The large amount of bullion contained in the vaults of the Bank of England has been triumphantly referred to by the Free-traders as a proof, almost conclusive in itself, that the country is flourishing under the system of unrestricted importations; and the Protectionists have been taunted with the failure of their prediction, that a large import of foreign grain would drain the gold from Britain. These assumptions rest upon a most superficial view of the causes which have combined to restore bullion to the Bank during the last two years; and they argue a total forgetfulness of the calamitous monetary panic of 1847, occasioned by the demand for gold to meet the large importations of foreign grain consequent upon the famine. The ruinous effects of the adverse state of the foreign exchanges upon our commercial and manufacturing classes, in 1847 and 1848, are matters of history; and the unprecedented advice given by the Government to the Bank, to charge _eight per cent_ on its advances, as well as the virtual abrogation of the Bank Act of 1844, are incidents in our mercantile annals too startling to be soon forgotten. It is not difficult, if we keep these things steadily in view, and also take into account the disturbed state of Europe for the last two years, to understand the reason why the returns of bullion have been so great. The principal sources of the steady accumulation of gold during the last two years, in the face of continued large imports of grain and provisions, may be enumerated as follows:— 1st, The sale of foreign investments by parties in this country, and the stringent enforcement of all moneys due to them abroad. 2d, Forced sales and consignments of British goods at prices ruinously low to the producers. 3d, A considerable reduction in the stock of raw material. 4th, A diminution in the quantity of gold coin required to carry on the internal trade and domestic expenditure of the country. This diminution has been caused by the fall of prices, whereby the same quantity of commodities is represented by less money—by the sudden limitation of the employment of labour—and by the reduced means of the people for ordinary expenditure. 5th, Remittances from foreign countries, caused by the revolutionary movements in most of the Continental states. 6th, The return of the absentees from abroad, whose expenditure has been estimated as high as £20,000,000. Allowing this to be a great exaggeration, and estimating it even at a third of the amount, the result becomes most important. 7th, By other minor causes, amongst which we may particularise the return of sovereigns to this country from Belgium, in consequence of the alteration in the law which regulates the currency there.