish goods; and the 12th and 14th sections, which relate to the importation of any commodities from the Levant or the importation of commodities the growth, production, or manufacture of Spain and Por tugal respectively, from any of the ports of Spain and Portugal, or the Western Isles, Madeira, or the Canary islands." Then followed the repeal of various other acts, and parts of acts, from the reign of Charles II. down to the present, the cancelling of which was necessary to make way for the provisions of the third bill, intituled "An Act for the encouragement of Navigation and Commerce, by regulating the Importation of Goods and Merchandise, so far as relates to the Countries or Places from whence, and the ships in which, such Importation shall be made."

Though navigation and commerce are intimately connected, and have generally been found to flourish together, there are circumstances in which their interests may be opposed to each other. It is plain, that we cannot have a great commercial navy without a great commerce; but it is not so plain that we might not have a great trade without a great shipping, and that we might not find it our interest to employ foreigners

as our carriers. By proceeding on a policy which would encourage trade at the expense of shipping, we might gain for a time in commercial profit, but we should lose in national power, commercial security, and maritime influence. In a contest, therefore, between the two interests, it is easy for every patriot or even every enlightened merchant to decide, which should yield. National power and maritime greatness, which in a country like England must depend upon the extent of its commercial shipping, must never be sacrificed to obtain cheaper commodities, or to please foreign customers. Our coasting trade, our colonial trade, and our fisheries must be exclusively carried on in British vessels; and all our intercourse with foreign nations must be conducted by the same means, so far as they will permit, or the well-understood interests of our shipping require. This has been the principle of all our navigation acts; and, in the new law, this general principle was retained, but with modifications adapted to the altered situation of the world. One of these modifications was a provision to allow foreign ships to bring enumerated goods from any port in Europe, provided the ship belonged to the port in question. This would remove a great deal of inconvenience by superseding the necessity of using circuitous routes. The expenses and other disadvantages incidental to trans-shipments would always prevent any new or irregular practice from receiving encouragement, to the prejudice of a more direct and established system. Another relaxation referred to Holland. The act of Charles II. permitted foreign goods to enter our ports either in British

vessels, or in ships of that country of which they were the growth and produce. But such at that time was our dread of the rivalry of Holland, that the Dutch were debarred from the benefit of this general rule, and all importation was forbidden from Holland and the Netherlands in any ships but our own. By the new law, Holland was placed in the same situation with the rest of Europe. British ships also were permitted to bring articles, the growth or produce of Asia, Africa, and America, from any place in Europe, but only for exportation. By the former act, South American produce could be imported only from certain ports in Spain or Portugal, or in Portuguese and Spanish ships. By the new bill, goods of any country or place in America or the West Indies, belonging to or which had belonged to Spain, might be imported direct from the place of growth in ships of the country; but no importation was permitted in foreign ships from any port in America or the West Indies, where British ships were not admitted.

The fourth bill regulated the trade between our possessions in America and the West Indies, and other places in America and the West Indies. After repealing a multitude of acts, it permitted the importation, subject to certain duties, into certain specified ports, of certain enumerated articles from any foreign country in America or the West Indies, either in British vessels or in vessels owned by the inhabitants of such country; and the articles so imported might be again exported to any other colony or to the United Kingdom. It further provided, that there might be exported, subject to certain