Richmond Enquirer

Its attempt, and of its consequences,

which have plunged this whole country into financial confusion, let me beg your attention to a passage in my work, now republished, and entitled, "PAPER AGAINST GOLD."

Of this work, as being, at this time of great interest, at least, in my opinion, I have ordered some hundreds of copies to be sent to Mr. John Morgan, of Philadelphia, while the remainder of the edition are for sale by Mr. Bagshaw, of Brydges street, Covent-Garden, London. If this be deemed a puff, it is, indeed, without disguise. I wish this work, the greater part of which was written in the years 1810 and 1811, now to be read attentively through; now, when the people feel the pinch.

In this work, I have given the history of the rise & progress of our paper money. I have embodied in it my principles on the subject of national debts, taxes and bank notes. I was abused and scoffed at. I have now republished, in two volumes, what I then wrote, together with some additions. And, if I have any reputation in England, or in America, as a political economist, by that work, as verified, or as falsified, by events, let that reputation be tried, and let it be fairly confirmed, or let it be blasted forever. Whatever calumniators may affect to think of my motives, whatever degree of contempt, hatred and envy, they may have affected and may still affect to entertain for my writings, it is notorious, that, for nearly twenty years, without any aid from any quarter whatever with hosts of literary foes in both countries, with all the weight of power, & even of the popular torrent against them in both countries, and loaded with all the odium which never failed to attach to that which assails all sorts of follies and vices, and never flatters anybody; it is notorious, that, in spite of all these disadvantages, and a hundred others that might be named, these writings have continued to have, for nearly twenty years, during which, more than twenty professed, and hired, and paid opponents, have sunk into utter oblivion,-- great influence in the minds of men. Now, with all the value that I attach (and it far exceeds every other thing of value) to intellectual powers, I here renounce all pretension to any, and will be content to pass for a driveller for the rest of my life, if events do not substantially confirm the doctrine of "PAPER AGAINST GOLD."

As a necessary preliminary to a description of the present state of this country, you in America, ought to be reminded, that "Paper against gold," was called forth by a report made to the House of Commons, in 1810, by a committee, called the bullion committee. This committee recommended, that the Bank of England, at the end of a certain period, should be compelled to pay in real money. The house rejected this proposition at last. The whole history of the proceedings is contained in my work: but this was the main point. I contended, that the bank never could pay in gold as long as the interest on the national debt continued to be paid in full.

Now, observe, hence being come; no pretext being left for not paying in gold; the law which authorizes the bank to refuse payment in gold being about to expire, a renewal of it being necessary, unless gold payments can be made. This being the state of things as to the bank, an attempt appears to be making to acquire the ability of paying in gold. I contended, you will bear in mind, that this could not be done; and now I will quote my own words, from the first volume of "Paper against Gold," pages 446, 447 and 448.

"Need I say any more upon this subject? Is it not something monstrous to suppose, that it would be possible for the bank company to buy gold in quantity sufficient to be able to pay their notes in it? Well, say others, but the bank company may lessen the quantity of its paper by narrowing its discounts.' To be sure they might, and the only consequence of that would be, that the taxes would not be paid, and of course, that the soldiers, the judges, and all the other persons paid by the public, would have to go without pay. The discounts make a part of the system; and, if it be put a stop to, that is neither more nor less than one of the ways of totally destroying the system. To lessen the quantity of the paper is, therefore, impossible, without producing ruin amongst all persons in trade, and without disabling the country to pay the taxes at their present nominal amount.

"But, suppose all other difficulties were got over did these gentlemen of the Bullion Committee ever reflect upon the consequences of raising the value of money to what it was before the Bank Stoppage?-- Sir FRANCIS BURDETT, in his speech, during the Bullion Debate, told them of these consequences. He observed, and very justly, that, if money were, by any means, to be restored to the value it bore in the year 1796, the interest of the national debt never could be paid by the people: that interest, he observed, was now 35,000,000l. a year; and if the value of money was bro't back to the standard of 1796, this interest would instantly swell to 43,000,000l. of money at the present value. All the grants, pensions, fixed emoluments, pay of soldiers, judges, chancellors, clerks, commissioners, and the rest would be raised, in point of real amount, in the same proportion; so that, it would be utterly impossible for taxes to such an amount to be raised. And, if it were possible, it would be frequently unjust: for, observe, all the money, (making nearly one half of the National Debt) that has been borrowed since the Bank Company stopped paying in gold and silver; all the money borrowed since that time: all the loans made in the name of the public since that time; all the money lent to the public, as it is called, has been lent in depreciated paper--and that which has been so lent this year, has, if guineas are at 27 shillings, been lent in paper, 27 shillings of which are worth no more than a guinea. And are the people to be called upon to pay interest upon this money, in a currency of which 21 shillings are worth a guinea? This would be so abominably unjust, that I wonder how any man like Mr. HORNER ever came to think of it. He expressly stated, that the paper was only worth 15s. 10d. in the pound; consequently he must have known, that this was the sort of thing of which the loans, some years past, consisted; and yet, he would have had a law passed, the effect of which would have been to make the people pay interest for this money, at the rate of twenty shillings on the pound. This is what never could have been submitted to; not because the people would have resisted--that is not what I mean; but, it is what could not have been carried into effect, & for the same reason that the man could not have two skins from the carcase of the same cat. If the quantity of the Bank paper were diminished, its value would rise and if its value rose, the value of the interest upon the National Debt would rise also; therefore, to enable the people to continue to pay the interest upon the Debt, the amount of the interest must be lessened, & what would that be but a partial sponge? So, that, turn and twist the thing whatever way you will, you still find it the same; you still find that the system must go on in all its parts, or be put a stop to altogether."

Now, we come to the illustration of these doctrines, by what is actually passing in England, where all is convulsed as far as money is concerned. The paper money has been greatly diminished in quantity.-- The guinea, which, at one time, was sold for nearly, or quite, 30s. is now worth only about 21s. 8d. The paper is nearly as good as the gold. The value of the paper is raised--and, mind, I say, that, if the paper keep at its present value, or any thing near it, for two years from this day, and if the sums raised on account of the national debt continue, during that time, to be what they are now. I will be content to pass, for the rest of my life, for that most degraded of human characters, an idiot.

The consequence of this rise in the value of paper money, has been a fall of more than a half in the price of grain of all sorts, and of nearly a half in that of all other agricultural produce. The farmers and the landlords have been strangely puzzled to know the cause of this fall. As it took place or began to take place, about the time of the peace of 1814, they ascribed it to the importations from France. These, doubtless, had some effect: but they were inadequate to the effect really produced. The landlords, alarmed for their rents, called for a corn bill: that is to say, a law to prevent the importation of corn, when wheat is under 80s. a bushel. This law, after a great deal of noise and nonsense, was passed; and the price of wheat has been falling ever since, til at last it is come to an average of about 6s. a bushel, all other grain being lowered in price in the same proportion, and cattle and produce of all sorts keeping pretty nearly even pace with them.

Now, figure to yourself Farmer Joggins, whose share of the expenses of the national debt is 50l. a year. In order to pay this to the tax-gatherer, he used to sell forty bushels of wheat, the average price being, for many years, about 15s. a bushel. But now, he is obliged to sell a hundred bushels of wheat, in order to get money enough to pay his share of the debt. How long do you think he can endure this?-- And, you will observe, that his rent, and all the direct taxes, to pay the expenses of the royal family, judges, soldiers, sailors &c. continue the same in nominal amount as they were previous to the fall in the price of his produce.

In some cases, the landlords have lowered their rents. But though this be a little, and a very little, relief to the farmer, the income of the landlord is diminished in whatever proportion he has lowered his rents--and in that same proportion are diminished his means of paying taxes. The farmers and landlords consume less of taxed articles: they thus endeavor to defend themselves against the indirect taxes--but as every thing they can buy is taxed, the trades-people suffer here along with the revenue. Thus, every thing, labor and all, is become "cheaper," as they call it; and every one is in a state of decay, except the place-man, the pensioner, the soldier, the sailor and the fund-holder.

Never, in the history of the world, was so great a change produced, in so short a time, on any community. Paper money is like drams or opium. It produces an exhilaration that is quite wonderful; but the depression that follows is not less striking. It animates and sets in motion every fibre in the frame of society; but, it leaves behind it a morbid melancholy, a listlessness approaching the inactivity of death. In a caricature, published some years ago, John Bull, in the shape of an animal corresponding with the name, was represented as loaded with taxes from his horns to his tail, and Pitt as feeding him with one pound notes. Never was any thing more apt. As long as this feeding was liberally kept up, John went on under every addition to his load; but, now that the feeding has been curtailed, he begins to stumble.

The whole of society here has been puffed up by the abundance of paper money. I will give you an instance. "Thirty or forty years ago, and perhaps, twenty-five years ago, the farmers, who used to attend the market at Farnham, the town where I was born, used to walk to the market, or ride a lame old horse, to sell their corn. When they had done this in the market-place, they used to return to the place where their horses were put up, and there drink a pint of beer, price 2d. and perhaps, add 2d. worth of bread and cheese, or get a dinner for 6d. or 8d. and then go home. The greater part of them were dressed in smock-frocks, or very plain and coarse coats. How surprised was I, when, happening to be at the head inn in the town, on my way to London, and hearing roaring of "three times three," and a thumping of tables, and rattling of glasses and bottles, I learnt, upon inquiry, that it was the Farmers after their market dinner. But, not much more surprised than I was the week before last, when, happening to stop at the same inn a whole day to write my Register, I found, though it was a market day, every thing as quiet as a Quaker Meeting. The retrograde movement has been more rapid than the advance. Nothing short of wine, has, of late years, been drank at these market dinners. That beverage has, in a twinkling, wholly disappeared. The far greater part of the farmers now go home without dining at all. At the sign of the GEORGE, at Winchester, the waiter told me, last week that the Farmers used to spend from ten to twelve pounds of a market day, and that now they do not spend more than a pound or thirty shillings. Thus, here is at this inn alone a diminution of receipts from the Farmers only, of more than 500l. a year. Judge you, then, if our Ministers cannot, of the effect of this upon rent and taxes. However, they will very soon be fully able to form a correct judgment on the whole matter, though I am by no means certain that they will be able to apply the suitable remedy.

An artificial currency is a most dangerous medicine for a disordered state; and I say this with a pretty full knowledge of the free use that you are making of the same drug.--it gives to society a false glare: it introduces speculation; it creates sudden fortunes; it substitutes trick and luck for industry and talent: it builds palaces with one hand, and fills jails and poor houses with the other.

When I saw the plain-dressed and industrious farmers of Pennsylvania, it seemed to me, that I was still amongst those of England, the former being, I confess, rather more hospitable and better informed, the natural consequences of their easy circumstances, and of the universal fashion to read, which prevails in America. But, the English farmer has, of late years, become a totally different character. A fox-hunting horse; polished boots; a spanking trot to market; a "get out of the way, or by G-d I'll ride over you," to every poor devil upon the road; wine at his dinner: a carpet on his floor; a bell in his parlour; a servant (and sometimes in livery), to wait at his table; a painted lady for a wife; novel-reading daughters; sons aping the young 'squires & lords: a house crammed up with sofas, pianos, and all sorts of fooleries.

Another consequence of this change has been, a great diminution of the number of farms. Three or four, and sometimes ten, have been thrown into one. The little farmers have almost all disappeared from out of that class, and have sunk into the class of labourers. Hence the present depression is the more severely felt. So great a portion of loss now falls upon one man, that the whole race stagger under it. You will easily judge of the degree in which this class of men have been elevated, when I tell you, that Mr. Arthur Young, whose hardihood, as a writer, is equal to his talents, insists on it, that even the farmer's bailiff ought to have a bottle of good port every day with his dinner; which, alone, you will bear in mind, would cost a farmer 56 dollars a year.

This work of sublimating farmers out of their senses has been promoted by the nobility and gentlemen of great estates, who have by the means of agricultural societies, cattle-shows, and the like, given every encouragement to this class of men to become conceited and presumptuous.-- The King, too, must have a farm. It was "Farmer George!"--What a "thinking people" your kinsmen on this side of the water are! Between the commercial people on one side, and the farmers on the other, the far greater part of the country gentlemen in England have been fairly squeezed out of existence. The three great estates near the place where I was born, were, the Bishop of Winchester's Castle, Moor Park, occupied by the descendants of Sir William Temple, where Dean Swift relates that he used to run up the steep hill; and Waverly Abbey, which belonged to Sir Robert Rich. When I returned to England, I found Moor Park in the hands of Mr. Timson, and Waverly Abbey in those of Mr. Tomson, the one a dealer in spirits, and the other a dealer in wine. The Bishop stands his ground yet; and his old castle walls and his lofty elm-trees. And, really, it was a consolation to me, to find something as I left it.

I should not mind this sweeping away of the little old aristocracy, if a worse had not come in its place. Nor should I so much mind the elevation of men in trade, who, in general, have had some opportunities of seeing the world, and are, from long habit, polite and liberal. But, the farming aristocracy is the object of my abhorrence. Here you have all the meanness of the crouching tenant coupled with the arrogance of birth; all the insolence of wealth, unchecked by any of those sentiments of honor, which are seldom wholly wanting in men of birth and education. This was the class of men, who, more than any other, and more than all others put together, were the cause of the long and bloody war, which has just been brought to a close, and whom Major Cartwright always called the "Body Guard of the Borough-Mongers." Amongst all other classes of men there have, at times, appeared something like liberality, something like feeling--but amongst these men, never.

Notwithstanding all this, however, they will not sink alone: they will press down some classes under them, and pull down others. If they return to their former simple state, all the middle class must come down too. If they cease drinking wine, using carpets and sofas, riding fine horses, using couches, dressing their wives and daughters in silks, and sending their sons to boarding schools, tradesmen and their families must come down too. Whether the whole of society will undergo a revolution I know not, but, this I do know, that the whole must undergo such a revolution, or it must all resume its state and go on, as before, as long as it can.

[To be continued in our next.]