at alarm was felt at the diminution of gold, and Tom
Paine wrote a pamphlet to prove that the Bank cellars could not hold
more than a million of specie, while there were sixty millions of
bank-notes in circulation. It was, however, proved that the specie
amounted to about three millions, and the circulation to only nine or
ten. Early in 1796, when the specie sank to L1,272,000, the Bank
suspended cash payments, and notes under L5 were issued, and dollars
prepared for circulation. The Bank Restriction Act was soon after
passed, discontinuing cash payments till the conclusion of the war. For
the renewal of the charter in 1800, the Bank proposed to lend three
millions for six years, without interest, a right being reserved to them
of claiming repayment at any time before the expiration of six years, if
Consols should be at or above 80 per cent. In 1802, Mr. Addington said
in the House of Commons that since 1797 the forgeries of bank-notes had
so alarmingly increased as to require seventy additional clerks merely
to detect them, and that every year no less than thirty or forty persons
had been executed for forgery.

In 1807, the celebrated chief cashier of the Bank, Abraham Newland, the
hero of Dibdin's well-known song--

"Sham Abraham you may,
But you mustn't sham Abraham Newland,"

retired from his duties, obtained a pension, and the same year died. His
property amounted to L200,000, besides L1,000 a year landed estate. He
had made large sums by loans during the war, a certain amount of which
were always reserved for the cashier's office. It is supposed the
faithful old Bank servant had lent large sums to the Goldsmiths, the
great stockbrokers, the contractors for many of these loans, as he left
them L500 each to buy mourning-rings.

The Bullion Committee of 1809 was moved for by Mr. Horner to ascertain
if the rise in the price of gold did not arise from the over-issue of
notes. There was a growing feeling that bank-notes did not represent the
specified amount of gold, and the committee recommended a speedy return
to cash payments. In Parliament Mr. Fuller, that butt of the House,
proposed if the guinea was really worth 24s., to raise it at once to
that price. Guineas at this time were exported to France in large
numbers by smugglers in boats made especially for the purpose. The Bank,
which had before issued dollars, now circulated silver tokens for 5s.
6d., 3s., and 1s. 6d.

Peel's currency bill of