“We all know,” interrupted Mr. Berkeley “that prices have long fallen, that the currency is already contracted, and that paper is only three per cent. cheaper than gold, and that these things would have happened if there had been no more talk of cash payments. No wonder corn is cheaper, when we get so much more from abroad since the war ended, and Ireland also has improved in productiveness. No wonder wool is cheaper, when Germany and New Holland have sent us so much more, and of so much better quality than formerly. No wonder our colonial products are cheaper under the change of system by which we are more abundantly supplied. Those who hold themselves in readiness to ascribe the fall of prices to a deficiency in the supply of bullion, and to argue thence against a return to a convertible currency at this time, should look about them and see how great a fall will exist at all events, and how much it will hereafter be fair to attribute to the new Bill.”
Horace observed on the difficulty of satisfying a public which had suffered by alterations in the currency. Many of those who were now protesting against the resumption of cash payments were the very same who were clamouring to have the one-pound notes withdrawn, in order to make our provincial circulation more safe, and forgery less common. These were opposed by some who thought the establishment of branch banks would answer the first purpose, and by others who believed that competition would drive out forgery. Never were so many plans afloat for the rectification of the whole business of the currency; and each plan was thought to involve a remedy for all the evils which had taken place under former systems. The first thing necessary seemed to Horace to be the putting an end to an irresponsible system; the next, the taking care that this action on the currency should be the final one. It might afterwards be ascertained whether the Bank of England should retain any or all of its exclusive privileges, or whether the business of issuing notes should be left free and open to competition, under the natural checks of public and private interest, or any further responsibility to which, by general agreement, the issues should be subjected. It might be left to a period nearer the expiration of the Bank Charter to canvass the advantages of the Scotch banking system as applied to England, and whether the issues should be made from a great national bank, or from many joint-stock banks, or by a chartered company. There were still nearly fifteen years in which to consider these questions; and during which, further fluctuations might possibly arise to indicate new truths on this most important subject. The great present object was to get into a condition for making progress towards a perfect monetary system; and the first great step was, as he believed, to bring the Bank of England into a state of responsibility once more.
“I wish,” observed Mrs. Berkeley, “that it was made a part of the responsibility of the Bank of England, that it should not tempt the people to forgery. To be sure, its privileges themselves constitute the greater part of the temptation, as there must always be the strongest inducement to forge notes which have the widest circulation; but I do wish that to these privileges was appended a condition that its notes should be more difficult of imitation.”
Horace thought that such precautions were better left to the interest of the parties concerned. The degrees of complication which should be put into the engravings of notes were not subjects for legislation.
“But it is so painful,” observed Mrs. Berkeley, “not only to be afraid of the money that passes through one’s hands, but to be made suspicious of one’s neighbours, or to be confounded with the dwellers in a suspicious neighbourhood. I do not in the least believe that anybody whom we know in Haleham has been intentionally implicated with forgers; but it is very painful to have such an idea put into one’s mind.”
“Are you aware,” asked Horace of Mr. Craig, “whether any strangers have come to live in Haleham, of late, either openly or covertly?”
Mr. Craig had heard of none. The letter he had received had charged the regular shopkeepers with having held bad notes, and he had a great mind to go to such as had been mentioned to him, and ask where they got such notes.
“Aye, do, without loss of time,” said Mr. Berkeley, “and I will go with you. Trust me for sharpening their memories, if they happen to be at a loss. I have a sad memory myself, as my wife will tell you; but I have a method of making the most of other people’s.”
Mr. Craig at first felt that he would rather have been without his bustling companion; but it was presently proved that Mr. Berkeley was peculiarly apt at the business of collecting evidence. He was so ready with suggestions, saw so far by means of slight indications, and adapted himself so well to the peculiar humours of the persons he talked with, that he enabled them to remember and comprehend twice as much as they would have done without his help. The linen-draper, who had not till now been aware that he had had a bad note in his hands, was so stupified at learning that one had been traced back to him, that he could not for some time remember from whom he had taken notes within a month, though notes were seldom seen now on his counter. It was Mr. Berkeley who, by happy conjectures, and by frequent returns to one or two fixed points of proof, led him to remember under what circumstances he gave change, in return for what purchase he gave it, when he gave it, and, finally, to whom he gave it. The shoemaker looked back to his books, and by the assistance of Mr. Berkeley’s suggestions about dates, brought home the fact to the same person of having paid him in a forged note. The butcher was too confused in the head to be sure of anything; but his stirring, clever wife of her own accord mentioned the same person as having taken change from him that very day.
“There is one other testimony,” observed Mr. Craig, “which would end all doubt as to whence the bad notes have come. If Mr. Pye knows that Mrs. Parndon has been paying such away we need inquire no further.”