The Industrial Revolution

Bibliographic data

Monograph

Identifikator:: 1027928145

URN:: urn:nbn:de:zbw-retromon-159926

Document type:: Monograph

Author:: Cunningham, William http://d-nb.info/gnd/128907487

Title:: The Industrial Revolution

Place of publication:: Cambridge

Publisher:: The University Press

Year of publication:: 1922

Scope:: xxii S., S. 404-886

Digitisation:: 2021

Collection:: Economics Books

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THE SUSPENSION OF CASH PAYMENTS 699 system which Pitt introduced, in his anxiety to reduce the A-D. 1776 debt of the country, should have operated so as to add to the burden of national obligations, and should by the mistaken expectations it engendered have served as an incentive to reckless borrowing. 259. It has been pointed out above that the suspension Aster the of cash payments enabled the Bank of England to give of rash increased accommodation to the public, and thus to restore P¢¥mente commercial credit’; but the measure which effected this desirable result entirely changed the character of the paper currency of the country. The value of the bank-notes was no longer based on that of the precious metals; they had really become inconvertible; it was only by the exercise of great judgment in restricting the issues of paper, that the Directors could hope to maintain the notes at par. As a matter of fact, they failed sufficiently to limit the quantities which were put in circulation, with the result that the country began to suffer from the evils of a depreciated currency. The ulterior and indirect effects of the pressure, which Pitt put on the Bank in 1797, were seriously felt during the first quarter of the nineteenth century; prices were inflated, and the exchanges with foreign countries tended to be unfavourable. It may be impossible to gauge the precise amount of mischief which was due to this cause in particular, we can only note it there was as a serious aggravation, and as one which affected all classes, 5, oak rich and poor. Depreciation of the circulating medium ren- Toe dered the purchasing power of money less at a time when ation ih th wages generally were low, and were falling. The evils are well stated by the Committee which was appointed to in- vestigate the subject. “Your Committee conceive that it would be superfluous to point out, in detail, the disadvantages which must result bo the country, from any such general excess of currency as sy the lowers its relative value. The effect of such an augmentation gn’ of prices upon all money transactions for time; the unavoid- able injury suffered by annuitants, and by creditors of every description, both private and public; the unintended ad- vantage gained by Government and all other debtors; are 1 See above, p. 694.

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