PUBLIC POLICY : NAVIGATION 829 
mischief and restore confidence. The current diagnosis of A-D. 1776 
the causes of a crisis seemed to be mistaken, as the disaster 
of 1847 had followed on a period of depression, when the 
issue of notes_had been well below the average. The only a Zouk 
speculation that occurred took place in connection with hng the 
railroad shares, and had no influence on general prices. pnd of 
Subsequent experience has confirmed the view that the 
importance of bank notes, as an element in commercial 
transactions, is not so great as had been supposed; but the 
result of the legislation of the period has been to give much 
greater freedom for banking. The unique position of the oD 
Bank of England now consists chiefly in its responsibility for reserve. 
maintaining a reserve on which the fabric of credit ultimately 
rests. The granting of permission to found a number of 
rival institutions has been amply justified. There has been 
an increasingly wide and varied experience as to the guidance 
of commercial affairs through the increased facilities of credit 
which are afforded to the community. 
276. These great improvements in the means of transport These 
and in the facilities for trade synchronised with a change in of com- 
the commercial policy of the realm. The principle of laissez merce 
faire, which had been adopted with regard to industry, in the 
beginning of the nineteenth century, was gradually recognised 
as applicable to the foreign commerce of the country. Under 
the mercantile system, in its various phases, an effort had 
been made to regulate the maritime trade, so as to build up 
the power of the country by the Navigation Laws, to stimu- 
late industry by protective tariffs, and to foster agriculture 
by means of Corn Laws. Those objects were to some extent 
incompatible, and the means, which were adopted for pursuing 
one of these ends, were apt to prove injurious as regards 
another. The thirty years, which succeeded 1820, saw a 
complete abandonment of the old method of interfering with 
the course of trade. The first step in revolutionising English gave rise 
policy was taken by the merchants of London, who presented agitation 
a petition in 1820%, which lays down the principles of by London 
\ Hansard, N.S. 1. 179. The petition led to the appointment of a Committee of 
he House of Commons, the report of which expresses a general agreement with 
he views of the merchants. Ib. 11. 546.