THE UTILITY OF THE NOTES
There is abundant evidence throughout the records that the system was
appreciated.
Jacob's _Annals_ (1830), in a chapter on Currency, mentions the Notes
incidentally. "All these, with the one pound Guernsey States' Notes, are
in much request, being very commodious for the internal affairs of the
island."
The Bailiff, Daniel de Lisle Brock, who seems undoubtedly to have been
the inspiring genius of the scheme, says in his _Billet d'Etat_, 15th
November, 1827--
"An individual with an income of L9,000, who spends only half of it
wishes to build a house at a cost of L13,000. He therefore makes an
arrangement with his timber merchant, his mason, his carpenter and
others to pay them out of his savings, so that they shall receive a part
each year for five years. Can it be said that he is contracting debts?
Will he not have at the end of the five years both his house and his
original income of L9,000?
"The States are precisely in the same position as regards the L13,000
which they have to pay out of their income during the five years
included in the said table. This sum will be paid in instalments of
L2,600 per annum, with as much ease as were much heavier engagements in
1826 and 1827.
"The time has passed when the public could be frightened by exaggerated
reports about the debt; most complete publicity keeps everyone
acquainted with the real state of affairs; my greatest wish is that
nothing should be hidden."
Frequent references to the saving of interest are to be found, and to
the fact that improvements in the island could not have been carried out
but for this system.
Wm. Collings, speaking at the States Meeting, 26th March, 1828, on a
financial proposition, gives it as his opinion that interest now paid
might be spared if the States issued more Notes. The Rev. T. Brock at
the same meeting supports the contention, as Notes can be issued without
inconvenience.
In the _Billet d'Etat_ for 21st September, 1836, in a long discourse on
the circulation, Daniel de Lisle Brock says, "To bring about the
improvements, which are the admiration of visitors and which contribute
so much to the joy, the health and the well-being of the inhabitants,
the States have been obliged to issue Notes amounting to L55,000. If it
had been necessary, and if it were still necessary to pay interest on
this sum, it would be so much taken from the fund ear-marked to pay for
the improvements made and to carry out new ones. This fund belongs
especially to the industrious poor who execute the works and generally
to the whole island which enjoys them. It ought to be sacred to all."
Mr. John Hubert, in the debate at this meeting, is reported by the
_Comet_ to have referred to the fact that "the roads and other works had
been constructed for the public good," and to have said that "without
issuing Notes for the payment of those works it would have been
impossible to have executed them."
Mr. H. O. Carre, in the same debate, said, "The States, by having Notes
to the amount of L55,000 in circulation, effected a saving of L1,600 per
annum. Here, then, was a revenue of L1,600 raised without causing a
farthing's expense to any individual of the public generally, for not
one could urge that he suffered a farthing's loss by it. It was
therefore the interest of every one to support, not the credit, but the
interest of the States. Those who wished to traffic on the public
property were in fact laying a tax on that public, for they were
diminishing, by so much as they forced States' Notes out of circulation,
the public revenue, for if the States, in consequence of a diminished
revenue by the effect of Bank paper, have to make loans, those loans
must in the end be repaid by the public--which would be a taxing of the
public for the benefit of private individuals."
Further contemporary testimony to the estimation in which the Notes were
held may be gleaned from the papers of the time, of which there were
three, issued at least once a week. In these occur letters from
Publicola, Verax, Vindex, Un ami de son pays, Un Habitant, Campagnard,
etc. Some of these were probably inspired, and sometimes they show a
partisan bias. The references of most value are the incidental ones
occurring in discussions on the improvements or in the criticisms of
_ordonnances_ on the currency. The coinage at this time was in a
confused state, there being both English and French money, some of it of
very poor quality, in circulation.
The _Gazette_ of 22nd July, 1826, refers to allegations made by the
Jersey authorities as a reason for their refusing to register an Act
authorising the issue of L5,000 in Notes. The opponents of the measure
had alluded to supposed evils arising therefrom in Guernsey. But the
_Gazette_ emphatically declares that "these Notes have neither directly
nor indirectly burdened commerce in any way, nor contributed to the rise
in exchange that is experienced."
A letter in the _Gazette_ of 25th April, 1829, on the subject of
"Monnaie," written at the request of Sir J. Colborne, the
Lieutenant-Governor, suggests that people in authority in Jersey
interested in Banks oppose State Notes, lest these should be preferred
to theirs. The leader of the same issue of the _Gazette_ states that
"the generality of the inhabitants have confidence in the States' Notes
(it being always understood that the issue of Notes shall be kept within
just limits) because they know that the whole property of the island
forms the guarantee for their payment."
"Campagnard" in the _Gazette_ of 28th February, 1829, suggests the need
of some other currency than States' Notes for trade in France or with
London and Paris, but feels alarm at anything that might stop the public
works in the island.
The difficulty of getting cash for notes is alluded to only when the
period of controversy referred to in the next chapter is reached. But
for about the first ten years of their issue it would appear that no
exception was taken to the notes nor difficulty experienced in their
use. External exchange seems to have flourished side by side with this
internal currency.