CO882-(1-2) — Page 287

سلسيليسا

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

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ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO

PUBLIC RECORD OFFICE, LONDON

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pressed his concurrence in the same, and has repre. sented the matter to be of the most imminent and pressing importance. In short, with regard to this question, we witness the almost if not quite unpre- cedented instance of a grave question being dis- cussed in a colony upon which unanimity of opinion existed. It may safely be said that the report of the Committee has the universal concurrence of all persons, official and unofficial, in the colony. This is & unique fact.

3. But that report is at direct variance with the existing state of the currency, as established by law, and with the views of the Treasury upon the sub- ject. The views of the Colonial Office, though not in any respect concurrent with those of the report, are much nearer to them, and would aim at the same result which the colonists contend would be the only satisfactory one.

4. I have had the advantage of perusing the whole of the correspondence which has passed between the two departments since 1849, and the report and evidence taken in the Mauritius, without any previous connexion with the controversy, and therefore entirely unhampered by any previous opinions expressed on the subject. And as I differ in some essential points from both parties, it may perhaps aid to a satisfactory conclusion, that I

should enter into the matter in some detail; and in doing so I am not without the hope that I may be able to reconcile the convenience of the island and the views of the colonists, with the principles laid down by the Treasury.

concur.

5. With the principles laid down in the letter of the Lords of the Treasury of the 25th of January, 1850, and in their subsequent letters, entirely But I shall have occasion to show in what way they have not been applied, and therefore how the whole evil has originated. From a great deal, both in the evidence taken in the island and in the report based upon it, I entirely dissent, as being based upon assumptions erroneous and unfounded, and inconsistent with sound principle. At the same time there is much of valuable practical matter, which cannot but be of great use in enabling us to arrive at a correct conclusion on the subject. But it it is highly desirable with regard to an intricate question of this kind, upon which popular feeling has

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been so much, so long, and so unanimously excited, that the objections to the views of the colonists should be so plainly stated as to be understood, at least, by those who profess a knowledge of such sub jects. I shall therefore enter much more into detail as to the grounds of the views which I shall take, than I would consider needful, if I had only to con- sider the question as between the Treasury and the Colonial Office. The discussion, as it has been carried

on, has necessarily included a consideration of the first elements of a currency, and cannot be disposed of now without going to the root of the subject.

6. The circulating medium, or the currency of any community, is a portion of its capital which it withdraws from productive employment for the purpose of facilitating the productive quality of the remainder, by promoting exchanges of commodities with greater ease than they could be effected with- out the intervention of such a medium. It is there. fore a part of the bond fide capital of the commu. nity, unproductive itself, but rendering the remainder

of the capital more productive. This portion of the capital of a community is invested in the precious metals, and the expense is contributed by the whole community in proportion as each, from day to day and from week to week, retain a portion of their stock in the coin of the country unemployed. No doubt there are several means by which such capital may be economised without endangering the safety of the currency. Notes convertible at pleasure is one obvious means, if well secured upon a metallic basis. Banking accounts, by which the spare coin of individuals is from day to day paid into one commou fund, a large portion of which the banker can safely part with in loans and discounts, thus contributing to productive labour; cheques, by which payments are made by simple transfer from one account to another without the employment of coin, are other means of effecting such economy.

7. But the circulation itself must either consist of the precious metals coined into money, or must be based upon such a deposit of such metals as will guarantee the convertibility at all times of any paper that may represent it. It is an essential point, that the coin, and consequently the note that represents it, shall have a full intrinsic value, determined by the price of the metals employed, in the markets of