. rt %~. .:-: THE NATIONAL IIiGISTEIL `%i t 4 N... r ~ -~ Our irng, etamaitution, ana 11400. . •f S UNDAY, MAY 12, 1811. N°. 176. POLITICAL DISQUISITION. No. 16. BULLION. 'The grand bullion question has at length been brought forward in the House of Commons, and discussed as fully and as freely as the importance of the subject appeared to require. The House sat very late every night, and the warmth of the prin. cipal speakers seems to have been in proportion to the magnitude of the object held in view by the two great parties. The Philosopher cannot but observe with mingled feelings of wonder and regret, the different views which men, reputed to possess superior understanding, and acting from a sincere desire to benefit their country, can take of the same subject. On the one hand we are told " that if the present system be persevered in, the system itself will crumble into dust ;" and " that nothing can so rationally be expected to save the country, as corn pelling the Bank to resume cash payments at the expiration of two years, as recommer!ded by the Bullion Committee." On the other hand we are assured with equal confidence, " en 4 to adopt the measure thus suggested, would be at once to sacri fice the agricultural interest to a wild theory, to check the improvement of the country, and in a word, at once to stagnate, if not to annihilate our in ternal commerce."—" That the measure proposed is not ,practicable, and if it were practicable, would prove most ruinous ;".—" that if adopted, it would be adopted without any proof being given either of its necessity or its expediency, against the evidence given before the Committee, and contrary to the examples afforded by fbrmer times"—and " that the }louse of Commons in giving it their sanction, would disgrace themselves for ever by becoming the voluntary instruments of their country's ruin." Without any wish to enter deeply into the subject, we feel it our duty to offer a few observations on that most important part of the question relating to the depreciation, or to the supposed depreciation of the Bank notes. Mr. Horner has stated the depreci ation to be so great, that the Bank of England one pound note is worth no more than fifteen shillings and ten pence. This is a very grave assertion, but how is it made out ? Why is the one pound note worth no more than 15 shillings and ten-pence ? because it will pi ocure no more bullion than accord- Vol. IV. CLXX VI. PRICE 9,';1 ing to the existing reeulations is intrinsically worth • that sum ! The cause df the present high pike of Bullion is most clearly explained in •the words of the Chanc . for of the Exchequer. " Our military ope rati.o ke it necessary to send large quantities of gold abroad. The law forbids the exportation of coin, And therefore it is obliged to be sent out in liars. This naturally causes a great demand for bullion, and, in consequence, the price of gold rises above the value of coin." Can any thing be more lucid or distinct than this ? Is not the cause oldie difference between Bullion and Coin naturally ex plained ? If then Bullion is thus, by the circum stances of the times, raised in its price in an extraor dinary degree, is it fair to form an estimate of the value of our circulating medium from what it . will produce thus disposed of ? Is the possessor of a Bank note necessarily obliged to lay out that note in the purchase of the most expensive commodity t The idea is ridiculous. If a man, for instance, should think proper to lay out his Bank Note on green peas in March, does it follow, because it pro duces but a very small proportion of mina it should purebeee at the average price of former years, that the Bank note is in that proportion depreciated t It might with equal reason be said, because it will purchase more of any one article which happens to be uncommonly cheap than it would buy at the averagetrice of that article, that the Bank note is at a prilinium. Bullion is now from the circum stance, :ef the times raised greatly above its average value. From the state of things above explained, it is more difficult to procure in the market.--- The demand for it, increasing with its scarci..ye causes it at present to bear a high price as a com modity, and because a less quantity is sold for one pound than formerly, the depreciation of the Bank note is assumed. Gold, however, is not merely dear when purchased with notes, it is also dear if bought with cash, and the guinea itself, as com pared with Bullion, may be said to be depreciated. This we are told cannot be, because as Bullion, it is intrinsically worth more than twenty-one shillings, and persons ale to be found at any hour in the day, and in every street in the metropolis, who will buy it at a premium. We however repeat our assertion, the guinea as compared with Bullion is depreciated as well as the note, and the facti above stated afford no proof to the contrary. Tlle premium so given is 11111MONIM ~.~ . F taltx j