degraded our national character, and exposed us to the deplorable state of weakness against foreign aggression, to the dangers of which, the Duke of Wellington has said he has found it impossible to awaken any Administration for thirty years. The Government see the public dangers, but they are disabled from guarding against them, because Parliament, stimulated by suffering constituencies whom the fall of prices has involved in constant difficulties, will not vote the necessary supplies. It is the same with the weight of mortgages, jointures, family provisions, bonds, bills, and debts of every description. They have all been doubled in weight since the bill of 1819 contracted the currency; and hence the inextricable embarrassments into which nearly all classes of the community have been precipitated, except the moneyed, whose fortunes have every day been increasing in real amount, from the same cause which has spread ruin so generally around them.
When it is said that the effect of Californian gold will be to reverse all this – to reduce gradually, and probably before twenty years have elapsed, half the weight of debt and taxes now felt as so grievous a burden by the community – it is affirmed that it will confer, perhaps, the greatest blessing which a beneficent Providence could confer on a suffering world. In England it will gradually and to a certain extent, so far as average prices are concerned, undo all that the Bullionists and Free-traders have been doing for the last thirty years. It will remove a large part of the frightful evils consequent on the monetary measures of Sir Robert Peel; and if seconded by a revision of our import duties, and a moderate tax for fiscal purposes on all foreign articles brought into the country, it would go far to repair the devastation produced by the selfish legislation of the last thirty years. In France it will arrest that dreadful fall of wages which, ever since the peace, has been felt to be increasing, from the constant reduction of prices arising from the destruction of the South American mines, and the simultaneous measures adopted for the contraction of the currency in Great Britain. The unjust monopoly of realised capital will be arrested, at least for a long period. The unjust depression of industry, by the continued fall of prices, will be gradually terminated. But so gradual will be the change, and so unseen the operation of the vivifying element thus let into society, that even the classes most benefited by it will, for the most part, be ignorant of the cause to which their improved circumstances have been owing. They will be blessed by the hand of Nature, they know not how or by whom, as, under the former system, they were cursed by the hand of man, they knew not how or by whom.
Already the beneficial effects of Californian gold have been felt over the whole world, and nowhere more strongly than in this country. It is well known that prices of all articles of commerce, except corn and sugar, have risen twenty or thirty per cent within the last year; and the Free-traders consider that as being entirely owing to their measures. If so, it is singular how corn and sugar, on which the inundation of Free Trade has been chiefly let in since 1846, should be the only exceptions to the general rise. It is singular what contradictory effects they ascribe to their system: at one time it is lauded to the skies, because it tends to lower prices, and cheapen every article of consumption; at another, because it is said to raise prices, and encourage every branch of industry. Both effects cannot be owing to the same system: to ascribe them both to it is to say that a certain combination of gases produces alternately fire and water. At all events, if Free Trade brings about a rise of prices, what comes of all the arguments which went to recommend it on the score of reducing them? The truth is, however, Free Trade has nothing whatever to do with the recent rise of prices of manufactured articles, nor with the extension of the national exports which has taken place. These happy results, the passing gleam of sunshine, have been entirely owing to other causes, among which Californian gold bears a prominent place. Free Trade has tended only to continue and perpetuate the misery and depression which attended its first introduction.
This argument of the increase of our exports last year (1850) having been owing to Free Trade, has been so admirably disposed of by that able and intrepid man to whom the nation is under such obligations for the light he has thrown on these subjects, and the courageous way in which he has everywhere asserted them, in a late public meeting at Rugby, that we cannot do better than quote his words: —
"The Free-traders had boasted much of their system as having increased the amount of our exports; and he (Mr Young) had been continually trying for a long period to get from them the names of the countries to which those increased imports went. At length he had the fact; and the result would be most startling as applied to the arguments and predictions of that party before the corn law was repealed. The countries he would take were Russia, Sweden, Norway, Denmark, Prussia, Germany, Holland, Belgium, and France; and he found that in the year 1845 the quantity of corn imported from all these countries, comprising, as they did, the whole of northern and central Europe, amounted to 1,741,730 quarters, whilst the declared value of British and Irish manufactures exported to those countries was L.17,504,417. But last year the corn imported from those countries had increased in quantity to 6,857,530 quarters, whilst our exports to them had decreased to L.15,274,639. These figures showed that from the whole of northern and central Europe we took last year no less than 5,115,800 quarters of corn more than in 1845, and that there was a decrease in the value of our exports of L.2,229,778. Again, last year the declared value of our gross exports amounted to L.63,596,025, but in 1845 it reached the sum of L.60,111,082; so that in the course of these four years the increase was only L.3,484,943. He found also that our exports in 1830 were L.35,842,623, and in 1835, L.47,372,270, being an increase on the five years of L.11,529,647, or 32 2-10ths per cent. That was an increase under the operation of protection. In 1840 the exports amounted to L.51,406,430, or an increase upon 1835 of L.4,634,160, or 8 5-10ths per cent. In 1845 they were L.60,111,082 – an increase on 1840 of L.8,704,652, or 16 9-10ths per cent. In 1849, L.63,596,025, an increase on 1845 of L.3,484,943; and in the present year, supposing the increase continued in the same ratio, he calculated that that increase would on the year 1845 be about L.4,350,000, or 7 2-10ths per cent. Would Free-traders boast of their exports after that? They talked upon this question as if the country had, under the system of protection, been in a perfectly dead and stagnant condition, and that the agriculturists were like the clods of the earth, and less capable of improvement. Why, it was under protection that our ships were employed to go to the island of Ichaboe, from which guano was first imported into this country; and it was under protection that that island had disappeared from the face of the ocean, and every cwt. of its guano had been brought here and spread upon the soil. He rejoiced and exulted in the march of science as much as any man; but it was an arrogant and an unfounded assumption on the part of the Free-traders to monopolise to themselves, as the result of their system, those improvements in agriculture which were going on under protection with railroad speed, and to which, in truth, their measures had only given a check, and not an impetus. But then he was asked, what have you to say to the United States? He would tell them. He found that the exports to the United States amounted to L.11,971,028 in 1849; but in 1836 they were not less than L.12,425,605; so that the exports in the former exceeded those in the latter year by L.454,577. Surely facts like these would dispose of a few of the Free-trade fallacies, and we should not hear them again repeated, at all events." —Morning Herald, Nov. 28, 1850.
The restoration of peace on the Continent was the principal cause which again raised the amount of our exports to the Old World. This appears decisively in the returns: the exports of Great Britain to Germany alone, which, in 1848, had sunk to less than £4,000,000, rose, in 1850, to £6,078,355. The cessation of purchases to the Continent, during the two preceding years, in consequence of the alarm consequent on the French and German revolutions, only made the rush for English manufactures greater when the restoration of tranquillity reopened the Continent to our industry. In America the change was equally great, and equally irrespective of Free Trade: our exports to the United States, in 1850, exceeded £12,000,000. This extension arose from the general rise of prices, and extension of credit, from the opening of the treasures of California. It not only created a new market for exports on the reverse of the Rocky Mountains, but so vivified and animated every part of the Union, as rendered them capable of purchasing a much larger quantity of the manufactured articles of this country than they had done for a great number of years.6
But by far the most important and beneficial effect of Californian gold hitherto experienced has been in the extension of credit and increase of accommodation at home. This effect is obvious and important. The