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the ocean, rendered navigable against the current the greatest rivers, sent the colonists of Europe in countless multitudes up the streams of the New World, and provided an entrance for civilised man into the greatest continents by the very magnitude of the waters which flow down from their inaccessible mountains, or are fed in their marshy plains. Applied to travelling by land, it has diminished distance to a third – brought the capital of every civilised state into close proximity to its most distant provinces; while the simultaneous discovery of the electric telegraph has rendered the communication of intelligence all but instantaneous, and made the circulation of ideas and, it is to be feared, also of passions, as rapid over a mighty empire as heretofore it was in the streets of a crowded capital.

      When nature communicated this vast impulse to human activity, and placed these mighty instruments in the hands of men, she was not unmindful of the extended field for industry which their enlarged numbers and increased energies would require. The plain of the Mississippi, the garden of the world, containing a million of square miles, or six times the area of France, was thrown open to their enterprise. Steam power propelled a thousand vessels through the thick network of natural arteries which in every direction penetrate its vast and fertile plains. In 1790, five thousand Anglo-Saxons were settled in this magnificent wilderness; now their numbers exceed eight millions. Australia has opened its vast prairies, New Zealand its fertile vales, to European enterprise. The boundless plains of Central Russia and Southern Siberia, afforded inexhaustible resources to the rapidly increasing Muscovite population; and an empire which already possesses in Europe and Asia sixty-six million inhabitants, can without apprehension contemplate a continuance of its present rate of increase for centuries to come. The Andes even have been passed; the Rocky Mountains surmounted; and on the reverse of their gigantic piles new states, peopled by the Anglo-Saxon race, are arising, and increasing with unheard-of rapidity, in regions rivalling Italy in the variety and riches of their productions, and exceeding it tenfold in the magnitude of their extent. Proportionate to the wants and necessities of mankind, in an age of such intellectual and physical activity, has been the hitherto untrodden fields which the beneficence of nature has laid open to their industry.

      These advantages, however, great and unbounded as they are, have been, till very recently, counterbalanced, and perhaps more than counterbalanced, by the serious decrease which, for the greater part of the period that has elapsed since the peace of 1815, has been going on, from the effect of human violence or folly, in the circulating medium of the globe. The South American revolution at once almost destroyed the working of the mines of Mexico and Peru: the annual produce of those mines sank from £10,000,000, to which, according to Humboldt, it had risen prior to 1810, to less than £3,000,000. The diminution in the supply of the precious metals for the use of the globe, from the effects of this most calamitous revolution, which Great Britain did so much to promote, was, during the thirty years which elapsed from 1810 to 1840, certainly not less than £150,000,000 sterling. Contemporaneous with this immense reduction, took place the great contraction of the paper currency of Great Britain, the commercial heart of the globe, which was reduced by the bill of 1819 from £60,000,000, which it had reached in 1814, to little more than £30,000,000, its average since that time. These two great causes of decrease, operating simultaneously during a period of general peace, unbroken industry, great increase in population both in Europe and America, and a vast addition to the transactions and mercantile dealings of men in every part of the world, produced that universal and unlooked-for decline of prices which has been everywhere felt as so discouraging to industry, and nowhere so much so as in the highly taxed and deeply indebted realm of Great Britain. It was the exact converse of the general and long-continued prosperity which the progressive rise of prices consequent on the discovery of the South American mines produced during the sixteenth and seventeenth centuries. It was apparently the commencement of a long and disastrous period of rise in the value of money, and fall in the price of every species of produce, similar to that which, in the first four centuries of the Christian era, crushed the industry and paralysed the strength of the Roman Empire, and at length prostrated the dominion of the legions before the arms of an untutored and barbarous enemy.

      It is now ascertained, therefore, by the only sure guide in political science – experience – that if no addition to the circulating medium of the globe had been made at a time when so immense an increment was going forward in the numbers and transactions of the most active part of mankind, consequences the most disastrous to human industry and happiness must have taken place. If – when the United States, with their population of 25,000,000 doubling every twenty-five years, and Russia, with its population of 66,000,000 doubling every forty years, and Great Britain, with its population of 29,000,000 doubling in about the same time, and its exports and imports tripling in thirty years, were in a state of full and undiminished activity – there had been no addition made to the circulating medium of the globe, it is difficult to estimate the amount of embarrassment and distress which must have become all but universal. If the circulating medium of the earth had remained stationary, or gone on receiving only its wonted annual increment, when so prodigious an addition was going forward in the numbers and transactions of men, a universal and progressive fall of prices must have ensued. The remuneration of industry must have been halved – the weight of debts and taxes doubled. The fatal increase in the value and power of riches, so truly felt and loudly complained of in the declining days of the Roman empire, would have been everywhere experienced. A money famine would have been universally felt; and, paradoxical as it may appear, dear-bought experience has now taught us that such a famine is attended with more disastrous, because more widely spread and irremovable, consequences, than even a shortcoming in the supply of food for the use of man. The latter may be removed by increased rural activity and a good harvest in a single year. But the former is susceptible of no such remedy. On the contrary, the augmented activity which it brings on, from the general and pinching suffering with which it is attended, only tends to aggravate the common distress, because it multiplies the transactions in which money as a medium of exchange is indispensable, and consequently makes its scarcity in proportion to the existing demand be more severely felt.

      To this must be added another and most important cause, which operated since the peace of 1815 in withdrawing the precious metals from the globe, arising from the very scarcity of these metals themselves. The addition which their enhanced value made to the riches of the affluent was so great, that it led to a rapid and most important increase in the consumption of gold and silver in articles of luxury. Gold and silver plate, jewels, and other ornaments set in gold, became general among the richer classes, and to an extent unprecedented since the fall of the Roman empire. Gilding was employed so much in furniture, the frames of pictures, the roofs of rooms, carriages, and other articles of state or show, as to withdraw a considerable part of that the most precious of the precious metals from the monetary circulation. The scarcer gold and silver became, the more was this direction of a large portion of it increased, because the richer did the fortunate few who possessed amassed capital become from the daily decline in the price of all other articles of merchandise. This effect was most conspicuous in ancient Rome in its latter days, where, while the legions dwindled into cohorts from the impossibility of finding funds to pay them in large numbers, and the fields of Italy became desolate from the impossibility of obtaining a remunerating price for their produce, the gold and silver vases, statues, and ornaments amassed in the hands of the wealthy patricians in Rome, Constantinople, Alexandria, and the other great cities of the empire, so prodigiously increased, that, with the currency, which formed but a small part of its amount, their value is estimated by Gibbon at the almost incredible amount of £350,000,000 sterling of our money.

      Bills of exchange and paper money, which have become known and general only in modern Europe, might have gone far to mitigate these disastrous consequences in particular states, or even, if conducted with prudence and regulated by wisdom, might in some places have altogether prevented them. But as paper currency is a new element of surpassing power and efficacy, but recently introduced into common use among men, the principles on which it should be regulated are far from being generally understood. Even if understood, it requires for its due regulation a combination of wisdom and self-denial that can rarely be looked for among the rulers of mankind. The fundamental principles on which its due regulation must be rested – that of being based on certain and available property of some kind, and of being capable of extension in proportion to the increase in the numbers and transactions

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