provides a remedy-it is immediately exported. But, with an inconvertible paper currency, this cannot happen, and when debt is destroyed, currency remains in circulation; when this goes on for any length of time, or to any extent, the inevitable result is a depreciation of the paper currency, which is shewn by the rise of the market above the Mint price of gold. This was eminently exemplified in England in the years subsequent to 1810. The extravagant speculations were followed by an enormous destruction of capital; but the currency which was issued to represent it remained in circulation, and soon manifested itself in a rapid fall of the value of paper. It was impossible that paper ever should right itself, unless this superfluous currency was destroyed. It is recorded that an Irishman once having taken a dislike to a banker, in order to spite him, collected a number of his notes and burned them. It would have been an excellent thing for the country bankers of England in 1814-15, if some one had done the same kind office for them. The quantity of paper currency was so excessive, compared to what it represented, that nothing could restore it to its par value but the destruction of a large portion of it; and this was brought about by the destruction of the issuers of it; and, when this was done, the value of the remainder rose to par.

65. We have gone over most of the theories of currency which have attained the greatest practical importance. That there are others, is true; but they have generally been confined to a small knot of fanatics. But, as they seem, at last, to have died out, we need not weary our readers' patience by disturbing their peaceful oblivion.

CHAPTER XVII.

ON THE DEFINITION OF CURRENCY.

1. Having in the preceding chapters completed a general survey of the mechanism of Exchanges, inland and foreign, we are now compelled to examine the peculiar system of Banking which is at present established in this country; but, before we do so, we must give a little time to settle the meaning of the word CURRENCY. Most persons engaged in practical business are morbidly averse to discussions on the meaning of words, thinking them to be pure waste of time. But no science was ever yet founded without such controversies, and it is precisely because writers on Economics have systematically despised and neglected the only means by which a science can be founded, and by which every other great science has been created and established, that Economics is at the present moment in such a discreditable state. In the present case this investigation is absolutely indispensable, because the Bank Charter Act of 1844, which now governs the whole monetary system of the country, is expressly founded upon a peculiar definition of the word CURRENCY, and is expressly devised to carry out a peculiar Theory of Currency. In this chapter we must therefore investigate and settle the meaning of the word CURRENCY.

A very distinguished statesman has said that the word CURRENCY has driven more people mad than anything except love. Nor, to say the truth, is this very surprising. If we were to assemble a company of purely literary men, and request them to "Differentiate the Equation to a Curve," we have not the smallest doubt but that such a mysterious expression might drive them to despair, whereas any moderately educated school-boy could do it at a glance. It is precisely the same with the word CURRENCY. It is a term of pure Commercial Law. Any commercial lawyer can tell in an instant what the word CURRENCY means, and what it includes; whereas, those who have occupied themselves with discussions on it, know absolutely nothing of Commercial Law, and have exactly as much chance of settling the meaning of

CURRENCY, as they have of Differentiating an Equation. We have already given a short account of its true meaning, but we must now investigate the question completely.

2. Our Saxon ancestors utterly discountenanced and prohibited the sale or exchange of any goods, merchandise, or cattle by private sale or bargain. It was a matter of fixed policy with them that no sales should take place except in the presence of witnesses. A series of kings made laws to this effect, and as these laws are to this very hour in spirit the Common Law of England, and are very little known, we may give a little space to quote them textually, as constitutional curiosities.

Thus, among the Dooмs, or Laws, which Hlothare and Eadric, kings of the Kentish men, about 683 A.D., established is this 2— "16. If any Kentishman buy a chattel in Lunden-wic (London), let him then have two or three true men to witness, or the king's wic-reeve. If it be afterwards claimed of the man of Kent, let him then vouch the man who sold it to warranty, in the wic at the King's Hall, if he know him, and can bring him to warranty; if he cannot do that, let him prove at the altar, with one of his witnesses, or with the king's wic-reeve, that he bought the chattel openly in the wic, with his own property, and then let him be paid its worth; but if he cannot prove that by lawful averment, let him give it up, and let the owner take possession of it."

Among the Dooms of Ine, King of Wessex (688-725 A.D.), is this"25. If a chapman traffic up among the people, let him do it before witnesses. If stolen property be attached with a chapman, and he have not bought it before good witnesses, let him prove, according to the wite, that he was neither privy nor thief, or pay as wite thirty-six shillings.

Among the Dooms of Edward the Elder, son of Alfred (901-924, A.D.), is this 4-1. And I will that every man have his warrantor, and that no man buy out of port, but have the portreeve's witness, or that of other unlying men whom one may 1 Vol. I., p. 200.

2 Ancient Laws and Institutes of England; printed by command of William IV. p. 14. We quor the official translation of the Anglo-Saxon.

3 Ibid., p. 51.

4 Ibid., p. 68.

That is Market Ove. t; in Roman Law, Portus est conclusus locus quo importantur merces et inde exportantur. Est et statio conclusa et munita.

believe. And if any one buy out of port, let him incur the king's ofer hyrnes." (i.e., contempt, or hearing and refusing to obey, which incurred a penalty of 120s.)

Among the Dooms of Ethelstan (925-960, A.D.) is this1— "10. And let no man exchange any property without the witness of the reeve, or of the mass-priest, or of the landlord, or of the hordere, or of other unlying man. If any one so do, let him give thirty shillings, and let the landlord take possession of the exchange."

Among the Dooms of Edgar (959-975, A.D.) are these

"4. To every burh let there be chosen thirty-three as witnesses.

"5. To small burhs, and in every hundred, twelve; unless ye desire more.

"6. And let every man, with their witness, buy and sell every of the chattels that he may buy and sell, either in a burh, or in a wapentake; and let every of them when he is first chosen as witness, give the oath that he never, neither for money nor for love, nor for fear, will deny any of those things of which he was witness, nor declare any other thing in witness, save that alone which he saw or heard; and of such sworn men, let there be at every bargain two or three as witnesses."

Among the Dooms of Ethelred (979-1016 A.D.) is this 2"3. And let no man buy or exchange, unless he have burh and witness; but if any so do, let the landlord take possession of, and hold the property, till that it be known who rightfully owns it."

Among the Dooms of Cnut the Great (1017-1035 A.D.) is this" 24. And let no one buy anything above the value of four pence, either living or lying, unless he have the true witness of four men, be it within a burh, be it up in the country. For if it then be attached, and he have no such witness, let there be no vouching to warranty; but let his own be rendered to the proprietor; and the aftergild and the wite to him who is entitled thereto."

Among the Laws of Edward the Confessor (1043-1066 A.D.) is this" 38. Defensum erat eciam in lege, ne aliquis emat vivum animal vel pannum usatum sine plegiis et bonis testibus 1 Ancient Laws and Institutes of England, p. 87. 2 Ibid., p. 120.

3 Ibid., p. 167.

4 Ibid., p. 191.

Et si venditor non potest habere plegios, retineatur cum pecunia donec veniat dominus ejus, aut quilibet alius, qui juste possit eum warantizare. Quod si aliter aliquis emerit, quod stulte emit perdat et forisfacturam."

William the Conqueror (1066-1087 A.D.) continued this law1"45. Nemo emat vel vivum vel mortuum ad valenciam IIII. denariorum, sine IIII. testibus, aut de burgo aut de villa campestri. Quod si aliquis rem postmodum calumpniatus fuerit, et nec testes habuerit nec warantum, et rem reddat et forisfacturam, cui de jure competit."

Also in a Charter granted by him he says2

"10. Interdicimus eciam ut nulla viva pecunia vendatur aut ematur nisi intra civitates et hoc ante tres fideles testes; nec aliquam rem vetitam, sine fidejussore et waranto. Quod si aliter fecerit, solvat, et persolvat, et postea forisfacturam.'

"11. Item nullum mercatum vel forum sit, nec fieri permittatur, nisi in civitatibus regni nostri, et in burgis [clausis] et muro vallatis, et in castellis, et in locis tutissimis, ubi consuetudines regni nostri, et jus nostrum commune, et dignitates corone nostre, que constitute sunt a bonis predecessoribus nostris deperire non possint, nec defraudari nec violari, sed omnia rite, et in aperto, et per judicium et justiciam fieri debeant."

And so also the Mirrour of Justice, which was originally written in French long before the Conquest, says, p. 14—" It was ordained that fairs and markets should be in places, and that the buyers of corn and cattle should pay toll to the lords' bailiff of markets or fairs; that is to say, a false penny of six shillings of good, and of good, less and of more, more; so that no toll exceed a penny for one manner of merchandise: and this toll was given to testify the contracts, for that every private contract was forbidden."

3. And these ancient Dooms and enactments, are the foundation of the Common Law to the present hour. It is the established principle of Common Law that if any person steals or finds any chattel belonging to any one else, and sells it privately to a third person, the true owner may reclaim it from that third person, even though he bought it honestly, and gave full value, and had no suspicion that the seller had no title to sell it. For the 1 Ancient Laws and Institutes of England, p. 209. 2 Ibid., p. 212.