Britain, with the authority of government, by which twenty millions of gold comes to be exported to the rest of Europe for commodities. This increases the gold, through all the other parts of Europe, twenty millions; and affects the price of commodities only in proportion of twenty millions to the whole commodities of Europe It therefore constitutes the amount of the disadvantage: But the advantage to Great Britain consists in the profit of the WHOLE TWENTY MILLIONS, which she exclusively enjoys.

The foregoing premises being admitted, it is proposed to government to raise supplies in a way, that far from being onerous to the nation, shall on the contrary be serviceable; by tending to the increase of agriculture, manufactures, commerce, and national improvements of every description: at the same time that these supplies will enter the public coffers, without taxation.

The scheme projected for effecting this, differs essentially from any former modes of raising money in this country;' in as much as it is founded on a plan by which the government becomes the lender instead of the borrower; and consequently receives interest, instead of paying interest!

PLAN.

1. Government shall cause to be passed an act for the fabrication (with all due stipulations and precautions to prevent counterfeits) of.. . millions of paper money, in bills or notes for various sums from L. . . . to L. . . . . said paper money to be made a legal tender in all cases whatsoever in the United

I In several of the former British colonies in North America a nearly similar plan, on a small scale, was adopted about the year 1739,-and was attended with the greatest success and advantage to those colonies; by rapidly increasing their settlements and commerce.

2 Twenty or 25 millions may be sufficient to begin with: but no doubt, in a few years, 50 or 60 millions might be issued without inconvenience; and even with considerable advantage to the state.

Kingdom of Great Britain; and the counterfeiting the same made felony of death.

2. The money thus created, to be emitted only on loans and prior mortgages, on unencumbered freehold' estates in the United Kingdom, of double the value of the sum so lent: Said loans to be for a term of not less than one year, nor exceeding ten years; and at an interest of five per cent. per ann. : payable half yearly: Moreover, one tenth of the principal to be reimbursed at the expiration of each year, (if the loan is for 10 years, and in like proportion for other terms), and loaned out again on the same conditions, for a limited number of years; or till it may suit government to stop renewing said loans; and thereby calling in and destroying said paper money.

3. The interest only arising from this emission of paper currency, to be applied to the public service.

4. The bills or notes forming this emission to be styled and called MORTGAGE NOTES, as being essentially such.

5. That for the more easy ascertaining the clearness of titles, a separate act shall be passed, to oblige the recording of all conveyances, mortgages, &c. throughout the United Kingdom: as is already practised in Middlesex, Yorkshire, Scotland; the West Indies, France, and the United States of America.2

6. That for the purpose of carrying this plan into execution, and managing the same; there shall be established in London, The General Loan Office, to be directed by commissioners appointed by government. And in each county town, an agent, or a subordinate loan office, to receive the interest and instalments falling due in each county; and forward the applications made

Under proper restrictions and precautions, this might be extended to copy-hold and leasehold estates.

2 This may be made another considerable source of public revenue, at the same time that it would be of the greatest public utility; as tending to preserve clear and indisputable titles, and preventing fraud and imposition.

By the frequent failure of the Country banks who have issued notes; paper money, as it is at present constituted, is likely to lose public confidence. Government by assuming its privilege in this respect, and preventing all circulation of notes to bearer, but such as emanate directly from its own authority, (similar to the coin of the realin) would re-establish a suitable confidence, to the great advantage and security of the nation; as well as benefit to the public treasury.

for loans in such counties, with appropriate observations, to the Commissioners of the General Loan Office in London; who are to be alone authorized to direct and superintend the whole concern, relative to the fabrication, emission, and loaning the said paper money, agreeably to law.

7. That to prevent the evil that might attend an over quantity of paper currency being issued, government is to proceed by degrees in authorizing the emission of the same; and thus prudently feel the proportion necessary, which it could not previously. calculate. The course of exchange with foreign countries, will also be an additional means of regulating emissions.

8. And still more effectually to prevent an over quantity being extant at any one time, government to allow an interest at the rate of 4 per cent. per ann. for all sums lodged in the several Joan offices, during the time the owner suffers it to remain there. By this means the due proportion of money that should be current will find its level, and will adapt itself, from time to time, to the wants of the country, the occasions of commerce, &c.

9. The Commissioners of the General and County Loan Offices, to take an oath and give security for the due and faithful execution of their respective offices; and account annually.

[A detailed account of the method of carrying this plan into execution, is annexed, and some new devices and contrivances, for preventing or immediately discovering counterfeits of the mortgage notes, will be given separately, should the plan be adopted, in whole or in part.

Some of these are of such a nature, and require so many different and able artists to execute them, as to render successful forgeries impracticable. This can never be the case in respect to metallic coin.]

Some of the advantages resulting from the foregoing plan, if properly executed, would probably be :

1. That one half of the real value of the freehold estates of the United Kingdom, might be converted into active capital; thereby

furnishing the country at large with a medium of trade, and of a kind that could not to any purpose be exported or hoarded to the injury of the state (as is the case with specie); at the same time one of the most secure ;-each bill or note being, in fact, a fractional part of a mortgage, on real estate of double its value!

2. The present Bank of England notes are said not generally to circulate above 30, or 40 miles round the capital: Whereas the proposed mortgage notes, from their peculiar nature, and acknowledged security; as well as their being a legal tender in all cases, to the revenue and to individuals; would necessarily have an universal circulation, through the United Kingdom.

3. From the foregoing peculiarities and advantages relative to the mortgage notes, they would soon in all probability render useless the present country bank notes; which ought moreover, for the security of the public at large, to be prohibited by an act of the legislature; and the profits of those banks and bankers, to be only of the same nature as those of the private bankers of the capital. By this means the circulation of the government paper, (the mortgage notes) would be immediately increased and extended, "and the many evils and distresses prevented, which are well known to arise from the frequent failure of the provincial bankers, (who circulate their own notes, without any pledge of solidity to the public)." Wealth and Resources of the British Empire.

4. This secure, abundant, and universal circulating medium, (as well from itself as the manner of issuing it,) will extend national improvements of all kinds, by enabling all proprietors of unencumbered estates, to borrow with facility, free of any extraordinary expence, and on legal interest, one half of the real value thereof: And as no doubt there will be numerous applicants for such easy, equitable, and beneficial loans; money will thereby become plenty in the country, with all its attendant advantages.

5. A great annual sum, and continually increasing (as the advantages of the operation become more sensible) will arise to government for interest (as also for stamps); which, after deduct

1 Paper money, of any description, ought only to be fabricated and issued under the immediate authority, and in the name of the sovereign or state, who ought to be its surety. (See contra.)

ing charges, may be considered as a permanent and effective revenue to the state.

6. A considerable profit will also arise to government from the wearing, and in many instances total loss, of a great many of the notes for small sums; (as is found to take place with the Bank of England notes) sufficient perhaps to defray the expences of the County Loan Offices, &c. to which certain fees of office will also be attached.

7. In short, government will derive all the advantages which the chartered and country banks have hitherto enjoyed,' to the extent of the proposed emission of paper money; at the same time that both government and the public will have a far superior security for such emission: since no money is to be issued but through the medium of mortgages.

'It has been asserted that the increase of the Bank of England profits, by the increased circulation of their paper since the Restriction Act passed in 1797, nearly amounts to 700,000l. annually!! Why should not the government, consequently the nation, derive this great advantage? The right of coining money is a prerogative of MAJESTY.—Bodin (in his Republic, book i. chap. 10.) relates that Sigismund Augustus, King of Poland, having granted this privilege to the Duke of Prussia, in the year 1543, the states of the country caused a decree to be passed, in which it was asserted-" that the king could NOT grant that privilege; it being inseparable from the crown.” Ought not the right of making and issuing paper money, in the form of BANK NOTES; or any other circulating medium; to be equally a prerogative of the crown, and also unalienable? And can there be a more favorable occasion of exercising that right, when the nation is now accustomed to paper money, is sensible of the many advantages attending it, and is in want of an increased circulating currency?—Should it however be deemed impolitic or unjust to interfere at this time in so great a degree with the profits of that useful corporation, the Bank of England; might not this objection be done away, by employing the Bank itself to issue and receive the mortgage notes, on a commission; or by otherwise modifying the plan? The restraining the Bank of England from issuing a larger amount of notes, than they issued previous to 1797, when they paid in specie, would be no infringement of their charter; as it was granted on the express condition "that they should be prepared at all times to exchange gold and silver coin of the realm for their notes." Nor would it probably be considered any hardship, since on resuming the payment in specie, they will find it necessary, for their own safety, to reduce their circulation;—which, without the proposed issue of mortgage notes, would prove a serious inconvenience to the public.