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.