general in those countries, and deluged us with their bankrupt stocks, for which nothing but specie will be taken in exchange; and when the commencement of hostilities, both in Italy and Germany, has occasioned the usual demand for gold, as the most portable of the precious metals, to meet the necessities of war. The way in which the dreadful evils consequent upon commercial credit, and consequently universal employment, being kept dependent on such an unstable equilibrium as that which gold must ever, and most of all in such circumstances, afford, is perfectly evident. What is wanted is something to _equalise the supply of currency_; to contract paper when the precious metals are abundant, and, consequently, credit is becoming dangerously expansive, and to expand it when they are withdrawn, and, consequently, credit is in danger of being ruinously contracted. Sir R. Peel's system does just the reverse of this: it pours paper in profusion through the country, and consequently fosters absurd and improvident speculation, when specie is abundant, and draws it in suddenly, and with frightful rapidity, the moment that the precious metals begin to be withdrawn, either from the effect of extended importations or foreign warfare. To go right, and obviate the dreadful evils which their system has introduced, we have nothing to do but to establish a monetary policy _precisely the reverse_. What is wanted is a _sliding scale for paper-money_,--a system which shall tend to contract paper issues when specie is abundant, and pour them forth with restorative and beneficial vigour the moment that it begins to disappear. Thus, and thus alone, it was that Mr Pitt enabled the country to combat the dangers and surmount the difficulties of the revolutionary war.[9] Under Sir R. Peel's system, the nation, and every one in it, would have been bankrupt when the bank stopped payment in 1797, and we should long ere this have been irrecoverably rendered a province of France. [9] Bank of England notes in circulation,-- 1796 £10,729,520 1797 11,114,120 1800 £16,854,809 1810 21,019,609 --_Alison's England in 1815 and 1845, Appendix._