ter, that no such reforms are, by either party, seeing war desolate Europe; and they vainly Intended, or wished for. AMERICAN STATES.An act which shall be inserted in the next sheet, has been passed by the Congress, laying an embargo upon all American shipping, in their own ports, with a view, as they pretend, of making all the belligerent nations feel the effects of the measures which those nations have, repectively, adopted with respect to the American commerce. "We can 66 " no longer sail the sea in safety," say they, "let us, therefore, shut up our ports, lay up our ships, and thus punish the tyrants "for their injustice towards us." This language differs somewhat from what we heard about six weeks ago. Instead of invading Nova Scotia and Jamaica, the heroes of the Atlantic draw themselves into their shell, and wait with patience for the effect of the privations, which they fancy themselves in a state to inflict. The embargo, laid, during last war, lasted only about six weeks, at the end of which time the whole country was nearly in a state of commotion. While it lasts now, there can be no revenue, except from the cargoes, on board of ships which have not yet arrived; and, I must beg the reader to bear in mind, that there are no internal taxes, no taxes except those collected at the custom-house upon foreign goods; for, twenty thousand pounds a year, which is about the sum collected from internal resources, is, in fact, nothing at all. The Congress think, however, that this measure will have an effect upon us; but, I am decidedly of opinion, that even our West India colonies are able to hold out a year, and more, without any supplies from the American States; and, I am quite sure, that they cannot keep in their ships for three months. I should suppose, that the passing of this embargo law has, at once, added a third, at least, to the price of all European goods and all West India produce, and this, too, observe, at a time when taxes, if raised at all, must be laid upon internal objects. What must be the consequence of long continuation of this embargo any one may easily guess. Yet, an embargo was the only means of preventing the loss of all their shipping, unless, indeed, they had chosen to do what reason and justice dictated, namely, to demand a rescinding of the French decrees, and, if refused, to join us in the war against France. This their rancour against us prevented them from doing; and, of course, they adopted the measure of an embargo. These modern Dutch have, at last, fallen a victim to their own greediness and envy. They took delight in Dilounts, hoped to continue to profit from the miseries of all other nations. It was owing to them, that the wars in St. Domingo were so long and so bloody. They carried provisions to both parties. They supplied both with powder, ball, and all the means of mutual destruction. While some of them hired their vessels, at an enormous price, to carry off. the fugitive masters and mistresses, others got possession of their plate and jewels, through the means of a jew like commerce with the revolted slaves. There was not a town or settlement destroyed, in the pillage of which they did not share. From Cape François they carried off the ornaments of the 'magnificent church, which was there burnt to the ground; and, I remember seeing, at Wilmington, in the State of Delaware, the marble slabs, that were taken up from before the altar piece. The vulgar wives of the unfeeling villains, who commanded their ships, were seen swaggering about, in the years 1792, 3, and 4, with the rings and snuff-boxes and ear-bobs and bracelets of the once-opulent inhabitants of the Cape, who not unfrequently recognized their valuables upon the persons of the new possessors. A whole casket was sometimes obtained from the negroes in exchange for a barrel of flour. Men, not worth a dollar, were, by means like these, suddenly elevated to great wealth, and now form no inconsiderable part of the great men of that virtuous republican country. This line of conduct has, at last produced the effects which we now see, and I am not at all disposed to lament their existence.In the debate upon the King's speech, the Earl of Galloway said :- "My Lords, I "wish it was possible to animadvert with "satisfaction upon the conduct of the Uni"ted States of America; local knowledge, "obtained by me at the early periods of "the French revolution, enables me to form ever, my intention to dispute the accura cy of the proclamation lately issued; nor "the principle of respect which is due to "national ships of war, as applicable to the governments and nations of Europe: but as merited by America, if all the detail of "that transaction was before your Lord ships, I am inclined to think you your"selves would question. However, my "Lords, while the American navy is con"fined to a few frigates, the compensation "that has been made may not be of mate"rial import; how far it may affect us here"after, time only can shew."--These sentiments are worthy of an English naval officer. Lord Galloway knows the Americans, and, of any one who does know them, I am never afraid of the opinion.The embargo is not, perhaps, strictly speaking, an act of hostility; yet, when it is evident, that it has been determined on only as affecting us, or only in consequence of measures by us adopted, we should have a right to consider it as an act of hostility. That, however, would not be wise. The embargo will not, for a long time, do us any harm; and, in the meanwhile, France, Spain, and their colonies, not forgetting Portugal under its new masters, will suffer most severely. The quantity of American produce, carried into Spain and Portugal, was immense: Provisions of all sorts, the want of which will produce terrible effects. Nor will the want of coffee and sugar be lightly felt, in France. We all know how considerable a part of the comforts of the people consist in the use of these commodities. We have them still, in the usual abundance, and, in one way or other, we prevent the rest of Europe from having them. This is real dominion of the sea. If this state of things continue for a year or two, which it may without any injury to us, the merchant ships of all other nations will be rotten, and the whole world will acknowledge, that we have a maritime dominion in reality as well as in name.In one respect, however, the embargo, in America, will, in all human probability, be productive of serious consequences: I mean with respect to the "monish" of our late Lord High Chancellor, whose protest is, I perceive, just published, in a pamphlet, by that worthy fellow-labourer, Mr. James Perry of the Morning Chronicle. The "monish" was, indeed, transferred into American hands; but, as I have before observed, it would not, previous to the embar go, have been an easy matter to transmit it to England. Now, it will be impossible, until, at least, the embargo be removed, and then the monish will not be worth above ten shillings in the pound. This is a striking instance of the imperfection of human foresight, though possessed in the highest known degree. One would have thought, now, that this monish, lodged in a country, so distant from the seat of war, so free from all the dangers of invasion and of public bankruptcy, and watched over, withal, by a relation so near and dear to the proprietor and so well situated for the obtaining of that intelligence that would enable him to prevent the effects of every untoward event; one would have thought, that monish thus situated was beyond the reach of chance. But, alas! there arise, all of a sudden, event after event, that render its situation as perilous as that of a purse, hung out upon a tree by the highway side. It is very singular, too, and must naturally be somewhat provoking, that while the fund-monish in America is become of such depreciated value, the value of the funds, in England, not only holds its own, but is actually increasing. The pension, however, of four thousand good pounds a year, which the noble Baron Erskine is to receive for life, out of the taxes in England, the Americans cannot touch. That, and also the pension for life, which the Baron's worthy son will, doubtless, receive out of the taxes, when he comes home, are safe in spite of all embargoes. Mr. Lyon cannot lay his merciless fingers upon them. They, as Mr. Fox said, are as sacred as house and land. rather singular, that Mr. Perry of the Morning Chronicle, who has said so much. about American affairs, should never have said a word, even by way of parenthesis, about Baron Erskine's monish. The letters of A. B. which I am positively assured were written by a nobleman, or, at least, by a person having a title, suggested numerous evils, that must arise from a war with America; but that of a stoppage of fund-monish appears never to have occurred to him. Did he forget it? Hardly. But, he thought perhaps, that it was something beneath his consideration. The “maniac," however, did not omit to mention it.There is, at present, little more to be said about the Americans. Like a snail, they have drawn themselyes It is within their shell; and, as it will not be worth our while to attempt to crush them, they will push out their heads again, by and by, and will have lost all the arrogance that they formerly discovered, Their intention may, however, be to get in all their ships, and then to send out privateers. We must, therefore, be upon our guard. It will not be amiss to give our commander, upon the Halifax station, orders to place a ship, of some sort, near the mouth of each of their principal rivers, with an order strictly to search every ship that is bound inwards, and to proclaim, that, if any one chooses to go out, bound to any part of the English dominions, she shall have free and safe passage. But, great care should be taken not to let any ship go off for the dominions of the enemy.-This is all, which, at present, it is necessary for us to do, except, perhaps, the issuing of a declaration, on the part of the king, offering the Americans advantageous terms of trade with us, during the war, provided they will have nothing to do with our enemies.The present appears to be an excellent time for crushing the French faction in America. The election, which will come on soon, in consequence of Mr. Jefferson's notification of not standing another contest, will divide the people, upon the question of " war, or no war;' and, if the "no war" party prevail, the French faction is put down for many years to come. INDIA HEMP.It is stated, in the newspapers, that the ministers have entered into a contract with the East India Company to supply our dock-yards with hemp. This contract it is morally impossible for them to fulfil; but, I greatly fear, that it will be made the ground of a terrible demand upon the taxes of England. The affairs of that company are in a state that can no longer be disguised. They must come again to parliament for money. The unieasonablenes, the injustice of this, will be evident to every man; but, the hemp argument will be made all-powerful. We shall be told, that we cannot have hemp without supporting the Company; and, that, without hemp, our navy cannot be supported. The hemp ought to be grown here, in England, where we have plenty of land and plenty of hands. To be dependent upon India would be worse, than to be dependent upon Russia. In short, this hemp contract, if the report be true, will pove a most alarming evil. PORTUGUESE FMIGRATION.-Already, we are told, that a hundred thousand pounds, taken out of the taxes of England, has been sent off, in specie, to the Brazils, to assist her most faithful majesty. This is only a little beginning. We shall have to pay half a million a year for this emigration, in one way or another. It will be a continual drain upon us. And, this, after all, is the result of that "glorious event," which was to produce so much good to England! When will this commercial and colonising rage cease to beggar and enslave us? Never, till the political corruptions, which are found to be so conveniently carried on through the medium of commercial and colonial associations, are, by a radical change, banished from the state. When that may be, I know not. I lament to say, that I do not, at present, perceive the elements of such a change; and I must content myself with the hope, that, some how or other, they will arise out of the present disordered state of things. BANK OF ENGLAND PATRIOTISM.-An odd association of words, the reader will say; but, he will have seen, in the newspapers, a long statement respecting the, generous intention of the Bank "to come," as it is called," to the assistance of the "country." It was my intention to have made some remarks upon the real nature of this generous intention; in the letter, however, which will be found below, this task has been executed in a manner much better than I could hope to have executed it. I, therefore, point out this letter, as being well worthy of the attention of the public, who ought to keep a watchful eye upon all the transactions between the ministry and the Bank, transactious in which the disposition of millions of money is insolved. It is curious enough, that both the parties the ins and the outs, claim the honour of this proposed "saving "to the public. The reader will see what sort of a saving it is; and, I would fain hope, that there will be found some few members of parliament, who will have the courage to speak of the transaction in appropriate terms, Westminster, 29th January, 1808. BANK OF ENGLAND PATRIOTISM. SIRAs you have not hitherto noticed the second Report from the committee' on Public Expenditure relating to the Bank of England, I beg leave to send you a few observations on the facts disclosed in that paper. Difficult as it is to follow any branch of the public accounts of this country through the endless mass of intended intricacy and expanded confusion, in which they are involved, it is still more difficult so to manage them in argument, as to leave 1 any hope of their arresting the attention of the public; nor should I have made the attempt in this instance, but from a thorough conviction, that the Bank of England is not entitled to the character of patriotism, which is so often vaunted on its behalf; and, that any man who will lend his assistance to extort from it even a few additional thousands, will, in the present state of the country, be rendering a real service to the people.-In commenting, however, on the report, it will be impossible to pass over the conduct of the House of Commons. If, on the one hand, it should clearly appear, that the Bank has been uniformly actuated by a sordid love of growing profit, it will be not less manifest on the other, that, although those profits have been continually pressed on the attention of the House of Commons, they have as constantly been passed over with a degree of neglect, that, in private life, would approach to criminality. You will recollect, Sir, that in the year 1802, Mr. H. Thornton, who two years before, as Governor of the Bank, had suggested and negotiated with Mr. Pitt the renewal of the Bank charter, published a work on paper credit, in which there are the following passages. p. 68. "The pro From the interest on their ca " prietors of the Bank themselves are not likely to approve of any dangerous exten"sion of their own paper; both they and "the directors know the importance of "confining the Bank paper, generally speaking, within its accustomed limits, "and must necessarily be supposed to pre"fer its credit, and the paper credit of the "nation, to the comparatively trifling con"sideration of a small increase in their "own dividends;" and again, p. 146. "There can be no doubt that the credit of "the Bank of England has been at all pe"riods most anxiously consulted by its di"rectors, and that present profit has uni"formly been only the second considera"tion." I cite these two passages merely to prove for the present, how repeatedly a patriotic liberality of sentiment has been. urged on the part of the Bank in this particular; and, I now beg your attention while I proceed to the more important point of estimating their profits.-The various sources from which they are stated to arise are taken from the report itself, except only the seventh and eighth items, which are supplied from probable conjecture; but, the reporters themselves, with a caution, which on such occasions usually characterises their productions, have not stated the total probable gross amount: according to my calculation, it is as follows:" 1. pital lent to government, 2. From the management of the 3. " ary, 1807... From the allowance for the 4. From the annual allowance 5. From the allowance on the S. 6. From the allowance on loans 8. From the interest on the float- 265,818 5,687 4,000 1,898 20,000 190,000 50,000 ment average balances, stated by the report at £11,000,000, at 5 per cent 550,000 10. From the interest on their motes in circulation on the 1st February, 1807, £16,621,390, at 5 per cent 831,069 Making a total gross profit of £2,269,052 Before we dismiss these items, however, it will be necessary to make a few remarks on them. The first five articles can admit of no dispute. The sixth, namely, the profits on loans and lotteries, will only embrace a difference of two or three thot➡ sands per annum, and therefore is not worth disputing. The seventh, of undivided capital, is obviously similar in all respects, so far as regards the question of profit to a deposit, as it can make no difference, so as the capi tal is there, whether it be advanced by the government, by the merchants, or by the Bank itself. The eighth and ninth items of balances are properly called, deposits, and are so admitted to be, and the tenth I fear, of the notes themselves, it will hereafter appear, is not less a deposit account than the other three-But, it should not be suppres sed, that although the report considers the balances and the notes as both productive, of profit, the Bank itself does not admit. that the balances are any further productive than as they tend to augment the amount of notes in circulation. The reporters, therefore, labour this point, and though it is still involved in some little obscurity, because the interest is gained; but if the reporters had found it convenient to state the amount of the securities, held by the Bank, on which they gain an interest, it would easily have appeared, that the amount of those securities infinitely exceeded the amount of the notes in circulation, and were no measure whatever of those notes, and it is even very possible to put a case to shew how the Bank may be gaining a double profit on the same sum at the same time.-Suppose, for instance, that the cash balances, accumulating and lying in the exchequer from day to day, were actually appropriated to the payment of the dividends as they came in, that is to say, that no notes should be, in any manner, reissued in lieu of those cancelled by the cash balances, except in payment of the dividends; now, as the notes in circulation would evidently decrease in the same proportion in which the cash balances increased, one could scarcely consider those cash balances as yielding a profit to the Bank; but if those cash balances, as they accrued from day to day, should be (as they are) exchanged for exchequer bills bearing an interest, and at the same time should furnish (as they might) the means of making the usual advances on omnium bearing an interest also, which advances would, I presume, be only drawn by government from day to day as they were wanted, it is clear that those cash balances, merely by means of an interior arrangement, might furnish the Bank with the means of accommodating two sets of customers with the same sum at the same time, from both of whom they might be receiving an interest, and that too, without necessarily increasing the amount of notes in circulation, as the advances on omnium might not be immediately drawn, and of course without diminishing their power of making advances in other respects. it embraces a knowledge of the manner in which the business of the Bank is conducted, and over which the directors have always studiously thrown a veil, yet sufficient is shewn to prove, that the balances most materially increase the profits; and it is certainly possible to shew, what is highly probable in itself, that they may increase them to the full extent of their amount.-What, for instance, should prevent the Bank from holding one set of securities, of a nature permanent and not negotiable, for the amount of their undivided capital and the average amount of the balances in their hands, and another set of a more current nature, for the amount of their notes in circulation?Mr. Thornton expressly states, that there is a fallacy in the use of the term deposit, under which head the balances are classed, and that it is equally applicable to the amount of the notes in circulation, which he accordingly calls disposeable effects: and why should it not be also applicable to the undivided capital? Or, why should not one deposit pay an interest as well as another ?Deducting the amount of bullion, consisting probably of a few prize kegs of Spanish dollars, and a little gold for the service of government, what should prevent the Bank from making an interest of capital, balances, and notes, in short, of all the securities of all kinds which they can accumulate, except their own diseretion? Is it that the government, or the merchants, are so rich that the Bank can never find a borrower when they want one, or that the market is so bare of exchequer bills, that they can never find a seller, if required? And what possible necessity can ever now exist for government paying up their advance?-Even in the year 1797, the amount on which the Bank gained an interest, exceeded the amount of their notes in circulation by three fourths. It exceed--But, Sir, if the evidence of the report ed, too, the joint amount of notes, and the deposit account or balances; and, if ever then, (when they were liable to pay in cash) the amount of the advances, on which they received an interest from government alone, exceeded the amount of their notes in circulation by one fourth, what probable limit may be affixed to those advances now, when they are withheld by the fear of no consequences, but what are of a remote operation, and in case of unlooked for events, are morally sure of a ministerial indemnity. -The only difficulty in the case seems to consist in conceiving how any banker can gain an interest on the security deposited and the note circulated at the same time, as the security is the medium, throngh which should fail to shew that the gross profits of this establishment very much exceed two millions per annum, although it was stated by Mr. Pitt on the renewal of the charter in 1800, that they would not probably exceed £400,000 per annum, yet it certainly does not fail to shew the enormous amount of those profits. "For some successive years," says the report," an annual and "temporary bonus of 5 per cent has been "added to the accustomed dividend of seven per cent ;" that is to say, for some successive years the Bank proprietors have been receiving 12 per cent interest for their money. But why did not the report tell us for how many successive years? How long was it after the renewal of their charter by |