"We are here in a very melancholy situation,
continual bankruptcies, universal loss of credit, and endless suspicions. There are but two standing houses in this place—Mansfields and the Coutses—for I comprehend not Cummin, whose dealings were always very narrow. Mansfield has paid away £40,000 in a few days: but it is apprehended that neither he nor any of them can hold out till the end of next week, if no alteration happen. The case is little better in London. It is thought that Sir George Colebroke must soon stop; and even the Bank of England is not entirely free from suspicion. Those of Newcastle, Norwich, and Bristol, are said to be stopped. The Thistle Bank has been reported to be in the same condition. The Carron Company is reeling, which is one of the greatest calamities of the whole, as they gave employment to near ten thousand people. Do these events any wise affect your theory, or will it occasion the revisal of any chapters?
"Of all the sufferers, I am the most concerned for the Adams, particularly John. But their undertakings were so vast, that nothing could support them. They must dismiss three thousand workmen, who, comprehending the materials, must have expended above £100,000 a-year. They have great funds; but if these must be disposed of in a hurry, and to disadvantage, I am afraid the remainder will amount to little or nothing. People's [compa]ssion I see was exhausted for John, in his last calamity, and every body asks why he incurred any more hazards. But his friendship for his brothers is an apology; though I believe he has a projecting turn of his own. To me the scheme of the Adelphi always appeared so imprudent, that my wonder is how they could have gone on so long.
"If Sir George Colebroke stop, it will probably
disconcert all the plans of our friends, as it will diminish their patron's influence; which is a new misfortune.
"On the whole, I believe that the check given to our exorbitant and ill grounded credit, will prove of advantage in the long run, as it will reduce people to more solid, and less sanguine projects, and, at the same time, introduce frugality among the merchants and manufacturers: what say you? Here is food for your speculation."[461:1]
Hume to Adam Smith.
"St. Andrew's Square, 23d Nov. 1772.
"Dear Smith,—I should agree to your reasoning, if I could trust your resolution. Come hither for some weeks about Christmas; dissipate yourself a little; return to Kirkcaldy; finish your work before autumn: go to London; print it; return and settle in this town, which suits your studious independent turn, even better than London. Execute this plan faithfully, and I forgive you.
"Ferguson has returned, fat and fair, and in good humour, notwithstanding his disappointment, which I am glad of."[461:2]