It's now then satisfactorily demonstrated, that the circulation in 1810, so removed from being extreme, was to an nearly unbelievable degree less in proportion to the taxes to be paid and the income circulated, than in 1790, before the battle. It will be still insisted, that if taxes and levies have decreased, foreign money must lower proportionably;-and if taxes and levies were the only real criteria for the simply quantity of our forex, the conclusion can't be resisted: but the true criterion of the amount of a foreign money shouldn't be the mere amount of levies and taxes, but the quantity of the entire income of a rustic, and its entire exchangeable worth in labour, produce, and manufacture.-The Question then is, has the nationwide income increased or decreased because the diminution of taxes and levies? The results of this argument is, that neither in 1810 nor at present, were or are the problems with Bank Notes extreme; that their advance has originated in the good additional taxation and enormous levies since the commencement of the war; that this immense expenditure has produced great further capital, great further investments in agriculture, mining, manufacturing, commerce, &c., &c., which make a large permanent circulation essential to the upkeep of our prosperity.

I haven't any precise information for understanding or conjecturing what was the amount of private bank notes in circulation before the Bank Restriction; however it is claimed to quantity to upwards of 25 thousands and thousands at present;-so that no matter increase there's in our circulating medium, it must arise, in accordance with this assertion, from the increased circulation of the personal banks, and not from the increased issues of the Bank of England. From this assertion there appears a pure, if not a needed, progress in the increase of foreign money, in proportion as the sum raised upon the country augmented. If this reasoning is plainly unanswerable, when we are pondering of a measure or rule, for the quantity of a currency, we must flip our ideas to the income of a country in its most extended sense,-and as we should admit that foreign money should be augmented proportionably with income, no matter be the amount of debts and taxes and levies, we should also admit that a larger currency is important now than in 1809 or 1810, or in any other year, if our earnings on the whole is better.

Income is naturally promoted by improve of foreign money, and improve of taxes is made extra straightforward by it; whilst a decrease of taxes typically advances earnings, and by rising earnings, augments the deamnd for foreign money. If our currency is diminished ten per cent, the technique of paying our taxes might be diminished ten per cent. Is it the tendency of levies and taxes to extend or decrease nationwide revenue? The brand new additional everlasting capital which is made on these levies and expenditure, follows step by step until the final word revenue upon them turns into a fixed strong enhance of capital.-Let Government spend 50 further hundreds of thousands in a yr: these 50 thousands and thousands are taken from the present capital, and the advance of such a sum can even require additional currency; however the profit made by the individuals concerned in advancing and spending these 50 hundreds of thousands, does not come into activity until one, two, or three years' interval. And what's the course we at the moment are to take? And as our taxes and forex are equal in quantity to one another, and naturally their proportion to our earnings respectively the identical; and as their tendencies are diametrically reverse, and counteractive to one another, it necessarily follows, that whatever impact is produced by a change in a single, that change will work a contrary effect in the opposite.

Till it can be recognized whether drive and compulsion, as has been threatened, are literally for use within the working of Mr. Ricardo's plan, all discussion of it is ineffective; and whether it is to rely for its success, not upon its intrinsic advantage, but upon the accessory fulcrum of legislative violence, I worry his plan will probably be as in the end ruinous as the assumption of excess of our forex is demonstratively false, and the surplus of our taxes is lamentably true. It was argued in 1810, that the high costs of all articles then existing, the excessive price of Gold, and the low worth of exchanges, had been attributable to at least one solely cause, the surplus of our paper foreign money. If the course of our exchanges had been depressed by a superabundant quantity of paper, it could by no means have turned in our favour and risen above par, by a quantity of comparable paper still extra superabundant. Here then is an entire irrefragable demonstration, that neither the costs of Commodities, nor the value of gold price now, nor the course of Exchanges, have been produced by excess of paper forex.

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