Star. — London, England, 1819-05-25 00:00:00

t t i ' 4# it • • ' • r 'Oh • . 1 .• • Pt. . , ! ',,' i ‘'' 41. ; ti% . . , , .. . 111 •• • .. i , , I 1 t . 1 1 1 1 I _ N. ' • \ ---- a ents. this 'it was concluded, and vary justly concluded, would produce much embarrassment and mercantile distress; but this formed no. part of the plan of the Committee. 'They only wished that provision should be made for the gradual repayment of the sum Whi c h has been mentioned, and no thing. appeared in their Report that implied an opinion on their part that the whole of the £10,000,000 must necessarily be repaid before the period at which the Bank should be requi red to recommence Cash Payments. The early re payment of this sum the Committee had thought it right to recommend, because it was earnestly desired by the Bank, and if demanded, they thought it but right that Parliament should proride for its repay ment before they called upon them to act on the plan suggested in the Report. Though it was no:, in his view of the subject, necessary that the whok of the ten millions should be repaid before the return to Cash Payments, he was of opinion on other grounds it was desirable that a considerable sum should be repaid. It was impossible to advert to a paper which had been laid on the table of the House that day, without feeling an earnest desire to see the relations now existing between the Government and the Bank materially changed—(hear, hear).—That House ought to have the power of limiting the duties of the Bank to the strictest consideration of those sub jets which had originally chimed their care. In the paper presence.' that day, which contained a Report of the proceedings at the Bank on the 20th instant, which had been laid before the Chancellor of the Exchequer, he found the following paragraph: " Under these impressions the Directors of the Bank think it right to observe to his Maesey's Ministers. that being engaged to pay on demand their Notes in Namable Coin, at the ?dint price of £3 17.. bold. per ounce, they ought to b.: the last per sons who should object to any measure calculated to effect that epd ; but as it is incumbent oo them to consider the effect of any measure to be adopted, as operating on the general issue of their Notes, by which at the private Banks are resigned. and of which the whole currency, exclusive of the notes of private bankers, is composed. they feel themselves obliged by the new situation in which they have been placed by the kestriction Act of 1797, to bear in mind not less their duties to the Esta blishment over which they preside, than their duties to the community at large, whose interests, in a pecuniary and com mercial relation, have, in a great degree, been coofidedto their aiscretion." past. ...Hitherto we had - a bright point in view, the Resumption ofra;h _inents. It had operated as a check on the issues' of the Bank. But if once we said that they should never be re, newed, we should leave the Bank not only to its own discretioo in the amount of its issues, but to be guided by the necessity of fulfilling the obligation which it had contracted with its own proprietors of consider ing ;heir -individual -biterest. He sho uld therefor'!' call on the House to declare that it was determined to put an end to the Restrictions. This was the rea-. son why it was incumbent on the committee to pro-. pow some steps to slier, that it was really intended Cat.a Payments should be teeurtied. The Committee LIS several aiternatives. It might have selected one of four courses: it might have contented itself with a declaration that Cash Payments could not yet be renewed, but must at some fatureperiod be resumed. But if the Committee had only done that, would any man base believed that it was in earaest ? What had happened during the hut few days had served to convince him that Parliament " must screw its cou rage td the sticking place." Until the late discussion in another place, the impression produced on the public mind was, that the subject would not be pressed farther than the Reporti of the Committees. Should this House not take some step of a more de cisive nature, the same opinion would again prevail. On five occasicau, the House had already declared, that Cash Payments should be resumed. That opi nion had- been expressed by a Right Hon. Friend of his in 1811, though since that period the Restriction had been five times renewed. Another alternative was For the Legislature to fix some other period for the Resumption cf Cash Payments, at which the Bank should be compelled to return to the ancient practice. He, however, would put it to the Mouse, if it would be well that they should take such a course?—if it would be wise for one Body to adopt' a certain system, and compel another Body through whom the plan was to be carried into effect, to act on it, even though the principle of the measure was not good, according to their view of the subject, and one in which they could not concur? The Bank did not consider that they had it in their power at any time to regulate the price of Gold by the issues of their Notes. In a Resolution which had been come to by the Court of Directors, it was declared, " That this Court cannot refrain from adverting to an opi nion that had got abroad, that at. any time the Bank has only to restrain its issues to diminish the price of Gold, and, after giving the subject the most attentive consideration, they have been unable to discover that this opinion rests on any solid foundation."—He blamed not the Bank for entertaining this opinion ; 1 1 and, as he had already stated to them, it appeared unjust to look to them to act on a principle which they could not approve. A third alternative might have been found in positively limiting the amount to which their Notes should be issued: this, however, he thought would at all times be unwise. It was im possible to say what amount of Notes would be re quired at any given period by the circumstances of the country. It a run, as it was called, on the Bank would sometimes cause a very different issue of Notes to be called .for at one time from that which was wanted at another—if there were a demand on the Bank such as was known in 1797, when the Market price of Gold did not exceed the Mint price, the Bank might issue its Notes to any amount with per fect safety: but if, on the contrary) ftere should be a drain on it from the unfavourable state of the Ex changes and the high price of Gold, then the evil could be corrected in iso way but by diminishing the !umber of their Notes in circulation. Since then at various periods their situation was likely to be so very different, it was impossible to say what number of Notes ought to be issued at any given time. •That question must be decided by circumstances, as no thing could be inferred from the mere nominal amount of their issues at any time. A fourth alternative pre sented itself, which had been adopted by the Commit= tee: that plan would be found embodied in the Resolu tion which he should this night have the honour to move. This was founded on the principle, that the Bank should be obliged, from regard for their own • interests, to regulate their issues by the price of gold, and in fact act on the same principles which governed their conduct before the passing of the Bank Re striction Act in 1797. The Committee bad found the Bank in this situation, possessing treasure, less in amount perhaps than would be wanted if they were to resume Cash Payments, while the market price for the last three months, was considerably above the Mint price, being Ea ls. per ounce. It was found also that the Bank had advanced to the Public con siderable sums of money, which they were desirous should be repaid. Under these circumstances, it was thought advisable that the period of resuming Cash Payments should be postponed to a day more distant than had ever been contemplated before the late Committee sat. They prorosed, dprefore to allow the Bank nearly four years, before ;hey should be required to resume their Cash Payments, but doing this, they thought it necessary to adopt measures that should convince the Public, that it was intended really to return to payments in specie, when the period now fixed upon should expire. It was unnecessary for him to go at length into the de tails of the plan suggested by the Committee for ef fecting the object in view, as every one who heard him must he acquainted with it. It was known that it was proposed that the Bank should commence paying their notes in ballic.n, to be issued at that which was lately the market price of gold, from the Ist of February, 1820—that there should be one in termediate stage.between that and a return to the Mint price, and that they should be provided to pay in gold bars, to be issued at 1.:3 17s. 10d. per ounce, by the Ist of May, 1821. It was true that they re quired the Bank to provide gold to pay their notes • is two years from the present time; but then it was soder certain modifications which made it probable that the demand upon them would be much less than that which-they would have to meet if they were re quired to payin coin. As part of this plan, and as 'preliminary to the Resumption of Cash Payments, it I was proposed that a considerable portion of the ad . vances made tolhe Public by the Bank should be re paid. • No iston,iderable alarm existed' on this sub ject, which, in :his opibion, had been much misun derstood. h-was supposed . that the Committee re- 1 .commended the imp; ediate repayment of El 0,000,000 ; to the Bank, andlhat so much must be forthwith. withdrawn froth thls. cutreacy of the country, and , On reading this he preferred no complaint against the Bank. He did not advert to it to throw any Imputa tion on the Directors of that Establishment, but that he felt that the assertion which it contained was a melancholy truth ; he wished the House to relieve them from . the duty which had been thus thrown upon the Bank. It was impossible for him, recollect ing the circumstances under which it was established shortly after the Revolution of 1688, not to feel a great interest in the prosperity of the Bank of Eng land. From his knowledge of the Bank Directors, be felt great individual interest in the success of their Establishment, but they could not be surprised if doing every justice to their motives, their conduct, like that of every other public body, became the sub ject of inquiry. In reading that paper to which he had adverted, it was because he felt that it stated the truth, that a strong impression on his mind was made as to the necessity of relieving them from the duty of attending to the concerns of the country at large. It was the duty -of Parliament, and not of the Bank, to take care of the pecuniary and com mercial concerns of the nation generally. Let it not be thought that he blamed the Bank when he- said this, but he certainly thought that it was the duty of the Legislature to endeavour, by a great exertion, to resume that duty which had thus been delegated to the Bank. On this ground he most earnestly re commended an early .repayment of the advances made by the Bank, though he did not consider the repayment of the whole ten millions necessary before the resumption of cash payments, unless it should be insisted on by the Bank. He now wished the House to look at the practical consequences that would flow from the adoption of the plan recommended by the Committee, in order to ascertain if the alarm which had gone abroad were well or ill founded. Suppose the repayment of the £10,000,000 were to be effected in the course of two years, in payments of from four to £.500,000 per month. The Bank would commence+ paying their Notes in bullion in February, 1820, in gold bars, to be taken at the rate of £4. Is. per oz. and from the Ist of October following, at f. 3. 195.6 d. per oz. but while doing this, and receiving the sums he had mentioned in repayment of the advances they had made, should a contraction of the currency to that amount necessarily follow ? Could not the Bank, on receiving a payment of half a million, ex pend it in bullion, or lay out half of it in the pur chase of gold, and the other half in discounting bills as usual ? There was no necessity, as it appeared to him, for them to diminish their issues by one single shilling. He was not certain that they might not even be increased under the proposed system. He would then implore the House not to be led away by clamour—he implored them seriously to consider the merits of the case for themselves, and to look into it, and see if the Resolutions which he was about to propose, might not be carried into effect, not only without contracting the currency, but in a manner perfectly consistent with its increase. They were told that the object of the Committee was to tie down the Bank issues to the price of gold, and to compel them to diminish the currency down to the present price of gold. But this argument, if it were good for any thing, would apply for ever to a resumption of cash payments. If the evils anticipated would flow from the Bank undertaking to pay their Notes in gold, issued at £l. Is. or £3. 19s. 6d. per oz. it followed that the same reasoning would apply isfrrtio, i to the resumption of cash payments at any one period on the old plan—that is at £3. 175.103 d. To the fears expressed respecting a drain upon the Bank, if a system were adopted which would oblige them to regulate their issues by the price of gold, he would reply by referring the Mouse to the experience they had of such a plan from 1771. to 1797. Then the Bank regulated thnir issues according to tl!e price of gold ; and what was the consequence ? if they looked at the returns, it would be found that during that pc.. riod the price of gold had never exceeded £3. 175.6 d. per oz. So as tho Bank had been compelled to pay their Notes in gold, the market price of gold had been confined to the Mint price. Then; as it was proposed should - be done now, the holder of Bank notes to the amount of MO had a right to demand I not what many cor.fused themselves with, so many !sovereigns or guineas—but five pounds of gold.— B t the regulations of the Mint, 14 guineas were coined out of every pound of bullion, mid five times, that sum could be demanded, or (i 0 ounces of gold ; against the tdpottatiat ' pride and satisfactina. s o r th ili at tl : s ru lit t l e e, dr tvery " ll lbebokaws knew it was sent out of mitts of Ldward the alluded 7 • • tiauon ie its price as to the kiagdrei ahenever therearuvocdcuzrretceln.;tachtioaamoto wiitt Witliam be the Thir,d.g greet t i i • variation of its countered ; diffsteities a-. ;ea and hi ke :W l T a reforroaeen e• th pr l ve c b ap ad ital .np in t t , borov.se4tpecerl,lsuatore...effecThtes as vre:e generally opposed the resell vaue attrib uted d a: ige gold . 1 i:.litaordl? time E.! ';! Eno have corn or more mast when he was in c.: ete and, he asked, could you procure mere nes • =or silver, kr it had applied himself to in pro asevb.7s.-seagiCCftilal."llaitSeCliptsritc)cPesritif4enorn"°!ewaitSsCisaavlairt:,to : I was in the r • • -- pended upon good or bad hart silver for it ? Not exactly perhaps corn, for it de- ' and engaged in an atternot to but ar- diem, aad Isis conduct in t it cam- praised by the most intelli; usual and ordi - next period at wlech • an: mend a greater quantity, or of th e u , t w ic a l s es " fi c z a4 ed caall in thei t r bt am sta ou n n d t ar , d he d a m sk o :l7 d ; id was in the reign et nary commodities of trade? Certair.ly it dd , persons talked the House. The currency ci than it was fifty years ago ; and m an y The value of gold was, at the present period, less circumstances to which he e tion had never so affected it. Whe n the y talked of ward VI. in some instances not beside, cr . its price being raised by taxation, but taxa- debased during the reign; of raising fifty millions by taxation , they never calulated The same consequences that s upon any difference in the value and the price of from a deteriorated c ir cu latin g geld n whereas, by postponing the period at which the subject of complaint. Tl• gold would be made the standard o f value, they te- . ces, great floctuation in th value. It was said the revenue and t rade of the was in the second year of Elise would find no variation in its price at all affect its dines, and great disturbances • country had greatly increased, and that a corres p ond- advice of her Minister, Bartell ing increase in the currency became necessary , that form the coin of the realm. private fortunes had also increased, and that, as a wanting those who creed tell just inference, the circulation of the cur rency should tendiun on the execution of sr keep pare with them. But that he denied , and should the new coin would pass into prove, by an instance, an illustration of h is position, that all that could be done w , that it had an inverse operation. If they compared Irela , td, she was warned, two different periods, as to revenue and circulation. of rebellion, while the Court: w na as me u l u yel792.and Spain, were all leagued again at that time, and under mediately previous to the appointment of the Bullion would venture on a step so i complaint of i" a ciefi a ci Per ent i°j cir l c l uti ) Z . . h" and th i ere m - Committee, they would find the circulating medium mined to run the ri•Jc. She w which, according to their theory, should have in- leigh that the dangers of whi, creased, had actually diminished, and thereby corn- amstituted the reasons which pletely upset the doctrine of those persons who coo- ta reform the currency oldie c tended that as increasing revenue demanded an this her interests would sutfein increasing "circulating medium (Hear, hear.)— vice her conduct had been the In 1792, our circulating medium had been estimated In the very learned work of by the late Lord Liverpool, to amount to £30, , 00,000. fel ence had been made to a He would take off £5,000,000, in order to make it in which her conduct cm as unfavourable as possible for his own position, and praised. Ile had sought for suppose it in reality to have amounted to 025,000,000. haps it was fancy, but to him From official returns it appeared, that there were applicable to the present perir then in circulation Bank-notes to the amount of of a long reign of 45 years, £11,000,000, making the total amount of the circle= the gratkude of her people, lating medium at that period £36,000,000. At brilliant achievements of her that period the interest of the National Debt was which Spain had been defeat 0,000,000; the number of vessels engaged in coo- ted, it added, that abOve all, mercial enterprise . was 10,008, their Arial value Protestant Religion--Mondt being about £19,000,000. Such- was the state of Arta. That above all, mon , things in 1792. In 1809, the interest of the Public its just value ; that she had Debt had risen to 1231,04:10,000, h'ving increased the courage to restore the more than threefold ; the number of ships employed country under all the diffictil in commerce had increased one-third, being then had to contend—(Hear.)—Ki 15,000, and the amount of our exports had increased went he was engaged in a fox one half. In this year Gold was Di 11 s. per ounce, undertaken to reform the sih so it could not be supposed that mach could remain This too, he resolved upon at in circulatioe. It might be fairly supposed that high, and v-heinit was impbssii there was little or none, and this assumed, it would of the Eychequzr to bring ff be found that in 1809 a circulating medium of tion withent being thwarted, £19,000,000, managed in some way to transact the of opposition. King Wilbur business of the nation with an increase of debt, an in- to imitate the conduct of hi: crease of trade, and an increase of taxation, though the currency was reformed. . in 1792 a circulating medium of £36,000,000 was rency deba.ed by about ore-thil required. A par which had been mooed for by a arguments that wee.: adduced, Noble Friend of pe his in another place, and which he fixed. Before the discussions (Mr. Peel) had also moved for, threw great light on terminated, he hoped the 3lemi this subject, and shewed that at one period the same arguments used on that oc; amount of Bank-notes would do three times the who was then opposed to the business that would be so accomplished at another.— The former contended that ; The return to which he alluded sheaved the number abstract sign, and that its of Notes which had been issued of each denomina- no importance—the latter tion in 1792 and 1818, with calculations so far as the essentially necessary the shilli same could be made out, how long each had re- per weight—that sixty-two mained in circulation in the two years. He then pound, and most fortunately entered into the same details which Lord Liverpool The course of these argument submitted to the other House on Friday, in order to appeared in the history of Mai chew, that in the progress of wealth and refinement tinus being asked what abstract means had been found, through the improvements gave this reply—" I have no- which bad been made, to transact more business with but as the Knight of a Shir a smaller circulating medium. From the compari- Corporation." a But then," son thus instituted, lie thought it followed, that the you no idea of a Lord Mayo, doctrine which had been advanced, of an increased e that he had seen but one, circulating medium becoming necessary, from an in- with furs and a gold chain co crease of reveuue or of commerce, must entirely fall not help associating those as to the ground. Some persons, who were of opinion Lord Mayar, and more than that a Metallic Currency was desirable thought. Lord Mayor on horseback, he after dispensing with it for twenty-two years, that it up the horse with them." el; would be difficult to return to the ancient standard. not only form an abstract - F These, therefore, proposed that the present price of without any such accomtranit Gold should betaken to form the future standard of him not only divested of furs the country. This was to alter the denomination of out reference to his size, eyes, our money ; but all that could be got by this would Locke, who could sot so wel 'be that which might be obtained from acting a frau- abstract pound (If silver, earl dulent part by the public creditor. It might relieve Lowndes was obliged to give us from some of their claims, but it would not lower a solid pound of silver. He the price of Gold nor turn the Exchanges in our 1a- meats used for and against th your; nor would it raise our Circulating Medium in The former had prevailed, the estimation of the foreigner. If we put in our so was fortunate for the comma coin a greater quantity of alloy than usual, it would upon the House to say if these not for one moment deceive those abroad. Because resent situation of the nation we called that which was worth nineteen shillings a to an effort like that guinea, he would not give us twenty - one shillings E l en they were told of a for it. Such a measure' would give us ito security contributed to the prosperity against the exportation of coin, it tie price of Gold warded the interest of our should continue high. He called upon the House be would ask, if such effec, well to look at the policy of such a - course of pro- from an inconvertible paper ? ceeding, which would only procure that which they who were so much attached could at any time procure by fraud, an easier way this country was great before of paying the public creditor. He thought it desi- Payments. It had gained in rable that they should return to Cash Payments. Un- year 1797, and it was not fin_ questionably, in doing so they had to encounter con- were to date our importance among mitt siderable difficulties; but to these the nation ought to differed fsom o..er countries in having a paper ci submit, as to a just punishment for so long renouncing eel:ding medium, we also differed from them in des them. If they altered the standard now to £4 Is. at a that we had rigidly maintained rehlic faith , and hal future period they would be called upon to act a simi- even esempted the funds of fore•gners t taiatiro lar part again. It would be - said that France, or when they Sew to our shores for a refuse. in c , le Russia, or some other Power, wanted gold, andthat dangers, we had been checrel by the terLxt;on ' thither all the coin issued from the Bank of England our victories had not peen gaired by :rt.: would be conveyed, and therefore the wise policy of which we could feel reteorsc. T:tis clicered n‘i those who raised the standard from £ 3 17s. 100. to through the dark and des"'.: te Fe• i s.i we had ra!,c,l. £4 Is. ought to be imitated, and the standard again and, now that we were !a• j.e.. on the furrher sone raised from L. Is. to Da 10s. Against such a p sin- he nested that we shoal! rt . : it% the c !era ciple he must enter his protest. In the history of the nion of out lorg voyage, St;t •)!ruhf a ct " country it would be found that at three former periods to that hor,out - able principle i 1 tutee c t r.:ce uJ • the currency of the country had been reformed, and had carried us trier' p!)-tni!Y manfully restored to the ancient standard—if/rare every consideratian ' To these three periods he would call the attention of the House, and it would be seen th a t th e y were pe riods to which Englishmen might leak back with ,t.i i~~nti: —on every prr.ci act tr we veve bouv..l I El. 1-14: • • ix ~ - 1.;"l 1 'T:. *xot.:l f0u;.,1 . ; ;, r r.t..:lies v - ;rt SCr t.,. ''; \ 1! CU! V.ol; „ ke ;:rd. tto suirive 7 r *l'3l, iprOVZ Clt this ii.,t.ince elligent r , an:leat of (,I;kern , le would call :h., cf the corrai t. of Helry N . lll. rrd not le,s than 4.0 pe: hat were now acing medium then lltere was 2n arSan;;.• -; n the value of All aces at different times. it Elizabeth that she, by ti t arlei?h, determined ts r t . n. There were then ra Id tell of the difficult:e t 4. A . such a design. Then sa d nto foreign countries, za d e would be of nn Was then almost kr. rar e nuts of kon,e, Fra7ce, ri d Tainst her ; ar.d it er such - cir,..imstancer. slt so important ? tS.le e was advised by Lord Bur. which she had been waned rich ought to determirrile he count., v, and failing to 4 Fes-abroad. Acting or. nis 3' the subject of general I.:ai : of Lord Liverpool, 'a . r a monumeat.d inscri.' - in this occasion had • • for it and loand it, an 3 per him it appeared singrhiri period. It reated t:.e ;ars, recorded her viaerns , ale, and having nr:iced ;7 her rein, in the court efeated and Holland p:Ttt: all, neat to maintaimnz ,ada ad justaas valaros money had been restored had had the firmness - the ancient standard of Ectilties with which she!: —King William, at the r.. a foreign war, in 169.5, hat e silver coin of the realm.— n at a time when parties ria ipbssible for the Chancellor ag forward such a propose- -ted, merely for the purpose Iliam,, however, determined his great predrces.or. and ed. lie had found the car- pre-third ; he heard all the duced, but his purpose wa% ussions on this mbieet wee Members would lock at eh occasion by Mr. terrixl the celebrated John Locke tat a shilling was merely a its weight of silver was ter contended that it w shilling should be of a p.. vo shillings should weigh ely his arguments prevaile nents reminded him of wit f :%lartinus Scribltrus. Ma: istract idea he had of a n e no abstract idea of a .. Shire or the Burgess of en," said his father, " ha ayor ?" To this he repli one, and he was dec9rat in cound his neck—he ccr,. 6e articles with his idea of .han that, as he had seen ' k, he could not avoid mills • " 1." said the father, " - act Idea of a Lord Ma. raniments, but I can imag furs and gold, but also Wi. eyes , or dy."--(.4iauge. well form an idea of as carried his point, and Ma. give up his abstract idea of He then noticed the argu- mt the recoinage of 1695• d, and that they had d, vtustry ; and he now cal. ' there was any thing in anion that could prove a. tat which was then !raj f a paper currency hamn ritv of the country, and :‘ or manufactures and tradar effects could t e looked for ier ? He would remind dame hed to the present system, fore the suspension of Cast% ed military glory beibre the g from the period that -A* ince among nations. It v.e tries in having a paper • • 1 .. ( .