s, and so
abundant the capital ready to seek employment in schemes of local
improvement, &c, that four hundred and thirty-eight petitions for
private bills were presented, and two hundred and eight-six private acts
were passed.

PROROGATION OF PARLIAMENT.

Parliament was prorogued on the 6th of July by commission. The speech
announced that foreign powers were amicably disposed; regretted the
continuance of the war in the East Indies; and expressed satisfaction at
the measures adopted by parliament for the extension of commerce. "These
measures," said the speech, "his majesty is persuaded, will evince to
his subjects in those distant possessions the solicitude with which
parliament watches over their welfare. They tend to cement and
consolidate the interests of the colonies with those of the mother
country; and his majesty confidently trusts that they will contribute to
promote that general and increasing prosperity on which his majesty
had the happiness of congratulating you on the opening of the present
session, and which, by the blessing of Providence, continues to pervade
every part of the kingdom."

GREAT COMMERCIAL PANIC.

The golden prospects unfolded in the speech of the chancellor of the
exchequer when making his financial statements, and reiterated in that
of his majesty at the close of the session, soon vanished away. The
causes of this reverse were manifold. The abundance of capital, and the
consequent low rate of profit, during the last three years, had greatly
increased export manufactures. As the system of country banks continued
in operation, this apparent prosperity of manufactures attracted much
capital to them; and a system of credit was generated which caused a
still further extension. Speculation added its impulse to this system;
until, in the course of this year, paper money thrown into circulation,
increased the currency beyond what the causes determining the supply of
gold could sustain. The exchanges now turned against us; the currency
became depreciated; and gold, the sinews of a nation's prosperity, began
to flow out of the country. The Bank of England finding that the demand
for gold diminished its stock of coin, contracted its issue of notes
and its discounts. In this way, if the state of trade had been good, the
currency might have been reduced so as to restore the exchanges to
par; but the reduction in quantity took place first among those who had
pushed their credit to the