LETTER TO LORD GRENVILLE

Page 64

been apprehended^ or

indeed^ might, and pro-

as,

have occurred under other circum-

bably would,, stances.

If the market rate of interest for such bills as

came

within

fluctuated

the prescribed rules of the

more than

it

did,

Bank had

and had likewise on

an average very materially exceeded the fixed rate of discount, and more especially

if it

had

risen pro-

gressively during the whole period of the war, or of

the restriction, not only would the fluctuations in the amount of bank-notes have been greater, there would also

have been such a constant ten-

dency to excess through

this

channel of issue,

would not have admitted of compensation by minished issues through

as di-

and the

other channels,

of the circulation would have been

total increase

greater than

but

it

But

has proved to be.

it

so hap-

pens, that the market rate of interest, for such as came within the

Bank

nor materially exceed

five

rules,

bills

did not constantly

per cent.

;

nor did

it

rise

progressively through the greater part of the interval of the restriction. bifls

was

at its highest

of the war, as

may be

The

rate of interest for such

long before the termination inferred from the circumstance

that, in the three last years of

discount at the

Bank

fell

off",

it,

the applications for

compared with what

they had been for some years before.


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