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we had a "redundancy of capital” (that is money, mind); and that we laid it out in wild ventures, because of the Corn-Bill. We must all along bear in mind, that, by capital is meant money.
By a system of commercial policy, disgraceful to the country, and to the age, we restricted the importation of foreign agricultural produce, and THEREBY lowered the rates of profit and of interest until capital, excluded from the channels of beneficial investment and reproduction, existed in a state of redundancy; the low rates of profit and of interest induced those who were possessed of
to employ their accumulations in every species of hazardous venture which was proposed to them.
Here is the whole of it. Prevented from trading in foreign
But we would not receive the cheap and good timber of Norway, in order to enrich the timber-mer-it, chants of Canada; we gave the exhausted soils of the West India islands a monopoly for supplying the home market with sugar, in order to enable the planter to perpetuate slave cultivation; and above all, we closed our ports against the corn and other things, we laid our admission of foreign corn, in order “redundant money" out in shares, to enrich the proprietors of land, by enabling them to lay a grievous and bonds, and the like. iniquitous tax upon the food of the Dr. TORRENS; thou Doctor of people. We forcibly contracted the Politics, with head as empty as field of commercial enterprise; we choked up the advantageous chan- that drum that used to call thee nels in which additional investments to thy swaggering parade, how might have been made; we clung to
measures, the necessary tendency of happens it, that such an effect which is to reluce almost to nothing was, by the same cause, never prothe surplus of reproduction above
expenditure; and THUS we occa- duced before? But let us prosioned such a redundancy of capital, ceed. and such a depression in the rates of profit and of interest, that new and hazardous ventures presented the only openings in which accumulations could be employed.
This desire to engage in new ventures for the purpose of obtaining that adequate return for money which the ordinary transactions of business no longer afforded, rendered the spirit of speculation epidemic loans and foreign mines, joint stock throughout the country; foreign
So, mind, we HAD the "accumulations" (of money, of course) and the Corn-Bill and other anti-companies, and inordinate speculafree trade measures preventing usual demand for accommodation and tions in merchandise, created an unus from using the money in fair currency. and safe trade, we flew to new and hazardous adventures with our money"; but, then, we must have HAD the money to lay out in safe trade: pray remember that, TORRENS.
Stop, stop! Oh! the devil: this will never do, Doctor TORRENS! What! You were telling us, but now, that it was our "redundant capital," our capital which "existed in a state of redun
arose out of the "redundant capital," which we possessed before the loans took place! What nonsense the fellow talks here! How the stupid creature bothers him
from that dear empty head of thine self! However, let us hear him comes the assertion, that the foreign loans and the like, "created an unusual demand for accommodation and currency"; that is to say, that the foreign loans and like created an outcry for more money, instead of having, as you had just asserted, been themselves created by redundancy of money already existing!—And yet, DocTOR BLACK thinks this " explanation of the matter satisfactory enough"!-But, now comes the grand secret.
When the series of cause and effect is thus completed, it appears obvious and self-evident that the measures contemplated by Mithenisters for placing the circulation of the country banks upon a more secure foundation, can have little tendency to prevent the recurrence of the calamitous re-action which is
now experienced. These measures beneficial. My objection to them is, may, perhaps, be to a certain extent that they do not go to the root of the evil; and that whether they be or be not adopted by the Legislature, the country, after the present crisis has passed away, will continue to be exposed to periodical returns of regorgement and revulsion . . . . . To The Directors of go at once to the root of the evil, and the Bank of England, and the coun- thus to prevent the periodical recurtry bankers, disregarding the legiti-rence of these ruinous shocks to mate principles of their trade, made public and private credit, we must issues upon long and unconvertible abolish those absurd and iniquitous resecurities, and created a redundant strictions on the importation of food circulation; the consequent high and material, which limit the quantity price of commodities, encouraging of capital; which can be beneficially import, and checking export, with employed in domestic industry; and the engagements to be made good which render profit and interest on account of foreign loans and fo- lower in England than in other comreign speculation, turned the balance mercial countries. of payments and the course of exchange against us; the Bank, in order to protect itself against the extraordinary demand for gold, suddenly contracted its issues; and THE CRASH CAME.
Precious nonsense! So, then, the "root of the evil" is the Corn-Bill, and the want of other free trade; and the evil is "a limit to the quantity of capital" and consequent foreign loans and share-schemes and panics, though the drum-headed fellow had be
The devil it did! And so, here was a "redundant circulation" created by the foreign loans and the like! when the very basis of the argument is, that these loans fore asserted, that the Corn-Bill
and the other restrictions on trade were the cause of "a redundancy of capital." But let me put a few questions to this Dr. Torrens. COBBETT. Dr. TORRENS, pray, how long has the present CornBill been in force?
DR. TORRENS. Ever since 1815. COBBETT. How long have the other restrictions on trade existed? DR. TORRENS. Oh! these twenty years and more.
COBBETT. Say several hundreds of years, Doctor..
DR. TORRENS. Well; that may be; but, we are not to be fools because our ancestors were.
COBBETT. Very true, Doctor; nor does there seem to be any law to compel us to be wise for a similar reason. But, Doctor, do you recollect, that the Corn-Bill, or that the other restrictions on trade, ever produced foreign loans, or share-schemes, before
DR. TORRENS. What? COBBETT. Do I you, say, recollect, that such consequences were ever produced before by the Corn-Bill and by want of free
DR. TORRENS. I really do not understand you.
COBBETT. Not understand me!
Why, you acknowledge, that these restrictive laws have been in force for many years, for eleven years at least; and, I ask you whether you recollect that they ever before produced any such effects?
DR. TORRENS. Upon the "honour of an officer and a gentleman," I do not recollect any thing at all about the matter.
COBBETT. Not recollect! Why
Come, then, DOCTOR BLACK, do take this matter up. Do show us why the Corn-Bill should have produced these effects in 1824 and 1825, and never before nor since. The Corn-Bill has sins enough to answer for without answering for the sins of the papermoney. Indeed it is itself one of the sins committed by the papermoney. And now, DR. BLACK, in conclusion, let me say, that it is not very candid in you to play off this great flashy fool, TORRENS, for the purpose of causing your readers to believe that which you would be ashamed to put forth under your own name.
I only want you to recollect for THE following account of these eleven years. Well, then, per-loans is worth preserving. It is haps you recollect what has passed such a proof of folly and of insince last Christmas. famy as was never before beheld.
A Statement of the Cost of the following Loans, compared with their present Value, and shewing the Loss resulting therefrom.
Thus, the sum lent was thirty-" of the tobacco duties, and an
starved. The base creatures little
one millions and odd; the sum to eighth of the customs, are apbe received for this was fifty mil-"propriated for the payment of lions and odd; and the sum that" the debt in England."-Now, the whole is now worth is twelve this is all a barefaced lie. There millions and odd. So that, in- is no revenue! It is a newspaper stead of a gain of nineteen mil- cheat, and nothing more. But, lions, there is, up to now, a loss of no matter. It will injure nobody nineteen millions! But, in the that ought not to be ruined. Every end it will, I am convinced, be all one that deals in "securities" of loss, the whole of the thirty-one any sort ought to be starved; and, millions! This is a pretty little a very great part of them will be present to our friends abroad. It is surprising what lies are still swallowed by the greedy creatures, who deal in these funds, as they are called; or, securities; that is a still better name. The interest does not get paid; but, our newspapers contain most flourishing accounts of the "finances" papers are paid for this, which is of our friends. The following, intended to make fools believe, from the Morning Chronicle, of that these "Republics" are just the 4th August, is a specimen :-about like that of North America! "A Bogota Paper, of the 25th of It is all a cheat altogether. The 'May, reached the North and fellows who call themselves a "South American Coffee-house Congress, have not, perhaps, forty "yesterday. It contains no allu- shirts amongst every thirty of "sion to the movement of PAEZ. them. In short, it is all one grand "The Decree of the Colombian piece of cheatery, and all the Government, consolidating the bonds are not, in my estimation, "financial affairs of the Repub-worth a farthing.
“lic, is published. It is dated
"the 19th of May. It accords "with a project, of which the "particulars were before the pub"lic some weeks ago. The whole