(29)
When one reflects upon these immense and incredible levies; when one considers that in 1790, before the war, the whole sums raised in the year were nearly 19 millions, and that at this period there was a circulation of 25 millions of Gold coin, and 10 millions in Bank Paper; can it be deemed an excess of currency, if Bank Notes were raised to 24 millions in 1810, and in consequence of further enormous levies, to 27 millions at the end of 1814? And is it not matter of astonishment that such stupendous payments should have been made with a circulation apparently so inadequate? In 1790 and before the war, our circulation in Gold alone exceeded the whole of the sums levied in the year by a fourth? In 1814, the issue of Bank Notes was not one fourth of the sums levied. Yet in the former case, there was no complaint of excessive currency; whilst in the latter, every inconvenience which is felt by the rise of prices, is attributable to excessive issues alone.
The result of this argument is, that neither in 1810 nor at present, were or are the issues of Bank Notes excessive; that their advance has originated in the great additional taxation and enormous levies since the commencement of the war; that this immense expenditure has produced great additional capital, great additional investments in agriculture, mining, manufacturing, trade, &c., &c., which make a large permanent circulation essential to the maintenance of our prosperity. It must always be considered, that the levy of a great additional amount, or a sudden great increase of expenditure, does not at once effect an increase of capital. The new additional permanent capital which is made on these levies and expenditure, follows gradually till the ultimate profit upon them becomes a fixed solid increase of capital.—Let Government spend 50 additional millions in a year:
