pay reciprocally a duty of twelve per cent. ad valorem, and if any articles shall be used therein which are not specified in the tariff they shall pay no higher duties than those paid for the same articles by the most favoured nations.

12. Porcelain, earthenware, and pottery shall pay reciprocally twelve per cent. ad valorem.

13. Plate glass and glass ware in general shall be admitted, on each side paying a duty of twelve per cent. ad valorem.

His Britannic Majesty reserves the right of countervailing, by additional duties on the under-mentioned merchandises, the internal duties actually imposed upon the manufacture or the import duties. which are charged on the raw material-namely, on all linens or cottons, stained or printed, on beer, glass ware, plate glass, and iron.

And his Most Christian Majesty also reserves the right of doing the same with regard to the following merchandises of cotton, iron, and beer.

And for the better securing the due collection of the duties payable ad valorem which are specified in the above tariff, the said contracting parties will concert with each other as well the form of the declaration to be made as also the proper means of preventing fraud with respect to the real value of the said goods or merchandises.

But if it shall appear that any mistakes have inadvertently been made in the above tariff contrary to the principles on which it is founded, the two sovereigns will concert with good faith upon the means of rectifying the same.

VII. The duties above specified are not to be altered but by mutual consent; and the merchandises not above specified shall pay, in the dominions of the two sovereigns, the imports and exports duties payable in each of the said dominions by the most favoured European nations, at the time the present treaty hears date; and the ships belonging to the subjects of the said dominions shall also respectively enjoy therein all the privileges and advantages which are granted to those of the most favoured European nations.

PART II.

1793-1820.

FROM THE FRENCH REVOLUTION

TO THE

RESUMPTION OF CASH PAYMENTS.

CHAPTER I. THE FRENCH REVOLUTION AND ITS EFFECTS ON BANKING AND CURRENCY.

II. STATE OF FINANCE.

III. CURRENCY AND BANKING IN FRANCE.

IV. THE ORDERS IN COUNCIL AND THE BERLIN, MILAN,
AND FONTAINEBLEAU DECREES.

V. THE FOREIGN EXCHANGES AND THE BULLION COM

MITTEE.

VI. RESUMPTION OF CASH PAYMENTS.

STATISTICS OF TRADE AND FINANCE, 1793-1820.

F

CHAPTER I.

THE FRENCH REVOLUTION AND ITS EFFECTS ON BANKING AND CURRENCY.

State of France. - England and the French Revolution.-Effect of the Revolution on the Money Market.-Commercial Crisis.-Government Assistance.-Bad Harvests.-State of the Bank of England.-Failure of Country Banks. Uneasiness of the Bank of England.-Suspension of Cash Payments.-The Bill of Indemnity.-Want of Currencies.-Effects of War on Commerce.-Infringement of the Treaty of Commerce with France.— Retaliatory Measures.-Complaints of Neutral States.-Protest of the United States.-The Dutch and Neutral Trading.-Commerce with Russia and Italy.

Ir would have been well had Europe been allowed to enjoy a longer respite from the turmoil of war, and had England been permitted without disturbance to reap the benefit of the im-. provements introduced in her manufacturing industry. But France willed it otherwise. The grievous famine of 1788 had completely subverted the economic policy of M. Necker, in itself not the most sound. After it came the profuse and wasteful administration of Calonne, who threw the finances of the country into still more helpless disorder; and, with the assembling of the States General, were enacted those troublous scenes which rendered France a lesson and a warning to all nations. The first measures of the States General were indeed highly commendable. They opened the Indian trade to the whole nation, abolished the pernicious and partial tax upon salt and the heavy duty upon tobacco, substituting for these a light impost upon property and annuities, duties upon patents, and stamp duties. They restored the property of the Protestants, which had been confiscated upon the revocation of the Edict of Nantes, relieved the Jews from the special burdens imposed upon them, and threw the courts of justice open to the whole people. These were substantial reforms, and of enduring benefit. But very soon the Revolution put an end to the calm and dignified demeanour of that legislative assembly. And when, in order to remedy the shattered state of the finances, the States General, rather than listen to Necker's advice to contract new loans, resolved to issue assignats, or States notes, on the guarantee of the Crown and Church property, they entered into that fatal course which could not fail to end in a