THE LITERARY PANORAMA, AND National Register : For JULY, 1818. NATIONAL AND PARLIAMENTARY NOTICES, (British and Foreign,) PROSPECTIVE AND RETROSPECTIVE. PUBLIC CREDIT: RUSSIAN FINANCES. OFFICIAL REPORT BY depends on the power of that party to afford him an adequate return, and on the good faith of that party to substan The Council for the Establishment of tiate the terms of the contract, complete Public Credit, On the State and Progress of the NATIONAL FINANCIAL INSTITUTIONS IN RUSSIA. ly, without reluctance, and without delay, when the proper time for the purpose shall arrive. When we say, that commercial men can, and do estimate each other's pro [From the Supplement to the Conservateur Impar- perty, we include as a part of that tial, No. 19.] property the credit which a course of transactions, more or less extensive, COMMERCIAL credit may be defined but always punctually attended to, grato be that confidence which subsists dually confers on every man of probity. among commercial men in respect to It is true, that a merchant does not commercial transactions; but, the cre- daily and hourly open his affairs to the dit of nations, or of their governments, world; but, he daily and hourly gives depends on different principles, and proof of his ability to discharge such demust be guided and maintained on dif- mands as are lawfully made on him; ferent maxims. Commercial men are and having done this hitherto, the pubequals among themselves, and they re-lic draws the inference that he will spectively estimate the property of each other, including the readiness with which that property may be directed to answer exigencies. Not so the creditors of a nation, or of national institutions for no government in offering security, meditates the sale of its lands (except, perhaps, the new government of America), and no creditor looks to what the soil might fetch, when brought to the hammer, or to the cessio bonorum, or converted into money, as assets for the liquidation of his demand. He suffers the debt to be contracted, on the credit of the contracting party; and VOL. VIII. No. 46. Lit. Pan, N.S. July 1. continue to fulfil the same duty. Governments differ in this respect. The resources of a State, as they concern the public, ought to be communicated to that public, and in fact, must be communicated, if credit be involved in the affairs of that State. Among the most fatal errors of those who have passed for Statesmen, none has been more injurious to the people of their charge than that affectation of secrecy, in which they have supposed the greater part of their skill and their duty to consist. We restrict this observation, at pre U sent, to Financial concerns; for we are | formation of a powerful empire; but perfectly aware that there are many, Russia has risen too rapidly into imporvery many, subjects on which silence tance, and like some slender striplings, is prudence, on which silence must be who shoot up suddenly to a mature observed; and any thing short of abso- height, it has outgrown its strength. lute silence, is at the same time a The mind bas not kept pace with the breach of official obligation, and of un- body. The stature imports man; not questionable policy. so the intellect. The whims and fancies, and prejudices, and inaccurate or inconclusive reasonings of adolescence, which discover themselves on examination, correct the too favourable judgment that might have been formed, and evince that prematurity which demands, and usually receives in private life the most favourable constructions, not to say indulgence. But Russia is intent It may be taken as certain, that this was true in ancient days, and under governments now the subjects of history; but, it is more especially applicable since the introduction of that course of management in the money department of a State, which we understand by the term-the Funding System. This system now involves every government in Europe. It has its ad-on supplying her deficiencies. She is vantages, and its disadvantages; but much of these depends on the steadiness, and the principles, combined in directing it. It is not natural to a State; and like all other exotics, it must be reared with great attention, patience, and perseverance, but, even after it has been naturalized, it is liable to many accidents, to cutting and penetrating blasts, by which it may be rendered unproductive. To guard against these accidents, nothing is more desirable than a willing attention to public opinion; the ear should catch the first whisper that seems to tend towards an impeachment of principle, or to hint at a laxity in practice. Not that every insignificant rumour should be regarded, or practically be permitted to produce any effect; but, that a lively jealousy should so far be indulged, as may authorize the exercise of that foresight, which is one of the most invaluable endowments of a Statesman. It will also, not seldom, direct the exercise of that foresight; and will point out the quarter to which particular attention should be paid: and it will rarely be found that a Government which is guided by a jealous vigilance on one point, is listless or indifferent on other points: The same alacrity usually pervades the whole; and the same stimulus is usually felt throughout the entire system, unless both system and state be disordered, or disorganized. Russia is a large state, and possesses abundance of raw materials for the taking measures which imply no small share of political sagacity. She means to justify the most favourable opinion that can be formed on her powers and her disposition. She is laying deep the foundations of her future grandeur, and if nothing unusually perverse should force her energies into another direction, succeeding generations will have neither right nor inducement to describe their present Rulers as incompetent, or as unwise. Among the most considerable of the measures lately taken by the Rulers of this extensive Empire, we distinguish the principle of PUBLICITY, now avowed and brought into action; and this on concerns which are usually conducted by petty states and petty statesmen with the most scrupulous attention to privacy. A nation may possess extensive provinces yet very little commerce: it may possess the means of furnishing valuable articles for exportation, yet those means may, to a great degree, lie dormant. The people may be, after a sort, very happy, but they are of necessity, very dull: they may be contented, but their content is the offspring of indolence: they may inhabit fertile provinces, without the slightest notion that their superfluous productions, which they suffer to rot, may possess the smallest value elsewhere, or might be exchanged for something that in return might encrease their comfort, or contribute to augment their enjoyments. And world knows that-including Bonus's, But commerce to be conducted on an extensive scale, requires no less machinery than arts, or manufactures. Main force may draw a laden truck along a road; but the addition of wheels to it will greatly facilitate its motion. A rough road may admit of passage,-of inconvenient passage; but if it be ren-public. dered smooth and level, the improvements will eventually diminish labour, and abate the expence and price of carriage. The life and soul of commerce is the employment of capital; but the richest merchant may not always have that capital lying by him, which he might safely employ, as occasions present themselves. And should he possess such capital, it is evident, that while thus in reserve, it is not only useless to himself but to every body else to his countrymen,- to the state; in short, to the whole world. To render it profitable, in some shape, is the desideratum; and with this must be connected the idea of full security, and of being able to re-assume it, without the smallest impediment, or delay, at pleasure. This naturally leads us to the institution of Banks; for Banks are, or ought to be, such reservoirs of capital as may preclude the necessity of a merchant's keeping in an unprofitable state in his strong chest, that reserved portion of his means of exertion in business, which he deems prudent, to meet accidents; or to support what is technically called "a run." Seen in this light, a merchant may be both borrower and lender: he may be a part proprietor in a bank, from which bank he obtains discounts and pecuniary accommodation: he may receive under one character, more than he pays under another. The paper before us distinguishes the Banks to which it refers, into two kinds; the Imperial Bank, and the Bank for Discounts and Loans. Whether the same institution might not very well discharge the duties of both these departments, is more than we can determine. To judge by the experience of our own country, we should incline to think the union more than feasable, perhaps, advisable: but, there may be reasons to the contrary, in a country where the state has taken precedence of commerce, and not commerce of the state. Government banks are but little understood among us; as we have no such establishment: although our Exchequer Bills, and other Government securities, resemble what doubtless would be the operations of such offices. The Bank of England is an association of private merchants, no further dependent on government than as interest dictates: but the banks of most foreign powers, as of St. Petersburgh, Copenhagen, Stockholm, Vienna, Madrid, and Lisbon, issue circulating notes, as substitutes for a national currency: whence it may be truly said, that the " ment paper" of those countries is at such or such a discount; and this is always in proportion to the gross amount in circulation. govern As these governments have not the same resources in time of need, nor the same facility of raising extensive It might, perhaps, be thought, that supplies, as the government of Britain banks cannot be too cautious in reveal-bas, they are obliged under the presing their concerns, whether in whole or in part; and for weak banks this may be true. But, will any affirm that the Bank of England has been less worthy of confidence, has suffered any diminution of its credit, since its affairs have become public, since the amount of its notes has been annually laid be*fore Parliament? Has Bank Stock sunk in its value? On the contrary, all the sure of necessity, to direct further issues of the notes of their banks. Every addition of this kind becomes an additional burden on the public; and contributes to depress the market value of such accumulative securities. These depreciations once established, the Governments are seldom disposed to redeem these pledges of their banks' credit, even if they obtain the power; because they must purchase them back -as the king asserts, in the solemn priagain, at a loss, or sacrifice, propor-vacy with which the affairs of the pub tionate to the rate at which they were emitted, and to the rate they bear at the time of such re-purchase. lic Banks were transacted. He tells the nation that the misconduct of its Banks has been ruinous; but, that such misconduct could not have happened, or must have been stopped in its origin, had the ill-advised operations of those Institutions been discovered in an earlier stage. We cannot but think, that many of the maxims which prevail in England, have been adopted by the Imperial and judicious travellers who have witnessed their effects in this country. They have here seen, that true policy enlightens the public;-not a few men in official situations, only, but, the public at large. Hence the strength of Britain is the result of general combination, guided by information and intelligence. It does not depend on the fiat of a single minister; it is not commanded, though it may be directed; it is not forced, though it may be stimulated. The same principles will no doubt become agerts in The expectation of the subject therefore is, that after the pressure of the time is abated, the paper which is falling in value, will at a certain point, cease to fall any further; and though it may not become better, it will not become worse. It is, therefore, the wisdom of governments in such situation to make every effort to diminish the quantity of outstanding paper. The an intention very prospect of such raises the public credit, in all its branches; and it is said, that the confidence revived and invigorated in Prussia merely by the arrival of a million of crowns in silver, at the Royal Treasury, raised the whole mass of paper circulation, not less than seven or eight per cent. in a single day. Such a rise in the value of property cannot but lead to important results, as well abroad as at home. The Russian govern-producing the same consequences; the ment, as we learn from this Report, is determined on effecting the same advantage; and publicly announces that it has withdrawn from circulation the sum of thirty eight millions of rubles; which it judges to be enough for the first year of such financial operation. same causes will produce the same effects, in other countries as in this. Such, at least, appears to be the conviction, and such, certainly is the plan of the statesmen who now govern the rising, the emulative, the aspiring, empire of Russia. There are those-and they are no This plan of reduction steadily pur- mean politicians, neither, who behold sued, though slowly, will gradually pro- the increasing greatness of Russia with duce wonderful effects: while announc-apprehension, if not with envy; they ing its operations in this public and of- contemplate her too forward movements ficial manner, will confirm, and, as it on the great scene of European politics, were, rivet the confidence of the nation. with somewhat worse than suspicion ;— In short, we call the attention of our but, while ber importance is the result readers, strongly, to this statement, and of principle, not of violence, of interto the NOTORIETY given to it, as among nal management, judiciously suited to the most judicious and effectual mea-existing circumstances, and of political sures of state policy. To us, it pre-improvements, calculated to promote the sents itself as a masterly proceeding; and perfectly coincident with what we have already said on the sagacious and solid foundations laid, and laying, for the increase and stability of Russian greatness. Our readers will probably, be the more deeply convinced of this, if they advert for a moment to the Financial confusions which have taken place in the kingdom of Sweden, originating welfare of her own people, by what right do any attempt to thwart her policy? Let others imitate her wisdom: she is a proper object of emulation; but uot of envy. She has discerned the path that leads to true glory, and real greatness; that path is equally open for others to tread-they are not denied the means of combining the increasing happiness of their subjects, with the |