enough that our lands, our houses, our shipping, shipping, our manufactures, and our goods of every sort, are greater in quantity and more valuable in amount than ever;-if each act of circulation converts some portion of our fixed into consumable property-withdraws some portion of the stock reserved for immediate consumption, at a price which does not invite re-production--or otherwise squanders unproductively -we are travelling on in the career of declension with a rapidity the greater for the very magnitude of our wealth. (Consult Busch Vom. Geldsumlauf, Hamburg, 1780.)

As a remedy for this supposed want of circulating medium, Sir John proposes to increase the capital of the Bank. This can be done by offering a larger profit to the subscribers than the public funds at present afford, i. e. by granting to proprietors of the new Bank-stock an annual dividend of at least 71. per cent. besides a bonus in the first instance for displacing their property;-and this money is then to be employed in discounting for the merchants at five per cent.-so that the whole new capital would burden the concern with an annual loss. If the merchants obtain it not, there will be no apparent diminution of what they call scarcity of cash. Repeal, indeed, the laws which limit the rate of interest, and all this may be feasible with advantage. Sir J. S. next suggests the issue of notes of two and three pounds value: to which the only objections seem to be, that they encroach on the more useful circalation of private bankers; and that, in the event of depreciation, a large quantity of this small paper would be found in the hands of a class of men more easily alarmed and irritated, and less inured to habits of order and allegiance, than those to whom the antient circulation was confined. This might endanger public tranquillity.

The project of issuing, at this time, notes dated in 1798 in order to elude a legal run, strikes at the root-we had almost said, of honesty-certainly, of credit.

The project of recoining the gold, with an alloy of 6 or 7 per cent. is an operation which M. De Calonne executed in France, a little time before the revolution. It would lessen,--not the nominal indeed, 'but the actual value of the pound sterling; and it would consequently defraud all the creditors in the kingdom, to the profit of their debtors, by the precise amount of the value withdrawn. Government is a great debtor to the people, and would certainly be a gainer by it. Sir John Sinclair is of opinion that this operation would not affect the foreign exchange. Notwithstanding his profound study of "Krusen's Hamburg Comptorist," we shall not hesitate to profess diametrically opposite opinion. The theory of exchange is very simple. Capital circulates in the European market in the form of bills of exchange, (see Review vol. xvi, p. 379,) at an interest proportioned to the demand. In times of peace, when industry can layby a progressive addition to its stock, it bears a diminishing interest of 5 or 4 per cent. In times of war, when rulers are rapidly annihilating capital in the form of powder, bullets, and military accou trements, it bears an increasing interest of 7 or 8 per cent. The country which will allow the highest interest obtains the use of it. If a merchant in London has to pay at the end of two months a pound

I

of silver at Hamburg, he offers a pound of silver less the average dis count for two months on that portion of European capital. If he can obtain it on these terms, the exchange is said to be at par. If a merchant in London has to pay at the end of three months a pound of silver at Madrid, he offers a pound of silver less the same average interest, or discount, for three months. If he can thus obtain it, the exchange is at par. Has a minister large subsidies to remit to Hamburg; this unusual demand for silver payable there causes the agent merchants to bid against each other for the requisite two-months bills: they offer a pound of silver without deduction, or more than a pound of silver. The exchange is then said to rise; it becomes unfavourable to the British nation. Have' the Spanish merchants purchased for South America an unusual quantity of English manufactures; more offers of silver payable in Madird are by them sent to the London market than the demand' requires. These are hawked about by bill-brokers at the Dutch auction of progressive abatement. Not only the usual deduction of 1 per cent. (supposing the average rate of European interest to be' 6 per cent. or 1 for three months,) but a farther discount is allowed, and the purchaser buys a three-months draft on Madrid for 2 or 31 per cent. less than the value of a pound of silver. The exchange is then said to fall; it becomes favourable to the British nation. Hence there is a constant tendency in each country to preserve with each an exact balance of interchange. Purchases can always be made to most advantage by that country to which another is indebted. A subsidy paid at Hamburg favours the exportation of our manufactures into Germany. A sale of our merchandice made at Cadiz favours the importation of Spanish wine and wool into Great Britain. Every thing which renders property instabile diminishes the market value of a pound of silver, payable at a future period in the country so circumstanced. The exchange turns against such country, becomes favourable to those who purchase there, and thus facilitates ex-, portation. The manufactures of such country are demanded. Hence the prodigious exportations of France during her revolution. Cir- . cumstances which favor internal stability augment, on the contrary,' the market value of silver payable in such country; the exchange turns in its favour; and it can purchase to advantage. Its own manufactures lose demand. Hence the prodigious importations of England a little time previous to the war. Diminution of the universal capital, testified by a rise of its average interest, is injurious to production: hence the general uneasiness experienced even from a war not our own.--If all this be considered, it will appear obvious that a depreciation of the pound sterling, by an adulterated recoinage of its legal measure, must inflict on this country a considerable rise of the exchange, until it attain the level of the new value, which is just; and a farther rise resulting from an opinion of the instability of British property, which is so much pure additional'

loss.

The plan, (page 30,) the bank, is liable to the worse credit of the two.

for publicly guaranteeing the dividends of simple objection that government has the That of issuing state-notes (page 33) is a revival

7

revival of the tallies of Mr. Montagu, which succeeded, but which are liable to all the objections of an assignat system that is, they tend (as has happened in France) to plunder all proprietors and all creditors, by paying off rents, interests, and debts, with the same nominal but with a really reduced coin: but they tend to raise the wages of labor, to better the condition of debtors, and to rouse a lethargic crowd to personal interference with public measures.

Art. 42. Observations on the present alarming Crisis: Addressed to the Nobility and Clergy. By J. Morfitt, Barrister at Law. 8vo. All Booksellers.

IS.

This is an animated declamation on the old text, "There's something rotten in the state of Denmark." No doubt, Britons, as well as other people, sometimes require to be rouzed to a sense of duty, and to an ardent and disinterested zeal for their country; and especially in the present important crisis: but how far Mr. Morfitt's appeal to the feelings of our Nobility and Clergy may be effectual, we do not undertake to decide. He calls on the Bishops and other dignitaries of the church to stand forwards in the present season of expence and danger, and out of their large revenues to contribute handsomely towards the defence of their King, their country, and themselves. He reminds the Nobility of their places and pensions recorded in the red book, and requires them to make some patriotic sacrifices :-nor does he forget to level a stroke also at those "Cits who prefer a guinea to mankind." He moreover wishes that all religious distinctions could be removed; that Churchmen and Dissenters could alike enjoy the privileges of citizens; and that all sects and parties could be melted down into one solid mass of sterling patriotism: to which he adds his prayers for an effectual reform:-A consummation devoutly to be wished!-but first we say "Give peace in our time, O Lord!”

Art. 43.

Strictures on Peace. The Englishman and Reformer, a Dialogue. By Mr. Dunn. 8vo. pp. 32. s. Richardson. 1796. The object of this dialogue is to shew the impracticability of a permanent peace in Europe, and particularly between this country and the French republic; and indeed, notwithstanding the beautiful theories of the advocates for the advancing melioration of the human race, it seems highly probable that the period is very far distant when the nations of Europe shall abolish those causes of hostility, that have hitherto almost incessantly vexed and desolated the fairest countries of the earth.

Art. 44. A New System of Finance: proving the Defects of the Present Sytem; that a Saving may take place in the Public Income and Expenditure to the Amount of near Ten Millions annually! Exposition of the Consequences to the Public through their Connection with the Bank of England; the baneful Conscquence of Stock-jobbing; astonishing Losses sustained by the Public, that have enabled the Minister to carry on the Deception of lessening the Public Debt; the unparalleled Advantages given by the Minister to the Loan Mongers for Paper Credit, in order to support the present ruinous War; One Hundred Pounds Securities in the Three per Cents. given by the Minister to receive 411. 10s. 8d. REV. JUNE, 1797.

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to

to be sent to Germany for the Support of the Emperor's Loan. Together with a Reply to Messrs. Morgan and Vansittart on the Subject of Finance. Some Remarks on Simon the Stock Broker's Letter to Mr. Alderman Curtis, late Lord Mayor of London. On the Iniquity of Private Tontines. Schemes for the Benefit of Age, on the most reputable Establishments. A reasonable Compromise between Debtor and Creditor. A perfect Esta blisment for National Credit in future; and THE PEOPLE RELIEVED FROM THE MOST BURTHENSOME OF THEIR TAXES. By Thomas Fry, Author of the Guardian of Public Credit. 8vo.

Jordan. 1797.

2s. 6d.

Mr. Thomas Fry is a successful rival to Mr. Simeon Pope *; and excels in despondency not less than his antagonist does in confidence. The observations on the Bank of England, and those on the East India Company, reprobate as highly injurious these privileged monopolizing companies. The following whimsical calculation we shall copy:

I Englishman pays as much as 6 Frenchmen did before the Re volution, perhaps as much as 10 at the conclusion of the peace. 1 Englishman pays as much as 12 in Turkey

I ditto

I ditto

I ditto

I ditto

1 ditto

I ditto

14 Russians

10 Swedes

3 Hollanders, Stadtholderian

6 Austrians

5 Spaniards

9 Portuguese.'

MISCELLANEOUS.

Art. 45. The Travels of Anacharsis the Younger in Greece. Abridged from the original Work of the Abbé Barthelemi. 8vo. pp. 637. 8s. Boards. Vernor and Hood. 1797.

The omission of the references in the original impression of this work, which renders the London edition of 1796 so useless to the man of letters, has been imitated in this epitome. The most important suppression is that of passing the historical introduction, which fills the first volume of the original; and by these means the excellent analysis of Solon's legislation, and the spirited narrative of the Persian war, are lost. The third section, concerning the age of Pericles, is not so justly an object of regret.

The operation which has been performed on this work does not consist in compressing what Barthelemi has said, but in leaving out frequently a paragraph or a page which appeared uninteresting to the editor; the portion retained being mostly a very faithful translation. In any form, these well-imagined Travels must please. A few plates, well designed and engraved, accompany this volume.

Art. 46. Authentic Memoirs of the Life and Reign of Catherine II. Empress of all the Russias. Collected from authentic MSS. Translations, &c. of the K. of Sweden, Right Hon. Lord Mount

* See Rev. March 1797, pp. 336. 462.

morres,

morres, Lord Malmsbury, M. de Volney, &c. 12mo. 3s. 6d.

Boards. Crosby. 1797.

One of those mushroom productions which so plentifully spring up in the fertile soil of Grub ftreet; and for the culture of which we are much indebted to the industry of its highly lodged inhabitants, who, from their lofty situation, look down with watchful eye on whatever passes in the world below, carefully noting and transmitting to us every interesting occurrence, for the gratification of human curiosity. The death of the celebrated CATHERINE was an object of too much magnitude and promise to escape their vigilance.

To those who are but little acquainted with the history of the Russian government, during the last 34 years, this brief compilement may prove acceptable, as containing all the information that will be generally required.

Art. 47. A Letter to the Right Hon. the Earl of Charlemont on the Telegraph, and on the Defence of Ireland. By Richard Lovell Edgeworth Esq. F. R.S. and M. R. I. A. 8vo. Is. Johnson. The facts contained in this pamphlet will be deemed, by many, a valuable contribution towards the secret history of the present administration, as well as to that of the invention of the telegraph. After having remarked that Mr. Edgeworth writes throughout with much dignity and moderation, and occasionally with brilliancy, we shall extract a passage which may be considered as nearly a summary

of the whole statement:

'When a nobleman of high honour and superior abilities had written to me" that he trusted, I should be employed," when Mr. Pelham had desired me to bring up to town the machines which I had prepared, some of which were expressly mentioned as being intended for a communication from Dublin to Cork, when the simplicity of the machinery, and the impenetrable secrecy of the mode of communication were applauded by every member of administration, who had seen them-and when my invention was finally approved of by the Lord Lieutenant himself, who gave it in the handsomest manner a decided preference to any that he had heard of, was I too sanguine in concluding, that the general question of expediency had been previously considered?-Did it appear in any degree probable, that gentlemen should take and give so much trouble about a thing which they did not mean to pursue?-Had the incompetency of the invention, or the extravagance of its expence, been the reasons assigned for the rejection of my proposal, and had it appeared that a better or a cheaper mode of communication than mine had been at the command of administration, their conduct would have been in some degree juftifiable.But the contrivance was approved of; and the expence was not one fourth of what the government in England paid for the Admiralty Telegraph. That the expence could not have been the real objection, is evident from this single circumstance-Mr. Pelham had been informed of the expence of the Admiralty Telegraph, and had notwithstanding brought over a person from the Admialty, on purpose to establish a communication between Cork and Dublin. The expence of the English Telegraph between Portsmouth and London, a distance of fifty-six Irish miles, is three thousand pounds

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a year.