Public Discussion of the Bullion Report.

The Bullion Report falling in the midst of this period attracted universal attention. It was hotly discussed in all assemblages of merchants and bankers, and called forth a swarm of pamphlets. It was evident that the witnesses before the committee had fairly represented the opinions which were almost universal in the business community, and they were all contrary to those of the report. It was insisted that the paper had not depreciated; that paper was the best money; that to use gold and silver was barbarous and behind the age; that “guineas were an incumbrance” (although De Yonge was prosecuted for selling this incumbrance for export—a point which Cobbett was fond of reiterating); that a pound sterling was an “ideal unit;” that a pound sterling was the interest on £33 6s. 8d., at three per cent., which would be £1; that paper money supplied capital, made money plenty, and caused prosperity; that the country had grown up to the increased currency; that the war could not be carried on without paper; that the balance of trade “of course” drew off the gold; that it was impossible to resume while the exchanges were adverse; that Great Britain was in the debtor relation, and could not resume while she was so. In short, there is no possible fallacy now preached in the United States about paper money which was not then and there brought forward, with the single exception of the “elasticity” notion. As their paper was not fixed in amount, that notion had no place. It seems that there can be no new fallacy to be discovered in regard to paper money. The field is exhausted.