the proportion of Bank Notes and gold in circulation compared with taxes in 1790, were as 2 to 1.—There was of course a much greater facility of paying taxes in 1790, proportionately to their amount, than at present. In proportion as the amount of taxation has increased, the pressure ought to have been lightened by the facility of paying them; whereas from the diminution of the comparative circulation in which they are paid, and by the comparative deficiency of medium, their real pressure is considerably augmented. And what is the course we are now to take? Although the currency by which we pay our taxes is evidently deficient in comparison with former times, it is to be assumed without proof, that it is evidently excessive: and this alleged excess, but real deficiency, is to be made the basis for increasing the deficiency and adding to our distress and burthens.—
Now if it appears that there is no excess of currency to which the high price of Gold is attributable, and if it also appears that this high price may arise from our taxation,—does not this consequence directly follow, that as soon as exchanges naturally come round in our favour, by the cessation of loans abroad and the superior balances of our trade, that Gold will flow in as usual, and remain here as before the war, unless some other contravening cause prevents it?
And if this consequence should not follow, will it not be demonstrated that there is some other contravening cause; and that most probably, this contravening cause is taxation?
I cannot devise any other possible cause to account for Gold not returning to us, in the natural course of things, but one, viz.—that as we have banished it from circulation there is no real market for it, in proportion to the markets on the Continent; for if there is a large