A comparative view of the industrial situation of Great Britain

Front matter

COMPARATIVE VIEW

OF

THE INDUSTRIAL SITUATION

Contents

PRELIMINARY OBSERVATIONS.

Page

Increase of Shipping 1

CHAP. I. Increase of our Shipping, and of the Exports

of Home Produce and Manufactures - 5

Table showing it - - 6

Facts relative to British Tonnage 8

Foreign Tonnage - 9

Exports - - - - 10

Imports - - - 1 1

A 4

Vlll CONTENTS.

CHAP. II. Page o v

Rise in the exchangeable Value of Money - 14

Shown by our Exports - ib.

Commencement in 1811 - - - 15

Continuance ever since -"■ - - 16

Causes of Depression - ib.

Opinions as to Depression - - 19

How Depression is to be accounted for - 20 Measure of Rise in exchangeable Value of

Money - - - 22

Part II. Money Restraints

CHAP. I.

The Bank of England and its exclusive Privilege, with its immediate Consequence - 24

Establishment of the Bank without any exclusive Privilege - - - 25

When granted - - - 26

Consequences - ib.

Banking not a substantive Trade in England - 28

CHAP. II.

Further Consequences of the exclusive Privilege

of the Bank of England - 29

Amount of Currency - ib.

Insecurity of Transactions - SO

Upon what Security rests . - - ib.

Insecurity of Paper issued by other Banking

Companies - - - ib.

Insecurity of Deposits - - - ib.

Amount of Deposits - ib.

CONTENTS. IX

CHAP. III. Page

The Effect of the exclusive Privilege of the

Bank with respect to the Amount of its Issues 31

Over-Issue of the Bank --■•■- ib.

Manner of it - - - ib.

Issues of other Bankers limited - - ib.

Contraction of its Issues by the Bank - 33

Over-Issues by the Bank the Cause of over- Issues by other Bankers - - ib.

CHAP. IV. The Removal of the exclusive Privilege - 35

Consequences - ib.

Caution and Circumspection on the Part of the

Bank - ib.

Deposits — Importance of Security to, not contemplated at Formation of the Bank - ib.

Deposits with other Bankers greater than Deposits with the Bank - -36

CHAP. V. The Nature of Coin, and of Bank and Bankers'

Notes - - 37

Coin — what - ib.

Bills of Exchange - ib.

Bankers' Notes - ib.

Currency when most perfect - - 38

Banking Operations — Period of Commencement - - - 39

Consequences of Freedom in - - 40

X

CONTENTS.

CHAP. VI. Revulsion of 1825-6 similar to 1815-16 Causes

Cheapness of Abundance, added to Rise in the

Value of Money -

Country Bankers the Victims, not the Causes,

of the Revulsion Contrary Impression of the Minister His Letter to the Bank adverted to

Page 41 42

46 ib. ib.

CHAP. VII. Metallic Standard - - 47

Alteration in 1816 - - - ib.

Effect of it - - - 48

Gold Standard preferable to Silver - - ib. Poor Parts of the Country cannot sustain a -

Currency in Gold - - - 49

Country Parts of England thence distressed - ib. Standard of Silver must be resorted to, or small

Notes must again be issued - - ib.

CHAP. I. Errors of the Agricultural and Manufacturing

Interests with respect to the Corn Laws - 52

Table of Imports from 1773 - - ib.

Home Growth increased previous to 1815 - 53

Has diminished since 54

CONTENTS. XI

CHAP. II. Page

Protection afforded by the Corn Laws previous

to 1815 - 54 The Reverse since - - -55

Freedom previous to 1815 - - ib.

Importable Price had no Operation - 56

Consequence - ib.

Reverse in 1815 - - - 57

CHAP. III. Consequences of a restraining Corn Law to

the Home Grower - - - 59

Loss of Export - - 60

In Reign of Queen Elizabeth adverted to (Note) ib.

Encouragement of Import - 63

Operation explained - 64-

Every Season operates as a bad Season - ib.

Chap. VIII

Remedy - - - - 75 Restoration of the Operation of the Laws which

prevailed previous to 1815 - - ib.

Operation of the Laws previous to that Year,

and since - ib.

Object to be attained - - 77

How to be attained - ib.

Plan suggested - - 81

Objections obviated - - - 83

CHAP. I. Money expended for the Relief of the Poor - 81

Returns made - - - ib.

Sums expended in different Years - - ib.

Committees appointed thereon - - 85

CONTENTS. Xiii

CHAP. II. Page

Causes of Increase and Variations in the

Amount of the Poor's Rate - - 86

Seasons of Scarcity - ib.

Enquiry as to the Seasons and their Effects - 88

Interference of Magistrates - 90

Occurrences in 1795 - - 91

Explanation of the Increase and Decrease - ib.

CHAP. III. Effects of the Mal-administration of the Poor

Laws on Morals and Industry - - 95

Effects upon unmarried Men - - ib.

Effects upon unmarried Women - 95

Immorality incompatible with Industry - ib.

Consequent Carelessness and Recklessness - 97

Diminution of Work done by Labourers - ib.

CHAP. IV. Effect of the Mal-administration of the Poor

Laws on Population gg

Effect upon the Number of Births - - ib.

Effect of a contrary System - - 99

Errors committed in attempts to establish a

Rate of Increase - - - ib.

CHAP. V. Practice — illegal - - - - 100

Provisions of 43 Eliz. - ib.

Distinction between Work and Relief - 101

XIV CONTENTS.

Page

Agricultural Labourers not contemplated by

Abuses greatest in Agricultural Counties - 103 Questions put to the Judges as to the Legality

of the Practice - - - 104

CHAP. VI. Remedy - - - 105

System established in the Parish of Cookham ib. Parish to be the hardest Master and lowest

Adopted in other Parishes - - 107

How it operates - - - 108

How to be brought about - - 110

Practicable in all Parishes - - 112

Inadequacy of Acts of Parliament - - 113

Course to be taken - - - 114

CHAP. VII. Expedients for the Relief of the Poor - - 115

Grant of Portions of Land - - ib..

System in the North of England - - ib.

General Enclosure Act - - - 116

Enabling Bills - - - - 117

Dangers to be apprehended therefrom - ib.

Emigration - - - -118

All at best only Mitigants - - ib.

CONTENTS. XV

CHAP. I. Page

Public Revenue - - - 119

Customs - - - - - ib.

Excise - - - - ib.

CHAP. II. Best mode of raising the Public Revenue - 121

Duties of Customs - - ib.

Operation of Excise Duties - - - 122

Industry thereby repressed - - ib.

Operation of Duties of Customs - - ib.

Home Industry thereby promoted - - ib.

Increase of Duties of Customs - - 124

Require Revision - - ib,

A sure Source of Revenue - - 125

CHAP. III. National Debt - - - - 127

How of no Importance - - ib.

Yearly Amount of Returns of Industry - ib.

Nearly equal to the whole Debt - - ib.

CHAP. IV. Recapitulation - - 128

Reflections - - - ib.

Facts neglected - - - 129

Further Reflections - - 130

Questions - - — - 131

Suggestions - - - 132

Benefit - - 133

PRELIMINARY OBSERVATIONS.

AUTHOR'S VIEWS AND PURPOSE UNFOLDED.

We have enjoyed seventeen years of peace, during which our shipping, and our exports of home produce and manufacture, have increased in a greater proportion than ever they did in any previous period of our history ; yet distress has, nevertheless, prevailed generally throughout the country, and particularly in the agricultural districts. A transition from war to peace has always produced a revulsion, as a transition from peace to war has done, and to the extent of the revulsion there always has been distress ; but such distress has heretofore passed away with the consequences of the revulsion which produced it. It was reserved for our times, that distress should not only continue, but should increase, throughout so long a period of peace.

But distress is not confined to Great Britain. It prevails in every country in Europe. It is only felt more severely in Great Britain than in other countries, except France, in which it is felt still more severely than it is in Great Britain.

B

£ CAUSES OF DISTRESS.

The causes of the distress which thus prevail must, therefore, be causes which are common to every country in Europe, but operate most powerfully in France and in Great Britain. The only causes, of this description, which I have been able to discover, are legislative and municipal restraints upon industry, rendered progressively more severe by a continuous rise in the exchangeable value of money. Such restraints become progressively lighter, while money continues to fall in exchangeable value, but their severity accumulates as it rises. Now, money continued to fall in exchangeable value until the year 1810. It has continued to rise since that year.

It is then by restraints upon industry, as it appears to me, that the distress which continues generally to prevail is to be accounted for. Such restraints operate more severely in France and Great Britain than in other European countries, because there is more of industry in France and in Great Britain than in other countries ; and such distress is more severe in France than in this country, because industry is more fettered there than it is here. Political causes, no doubt, exist in both countries, which have their influence ; but, as it appears to me, effects are frequently ascribed in either country to political causes, which spring from restraints upon in-

RESTRAINTS UPON INDUSTRY. 3

dustry, or are the consequence of combinations among workmen to keep up wages, which must come down with a rise in the exchangeable value of money.

If this be so, we have only to find out what the restraints are which operate upon industry, in order to remove the cause.

Such an enquiry would open a field too vast to be brought to a close within a period to be useful. It is, therefore, necessary to make a selection ; and after showing that our shipping, and the exports of our home produce and manufactures continue to increase, because they are not affected by such restraints, I propose to point out how our home industry suffers from restrictions in our money system ; from the operation of our corn laws ; of ill-administered poor laws ; and from the manner of our raising a revenue for the service of the state. All these will be found to operate in the way of restraints upon industry. The unfolding of the manner in which they so operate, will also serve to show how their operation, in this respect, may be removed.

I shall state no fact, the evidence of which is not to be found in documents laid before either house of parliament ; nor shall I draw any conclusion, except upon grounds which I shall state, so that every reader may verify the fact by re-

b 2

4 INVESTIGATION PROPOSED.

curring to the evidence of it, to which I shall refer. If I am right in the view which I take of the causes of our continued and continuing distress, others may be induced to follow my example in tracing the operation of other restraints upon industry. But the investigation of the subjects which I have selected, is so important in itself, that the facts which I shall present with respect to all of them, can hardly fail to lead to the correction of errors which will be found in each of them, even though I should be deemed wrong in the general view which I take of the causes of our distress.

Chap. I

INCREASE OF OUR SHIPPING, AND OF THE EXPORTS OF HOME PRODUCE AND MANUFACTURES, SINCE THE YEAR 1775.

In the year 177^, the war with America began. It ended in 1783, from which year we were at„ peace until 1793 ; when began the revolutionary war with France, which, with the exception of one year (1802) and another before the battle of Waterloo, finally closed in 1815 ; since which year we have been at peace.

In order that an estimate may be made by inspection, I annex a table ; showing the tonnage of British vessels and of foreign vessels that cleared outwards from Great Britain in 177<5, and every fifth year since that year ; with a column showing the amount of the exports of home produce and manufactures exported, with our imports, in every fifth year since 1795 ; to which I have added the net amount of our customs in 1775, and every fifth year thereafter.

INCREASE OF SHIPPING.

PART I.

A TABLE, showing the Tonnage of Shipping that cleared Outwards Exports of British Produce and Manufactures in 1800, and every every Fifth Year thereafter ; also Bank Notes and Bank Post Bills in February in every Year thereafter; with the Price of Gold per every Fifth Year thereafter, with the Population according to the

Note. — The Amounts previous to 1805 inclusive, are taken from

Accounts laid before Parliament

In the Years.

Number of Ships that cleared Outwards. A.

Tons, British.

Tons, Foreign.

Total.

Official Value of Exports of British Manufactures.*

Declared Value of Exports.

* The articles which form our

Alum.

Arms and ammunition.

Bacon and hams.

Beer and ale.

Books printed.

Brass and copper manufactures.

Bread and biscuit.

Butter and cheese.

Cabinet and upholstery wares.

Coals and culm.

Cordage.

Corn, grain, meal, and flour.

Cotton manufactures.

Cotton yarn.

Earthenware of all sorts.

exports, are the following : —

Fish of all sorts.

Glass of all sorts.

Haberdashery and millinery.

Hardwares and cutlery.

Hats, beaver and felt.

Hats of all other sorts.

Hops.

Horses.

Iron and steel, wrought and un-

wrought.

Lead and shot.

Leather, wrought and unwrought.

Leather, saddlery, and harness.

Linen manufactures.

Machinery and millwork.

ments.

Molasses.

Musical instruments.

CHAP. I.

INCREASE OF SHIPPING, rom Great Britain in 1775, and every Fifth Year thereafter; also the 7 ifth Year thereafter ; also the Net Duties of Customs in 1775, and Circulation on the 26th of February, 1800, and in the last Week of )unce ; also the Net Revenue of Great Britain in the Year 1790, and ^pulation Returns.

lr. Chalmers's "Political Estimate;" and thereafter from hiefly the Finance Accounts.

Official Value of Imports.

Net Duties of Customs.

Bank Notes in Circulation, including Bank Post Bills, on 26th February, f

Price of Gold per Oz.

Net Revenue of Great Britain, t

Population.

2,481,031

2,723,920

4,592,091

3,782,822

3,569,360

6,799,755

9,084,459

11,495,382

11,795,088

10,108,836

16,942,013

19,360,751

16,678,624

3 17 9

4 4 6 4 9 3 17 10§

Painters' colours.

watches.

Salt.

Saltpetre, British, refined.

Seeds of all sorts.

Silk manufactures.

Soap and candles.

Stationery of all sorts.

Sugar, refined.

Tin unwrought. and Tin and pewter wares.

Tin and tin plates.

Umbrellas and parasols.

Whalebone.

Woollen manufactures.

All other arti c les.

■f The amount of Bank notes in circulation, with the prices of gold, Is taken from Vol. XVI. 1821 ; in 1825, from Vol. XVII. 1825 ; and in 1830, from Vol. V. 1830. — Mem. No return has yet appeared of the amount in the last week of February in the present year, but it is understood not to have much exceeded 17,000,000/. ! In April, 1815, the price of gold was 51. Is. per oz. See Appendix to Bank Report, 1819.

\ The revenue from 1790 to 1820, is taken from Vol. XVI. 1824; the three last years from the Finance Accounts.

B 4

8 INCREASE OF PART I.

With a view to what I have to state relative tc our money system, the amount of bank notes and bank post bills are given as they appear from parliamentary returns in the last week in February, 1800, and in the last week in February in every fifth year thereafter, with the market price of gold in bars, where that appears in such returns. As important, also, in forming an estimate of the situation of the country, the net revenue of Great Britain is given for the year 1790, and in every fifth year thereafter ; with the numbers of the people, as these appear from the population returns.

Our shipping, which is affected by the revulsion occasioned by a transition from peace to war, recovers afterwards ; and appears to increase in a course of years, whether we are at war or in peace. Though the tonnage fell off in the five years ending in I78O, it increased much more than the sum of this declension in the five years ending in 1785 ; and though it diminished in the five years ending in 1795, its amount in the five years ending in 1800 exceeded its amount in the five years ending in 1790. It has since greatly increased, with the exception of the five years ending in 1815 ; since which year it has steadily increased.

Dividing the period of the table into four equal parts, each representing fifteen years, though

CHAP. I. SHIPPING. 9

every fifth year only is given, the amount of tonnage in each period is as follows : —

Tonnage.

In the 15 years ending in 1785

- 2,354,543

- 3,560,215

- 4,289,852

- 5,362,824

There thus appears to have been a continuing increase of British shipping in each period of fifteen years ; and the year 1831 gives us a reasonable assurance of a continuance of augmentation : for the British tonnage which cleared outwards, in the year 1831, was 2,300,731, whereas in 1830 it was only 2,102,147 tons.

The tonnage of foreign ships frequenting our ports has also increased.

Tonnage.

In the 15 years ending in 1785 it was - 302,398

1800 - - 1,169,083

1815 - - 2,462,910

1830 - - 2,043,050

The foreign shipping thus has not increased in the same proportion with British shipping. Though its proportion of increase was greater than our own previous to 1815, yet the amount of foreign tonnage clearing outwards has not only not increased, but it has considerably diminished, since that year.

This fact alone may be sufficient to dispel the fears of those who alarmed themselves with-

10 INCREASE OF EXPORTS. PART I.

out cause, from their misapprehension of the operation of our reciprocity system.

Those fears may be still more completely dispelled, from the increasing amount of our exports since the year 1815.

In that year the amount of our exports, according to official value, was 41,712,002/.* ; being by much the greatest amount which we had ever previously exported. The amount of that year, doubtless, was much increased by the greatness of our foreign expenditure required to support the numerous army which we then had to maintain upon the Continent ; and, possibly, also by an expectation of demand upon the Continent, which appears to have been disappointed ; for in the following year our exports, in official value, amounted only to 34,774,501 /.t Many well-informed persons believed, that we should not be able to maintain a competition with manufac-

* Pari. Papers, 1830. No. 315. Official value is according to certain rates fixed in 1696, which never vary, and thus show quantity. These rates will be found in Vol.xxii. of the Sessional Papers of the House of Commons for 1826. Declared value, which was not required until 1797, is the value declared to be the value of the articles exported at the period of export. The difference between the official and declared value of each year, shows the fall or rise in the exchangeable value. The difference between official value in different years shows the difference of the quantity exported.

f Parliamentary Papers, 1 830. No. 315.

CHAP. I. INCREASE OF IMPORTS. 11

turers on the Continent ; who, it was conceived, could bring the products of their industry to market at cheaper rates than we could. Such apprehension has proved to be altogether groundless. Our exports have greatly increased, particularly since 1822, when they amounted in official value to 43,558,488/., being greater than their amount in 1815 ; and last year they were in official value 60,090,123/., being, indeed, 402,514/. below their amount in the preceding year, but nearly a third more than their amount in 1815 ; which was 8,511,422/. in official value above that of the preceding year (1814).*

Our imports afford evidence upon which an equally firm reliance may be placed in proof of the increase of industry in Great Britain. Our export trade consists in the exchange of our commodities for the commodities of other countries. These foreign commodities so exchanged for ours are stated in the Custom House books, when they are imported, according to certain rates, which never vary. The official value of our imports thus shows the quantity of foreign commodities imported from time to time, as the official value of our exports shows the quantity of our commodities exported from time to time. The exchangeable value, or current prices, of both at the time are estimated in gold in this

* Parliamentary Papers, 1830. No. 315.

12 INCREASE OF IMPORTS. PART I.

country ; because gold now forms our standard of value ; and in silver in other countries, because silver forms the standard of value in such countries. But the proportion between the exchangeable value of gold and silver as against each other is known, and can easily be estimated. Coin will never be taken in exchange for more than the quantity of the metal contained in it. The only use of coin is to show the quantity of metal in the coin without the trouble of weighing and essaying ; and the par rates of exchange as between different countries have been fixed according to the quantity of pure gold or pure silver contained in the coins of each.

Our imports, like our exports, being stated according to certain official rates of value, the increase of our imports thus affords as unerring evidence of the increase of the products of our industry as the increase of our exports. Dividing the last thirty years into two equal periods, the imports, according to the amount every fifth year, appear to have been as under : —

In the 15 years ending in 1815 - - 96,769,367

1830 - - 120,421,417

As the exports in 1831 above the preceding year gave assurance of a continuance of an increase of export, so the increase of import in 1831 gives equal assurance of an increase of

CHAP. I. INCREASE OF IMPORTS. 13

import. The imports in official value in 1831 were 49,713,889/., but in 1830 only 46,245/.

The amount of import has not always been correspondent to the amount of export. On the contrary, in the year 1815, when we had the largest export ever previously experienced, being 41,712,002/. in official value, the import inofficial value was only 31,515,222/. But the explanation is, that the exchange of commodities is the exchange of equivalents ; and an equivalent may be received by Great Britain in another country, as well as in Great Britain itself. In that year, the equivalent was received abroad, in furnishings and otherwise to our troops ; in satisfaction of which a larger export became necessary. The amount of the import, however, shows how much of the equivalent is received in this country ; and an increasing import shows increasing means of consumption through the returns of home industry, whose products are given in exchange for foreign products. *

No doubt, therefore, can be entertained of the

* Our older statistical writers, even down to the late George Chalmers (who had not been able to free himself from their delusion), confounded themselves about a balance of trade. Their error lay in not considering gold and silver as commodities which may be always purchased by other commodities. All trade consists in the exchange of equivalents, and we receive an equivalent, whether we exchange commodities commonly so called for other commodities commonly so called, or whether we exchange them for gold and silver.

14 RISE IN THE EXCHANGEABLE PART I.

increase of our national industry, though that industry is depressed by legislative and municipal restraints in a manner to be hereafter explained.

Chap. II. Rise In The Exchangeable Value Of Money

By means of our exports, the period of the rise in the exchangeable value of money can be ascertained with the most perfect certainty. In the year 1810, our exports were, in official value, 33,299,408/., and in declared value 47,000,926/. In 1811, they were, in official value, only 21,723,532/., and in declared value 30,850,618/. ; the proportion of which to 21,723,532/. is much less than the proportion which 47,000,926/. bears to 33,299,403/. the amounts in the preceding year. But the amount, as well as the period of the fall of prices, — in other words, the rise in the exchangeable value of money, — is still more strongly marked by our exports. It so happens that the amount of our exports, in official value, in 1800, was 22,831,936/., and in declared value 36,929,007/.; so that an amount of exports in 1811, only 1,108,404/. under their amount in official value in 1800, shows a difference of no

CHAP. II. VALUE OF MONEY. 15

*

less than 6,078,329/. below the amount of declared value in 1811, being a fall of upwards of 20 per cent.

Whatever the cause of the fall of prices, therefore, may have been, it is certain that it began in this year, and was to this extent. It is not less certain that, previous to 1811, declared value continued to gain upon official value ; but that since 1811 official value has continued to gain upon declared value ; and the differences, while they mark the continuance, also show the amount, of the depression.

The amount of our exports in 1811, according to declared value, as already stated, was —

£ 4-7,000,926 And according to the same value which would be the amount of the depression, if there had been no increase of export.

But the amount of Exports in official £

And in the same value in 1811, the

The annexed table will show the differences between official and declared value in every

AMOUNT OF DEPRESSION.

PART I.

year since 1811 to 1831, both inclusive, and also the total amount of these differences : —

Difference of official value under

Difference of official value over declared value.

declared value.

-

9,127,086

-

-

2,251,216

-

10,886,614

-

-

4,371,554

1813* - 1814 -

1 829

7,381,591 8,576,629

_

10,246,793

JL O £i£J

.

-

-

7,941,243

-

-

10,424,931

-

5,554,419

-

-

8,375,692

-

1,115,768

-

-

9,485,326

-

3,219,595

-

-

14,884,285

-

1,268,562

-

-

15,869,349

-

-

20,252,850

-

-

22,801,335

-

-

25,437,429

Difference of official value

\ under ( leclar ed value, in

-

. -

Difference of official value over declared

Total amount of differences from 1811 to 183 1^34,564,5 15

The amount of the depression thus appears to increase every year, and must therefore proceed from a cause which began to operate in 1811, and has continued to operate ever since.

Now, there is no cause of this description, but the defalcation in the supply of gold and silver, which was occasioned by the overwhelming of the South American mines, by the revolution in the mining districts in 1810 ; at which time the annual supply from these mines was nearly forty- * Records destroyed by fire.

CHAP. II. CAUSES OF DEPRESSION. 17

eight millions of dollars, but has not since exceeded twelve millions of dollars.

Mr. Tooke, who wrote his book on high and low prices under the impression that there had been no defalcation in the supply of gold and silver from the mines, endeavoured to account for the depression of prices from over production* When the account of the supply from the South American mines for the ten years which preceded 1810, and for the ten years which followed that year, was sent to him by Mr. Jacob, Mr. Tooke published the account in a supplemental section to a second edition of his work. But he doubted the extent of its operation, —

1. From the quantity of commodities, in the circumstances he adverted to, affecting the contingent as w r ell as actual supply, compared to the average rate of consumption, which it appeared to him might account for the difference of bullion prices.

2. The diminution or cessation of the drain of silver from hence to the East Indies and China, and an inversion of the stream by the importation of the precious metals from the East Indies to this country. 3. From the increased transport to Europe of immense capitals in gold and silver, consequent upon the migration of old Spaniards from South America.

But none of these causes had any operation in 1811. Increased production since has, per*

c

18 CAUSES OF DEPRESSION. PART I.

haps, been rather a consequence from than a cause of the rise in the exchangeable value of money, from a defalcation in the supply of the precious metals ; because all commercial men have engagements to make good, and when they become unequal to meet their payments from returns falling off in money amount, they naturally endeavour to make up for deficiency of price by increase of quantity. The diminution or cessation of the drain of silver to the East, and the influx thence to this country (consequent upon gold and silver becoming scarcer in Europe than in Asia), did not take place for nearly ten years after 1810 ; and the supply brought by emigrant Spaniards could only be to a limited amount, and could produce only a temporary effect.

The termination of the war, and the preparation made for returning to a metallic standard in 1819, to which so much effect beyond their actual operation has been ascribed by others, could not account for the fall of prices in 1811. The one could not have any influence until 1816, nor the other for three years afterwards. Mr. Tooke appears to me to have shown, very successfully, that war or peace, or even taxes, have little effect upon general prices. He appears to me to be not less successful in showing that the diminution of prices, consequent upon

CHAP. II. OPINIONS AS TO DEPRESSION. 19

returning to a standard of gold, could not have any influence beyond the difference between the mint and the market price of gold, in which he supports Mr. Ricardo's opinion. It was the rise in the exchangeable value of the standard, and not the return to it, which has occasioned a depression of prices so much beyond the difference between paper and bullion prices.