Currency fallacies refuted, and paper money ... - University Library

66 PAPER MONEY VINDICATED.sive and numerous failures in consequence of ademand for gold from the country bankers, whohad supplied paper money on good security !theBank of England was saved from experiencingsimilar disgrace and ruin, only by thepassingof the Bank Restriction Act.4. After the passing of this act, distress on thepart of the agriculturist was at an end.Pricesrose as taxation increased, pari passu, till, at theend of the war, a quarter of \^eat sold fordouble its price at the beginning.The advanceof actual price was in unison with the claims oftaxation, after the first five years ;and it kept soclose to them throughout the whole period of 19years, that in 1815, the average of the assumedprice was 82^. 8^^.per quarter, while the averageof fltc^Mfl/ price was 81.9. 2\d. In 1820, after 24years, during the latter five of which the issuesof paper money hadbeen much tampered withand curtailed, the difference, on the average ofthe entire period, was only that of 87^. to 85.?.per quarter. Suppose the natural price ofwheat to be 32.y. instead of 33.y. 6d. the assumedand actual price would be identical.If anything could banish from the minds ofthe timid, or of those who are unpractised in thedetails of business, allapprehension that a freeissue of paper money must lead to an unlimitedrise of prices, itwould be the comparison exhibitedin these two tables, of the connectionof actual price with the amount of taxation.Every million added to the debt had its corres-