4 "The price of 31. 17s. here mentioned, is, of course, an arbitrary price. It might be fixed either a little higher or a little lower. In naming 31. 17s. I wish only to elucidate the principle."

"The most perfect liberty should be given, at the same time, to export or import any description of bullion. These transactions in bullion would be very few in number, if the Bank regulated their loans and issues of paper, by the criterion which I have so often mentioned; namely, the price of standard bullion, without attending to the absolute quantity of paper in circulation.

"The object which I have in view would be in a great measure attained, if the Bank were obliged to deliver uncoined bullion in exchange for their notes at the Mint price and standard, though they were not under the necessity of purchasing any quantity of bullion offered them at the prices to be fixed; for that regulation is merely suggested, to prevent the value of money from varying from the value of bullion, more than the trifling difference between the prices at which the Bank would buy and sell; and which would be an approximation to that uniformity in its value which is acknowledged to be so desirable 5."

As far as inquiry, information, reasoning, and experience could avail to show the propriety of a return to the old standard of specie payments, the Bullion Committee of 1810 left the question firmly decided in the affirmative. But their conclusions were strenuously opposed by the Government, and in this as in so many other contests upon the political arena, party spirit found it an easy task to defeat sense and right. In 1810, Mr. Francis Horner, one of the founders of the Edinburgh Review, brought the subject before the House of Commons in a four hours speech, not less able than it was long, and excellently delivered. He submitted sixteen resolutions for adoption, of which those that closed the series were most to the point, as for instance: "That the fall in the value of Bank of England notes and country Bank paper had been occasioned by too abundant an" issue of paper currency; and that this excess had originated from the want of the check or control, in the issues of the Bank of England, that had formerly existed.

5 "Economical and Secure Currency," p. 25.

"That the exchanges with foreign countries had been unfavourable for a considerable period to an extraordinary degree.

"That although adverse circumstances of trade, and a large military expenditure abroad, may have contributed to this result; yet it had been in a great measure occasioned by the depreciation in the relative value of the currency of this country compared with the money of foreign countries.

"That it was the duty of the Bank directors to advert to the state of the exchanges as well as to the price of bullion with a view to the regulation of prices.

"That the only certain and adequate security against an excess of paper currency, is the legal convertibility upon demand of all paper currency, into the legal coin of the realm.

"That to revert gradually to this security, and to enforce meantime a due limitation of Bank of England and other Bank paper, it is expedient to resume cash payments in two years."

Few men now-a-days would be bold enough to deny, or resist the correctness of these positions.

They were, however, then denied in the flattest, and resisted in the most determined manner by the ministers of the crown. "I have a confident expectation" said Mr. Rose, who spoke after Mr. Horner, "that I shall be able to show to the committee, not only that there has been no depreciation of Bank paper from excessive issue, but that there are more errors and misstatements in the Bullion Report, than in any that was ever made to a House of Parliament. If the recommendations in that report were enforced by a law, compliance on the part of the Bank would be impracticable; and if practicable and adopted, not the slightest advantage would accrue to the public."

Mr. Vansittart, who proposed counter resolutions, declared "that the plan of the committee, without effecting the object in view, would do more than either the decrees or the victories of Bonaparte, to execute the designs levelled at our destruction!" After several long debates and repeated adjournments, the house came to a vote, and the motion being resisted by the whole force of the Government and the war party, as one the success of which would prove peculiarly serviceable to the French army, was lost by 75 ayes to 151 noes.

Nine years were now allowed to intervene, during which much was talked and written, but nothing done. The sum of our gain during the interval was the simple Ricardo plan of bullion payments in lieu of coin payments. Before the legislature consented to act, however, new committees were appointed in both houses; and the fullest investigation again took place into the advantages derivable from the specific in question, which was ultimately incorporated in Peel's Bill, as it has been termed, and then became the law of the land.

Of the labours of these latter committees it is enough to observe, that they laid down no new principles, nor seemed to think that any were discoverable. They assumed as impregnable the positions previously occupied by the Bullion Committee, and considering, very properly, that the time was come for reducing sound theory to practice, directed their attention principally to a discovery of the best mode by which this could be done. Much of the difficulty of the position in which both committees found themselves - and a sense of considerable difficulty most unquestionably must have pressed upon the mind of every thoughtful man who sat upon either one or the other - was opportunely relieved by Mr. Ricar-do's plan. For the Bank had not at this moment a stock of gold equal to the circulation which the internal trade of the country would require. Bullion bars in that emergency were a happy relief; and it was accordingly recommended, that from February 1st, 1820, to May 1st, 1823, the Bank of England should pay its notes in Ricardo ingots, and that the county Banks in the meantime should pay in Bank of England notes.