THE DEMAND FOR FOOD AND HIGHER FARMING 703
in; the House of Commons rejected Mr Horner's resolutions, 4.0, 173
which were based on the report of the Committee, by a
majority of two to one’, and subsequently passed a measure?
which rendered the refusal to accept bank-notes at their
face value as the equivalent of gold® as a misdemeanour. The
victorious, though mistaken view was so strongly held, that and a
. . . . UI
a favourable opportunity, which occurred in 1816, of restoring tere ©
the currency to its metallic basis was lost¢; and it was not S29
till 1819 that the soundness of the principles of the Bullion
Report was recognised, and that the younger Sir R. Peel,
who had voted in the majority in 1810, brought in a Bill for
the resumption of cash payments. There was some fear
that a contraction of the circulating medium would be in-
juriously felt in the City”; and the period of inflated prices
bad lasted so long, that question was raised® as to the fairness
of insisting that contracts for payments, agreed on under the
old conditions, should be enforced without modification on
the basis of the restored standard. But any injustice to in-
dividuals asising from this cause appears to have been very
slight, and the advantage to the community of re-establishing
a sound currency was incalculable.
260. The bearing of the suspension of cash payments on The work.
the welfare of the working classes was so remote that they a
did not recognise it; but the high price of food was a grievance fr.
of which they were well aware, and it obviously aggravated o/ corn.
their sufferings and roused their passions. The rioting of
which we hear, was occasioned in some cases by the introduc-
tion of machinery; but these outbreaks usually occurred in
© McLeod, op. cit. 1. 54. 2 51 Geo. ITI. ¢. 127.
* This was occasioned by Lord King’s conduct in issuing a circular to his
enants giving them notice that rents were to be paid in gold. Cobbett, Paper
gainst Gold, 1. 456.
4 From July 1816 fo July 1817 the market price of gold did not exceed
£3. 19s. 0d. per ounce. The exchanges with the Continent for a very consider-
able portion of that period were in favour of the country; but Parliament though
lesirous of restoring the currency to a cash basis determined to continue the
suspension temporarily so as to give the Directors time to prepare for the change
56 Geo. III. c. 21). Second Report from the Secret Committee on the expediency
of the Bank resuming Cash Payments, 1819, mr. 3, 4.
5 A petition signed by 500 merchants was presented against the Bill, McLeod,
ua. 79.
8 Compare the debates in the Commons in 1822 and 1823, McLeod, op. cit. IL.
99. 103
