that occasions another to be sent, adds in like manner to
the side of the exports, and appears as profit. This year
the balance of trade will appear high, because the losses
have been great by capture and by storms. The ignorance of
the British Parliament in listening to this hackneyed
imposition of ministers about the balance of trade is
astonishing. It shows how little they know of national
affairs--and Mr. Grey may as well talk Greek to them, as to
make motions about the state of the nation. They understand
only fox-hunting and the game laws,--_Author_.

I come now to show the several ways by which bank notes get into
circulation: I shall afterwards offer an estimate on the total quantity
or amount of bank notes existing at this moment.

The bank acts in three capacities. As a bank of discount; as a bank of
deposit; and as a banker for the government.

First, as a bank of discount. The bank discounts merchants' bills of
exchange for two months. When a merchant has a bill that will become due
at the end of two months, and wants payment before that time, the bank
advances that payment to him, deducting therefrom at the rate of five
per cent, per annum. The bill of exchange remains at the bank as a
pledge or pawn, and at the end of two months it must be redeemed. This
transaction is done altogether in paper; for the profits of the bank,
as a bank of discount, arise entirely from its making use of paper as
money. The bank gives bank notes to the merchant in discounting the bill
of exchange, and the redeemer of the bill pays bank notes to the bank in
redeeming it. It very seldom happens that any real money passes between
them.

If the profits of a bank be, for example, two hundred thousand pounds a
year (a great sum to be made merely by exchanging one sort of paper
for another, and which shows also that the merchants of that place are
pressed for money for payments, instead of having money to spare to lend
to government,) it proves that the bank discounts to the amount of four
millions annually, or 666,666L. every two months; and as there never
remain in the bank more than two months' pledges, of the value of
666,666L., at any one time, the amount of bank notes in circulation at
any one time should not be more than to that amount. This is sufficient
to show that the present immense quantity of bank notes, which are
distributed through every city, town, village, and farm-ho