ensation, generally; and I believe that when Christianity is talked
of as part and parcel of the law, it means the Christian dispensation,
and not the doctrines of the Church of England.

_August_ 1, 1833.

* * * * *

_Defence of a Metallic Currency_.

I always have maintained, and I always shall maintain, that the only
proper basis of our money system is a solid gold circulation. Upon that
basis I considered our monetary system fixed since the measure of 1819,
followed up as that was by improvements in 1826: I really think the
principle of those measures the best that can be applied to our
circulation. Detailed payments being made in gold, the larger payments
might be made in paper, and depend on credit; the true support of the
credit of whatever paper might be in circulation being, that it was
liable to be paid in gold on demand at any time, at the bank of England,
or at the branch-banks of the bank of England; so that, if any man chose
not to give credit to the bank of England, he had only to demand gold
for his paper; or any creditor might, at once, demand from his debtor
payment in solid coin. That however will, to a certain extent, not be
the case under this bill. I am aware that, eventually, the holder of the
paper can repair to the bank of England and demand gold as heretofore;
and must, therefore give credit to somebody for the amount. That I
consider a depreciation of the paper of the bank of England. It is a
depreciation to which if I had been a bank director, I would never have
consented; indeed, I cannot understand why the bank agreed to this
proposition. I am persuaded that, ere long, great inconveniences will
occur from the provision; and those inconveniences will be felt in a
depreciation of bank paper. What is the object of the arrangement? It is
either intended to give the bank a power of issuing paper which, under
the existing system, it does not possess, or to facilitate credit
generally throughout the country, and enable the country banks to
undertake operations which they could not otherwise attempt. It is
evident that the noble earl himself sees that the consequence will be to
facilitate and increase the issues of the country banks. That will
augment all transactions; and the result must be a great increase of
prices, and the ruin of many individuals. Nothing of this kind would
happen, if the present system were continued; namely, if the bank of
England continued