IN OUR MONETARY SYSTÉM.

423

Without going at large into the reasons which support their expediency, and which are to be met with in detail in the work already quoted, the author will place here a summary of the altera❤ tions in our monetary system as now established by law, which he considers essential for placing it on a sound, safe, and useful footing.

1. The substitution of the ancient silver standard in use previous to 1773, for the far more vacillating and inconvenient gold standard first established as the sole legal standard of value in 1816.

2. The abolition of the monopoly of the Bank of England, and the substitution either of a system of freedom of competition among note-issuing companies of such breadth and credit as would secure the confidence of the public, as in Scotland; or, if the danger of so great and sudden a change from the present system, and other arguments in its favour already noticed, should render unity of issue preferable the establishment of a National or State bank-disconnected with private banking or other business, and managed by a board of parliamentary commissioners, who should be appointed in such a mode as may remove them

The rejection of silver as our standard of value in con junction with gold has raised the value of the standard by the extent of the difference now existing between the market and the Mint price of silver, or by about eight per cent. This is a perfectly gratuitous and uncalled-for enhancement of the national and all private money-burthens. It was pleaded in 1819, that we were bound to restore the ancient standard at whatever sacrifice. But the ancient standard, which was silver, has not been restored, and the omission of silver has augmented unnecessarily and unjustly the sacrifice that has been forced upon us.

most effectually from the influence of the minister. The notes of this bank should be legal tender, accepted of course in payment of taxes; and their value preserved at par with the standard, either by convertibility into ingots, according to the plan of Mr. Ricardo, at the source of issue-or by making it the duty of the board to regulate their circulation from time to time by the price of the standard metal in the bullion market.

3. The issue of paper by banks in the country, if permitted at all, should only be allowed on the deposit of securities to its full amount, in guarantee of its payment.

4. A tabular statement of the average price of the mass of commodities should be published at proper intervals, by competent authority, as a measure of exchangeable value, by reference to which the public may be enabled to detect, at a glance, all future variations in the value of the legal standard.

These improvements combined, will, we are inclined to think,-and these only,-afford to this great, industrious, and commercial people, what it has a right to demand of a government which undertakes to regulate by restraints the instrument of exchange-a sufficient ample supply of a perfectly secure circulating medium; and, if not complete invariability in its value, as near an approximation to this important quality as is obtainable, together with the means of detecting and guarding against injury from such variations as are inherent in every standard measure of value which consists of but a single commodity.

A bad system of weights and measures is an injury to commerce, very similar to a bad instrument of exchange or measure of value. There is much room for improvement in our present system, and it is to be hoped that this will not long be neglected. The proposal made by Mr. Vernon to direct the sale of all grain by weight instead of measure, is very deserving of attentive consideration.

In commenting upon the existing restrictions on the instrument of exchange, the usury-laws are not to be overlooked. Their absurdity and mischief are, however, now so generally recognized, and the probability of their speedy repeal is so great, that it is needless to dwell upon the subject.

426

CHAPTER XVI.

RESTRAINTS ON THE CIRCULATION OF

LABOUR.

Law of Settlement.—To be counteracted by giving facilities to Migration.

THE law of parochial settlement in its present form operates very perniciously in preventing the free migration of labourers from one part of the kingdom to another, according to the shifting demand for their labour. It ties them down in masses to particular and very narrow localities; where they are certain of a maintenance, although unable to find employment, and consequently indisposes them to seek it. It equally prevents the employment of industrious workmen in parishes where they have no settlement, by forcing the employers within those localities to find work for their settled labourers, however idle and unworthy. The evil has been increased of late in many places by the introduction of the labour-rate. Were this system rendered general and permanent, as some persons wish, the mischief would soon reach its climax ; every labourer would be adscript to the soil, and soon assume the idle, sulky, and hopeless character of the serf. Industry would have received her deathblow.

It is, perhaps, more easy to find fault with the

$ MIGRATION SHOULD BE AIDED..

427

law of settlement than to correct it. Some system of settlement is obviously indispensable in a poorlaw. It has been strongly urged that birth alone should be permitted to confer a settlement. But this will leave the greatest evil of the present law, unchanged. Labourers would still cling to the place of their birth, and refuse to leave it in search of employment. The principle of the Scotch law, which makes industrious residence for a certain number of years give a claim to settlement, seems to be preferable, though not wholly without its disadvantages. It is remarkable, that in Belfast and other towns of the north of Ireland, where the inhabitants have been forced to adopt a voluntary poor-rate, this is the principle on which they have found it advisable to limit the claims upon their funds.

The tendency of every settlement-law must be in some degree to check the spontaneous migration of labourers. Though it cannot be removed so long as the poor-law remains, its influence may be effectually counteracted by an improvement in the mode of employing and treating parish paupers. When an improved administration of the poor-law shall have drawn a broad line of distinction between these and independent labourers-when parish work has become, as it ought always to be, the most irksome and the worst paid of any-and independent labour, as a consequence of this and other improvements, is more amply remuneratedthere will, probably, be no further stimulant needed to induce the labourer to quit his parish in search of work, nor any difficulty in his obtaining it.

But though it may be expected from a labourer