RICARDO, David (1772-1823). Two autograph letters signed, 6 December 1812 & 3 March 1813 – MUSHET, Robert (1782-1828). Two autograph letters signed, 15 December 1812 & 27 February 1813 – HORNER, Francis (1778-1817). Autograph letter signed, 30...

RICARDO, David (1772-1823). Two autograph letters signed, 6 December 1812 & 3 March 1813 – MUSHET, Robert (1782-1828). Two autograph letters signed, 15 December 1812 & 27 February 1813 – HORNER, Francis (1778-1817). Autograph letter signed, 30 November 1812. All addressed to either Leonard Horner or Tertius Galton. [With:] Ten additional letters from Alexander BLAIR, Leonard HORNER, John CORRIE, Nathaniel Haywood, Hudson GURNEY, Joseph TRITTON and Sir Joseph BANKS, all of which are addressed to either Leonard Horner or Tertius Galton, 5 December 1812 to 14 February 1814.

Together 15 letters, 33 pages total, ranging in size from 180 x 115mm to 250 x 200mm, housed in a custom blue cloth clamshell box and slipcase (letters mounted to larger sheets but only with mild toning in places).

An important and unpublished correspondence concerning The Bullion Controversy: shedding light on early developments in monetary theory including letters by several prominent economists of the day. David Laider, writing on the Bullion Controversy in New Palgrave noted that "much of the debate was about fundamental questions of economic theory" and contain "contributions of crucial and lasting importance to monetary theory." Summarizing the importance of this period, he observes that "In only a quarter of a century, 18th century analysis of commodity money mechanisms had been adapted to the circumstances of a modern banking system, and the monetary economics of the open economy under fixed and flexible exchange rates had taken on a form that is recognizable even today. Moreover, the foundations of the theory of central banking under commodity and paper standards were also developed." He concluded that he could think of no "other episode in the history of monetary economics when so much was accomplished in so short a period."

This correspondence concerns a manuscript by the banker Tertius Galton that would be published in 1813 under the title: A chart exhibiting the relation between the amount of the Bank of England notes in circulation, the rate of foreign exchanges, and the prices of gold and silver bullion and of wheat. Galton composed his essay and accompanying chart in response to the 1810 Bullion Controversy, which sparked by inflationary pressures marked by a decline in the exchange rate for sterling and a rise in the price for specie against notes issued by the Bank of England. The extreme Bullionists, led by David Ricardo, blamed the excessive issuance of Bank of England notes, while the anti-Bullionists pointed to the spike in foreign remittances exacerbated by the Napoleonic Wars. To tackle the problem, Parliament established the select Bullion Committee. In the winter of 1812, Galton passed along the manuscript of his chart, which supported the Bullionist position, to Leonard Horner, who, in turn, showed it to his brother Francis Horner, the chairman of the committee, David Ricardo, and Robert Mushet of the Royal Mint, and others, many of whom offered their counsel.

David Ricardo approved of Galton’s methodology overall, writing in December 1812 to Leonard Horner that he found “but very few positions which I do not entirely agree”. He took issue with the assertion that a prevalence of worn coins in the system would affect the price of bullion, but would rather “depend entirely on the abundance of such coin.” Ricardo also cautioned that the table should “be considered an approximation to truly but by no means critically correct”, observing areas where hard data were lacking and estimates in certain areas were necessary. He cautioned however that his critiques “might perhaps tend rather to perplex than to enlighten those for whose perusal it is intended.” Mushet too approved of Galton's table, writing that it was well "calculated to do a great deal for the Bullion cause. His chart is ingenious and gives a very clear & comprehensive view of the subject, and one that every person will easily understand." Ricardo concurred in a later note to Galton, writing that "it will assist to dissipate the cloud of error which at present prevails on the subject". Some anti-Bullionists are represented in the correspondence as well. Sir Joseph Banks blamed the Continental System for the inflationary crisis. Meanwhile, Hudson Gurney, known as a chronic contrarian in Parliament, took issue with Gold and Silver as valid measurement of value, concluding that "all monied wealth being merely imaginary" and "all is circle – Money is power – & power is Money [...] the individual seems only to have to do his work take his share – if he can get it – & not quarrel with the manner of reckoning". A complete transcript of the correspondence is available upon request.

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