vsr& r~ I ■ TWO LETTERS, DESCRIBING A METHOD OF Increafmg the Quantity OF CIRCULATING-MONEY: Upon a new and/olid Principle, LONDON: 1799- Printed h A. Strahan, Printers Strttt, Gcvgh Squau A METHOD OF Increafing the Quantity OF CIRCULATING- MONEY 'Upon a new and J olid Principle. LETTER I. Tt CONTENTS. Sect. I.— Assumes the Necejfity of an Ex- tenfion of the Circulating Medium, Page 7 Sect. II.— Bafts of a Plan for Juch an Ex- tenfion. y Sect. III. — The Planjiated. - - ib. Sect. IV ' ,—Covfequences of the Plan to Stock- Proprietors. - - 13 Sect. V. — No Danger to them. - 15 Sect. VI. — They might gain too much by it. ib. Sect. VII. — Government muft partake with them in the Profits. - - - 18 i § Sect. VIII.— So mufi the Bank of England. 19 Sect. IX. — ^uejiion fuggefted. - 20 ^ Sect. X. — The Plan may be improved. 21 *i Sect. XI. — General Observations. - 22 Sect. XII. — Originality of the Plan. - 23 i 420796 INTRODUCTION. npHE Principle of this Propofal is to put -*- a new and great Capital into circu- lation, by Loans of Money, to be created in the manner and upon the foundation defcribed in the following Letter, addreffed to a Member of the late Secret Committee of the House of Commons on Bank Affairs. The gentleman, to whom the Letter was ad- dreffed, (whofe name, if I thought myfelf at liberty to mention it, would add much authority to the whole propofal,) being himfelf ftruck with the no, velty of the meafure, and its apparent tendency to public utility, has been the means of procuring a confiderable degree of favour to it elsewhere. ^-But, if I were to fay more of this, it could only be with a view to obtain atcention,— not to in- fluence the public judgment, which alone can de- cide in this cafe, as in all ethers where public credit is concerned.— Therefore, I mall only fay, I have good reafon to think that the firfi imprejftons, ( 6 ) impreflions, made in the quarter to which I allude, are ftill retained. It is my intention to point out in a future Letter, for which I have prepared ^materials, how I propofe to confine the increafe of money, in its firft application, to the afiiftance of the Landed Interest j and I (hall, at the fame time, anfwer fuch Objections as I may hear of, or which my own thoughts may fugged to me; for, I fhall difguife nothing. — In the mean time, I admit that it is necefifary to the practical execution of the plan, that the notes in queftion mould be ex- changeable for all commodities, — by no means excepting Gold; and exchangeable at par: other- wife they cannot perform the office of Money. — I beg permiffion to add, that I think this may be accomplished. And I fhall mew how the Se- curity may be doubled, both in its nature and amount, without lefTening the fimplicity of the ori- ginal defign; and this to the extent of proving it to be absolutely impossible that the Note- Creditors fhould be defrauded, or even dif appointed, so long as any notion of Law and Property mall continue practically to prevail in Great Britain. London, 2yJ April 1790,. METHOD, fcfr. Ssfr. fcfr. Sect. I. — Affumes the Necejfity of an Extenfion of the Circulating Medium, SIR, OF late, we have heard but little of the plans for a New Circulating Medium, with which the public attention was much engaged about the time of the Bank's ceafing to make payments in cafh. No plan of that kind feems yet to have ob- tained general approbation; and, perhaps, that which I am about to fubmit to your confideration may not be free from objection. I have enrered thus upon the fubjecT: without ceremony j becaufe, Sir, the indulgence you have ihewn me in the feveral conferences you have ho- noured me with on the occafion, has fuperfeded the neceffity of any introductory matter, unlefs I had ( 8 ) had attempted to exprefs the feeling I have of your obliging attention in this inftance, which I decline, as a tafk not eafy in itfelf, and flill lefs fo, in con- nection with other acts of condcfcenfion which I cannot fail to recollect:, thoush I am not able to acknowledge them in the manner I Ihould wifh to do. In common with all thofe who have preceded me in this track, I begin with affuming that there would be found great convenience in the eftablifh- ment of a good, folid, circulating medium, upon a more enlarged fcale than any that exifts at pre- fent, and adapted to the extended and extending ftate of our National Commerce, and particu- larly to the wants of the landed interest. If this was denied, or generally doubted, I fhould have little to fay at prefent j for, if the neceffity or uti- lity of fuch an eftabliPmment is not felf- evident, I fhould think the time for it is not yet come. My experience in bufinefs, however, informs me that it is wanted. — Permanent loans of money are now, and for a long time have been, difficult to be obtained ; and this difficulty muft, from obvious caufes, continue to increafe fo long as the war lafts. Sect. ( 9 ) Sect. II. — Bafis of a Plan for Juch an Extenfion* Having premifed this, I proceed to (late my plan for the eftablifhment of a New Circulating Medium. The bafis of it, as I have remarked in what you have heard from me already, I fix upon the Na- tional Debt, which is the Wealth of Indivi- duals. — For commercial purpofes at leaft, I con- ceive this may be deemed folid fubftantial property — to a limited extent. Suppose the National Debt due to individuals to be equal to Four Hundred Millions (or more) of 3 per Cent. Annuities of the value of 50 per cent.j that is, Two Hundred Millions fterling. This fuppofition is fufficiently accurate for my prefent purpofe. Sect. III. — <£he Plan ftated. Now, my fcheme goes to the putting of a large portion, Fifty Millions, or more, of this pro- perty into circulation, if fo much could be em- b ployed 5 ( io ) ployed i and this I propofe to be done in the follow- ing manner: Let any flock-holder, who would wifh to cir- culate fome part of his Stock, without felling it, transfer a certain quantity of it, fuppofe twenty thoufand pounds 3 per Cents, to the Governors and Directors of the Bank. The Bank is then to deliver to him fifty certificates, or notes of the transfer, each of them to be marked as of the value of £.100, or a greater quantity in number, and of lefs valuerefpedivelyj but the whole together to be of the amount of ^.5000 fterling. By this means every particular quantity of flock might produce a fourth part of its nominal amount for the purpofes of circulation. For, I make what I believe to be a well-grounded fuppofition, that the mercantile world, who now take Bank-Notes in payment, would, with equal confidence, receive and circulate thefe Stock-Notes; the Governors and Diredors of the Bank of England being, in re- fpeft to the flock to be transferred to them, truflees for thofe who transfer the flock, and for thofe who take the flock- notes in payment, (as they now are truflees for the Bank-Proprietors and the holders of Bank-notes,) and the fecurity being fully equal to that ( II ) that upon which the credit of Bank-notes is found- ed :— for, the capital and other effecls of the Bank (reckoning its property in flock at the prefent market-rate) is certainly fhort of twice the amount of its debts. But the flock, transferred as I pro- pofe, would be double in value to the notes circu- lated upon its credit. 4 In the cafe I have fuggefled, the 3 per Cents, would be taken at 25 ; a fuppofition low enough, I fhould fuppofe, for thofe who give any degree of credit whatever to the Public Funds. There can be no doubt that bankers and others would allow £.100 flock to be a fufficient fecurity for £.25 money, notwithflanding all the poflible fluctuations to which the flocks are fubject. The notes I have defcribed might be ufed for loans or for capitals to trade upon i their ufe in trade, and for other purpofes, being fuppofed the fame as fpecie or Bank-notes. These notes being, by fuppofition, of the fame value, and pailing with the fame facility as Bank- notes do, will be confidered as cash, and confe- quently, if lent by the original holders, or by any others who may become the holders of them, would entitle the lender to receive interest on » 2 the ( 12 ) the loan, in like manner as the lender of bank- notes now receives intereft on the loan of thofe notes. The fuppofition that thefe notes would be circu- lated like bank-notes is efiential to my plan. — That foundation taken away, the whole would be an unfubftantial vifion ; and therefore, if this be not aflented to, it would be of no ufe for me to go on. But, that point granted, (fubject to re-con- fideration,) I fay that every particular quantity of ftock, transferred in the manner I have dated, would yield a profit to the ftock-transferrer equal to 5 per cent, on the amount of ftock-notes obtained by him. Twenty thousand pounds, 3 per Cent, flock, would, as obferved before, produce £.5000 of flock-notes, the intereft of which would be £. 250, to be added to £. 600, the amount of the divi- dends on £. 20,000 of that ftock. Thus £. 850 would be gained annually, inftead of £. 600, by every proprietor of £. 20,000 ftock, who (hould avail himfelf of the opportunity of procuring ftock-notes, as above mentioned. What I have faid of 3 per Cent, ftock, is to be applied to the other public funds in the like proportion $ ( 13 ) proportion i the 3 per Cents, being mentioned only by way of example. Sect. IV. — Confequences of the Plan to Stock- Proprietors. I shall purfue the fuppofition thus made, and fhall trace its confequences to the (lock- proprietor, treating the matter at prefent as if no other intereft than his was to be confulted j difregarding, there- fore, at this moment, the interefts of Govern- ment and the Bank of England, both of which I fhall feparately confider in what I have farther to fay. In this point of view, I fuppofe the whole dividends on the flock are to continue payable to tne ftock- transferers; a fuppofition to be corrected in the farther progrefs of this difcufllon. £. 850 being gained annually inftead of £. 600, the value of ftock may be expected to rife in pro- portion to the increafe of gain. In the fubfequent details on this point, I fhall fuppofe the ftock- proprietor would transfer his ftock to the truftees, upon my plan, for the fake of much lefs advantage than what 1 have above defcribed; for, out of the great profit above alluded to, it is neceflary to provide inducements to ( 14 ) to Government and to the Bank of England to countenance the plan. Arprefent I ftall proceed to attend farther to «he interefts of the (lock-proprietor. What objection can be make I Can he fay his flock ,3 n ed up and put om Qf h . s power ? ^ . -he may redeem it by bringing in to the Bank a quant,ty of (lock-notes equal in amount to thofe ongmal ly obtained by him. Thefe being can- C ^';«°ck would be again entirely 4: or *e may fell the ftock fubjea (q fc Ze m ° re markctab,C ' would -reafe ers^d CHANTS,tankerS ' C ° Un ^^"— .&T-.- would be benefited by the nkn ^a ■ , . *e Art would derive cl Part ' CU ' ariy their Heck v / enco «"geme„t to hold en Z r thCy Withdraw ha,f ^ amount par ^T7t e0{ *"*■**■»* -lizeth P on,a„ d)b rocurmgpurchafesor is. fd ;:;; uld ? acc — ** *»o -ow o? o Ve^i r W *°"* °" * « » The ( *-S ) The transferrer would retain to himfelf the advantage of future increafe of price, juft as if he had not taken the ftock-notes. Sect. V.— No Danger to them. But is there no final danger of lofs to the ftock- proprietor upon this plan ? None, I think. For fuppofe the holders of the ftock-notes fhould be- come alarmed for their fecurity by the falling of ftock to 25 j and fuppofe the plan mould provide, that then the ftock mould, at that price, become the property of the holders of the ftock-notes, and be transferred to them in proportion to the amount of the notes held by them refpeftively, unlefs redeemed immediately by the proprietors of the ftock ; it may be made clear, that he that was the original 4 ftock- holder cannot be hurt by having received the notes, even though he fhould no* redeem the ftock. For if he has retained the right of redemption, and confequently the rifk, it is by his own voluntary a£b that he has done fo. He might have fold out; but, having retained the ftock, he cannot fufTer more by parting with his ftock now, than if he had held it on, and was now to fell it, without having received any ftock-notes. He may even have an advantage by buying an equal quantity ( '6 ) quantity of the ftock at the reduced price, fuppofing it below 25, or prevent a lofs if the price is 25, or upwards; and, upon both fuppofitions, five thoufand pounds, or thereabouts, would replace his twenty thoufand pounds ftock. Four things muft concur in order to occafion any actual lofs to the transferrer of ftock upon this plan. Firft ; the ftock muft fall below 25. Secondly j the transferrer muft be unable to re- deem it at that reduced rate. Thirdly; the ftock muft afterwards rife to a higher price. Fourthly'; if there be (as of courfe there muft be) an interval of time between the fall and the rife, the tranferrer muft continue, during the whole interval, unable to purchafe a quantity of ftock equal to what he had when he obtained the notes. The occurrence and operation of thefe numerous caufes is a mod improbable fuppofition ; efpecially confidering that the transferrer muft be underftood to have received an equivalent in property of fome kind on parting with his notes, and, therefore, may- be expected to be able to redeem his ftock, or to buy an equal quantity at the fuppofed price of 25. Bur perhaps the ftock-notes may have been applied to purchafe land or land-tax.—/^//, at lead ( >7 ) leaft the transferrer has then realized half the amount of his dock at the prefent price, befides the annua) increafe of £, 250 upon his £. 20,000 : and he mud confider that, if he had continued to hold his (lock till the fuppofed period of ultimate depreciation, his lofs would be greater than it can be upon any fuppofition affecting this plan ; which includes the annual gain of £.250 upon the £. 20,000 (lock. Sect. VI. — They might gain too much by it. If, according to the fuppofition above made, fifty millions could thus be brought into circula- tion, the gain to the dock-holders would be £. 2,500,000 fterling annually, and fo in propor- tion, if the circulating medium mould be ufed in lefs or greater extent. But two millions five hundred thoufand pounds Would be too great a gain for the dock-holder, who could not reafonably expect to have fo much, efpe- cially if the fcheme be attended with only part of the other advantages (including that of fafety) which I have dated. Sect. ( '8 ) Sect. VII. — Government mufi partake with them in the Profits. Therefore I come now to confider the interefls of Government and the Bank of England. It may be thought proper that fo much of the dividends as is equal to 5 per cent, on the ftock- notes fhould be kept back by Government : that is, that the payment of (b much of the dividends fhould be fufpended during the war, and that the amount of thef* dividends fhould at the end of the war be divided between the flock-holders, the Government, and the Bank of England, in fuch proportions as may be agreed upon. In fpeaking of the ilock-holder in this place, I mean the perfon who fhould actually poffefs ihe flock at that period , and his fhare of the accumulated dividends fhould then be added to his capital, and the future interefl of it provided for by taxes, unlefs Government fhould then be able to pay the arrears of dividends; I mean the flock -holder's fhare of thofe dividends. In cafe a fufpenfion of dividends fhould be thought improper, fome other arrangement might be adopted, as the mutual interefls of Government and the flock -proprietors might diclaie. If € *s ] If Government could, by this means, fufpend during the war the payment cf dividends to the amount of two millions five hundred thoufand pounds, or even half of that fum, fuch a poft- ponement, or any equivalent advantage to Govern- ment, would be attended with important confe- quences. Future Loans might be negociated on better terms, the price of (locks being fuppofcd to rife as well in confequence o- the advantages given to the ftock- transferrers, as of the taking of a great quantity of ftock out cf the market. The^RE- dimpti ,n of the Land-tax would be facilitated, and the neceflity to fell ftock would be very much diminiihcd, at the fame time that there would be a great increafe of inducements to buy and hold ftock. Sect. VIII — ^ mufi the Bank of England. In regard to the Bank of England, the advan- tages to be allotted to that company would be fuch as might be agreed upon between them and the ftock-transferrers, by way of an annual increafe of the Bank Profits ; and alfo as a compenfation for the charges of management. But there is no occafion at prefent to enter into details upon this part of the fubject. P 2 Sect. ( *o ) Sect. IX. — Quejtion Juggefted. After all, however, there remains the queftion before fuggefted : " Could thefe Stock-Notes be « ufed as a CirculatingMediumjor, in other words, M would they pafs as Money ?" This I cannot determine ; but I fee many con- fiderations which may be fuppofed to operate towards caufing the free and general currency of thefe notes. The fecurity upon which the notes are to circu- late, would be a first mortgage on the pro- perty and industry of the Nation. The fcheme would raife the value of the funds, and would advance our Agriculture, as well as extend our Trade, both foreign and domeftic, by bringing into action a new and great Capital : and all this would tend to improve the Strength of the Nation. Hence greater Safety to every part of our property. These appear to me to be fufficiently powerful inducements to the public to receive and circulate as Caflj the propofed (lock -notes. But C ** 3 But if, in fact, the fecurity for the National Debt is not to be efteemed good for a fourth part of its nominal amount, then, I fear, our cafe is hopelefs indeed. This, however, appears to me to be a groundlefs apprehenfion. At all events, the caution of the mod fearful mud haye fome limits ; and if, through the pre- valence of diftruft, the notes defcribed could not be circulated at 25, they might undoubtedly at fome lower rate. Therefore, the objection founded on fuppofed infecurity, does not reach the principle of the meafure, and can only at the utmoft confine its operation. Sect. X. — The Plan may be improved. This fch^me, if it has any thing of value in it, may undoubtedly be improved; and, perhaps, the indireift and collateral refults from it may be as con- fiderable as its direct and immediate effects. I am not, however, fo fond of my plan as to make an unqualified fuppofition that it is capable of producing fuch great advantages as I have de- fcribed. Yet I do not mean to conceal that I have a ftrong confidence in it i and I own, if I were to indulge ( 22 ) indulge my prefent thoughts, I (hould fay much more of the advantages I expect from it. Sect. XI.— General Ohfervations. But I mail now only make a few g-/,ralOb. sirvations, which mall conclude this Letter, and the trouble which, Sir, you have allowed me to give you. Firft, In a commercial Country there SHOULD BE AS LITTLE DEAD OR UNPRODUCTIVE Capital as possible: but the wealth of indivi- duals colleded in the funds is dead to trade and ge- neral ufe, except only fo far as the dividends are fpent and circulated, and not inverted in the lame funds by way of farther accumulation. And, fecondly, There ought to be no such thing known as want of money ;— and, in rny opinion, no fuch want could be known in a perfectly well-regulated commercial ftate : I mean no want of that kind mould be known or felt by thofe who poflefs property of any kind, whether it confifts of lands, merchandize, or credits well fecured. AH fuch property mould enable the owner to procure a representative Sign capable of general cir- culation. I lay this, fubjedt to many obvious restrictions. Sect. ( 2 3 ) Sect. XIL— 'Originality of the Plan. It was, by thinking for a long time upon thefe two principles, and by turning over in my mind feveral plans for procuring money for fome perfons of property, who found it difficult to obtain Loans, that I was led to the prefent Discovery, if it is one, as I believe it to be. To me, at lead it is new, and fo it has appeared to thofe friends to whom I have communicated it : but if any one fhall difpute the abfolute originality of the thought, I fhall not be much concerned about that, becaufe it is quite certain that in its operation it will be new, and, what is infinitely more material, the advantages of it will be confined, almoil exciufively, to our own Country, where alone fuch a great capital as I have propofed to put in circulation is to be found. I have the honor to be, SIR, London, &C. &C. &C. Sept. 27, 1798. "3W A METHOD OF Increafing the Quantity OF CIRCULATING-MONEY: Upon a new and f olid Principle. LETTER II. ADVERTISEMENT. The meafure fuggefted in the Firft Letter on this fubjecl: having been approved of by a very great number of thofe who are beft qualified to judge of it, — including perfons of ALL ranks and parties, without diftinction; — I confider it as a tribute of refpect due to thofe who have given their fan&ion to the general idea of the plan, to fubmit to them the following detail of its propofed pradical application, together with anfwers to fome objections : — my deiign, in refpect to the diftribution of this Letter, being to limit it, for the prefent, to thofe perfons whofe opi- nions and fuggeftions upon it, as a (ketch dill admitting of improvement, I am delirous of obtaining. 24th June 1799. Aa 4S07i)t> CONTENTS OF THE SECOND LETTER. Sect. I.— Proof of the Necejjity of an Exten- fion of the Circulating Medium ; which had been before ajfumed. - .. Page 7 Sect. II. — Danger of the Landed Interefi. \ \ Sect. III. — Correction of a wrong Swppofition made by fome Perfons. - - 23 Sect. IV. — Prices of Commodities not inconve- niently rafed by Paper Money. . j * Sect. V. — The Advantages of the Plan, how to be difpcfed of. - jj Sect. VI. — How the Plan may be applied to the Relief of the Landed Interefi. - \% Sect. VII. — General Advantages. » 22 a 3 Sect. ( 6 ) Sect. VUl.—Effeff of the Plan upon the Rate of Interejiy and Reduction of the National Debt. - - - Pa g e 2 3 Sect. IX.— Bank of England.— How this Plan may be connected with it. - - 29 Sect. X. — l^e Security and Convenience to the Public under this Plan. - - 31 Sect. XI.— Conclufton. 35 Postscript, ' * - 37 A ME- METHOD, &V. fcfr. &c. Sect. I.— Proof of the NeceJJity of an Extenfwn of the Circulating Medium j which had been before aj/umed. SIR, I n my former letter upon the fubject of my propofal of a method of increafing the quantity of circulating money t I aflumed the necefiity of che meafure to be felf-evident to thofe who give attention to the whole circumftances of the cafe: but, as I find there are feme who deny the want of an increafe of circulat- ing money, I fhould wifh to remind thofe per- fons, that they have overlooked feveral importanc confiderations. It is evident they pay no degree of attention to the impracticability of borrowing money on landed security, in confequence as well of ( 8 } of the high rate of intereft obtainable from Govern- ment ftcurities, and the expectation of future gain by the rife of ftocks, as of the great profits which trade affords ; by the operation of which caufes, the whole circulating capital of the nation is drawn away from land to thofe more profitable objects ; except what is taken up on annuities, — the mod pernicious mode of raifing money, but at this time the ^expedient by which land-owners can borrow. The perfons who maintain that there is at prefent no want of money alfo overlook the poffibility (or rather the certainty) that at fome period, not very diftant, trade itfelf will again fed that diftrefs from the obftrufted circulation of money, which occafioned fuch extremely ferious alarm in 1793 and 1796, and the early part of j 797. I say this without fuppofing a want of general profperiry in the country : the diftrefs I allude to may even be caufed by the increafe of the com- merce of the nation, which poffibly may yet be doubled ; but certainly not without wanting a double capital in money. The late fudden and great increafe of taxes will alfo require an addition to be made to the circu- lating medium—The gold withdrawn from circu- lation muft alfo be fupplied by paper. The ( 9 ) The unufual facility with which money, or Bank- paper, which is money whilft it circulates as fucb t has been procureable for fome time paft by perfons of good credit, by way of difcount of commercial fecurities, is chiefly a temporary confequence of the preparation of money to be employed in the Government loan which was eagerly expected during the late winter and fpring. We all re- member the difappointment of the money-lenders in November laft, when Government borrowed only three millions out of fourteen that the loan was expected to confilt of. Since that time, no doubt, there has been plenty of money for tempo- rary occafions, but not to lend on mortgages or on perfonal fecurity, apart from trade. Thefe very opulent perfons, who boaft of fuch an abun- dance of money, will not inveft any part of it in purchafing the land-tax, nor in loans to private perfons ; except in difcounting bills or notes for the fhort period of fixty days, from which there refults a greater gain than five per cent, per annum. Permanent loans, fuch as are adapted to the flow returns of agriculture, and cannot yield more than the legal rate of intereft, — thefe they utterly decline: and for an obvious reafon. — Land-owners have no means of giving more than five per cent, intereft, — except by the jj deftructive ( io ) deftrucYive means of granting annuities before taken notice of; but perfons in trade feel no difficulty in holding forth to bankers the temptation of more than the flatute-rate of intereft upon loans of mo- ney, by means which cujiom warrants, and which the profits of trade are more than equivalent to. No perfon who has been much accuftomed to tranfact loans on mortgages will deny the want of money, even its entire abfence, in that channel of circulation j nor can any perfon who is moderately converfant with what paries in Weftminfter-Hall be uninformed of the dtftrefs which this want of circu- lation occafions to thofe who, having formerly lent money on land, now want to have it returned, as well as to the unfortunate debtors, who cannot find perfons to aflift them in paying off their debts by taking transfers of the exifting mortgages. It is well known to conveyancers that mortgage debts' are mofi commonly difcharged (even when money circulates freely) by transfers to other mortgagees, and not by actual payment on the part of the land- Owners, who zxtjeldom capable of redeeming their lands : more frequently payment is made by felling the incumbered eftates. Sect. C » ) Sect. U.—Da>i S er of the Landed htereft. Without fomething done to aflift the landed interest, the property in land will change hands almoft univerfally, or to a great extent, within a few years : lands will be brought to fale through the preffure of general diftrefs on the part of the land- owners, and the price, which was for fome time kept up by peculiar caufes, will then fall very low. It is beginning to fall already ; and I have been we 1 .nformed that an uncommon proportion in value of the eftates put up to fale by auction within the laft year and more, have been bought in for want ofpurchafers at a fair price. It is high time that the land-owners mould begm to look carefully to cheir own accommodation « refpea :K .the circulation of money, otherwife 'hey mud be ruined. This is ftating the cafe w,thout exaggeration j for the merchants are o«. «>ng vail fortunes, whilft the )and . owners c are dw.ndl.ng into comparative infignificance, and are m no fmall danger of becoming « heW ers of wood and drawers of water" to their rivals, the men of trade. 82 I SHO ULD ( I* ) I should not ftate the matter in thefe flron^ o terms, if I had not a full conviction that the landed intereft, a very great part of it, is in imminent danger from the circumftances above fet forth ; and if I did not know that dating the cafe in a cold manner, deftitute of energy, would utterly fail to produce any effect upon that clafs of fociety to which this part of the fubject is peculiarly addreffed. For there are natural and permanent qualities in the character of the landed gentry of every country which caufe them to give a languid attention to their interefts as a body, the indolent and tranquil enjoyment of a revenue coming to them almoft fpontaneoufly, without much thought or any la- bour, having naturally the effect of indifpofing them to the confideration of danger at a diftance. Therefore I cannot reafonably expect to be much liftened to by thofe who are mod con- cerned in what I am now faying, unlefs fome of their own order, or others whole judgment they are accuftomed to refpect, fhall fupport me in warn- ing them of their danger, and at the fame time recommend the propofed means of relief; or until a nearer approach of the mifchief, with fome feeling of it, fhall awaken their attention. Sect. ( 13 ) Sect. 111.— 'Correction of a wrong Supfojition made byfome Perfons. It has been fuppofed by fome perfons that, becaufe I have, in my former Letter, mentioned fifty millions or more as the fum which my fcheme might furnifh for the purpofes of circulation, it was my view to have fuch a large fum of money put into circulation whether the occa- fions of the country required it or notj and upon this miftaken fuppofition they have argued, that a proportionable increafe of the prices of com- modities would take place. But I have not propofed any thing like this, though I admit I might have excluded fuch a fuppofition in terms more guarded and lefs liable to be mifunderftood. I did not however fpeak quite incautioufly; for, after mentioning fifty millions or more, I added, " if "Jo much could be employed :" and in a former paffage, I had propofed the fcheme to be put in practice upon the ground and within the limits of neceffity and utility , which I thought a fufficient in- timation of the moderate ufe I wifhed to be made of the plan. But even if I had contemplated an immediate iffue of fuch a vaft quantity of paper money, it would not have raifed any fair objection to the principle of the meafure j and indeed the whole ( H ) whole objection is only applicable to the abufe of the plan, and takes for granted that it is to be afted upon without regard to ordinary difcretion. Sect. IV. — Prices of Commodities not inconve- niently raifed by Paper- Money. There are others who have contended, that an inconvenient increafe of the prices of all com- modities would take place, if any addition were made to the quantity of circulating-money. To this I anfwer as follows: The increafe of money would not, I think, have the effeft of raifing prices in refpect to the necessaries of life, becaufe the quantities of them (fuppofing the money judicioufly applied by bring- ing more land into cultivation) would be increased in a greater proportion than the money ; yet I do not deny that fuch articles of luxury or curiofity as cannot be increafed in quantity by cultivation or manufacture, would advance in price: but I fup- pofe this will not be much infilled upon. Further, this objeaion might with equal reafon be urged againft any other meafure which mould tend gradually to increafe the money of the country ; and _ ( '5 ) and yet fuch an increafe has been at all times, and probably will always continue to be, an object of eager purfuit, notwithftanding the fuppofed increafe of prices confequent thereon. In fact, a moderate increafe of prices is not an evil ; for fuch an increafe tends to the extenfion of agriculture and manufactures, and to ftimulate in- duftry in every pofTible way, and therefore is a great benefit to a country by augmenting the quantity of its commodities ; and this, by its reaction, prevents the rife of prices from being too rapidly accelerated. Even high prices are only difadvantageous when they are occafioned by a permanent, or an extreme fcarcity of commodities, or a very fudden fcarcity, that is, when the demand continues for a long time, or in a very uncommon degree, or fuddenly hap- pens to exceed the fuppiy ; and, in general, a period of high prices is foon followed by abund- ance, and fometirries by extraordinary cheapnefsj the high price operating as an incitement to pro- duce new and greater quantities of the commodity which yields an unufual profit. Add to which, that the rife of prices is, in a great degree, an imaginary evil, fo far as adding to the Hock of money may be fuppofed to occafion the increafe ( i6 ) increafe of prices ; for, in genera], every man's mare of money would be increafed too. The price of labour would rife as well as other things ; and this joint increafe would caufe new exertions of diligence, by inciting or obliging many perfons to work who are now idle, or to work with greater diligence than before. I except, however, the cafe of perfons who live on fixed incomes, which they are incapable of enlarging. To them, every increafe of prices cannot but be a difadvantage. It is an unavoid- able inconvenience, neceffarily attendant upon the flationary pofition they hold. But it is not to be expected that the general progrefs of fociety is to be retarded, in order that thefe perfons may feel no manner of inconvenience from the circum- ftances which keep them in a ftate of inactivity, or hinder them from bettering their fortunes. The vigour of the nation cannot be kept down to the par of their imbecility ; nor would this finally be any benefit to them, but very much the contrary : even if all neighbouring countries mould, by uni- verfal agreement, confent to be flationary too, — ceafing their progreflion in the arts and enjoy- ments of life. However, in the end, even perfons thus circumftanced would, — I mean many of them, —derive advantage from the operation of the plan, by ( '7 ) by partaking from colIateraI an(J acdden '"the general profperity, and *// of them would beeaedoytheteduaionofcaxes.whic" one of the mo ft probable and moft ex ten five! not,ced m a fubfequent part of this Letter. dijpofed of. It has been faid, I underftand, by fome perfons, oil iSa?S ^ in ^-the P ft ock *oWer. the great advantages I havefpoken of. I h A vb faid the emoluments to refult from the Plan ought to be divided between the Stock-P™ i -or. £ ; Bank of E „g,a nd) and the Q J^ ( 3t ' the nat,on at *&,) in fuch proportions a. -J be agreed upon, of courfe, JjJ and Z" able proport.ons. Surely J me mare ^ InTfT mUft ^ 8iVe " t0 tke ^-transferrer/ 2t y f n T toinducethemtoen ^^p- P"ty m the execution of the fcheme xv -"^tlhaveinWew^rbavefu^Xd. ^ Amo this may be done in the fo.lowing manner: -Let the prmlege of iffi.bg the propofed ^ ( i8 ) be given to the Subfcribers to future govern- ment loans : and as the Subfcribers, with this bonus given to them, would take the loans on better terms, in proportion to the advantages they obtained, the whole Public would by that means largely participate in the profit to refult from the fcheme. Sect. VI. — How the Plan may be applied to the Relief of the Landed Inter eft. My deiign from the beginning was, and ftill is, to accomplifh, if I am able, the procuring of afiiftance to thofe who want money upon the fecu- rity of land to enable them to pay their debts, or to improve their eftates; and even this not for their fakes only, but for the general good of the country. If the fcheme I have propofed mould take a more extenfive range, and become applicable to other purpofes befides the relief of the landed intereft, it will be an accidental refult. I was looking for one thing, and it may turn out that I have found another of more importance; or rather an application of what I had in view to a more important fubjecl:. I believe this is what com- monly happens in fuch cafes. But ( '9 ) But (in relation to the landed intereft), I think the plan in queftion may be adapted to the accom- modation of the land proprietors in the follow- ing manner : Let the perfons who are to obtain the notes upon the fecurity of their transferred flock engage to lend the notes upon mortgages of land, and to depofit the mortgages in the Bank of England within a limited timej their transferred (lock being a fecurity for the performance of this engagement. And let the Mortgages, when depofited, be de- clared by the act of the Legiflature, which is to eftablifh the whole meafure, a further and collateral fecurity for the amount of the circulating notes ; — each mortgage for the amount of the notes lent thereon. Thus the note-creditor, however well Satisfied he might be with the original fecurity of the ftock, would have another fecurity of probably twice the amount of the notes, — a fecurity far fu- perior to that of an undefined, and, in fome meafure one may fay, an imaginary quantity of gold depofited in a Bank. Every million of notes would be repre- fented by four millions of (lock and about two mil- lions fterling in land !<— I do not, however, mean to reprefent this additional fecurity as necessary to give ftreagth to the original plan. I propofe it as c 2 fubordinate C *° ) fubordinate and convenient merely, not at all as being efiential. The mortgages when depofited would be ca- pable of being transferred like other mortgages, but always fubject to a general lien for the amount of the notes lent thereon j and might be difcharged by bringing in to be cancelled an equal amount in notes of the fame kind j thefe being cancelled, (that is, an equal amount, not the identical notes lent upon each mortgage,) the land might be re- conveyed to the proper owner for the time being, difcharged of the mortgage. And, at the fame time, the transferred ftock connected with the mortgage fo releafed, might be re- transferred tQ the perfon to whom it fhould then belong. By this means there would be a confrant ten- dency of fome portion of the notes to return into the Bank to be cancelled j which would prevent an exceflive accumulation of the quantity ; fome pe- riods might alfo be fixed for this purpofe, and with this view j whereby the gradual and final extinction of the notes might be provided for, if a change of circumftances (hould require fuch extinction, This operation of lending upon mortgages {hould be left, I think, to the difcretjon of the INDI- ( 21 ) individuals by whom the loans are made, both in refpect to the titles to the mortgaged lands, and the quantity of fecurity, and, within fome limits to be prefcribed, the periods of repayment alfo ; except that fome fuperintendence would be proper merely to ascertain that the loans were made bona fide upon the lands appearing in the feveral mort- gages, and not employed for any other purpofe in the firfl: inftance. — Of which the depofit of the mortgages, with proper infpection, would furnifh good evidence. The rifk of the fecurity would upon this footing reft upon each individual lender; but that rifk, after the plan fhall have been acted upon for fome confiderable time, would be much lefs than it is now in fimilar loans ; becaufe, as by the means pro- pofed there would be eftablifhed a very extenfive regifter of mortgages, the difputes and frauds which too often attend fecurities of that nature would to a great degree be avoided. This reftricYion of the loans (fo long as it mould be thought right to continue fuch redaction) to landed fecurities would in itfelf limit the quantity of the propofed notes to the amount of the demand of money by land-owners defirous of borrowing. From them the money would be abforbed into the general ( 22 ) general circulation, by payment of their debts, and by their making agricultural and other improve- ments. — By this means, alfo, tradefmen who are diftreffed for want of more early payment than they now receive, would be enabled to carry on their bufinefs and make their own payments with greater facility and more comfort than they can do at prefent. Sect. VII. — General Advantages. Thus, public industry would receive a new impulfe, employment would be given to many who are now in want of it, lands now unimproved and wafte would be brought into cultivation, houfes and other buildings would be repaired or erected, canals would be completed that are now left unfinifhed for want of money, bridges would be built, mines would be worked, new sources of trade would be opened, and commerce in a thoufand ways would be invigorated and put into a ftate of activity. This may feem to fuppofe a more free ufe of the propofed money than could probably take place through loans on land only j but in whatever way, or to whatever extent, the money mould be em- ployed, the mafs and quantity of ufeful and neeeflary commodities, ( *3 ) commodities, and confequently the comforts of the people, would be inereafed by this additional ftimulus given to the national exertion. This in- creafe would be proportionably greater than the increafe of money, fuppofing the latter to be added to with difcretion and by flow and gentle degrees, and not by an inundation of new reprefentative- figns ; for it muft all along be borne in mind, that public wisdom is to direct the operation and to be employed in controlling the tides of this new money. Sect. VIII. — EffeR of the Plan upon the Rate of Intereft, and Reduction of the National Debt, One of the mod direct confequences to be ex- pected from my plan, is the lowering of the rate of interest. If it fhouid be reduced generally below five per cent, that reduction would take away a part of the gain originally computed in the plan. But this would be counterbalanced by the good effects which a low rate of intereft always produces, and by other beneficial confequences which the plan may be made to accomplifh. Indeed, this lowering of the rate of intereft would be, above all other means, I eonceive, the heft ( *4 ) beft auxiliary to the fund eftablifhed by Parliament for relieving the nation from the preffure of it! GREAT DEBT. A most happy event it would be, if the five per cent, flock could be reduced to four, and the other ftocks in like proportion. A reduction to that extent would be the fame thing in fubftance as a gratuitous extinction of a fifth part of the na- tional debt j which confifts altcgether, in re- fpeft to the right of demanding payment, in the annuity payable by the nation to its creditors. Nor would it be difficult to effect a reduftion to this amount by the help of the plan in queftion i fuppofing the funds fhall ever again come to the prices they were at in 1792; a fuppofition which this plan would alfo tend to realize. I admit that this reduction can only accompany the fall of the market- rate of intereft. This operation of diminifhing the annual out- going might begin precifely at the period when the Sinking Fund would lofe part of its beneficial efficacy, in refpe<5t to buying up the public debt, on account of the near approach of 3 per cent, flock to par j in which flock purchafes could then no longer be made with advantage, till the whole of the 5 per cent, and 4 per cent, flocks fhould be bought ( *5 ) bought up. And though the latter (locks would be above par, the public would derive no gain from that circumftance, though the (lock-holder might feem to fuftain a lofs by having his (lock paid off at par. But the near profpecl: of fuch an event would keep thofe (locks from attaining the prices they would otherwife reach. As, at the period I am now fpeaking of, the annual produce of the Sinking Fund could not, for the foregoing reafons, be applied with great ad- vantage in buying up the national debt, I fubmit it might then be better difpofed of, as a premium, in conjunction with the privilege of iffuing the notes in queflion, towards inducing monied men to lend large fums of money at a rate below the then current rate of intereft to be applied in paying off at par thofe debts which now carry a high intereft. It will be foon found that I am not fpeaking with- out confideration when I talk of borrowing below the current rate of intereft, if that is not apparent already. In this way, though the nominal amount of the debt might continue to be the fame as before, dill the nation would be relieved by the reduction of the annuity in which the debt fubftantially confifts; and Taxes might then be repealed to a proportion- D able ( »« ) able amount, or the Sinking Fund might be en- larged, fuppofing the whole taxes to be fuflained fome time longer : or, the/aving might be applied in part to each of thefe objects. To explain this propofed operation by an ex- ample : — Let us imagine an eftate to be incum- bered with a debt of £. 100,000, at 5 percent, in- tereft, or^. 5000 per annum. Then conceive the owner to be pofTeffed of £. 1 0,000 ' in ready money, which if applied towards payment of the debt would reduce it to £. 90,000, and the annual inte- reft to £. 4500. But the owner, having regard as well to his own future convenience as to that of his family after him, is defircus that his eftate fhould be liable to a lefs annual outgoing; and therefore propofes to give the ten thoujand pounds of which he is pofiefled, as a -premium to induce fome perfon to pay off the debt on the eftate, and to accept a transfer of the fecurity at a lower rate than 5 per cent. And, in order further to abate the intereft, he offers to give to the lender fome extremely 'va- luable privileges of which he may be fuppofed to have the command. Add to this an expectation then formed, that the current rate of intereft will fpeedily fall below 4 per cent, by the operation of fome known caufes. Under ( *7 ) Under thele circumftances, we may fuppofe that the new lender would advance his money ac a lower rate than 5, or even than 4 per cent. — Grant it might be 3 per cent. — And if this mould be the cafe, the annual incumbrance on the eftate will be reduced from £. 5000 to /. 3000. I think the analogy is fo plain, that it is hardly necefTary to add that the £. 10,000 reprefents the produce of the Sinking Fund for a ftiort period, fuppofe two or three years (more or lefs)j and the privileges hinted at are correlative to the iffuing of notes to circulate as money on the credit of ftock.— The reft is quite obvious. Supposing this to be underftood and aflented to, I may now go on to fay, that if, at the period above alluded to, the produce of the Income Tax mould be applied in the fame manner towards the reduclion of the rate of intereft, the effeft produced in thac way would be greater, and the tax itfelf might properly be made to cezkfooner, than by its application towards extinguishing the capital of the public debt. And in this refpeft, as well as in the general tendency of the plan to produce an abatement of d 2 taxes, ( 38 ) taxes> pcrfons of fixed incomes would have the fatisfaction of feeing their own advantage connected with the public welfare; a circumftance which I have before alluded to, and which I have great pleafure in thus explaining and confirming : for I am anxious that my propofal mould produce nothing but good ; if that can be. I allow, that-fo far as the produce of the Sinking Fund and that of the Income Tax are called in aid of this reduction of the annuity, the reduction would not be gratuitous j it is true : — but this does not hinder my firft fuggeftion on this point from being alfo true, namely, that the reduction in queftion might be brought about merely and folely by the help of this plan.*— I believe it might, confidering the command over the rate of interefi which it would give to thofe who hold the reins of govern- ment: a molt important control in the hands of thofe who are to manage on the part of the debtor ! Yet it (till may be proper to make the Sinking Fund and Income Tax co-operate to the fame end j by which means a greater and more fpeedy effect will be produced towards leffening the national debt, than could be managed by the unaffifted operation of this plan. There ( 29 ) There certainly is not any thing that can fo ef- fectually promote this reduction of the annual out- going, as keeping the circulation of money con- ftantly full, and by that means lowering the rate of interefr. j which hitherto there has not exifted the means of doing, but which by a right ufe of my plan may be accomplilhed : and this makes it be, what I humbly conceive it is, — a great political en- gine j in a word, a new power. I cannot refrain from faying Jo much ; for either it is that, or it is NOTHING. Sect. IX. — Bank of England. — How this Plan may be connetled with it. It appears from the evidence before the secret committee on bank affairs, that there were times within the ten years which preceded the Bank's ceafing to make payments in cafh, when the directors deliberated on reducing the rate of dis- count: but they never did it ; and though the rea- fons why they did not are left to be conjectured, it appears to me moft clear that one of the principal caufes which hindered the eftablifhment of that fa- lutary regulation, was an uncertainty on the part of the Bank, whether they could conftantly keep the circulation full, or whether they might venture to encourage ( 3° ) encourage the abundant circulation which a low rate of intereft would tend to promote. How foon, under the prefent circumftances, the Bank may again think fit to leflen the amount of their difcounts, I do not pretend to conjecture; but forne confiderable effect in that way might pro- bably be produced by a repeal of the prefent reftric- tion on the iffue of eajh. i I now come to fliew how my plan may be con- nected with the eftablifhment of the Bank of England. I submit that that Bank, though it has peculiar interefts of its own, may be moulded to purpofes of public utility within the limits of a juft and reafonable regard to thofe its interefts. It ought not to (land in the way of the general good of the community. Therefore, with due regard to the Bank inte- refts, I go on to fay that there ought to be a proportion between the Bank capital and effects, and the amount of the notes circulated on the credit thereof. I presume to fuggeft, that that proportion ftiould be publicly known and regulated by law. This ( 3» ) This publicity would at all times protect the Bank againft a run upon it, which can only proceed from panic fears and a diftruft of its fecurity, occafioned by ignorance of its actual fituation. The amount of the circulating notes of the Bank, that is to fay, circulating on the credit of the Bank capital ought never to exceed a fixed fum ; let us fuppofe twelve millions. All circulating bank paper beyond that amount ought to reft on other fecurity. Now to apply thefe principles; let the Bank iffue its own notes inftead of the notes I have called (lock-notes. Let there be no diftinction. But let the Bank be permanently protetted by law againft paying cash beyond the amount of its own proper or reftricted quantity of notes — its own debt — the twelve millions above mentioned. Now fuppofe twenty millions to be in circulation, or any given fum exceeding twelve millions, the Bank might be liable (fuppofing the prefent re- ftri&ion taken off) to be called upon for cajh to the amount of twelve millions j — but the lurplus fum they could not be required to pay in caih i ( 3* ) cafh; therefore they could not fay their own eftablifli- ment was endangered by the additional quantity of notes circulated on the credit of ftock. But if twenty millions were in circulation, the ge- neral call on the Bank for cafh may be fuppofed to be proportionably greater than if only twelve millions circulated ; therefore the Bank mud keep a greater proportion of gold in their treafury to carry on its bufinefs; and for this, as well as for the manage- ment of the additional iflue of notes, the Bank fliould receive a compenfation, including a reafon- able profit.—I fhall for the prefent reft the matter here fo far as concerns the Bank, conceiving that all its eflential interefts are thus fully taken care of. Sect. X. — The Security and Convenience to the Public under this Plan. In refpeft to the Public, I cannot difcover any objection that they can make to the increafed cir- culation of bank notes upon the principles now laid down. They have been content with an almoft total reftriftion of the iffue of gold in payment of bank notes, and why fhould they not be equally well content with having a moderate proportion of thofe notes permanently exempted from being paid ( 33 ) paid in caft there being other and molt abundant fecunty for their amount ?_To fuppofe any incon- ven.ence one muft make a previous fupp f ltion hat all the notes of the Bank of England, circu- lating upon the credit of their own capital, are re qu,red to be paid in cam, with a fettled purpofe not to let ,t return there. But this fuppofes the natural death of the Bank , a perpetual ceffation of its ufe as a bank: a moit chimerical fuppofition ! But <ven grantmg this infinitely improbable event to take place, (till the furplus quantity of notes would be reprefented by a fourfold quantity of flock and a double value in land, and thefe remaining notes would then be more convenient and necelTary than ever: for the Bank of England notes, its own proper and rented quantity, being fuppofed ex- fngmlhed, the furplus notes would be eflenti.il, neceflary to the purpofes of commerce, if any were luppofed to remain. These notes would therefore continue to circulate, and by fuitable proviflons to be made by the Legiflature at that time, might be liquidated in gold and filver as occaffon might require. To fuppofe the contrary, is to fuppofe trade annihilated and all occafions for remittances from place to place within Great Britain to be put an end to for ever. So that it is only by .magming feveral events to take place, each " ot ( 34 ) of them involving very high degrees of impro- bability, that the circulation of the propofed notes once begun can be expected ever to ceafe. The fuppofition of the extinction of that quantity of notes which is peculiarly to belong to the Bank of England, I need hardly fay is made by way of argu- ment, and not with any expectation of its ever being realized. But the very putting of fuch a cafe, even in this way, may appear alarming to Tome j therefore, I might propofe that the whole profits to refult from the new quantity c? notes fhould be, annually or half yearly, fub- jected in the firft place to indemnify the Bank of England againfl fuch lofs or detriment as this fcheme may bring upon them j that indemnity being made good out of the dividends of the transferred Hock. I believe fuch a guarantee (under circumftances fo very improbable) from the new fyftem to the old one, would not de- prive the former, the new fyftem, of any part of its efficacy, or caufe the ftock- proprietors to abate their expectations of gain from the operation of the fcheme. The effect of fuch arrangement would be, that the Bank of England would have conftantly a profit upon twelve millions, or what- ever might be the reftricted or the actual amount of their circulation, not exceeding twelve millions; and the ftock transferrers would have the profit upon ? 3 whatever ( 3S ) whatever might at any time be the additional cuan- «y, fubjecl, in refpe* to the latter, to a proper dedoa, „ out of the dividends of tfae tran ^ r P ed ftock for the charges of management and otherwife •" favour of the Bank._I believe this will appear eafily .ntelligible to thofe who will take the trouble ftfoiHm a little upon the point: but I am fen. fiWe th,s part of the cafe requires rather more attention than the reft.-It is, however, of the leaft confluence, as it applies on]y ^ ^ ^ improbable of all the fuppofitions which the cafe fequ,res to be made: and if it creates a difficulty in the m,nd of any reader, it may be pafled over without any difadvantage to the right comprehen- sion of the fcheme: for it is only an anfwer to a very refined and even imaginary objeflion. Sect. XI — Conclufion. BuT.theonginalqueftion recurs :_Is there a want of circulating-money? And alfo the other queltion, -Win the Public receive and circulate ibefe notes « ^-Concerning both of which queftions, if I exprefiid naturally and without referve all that I think and feel, I ffi ou l d manifeft fuch g ^ confidence of having made good what I have had in ■en 2 1 view, ( 36 ) view, as would fcarcely feem confident with that deference with which I mean, Sir, to fubmit the whole matter to your fuperior difcernment; as I muft ultimately do to the judgment of the Public. For the fake of brevity, and for other reafons, I have omitted fome things that might be faid in confirmation of my pofitions, and perhaps even fome explanations that may be thought necefTary by thofe who are fond of minute ftatements; but I think it bed to leave the matter here.— Permit me, therefore, to conclude with what I cannot but think very honourable to myfelf— I mean, a declaration of the fincere and refpe&ful attachment with which I am bound ever to be, SIR, Your devoted and faithful fervant, &c. cVc. &c. London, iZtbJune 1799. "SMS" - POSTSCRIPT- A small number of Copies of this Second Letter having been diftributed, I have the fatisfadion to find kis allowed, by perfons in whofe judgment I have great reafon to confide, that the Scheme is practicable, and may prove useful in its frefent Jhape.-But I neither expeft nor defire its adop- tion till the necefiity of it (hall be generally acknow- ledged.— Perhaps the univerfal admiflion of this necefiity is very near at hand ; for at this moment an uncommonly great Scarcity of Money (fuch as was predicted in page 8. of this Letter) is felt in Trade, as well as by the Landed Interest; and this Scarcity, if permitted to continue and in- creafe, (which it will do, unlefs checked by timely precautions,) will be productive of extremely dif- trefiing consequences. There were inferted, in the diftributed Copies of this Letter, fome particular objcStims which had been made to the propofal, as dated in the nrft Letter, together with anfwers thereto. Thofe ob- je&ions are now omitted, the latter part of the Letter which contained them having been re-pnnted for ( 3* ) for that purpofc.-This was done in compliance with a wifli from the quarter from which the objec- tions were communicated to me. I have not heard of any other objections which, in my opinion, (judging with as perfect an indif' ference as I am able to do in my own cafe,) apply fairly and correftly to the plan ; fuppofing the Explanations and Modifications contained in this Second Letter to be duly confidered. Z\th $tj>t. 1799. *%&* Printed by A. Strahan, Printers- Street, London.