this thing called the balance of trade appear to be
according to the custom-house books. For example, nearly the
whole of the Mediterranean convoy has been taken by the
French this year; consequently those cargoes will not
appear as imports on the custom-house books, and therefore
the balance of trade, by which they mean the profits of it,
will appear to be so much the greater as the loss amounts to;
and, on the other hand, had the loss not happened, the
profits would have appeared to have been so much the less.
All the losses happening at sea to returning cargoes, by
accidents, by the elements, or by capture, make the balance
appear the higher on the side of the exports; and were they
all lost at sea, it would appear to be all profit on the
custom-house books. Also every cargo of exports that is lost
that occasions another to be sent, adds in like manner to
the side of the exports, and appears as profit. This year
the balance of trade will appear high, because the losses
have been great by capture and by storms. The ignorance of
the British Parliament in listening to this hackneyed
imposition of ministers about the balance of trade is
astonishing. It shows how little they know of national
affairs--and Mr. Grey may as well talk Greek to them, as to
make motions about the state of the nation. They understand
only fox-hunting and the game laws,--_Author_.

I come now to show the several ways by which bank notes get into
circulation: I shall afterwards offer an estimate on the total quantity
or amount of bank notes existing at this moment.

The bank acts in three capacities. As a bank of discount; as a bank of
deposit; and as a banker for the government.

First, as a bank of discount. The bank discounts merchants' bills of
exchange for two months. When a merchant has a bill that will become due
at the end of two months, and wants payment before that time, the bank
advances that payment to him, deducting therefrom at the rate of five
per cent, per annum. The bill of exchange remains at the bank as a
pledge or pawn, and at the end of two months it must be redeemed. This
transaction is done altogether in paper; for the profits of the bank,
as a bank of discount, arise entirely from its making use of paper as
money. The bank gives bank notes to the merchant in discounting the bill
of exchange, and the redeemer