JB/002/154/001

520px

Click Here To Edit

Setting aside the extreme cases here in question there
is but one cause of depreciation to which Government paper
stands exposed and that is the forcing of the market. — So this
cause of depreciation the proposed paper alone is not exposed
it will be issued only in proportion to the demand for it and is rendered for ever incapable of exceeding it. and
The produce also will be employed in strengthening the Security and
lessening the load of the same Commodity at Market

It may however be urged that though the proposed
paper can never be sold under the par price, it may in consequence
of the demand for its correlative hard cash cease to bear that price.
That such would be the effect in the event of a Civil War or a serious invasion
will scarcely admitt of doubt: and that an effect of the same nature
though to a less amount should be liable to be produced by other causes
can hardly be regarded as improbable —

'To this it may be answered
1. That admitting (for argument sake). that such a result would occasionally take place
to a certain degree still this would not operate as an argument against
the institution of Reproposed paper unless such a result were to appear
more likely to take place or likely to take place in a greater degree with
regard to it than with regard to any other circulating Government Securities.
2. That though such a State of things as the objection supposes be conceivable
yet no ground can be Stated either in point of reason or experience
for regarding it as likely ever to be realized. — So what ever extent
the amount of the proposed paper may have arrived at the time of the
supposed extra demand for cash, it cannot have attained to it but
in consequence of a proportionable preference given to it in comparison
of hard Cash. — And the Cause of that preference is a circumstance
not exposed to change It consists in this viz . that principal with interest
amounts to more than principal alone. £103 is more than 100£ and the
ratio between the two is not less at one time than another
For the purposes of Expenditure within the limits of the British Empire
the proposed paper could never lose its Superiority And as to ot extraordinary a demand
for the precious metals for exportation to foreign Countries, no such Case appears ever
yet to have been realized. The scarcity of bullion in 1796 in the opinion of the most competent people

Identifier: | JB/002/154/001 "JB/" can not be assigned to a declared number type with value 2.
Date_1		Marginal Summary Numbering
Box	002	Main Headings	annuity notes
Folio number	154	Info in main headings field
Image	001	Titles
Category	copy/fair copy sheet	Number of Pages	2
Recto/Verso	recto	Page Numbering
Penner	richard smith	Watermarks	w warren 1832
Marginals		Paper Producer	benjamin cooke griffinhoofe
Corrections		Paper Produced in Year	1832
Notes public		ID Number	893
Box Contents