Star. — London, England, 1819-05-11 00:00:00

Ittin i re j, to prevent 417 tuaterial progress wade t owards a r estoratioa of the treasure of flint to its former amount. l' e otw ith,tanding these discourses); eftcusilstantes, -- ,t, itan!: more than doubled iu re doing the he m onths of 1815 ; and the Fall is sty pr i c I .7'iA a nd the favourable turn of th e Exchanges, the Directors to raise it, by JanuatT 1617. - t han quadruple wh at it had been litt l e b e . t' o f I to. At this period the Direetsrs' felt g:::„,ortit of bring able to comply With th e %Ant even before the period at which of Parliament, 9,c;-:,;ction was to expire, that they issued a notice t i,e • payment in Cash of all the El and t 2 Notes •late prior to January. 1816. Finding little 'dcn.ii,d for Ca'h in consequence of this notice, their tteastli e having continued during the coarse ve al- to iilcrease to an amount far exceeding i t Weyer reached, and, with a - few exceptions, a larger proportion to the extent of their g' °Lhaa it had ever boe before, ir the Directors s rn „ Ae J se:oii notice, in September, 181" , cen t in Cash of all N o t es beariag date b for the before the cidanuary in that year. This raciuure had been salt! tot he COMMittee to have been undertaken in that if it proved successful, that is, if the f o ld sn tendered were not demanded, a if when 04.ided it remained in the country. the complete om ption of Cash Payments would take place gra j,jiv, and as it were insensibly, even prior to she r ,oioa then fixed by Parliament, Iris. the Sth of I .- MY, ' • • • I t h e month of April, 1817,the efeet of the great ' g n loan; made in that year began to be conside ili felt. Between April and October, 1817, the ic langel took an unfavourable turn, and the price gold which had, from July , 1816, tto Nlaigh, 1817, f c.,,,ecti between £3.185. 6d. and £3. 191.6 d. rose o•oc•Opril and I)ecember, 1817, from £3, 18a.641. 11 , Os (id since which date it does not appear by the (looted prices to have been ever again reduied h t ; o ;., Lt. The new gold coinage also began 0 be' i(saed in July, 1817. The treasure of the Bank was deed to itsli:k hest amount in the month of October, pr. There appears to have been no considerable demand for gold previously to the month of Octo ire. The first issue of sovereigns in large quantities rasin that month. There was a dihunution in the demand for them in the three succeding months ut in the month of februery, 1818, the issue of gold ' c reased till August in the same year ; and the de and luring this period is stated to have arisen de ledly for the purpose of exportation. It appears 'on the evidence of Mr. Hannan, that during the hole of the year 1817, the Bank did not think o ne . to make any reduction of its issues, either in sequence of the effect of the foreign loans upon e exchanges, or of its payments in gold, made in informay to the notices above referred to. In fact, ~e average issues • of Bank-notes in 1817 exceedeclby '1,700,090 that of 1816 ; the average issue of the •-t six months of 1817 exceeded the average issue of e first six months of that year by 1:1,870,000 ; and .is increase, combined with the revival of Country nks from their previous depression, probably raised e circulating medium of the kingdom in the last months of 1817 considerably beyond the amount which it had stood in the preceding year. . A great seduction has been made in the issue of • es of the Bank of England since the commence tof the year 1818 ; they had been, on the ave-, ge of six months from July to December, 1817, at N 4,210,000; on the average of six months from minty to July, 1818, at 47,9,54.,000: from July • December,lBlB, they were reduced to £26,487,000, • d have since been further reduced to about twenty millions; and during the , last three months of 1818, the issues of .Country Ranks are stated by ons much conversant with the subject, to have ertainly not increased, and probably to have decli ned; but the price of gold and the state of the ex : ges have coetinued to be such as to have drawn onithe Bank, 'in addition to the gold demanded previously to March, 1818, =minting to £2,022,000 a further sum of £4,787,000, making in the whole issue of 1;6,800,000, in consequence chiefly of the bility with which the Directors had under different mmstances voluntarily clamed themselves to pay e fractional parts of dividends, and a certain pro • . . )ortion of their notes in cash. Their treasure vr4s )1 these drains very considerably :educed; and they ref still liable, in consequence of the same mea ures, to an additional demand for cash to the amount several millions. This unfavoutable state of the exchanges and of e price of gold is:attributed to diligent causes by *rent Persons examined before the Committee. By wont to an excess in the circulating medium of the , by otheri to the effect of the late regular ' ons of the Mint respecting the new silver coinage, which the proportions between tke relative value of gold and silver are stated to have been so varied to hare occasioned the exportation of gold ; by - .hers it is attributed to the continued . operation of fereign loans, to the temptation held. out by a high :ate of interest to the investment of British capital foreign funds and foreign speculations,. and to the -rge purchases of corn from abroad ; a great pro ;ortion of which is paid for in advance, and must, -..entfore, in th e i r o pi n i on , h ave h a d a mat e r i a l e fr :tct upon the balance of payments, and of course tpon the exchanges, durins the year 1818.. k is under these circumstances that Parliament is ?lied upon to deliberate, whether it will he most far t7.e p ul li c interest to adhere to the deciion it had taken in May, 1348 or to allow a further delay for' ' 4 e preparations necessary to carry this impormmt :Leasure into. , :xecution, in order, as far as possible, '• secure its ultimate accomplishment, and at the (arse time aEord the means .of taking such precut :n:ls as may diminish the pressure of whatever pub incouvenience may be felt or apprehendnJ. • ?t1..16 ..liiierence of opinion upon almost all the ''''"tioas, whether of theory or of practice, to which attention of the Committee has been drawn, will fe '"ici in Lite evidence. Upon one point only there :s..nearly an unanimous opinion, grounded indeed by !Llfierent person s upon different lines ot' argument, but concurring, in Ole same result, viz. that it would he safe and ,prassicable for the Dank to Amine , 141 Payment s , on t h e sth fluly, 18191 - and as the . :nnaiiittee see suffi c i ent reason to agree thus far with e :.•rin.tical result of these opinions, viz. that„.in the ;teof things wiich now exists, there is a n eces * l :o:ne rut the, postp onernent, they need only refer % ' • .. c • • - , - .-• . . - * tat* -.! "r : '-• f - Jo ~ - •IF ' ii, I. , to the evidence, in which the dllferent reasons which', tentelteriiel eleak s • inia toots rot tth&tr 4 06 chYr Y -6---ese Hi* C°ll3* nr46-11r4 L -.ti lie rn en l y " er .:l:?..-1: S'atCll."-n2cr:"i ."..-.- . vie lead to tins conclasiOn are fully stated. It can hardly be necessary for the Comseittee to i th ciuns e ex ta nees pottation illim ier ni the refit to be derived nem taatinf*mation relpeetirig - fi wsti Z golds these knight i.e occasions imi teefiti,ln the evidence ef 11 , 17etenun. Witse (tin ' remark, that thi s opinion does not rest upon 4 a t iy ewhich the Bank might think, that with a view to its the greatest part of the period awe referred to, ground.which cart intimate, the slightest doubt oto 'Nen interest,, so closely connected with that of the either Ooyemor Xepuey vernor bf the Banff. the credit er solidity of the Bank. That bodypose" ceinemerceand manufactures of the country, the best • The Committ inkflPft . ► per to remark, that sesses at tilt *mitt nvinient the means ofd teheeeithode of checking steh a dement' might be, to Make whatever effect the event o the advances here re, Ring, out, of the treasure ac t ua lly i n its - colibrs, everyla more lib er al issue of its notes, mid thereby to re- furred to might have had 4litinVse suer of the Bank demand which co u ld h ave b een ma d e upon i t f or r i ve that credit, the want of which had produced at stir given -moment, entfrely ' tq Mime cash` pee ptyment id" eesh, in consequence of the notices refer- the embarrassment; but if .an Unusual demand took , meats, supposing other eircumrtances la.l not inter v t_ .. red t 8; and t he only object of th e mea sur e w hi c h, et place, at Lame when, from the state of the exchane tested to prevent such resumption , they do not ae- v . the erecimmettdation of th e com m it t e es o f both ges and of the price of gold, it evidently arose from pear in- have ha 4 any influence ieeetiminishing the Houses, has been already adopted ley Parliament, the profit to be made by the exportation of that me- extent of the accommodation received by the public daring the course of the present Session, was to pre. tal, the Bank always found itself under the necessity for commercial purposes, In the opinion of most of vent a contintiance of a drain of the existing treasure, of contracting its issues for its own security. lathe ,flit witnesses who have been examined, the lime ! , and thereby to facilitate such operations as the Corn- latter case, therefore, whether the Directors did' r dance of circulation produced by thisliberet. !intimate mittee might feel it to b e thei r d ut y t o recomm ee d, did not adopt the principle, that the decrease or di• Bank notes, whatever securities tney ware limed ' in preparation to a fin a l r em ova l o f the Restrittion. minution of the paper currency has a decisive' infle- bas produced, indirectly, a, great facilities to COUrr . Of the ultimate sufficiency of the Bank, no doubt has ence upon the exchanges, they neces-arily acted in merce as if they had been din ctly issued in aotomer- - been, or can be entertained; but as Parliament thought' the same manner as if they had fully adopted it.— cial discounts. A transfer, to a consiskeable degree, proper, at the period whe n it imp ose d t h e fi rs t r e s t ric , There is a difference, however, not to be disregarded, of the discount trade from the Bank M...private ban tion on the Bank, to' irect an inquiry i n t o th e actu al in th e i m p ress i on lik e l y to b e pro d uce d upon t h e pu b- k ers an d merchants is stated to have 'taken place; state of its affairs ; and as a similar injunction is cone lic mind, by any pressure arising from the measures but the facilities afforded to commerce were at least . tamed in the order by which this Committee is ap- to be taken by. Parliament for ensuring the restore- as great in the latter case as in the•former, as des pouted, they h av e th oug h t i t their daty to lay before tion of a metallic standard, as disting uished frOm discounts made by the Bank Vere more restricted is the House the statement i n th e Ap pen di x; b y w hi c h t h ose pressures w hi c h m i g h t b e occasionally experi- point eftime, were Welted by the necessity ; imposed it appears, that, exclusive of the debt from Govern- enced under the former system. , t upon the applicant, of bringing two and sometimes ment, at, three per cent. of £11,686,800, and of the These would be felt to be the necessary result of more securities, and were granted only at 5 per cent. advance to Government, at three percent. of three the precautions which, under particular circum; at a time when private merchants and bankers were millions, making together £14,686,800, the balance stances, might be taken by the Bank for its own se- discounting at a lower rate. in favour of the Bank, on a comparison of its debts curity ; and if any temporary inconvenience were The effeet, however, of the extent of the advances and credits, (including in the former the Government produced by thesis, they would manifestly have for to Government upon the situation of the parik,Wbsti balances in the hands of the Bank,) is Jeeeetel,l9o. their object to avert an evil universally acknowledged preparing for a resumption of .Gash payenfeets,• is Onie The next subject be which the attention of the Corn- to be still greater, viz, the stoppage Of payment by dently to cramp its OperatOns, by placing., a little mittee has been directed was the consideration of what the Bank ; whereas any pressure which might now proportion of its issuer - Itseutf: fes.beataltel: . ..Atte time might now safely be fired fo r th e ultim a t e re . be experienced by toe rapid a progress towards the advances made directly to Government weedy- re storation of the currency of the country eo the an- resumption of cash payments might be thought to be paid at the period fixed. by saw., The Excheipmefrbi cient metall.c standard of value, and what we r e the an evil voluntarily and unnecessarily incurred, from purchesed by the Batik ceeld not be sold ism large measures, if any, which it might be e x pedi ent td adopt an im patience to attain en object, - . respecting which quantities without reducips them. to a considerable in order both to facilitate aid to ensure the complete there was no difference of opinion, and theretere less discount ; and this disceunt sveuld: briag them into, attainment of this great object. readiness to make any considerable sacrifices for its the Exchequer in payment of the taxes, to sue,h an Unless the market price of gold shall be, at the speedy atteinment, extent as might materially derange the proeibione time so fixed, and shall continue to be afterwards It has also been-stated totfie Committee, that there for the public service. An understanding, therefore, so sear the Mint price, as not to afford a profit upon exists g this present moment a considerable degree withoht express agreement, appears to'havepreveiled the exportation of that metal, it has been abundantly of embarrassment in cpmmercial transactions, which that, when thus purchased, they ; should not be : sold proved by past experience, that no law spin prevent is attributed by some of the witnesses to the over- by the Bank. On the other haudethe issues of notes such exportation, and the. consequent den - and upon trading which has Oaken place, • encouraged, in the upon discount revert to the Bank at periods so short, the Bank. The main question therefore is, by what opinion of one witness, by the increase of the circu- that any reduction of the paper soessued, which cit means, and within what time, the reduction of the lating medium in 1817 ; and is attributed by ethers cumstances may render necessary, is always withia• price of gold to the Mint price, or, which is nearly to the subsequent diminution of that medium. Very -their reach : with this controu; over their,issues, they equivalent, such a favoureble state of the exchanges different opinions have also been stated respecting are enabled to feel their way, mei to restrict or ea. ! as will prevent 3 profit on exportation, may best be the probable duration of this embarrassment ; but as large them, • either as the wants of the coeecte.may attained. all agree respecting its actual existence, e more than permit or demand, or as the stfe rif titenreetnoiges It is strongly contended by some of the witnesses, ordinary degree of caution is required in the adop- and the price of gold niav aepeer tie reqewene., e e. and is admitted by most, that a considerable and (as tion of any legislative measures which may, even by It appears, therefore, to Committee et;beeteigidee was expressed by One of them) forcible reductipn of a temporary operation, in any degree aggravate or expedient, that means shOuldbe telen el ieer evrehe the issues of the Bank, accompanied by what some prolong it. These considerations have united to in- Bank a large amount of these..aihreeceree an eptly consider as a necessary, and others as a Firobable, cline the Committee in the proposal which they will period.—ln cousidering the toOtreeei r peeenellog far consequence, a diminution in the issues of Country submit in the conclusion of their Report, rather to ex. the future a safe and suffielenteedretgeliett eneeeli,feter Bank Paper, would produce a favourable turn in the tend the time at which the ultimate resumption of for the country, ther.ommittee veteennegraltg tostee, exchanges and a reduction in the price of gold; But Cash payments should be required to take place be- make inquiries as to what had 'beepA appentnere. many of those who are most deeply impressed;with yond the period at which, according to the best opi- viously to the 'Beek. 'IWO . ' „.yelentet e cislied the necessity of the earliest possible recurrence to the .nion they can form, there would be a probability of partly of gold coin end A popiF.ravw#o, A ancient standard of the countly, state, in the steonge. its easy accomplishment under ordinary circumstan- been its amount during' , ein el Afg there • r est terms, the general distress which i•larg e and ces, than to hazard the ultimate success of that meae little or no gold coin in circuletriepeamt i vrh.Velske sudden diminution of the paperecurrency, • now the sure, by assigning to it the earliest period within to I.;eies amount, and whin s oneece i hrheleestiteeike. only circulating medium of the country, must cicca: which, according to such opinion, it-might be safely Lion, when e metallic etandardeseeseerede • • ' e. ion; while others are of opinion that a very:small practicable. The measure bad better not be begun Upon the first oftheebheede they Mit* fiensi, reduction of the circulating medium will be sufficient at all, unless there be a determined purpose to carry ;tor indeed could they expitt tcrefie4 Pe,Vatuffli v to produce these effects, and that little distress would it to its completion as an ineffectual' attempt might from which a satisfactory cenCliisioixeoetchbuitmes be occasioned. There are some also who hold, that create greet mischie f and distress e andymeld not leave The only certain data at any perkod asp tbsi4lplkstf the present Mint regulations respecting silver are the any beneficial result to repay the cotrinaffor. What it the Bank of g.ngland. The amount a . G0ya...., sole cause of the high price and consequent exporta- may have suffered. ' only upon en:Weems formed in a greet del/me : win, tion of gold, and of course are of opinion, that theirs From thus attending the period, it seems to the conjecture; and the official ACcounts.oftenyeieeleeme ' need be neither reduction nor distress. . Committee the; considerable advantages would arise, formation respecting the issues of Country Nuke at- The general result of all the varying sentiments of Those who think that the object is to be accorn- that period, as the Stamps upon these Notes were net the witnesses upon the subject of the Foreign Ef- , plished only by the means of a considerable reduction then sufficiently distinguished sn those Accounts from changes, and of the price of. Gold, may perhaps be of the notes of the Bank of England, and that the other Stamps. It is known that in -1702 those items thus stated : inconveniencies, which they acknowledge to be the had been considerably extended ; that ether the.colleee Many of those who maintain that it is at all. times necessary result of such reduction, would he amply mercial difficulties of 1193 they were greatly reditce4 in the power of the Bank to exercise a complete con- compensated by the restoration of the ancient metal- and in 1797 had not reached theirfornier amount, -t • troul over the rise and fall of the Exchanges, and of lic standard, feel considerable anxiety to diminish the Taking, however, the amount of the Gold Coin in the price of Gold, nevertheless think, that the great extent of these inconveniencies. Those who expect circulation at' £5,000,000 below the estimate made Loans contracted for, since the Peace, by Foreign little or no inconvenience to arise from the measures by the late Lord Liverpool e yiz. at 1.:e5,000,000, the : States; the Investments made by persons in this necessary for the attainment of this object, are.neeer. Notes of the Bank of England at I:10,500,000, the country in Foreign Securities, to the amount, as has theless sensible of the difficulties which are opposed Country Notes, including Scotland, may be conjee- been conjectured, of 10 or gl2,000.000; the pressure to its early accomplishment by the present state of tured to have Leen I:7,000,000, the amount a Cir which took place in the money-market at Paris and the Bank treasure, and by the existing (though as culating Medium, helbre the Banic /testrictiori, will other Commercial Towns on' the Continent, an in they hope , temporary) commereial pressure. They be 1:42,500,000, exclusive of Silver and other meat America; and the great importation of Corn during are, on this latter account, particularly desirous to of circulation. the last year , have of late concurred in lowering the alley even th ose apprehensions which they deem en, . Upon the second head, viz. the amount of the cir- Exchanges. They held indeed, that when our cir- founded en exaggerated, and are satisfied that, pro- culating medium since the restection, there are un culation was in its fonuer state of payments in Specie, vided the ultimate object be sec tired, the intermediate doubtedly, at least as to a portion cef the period, • no payments abroad could bring the Exchanges ma- pressure, whatever may be its degree, would be ma- somewhat better materials for calculatioa. That pare terially below their par; but with a Paper that has terially lightened . by being spread over a greater which Is certain, viz, the amount of the notcrrof the no such regulator of its value, they think that the length of time. Bank of England, has borne so much .higher a pro necessity of payments abroad, from whatever cause, Those, on the other hand, who feel , less confident portion to the whole of the circulating medium, that does undoubtedly produce a considerable effect upon in the effect of such a reduction—who think that, the unceriainty which rests upon the remainder' has the Exchanges, which might, however, as they state, even were itseffect certain, it could only be produced less proportional effect upon the general result. The be always counteracted by a sufficient diminution of by the creation of a greater degree of -distress than details of these issues appear in the accounts.in the paper. On the other hand, many of those who at- the public could well bear—who look on the cessa- Appendix. The variations in the apiount of these is ,tribute the high price of Gold, and the unfavourable tion of those temporary causes, to which they attri- sues, in the week immediately preceding, and'in that state of the Exc hanges, chiefly to the operation of bute the largest share in producing the unfavourable immediately follewing the payment of the dividend_ these latter causes, and who deny or doubt the fact state of exchanges and the high price of gold, as the upon the National Debt, are so considerable (being• that the issue of the Notes of the Bank of` England natural remedy for the evil—and who expect, that in trom three to five millions in January aid s .; and has been excessive , nevertheless think that an CICIIf-• no long space of time, the favourable balanceof pay- from two to three niilli*s 'iii iixirijandttct ) , . sive increase or diminution of their jesue might offset meats (the usual result of the extent and nature of that in ,coinidering th4' general t tiOletinee the ler the Exchanges ; but they doubt whether a smell its- our commerce) will, without incurring any . distress country, it seems betterlo A.* an l arh-ge . of the crease or diminetiop would produce any marked by taking measures for the forcible preduction of issues for six months, tlial'e to ::for ~5 1 p cZ . legatiou effece upon them. ' such a change, teed insensibly, but with suf fi cient upon eshorter period. • Stated" 4 prpciiiie, nose again who maintain that the proportion be-' certainty, to the attainment of the object in view— it appears that they : did hot rte e , 11, , 0046efore twig the Mint price of gold and silver, as settled be all persons who entertain these opiiiioes must feel the first six-months of IWO; tjmq nevorkeached the recent change in our Mint regulations, is the sole still more anxiety for the extension of the period. Ifeeo,ooo,ooo before the first* six hl'Oetls• in )810; in causeof the nominal high price of gold, think that There , arc , however, sonic measures of preparation, the latter . six months they eecee4r4 : l24oo9,pOtt e • • the real exchange has for the last two years been in which , whatever time may be fixed , appear desire - The variations Or the next three Years eefire.iielt faveur of this country ; that there has been during ble, if' not indispensable. . considerable ; but th e rise duringt , he year IN* Wee • that period no Ma' issue of Bank paper ; that had it It is well known that the link has always been in rapid, and carried their amount; ape's tht average' '' of not been 'for the Mint regulations, gold 'must have the habit of making large advances to the Govern- the last six months, to allbve, 42400 1 ,00W'. The continued to flow into this country, as it did in 11316; ment for the public service. These advances are lowest point to which they fell ' vitas between 26 and diet there could, therefore, hive been no demand on partly made under special Acts of parliament, upon L*27,009,000. in the first six motnhi ef 1816. The the Bank for coin a that metat , for the pureose of securities therein provided. There is another species h hest towhiehehey rose was iferAheliet Alf moeths esywrratime c end that the Bank could have found too pf accommodation which lies also been afforded by of 1817, inhen, they weeg at their greatest .aver age difficulty in resuming payments in cash at the time the Bank ; viz , the purchase of Exchequer - bills to a a mount, vie. E29,000,000 ‘ ; and fro that peeled they now fired by Parliament. It appeeri to the Coen- large amount. For the state of the law apnrt this bare gradually clecreaseil hearly te ... 'hooo,o t.,0 pre mittee, upon the whole, that so long as the Bank con- subject the Committee beg to refer to a paper which viouslyto the issue•of the last s diys4e4...s, tinned liable to pay lit taah, it mght. be concluded has been laid before them, and which is insertedeine, 'Pie amoient, howeviii,' of Batik land paper feom reasoning, and has'been proved by experaa,ce, their Appendix. The amount of the Extheqner-bills actually insireuletian ie not always tpbe . measuied that the variations in the market price of gold, aed and other Government securities, either held or per- by the extent of its issues. 'l4tera credit is Rou,sish also in the exchanges, would be confined wiehin much chased by the Bank at different perieds, will also be ing, the reserve of Bank a Ensiling notes 'kept by narrower limits than they have been since the restric- found in the account which is there insereeth The country bankers will be cOnsiderablyleee than . whin tion upon . cash payments. different applications made by the Treasury to the any local or general difficulties oblige them to mike • Uhder the ancient system, if an unumal : clemand Bank for accommodation are fully detailed in the more ant* preparations against far Ae 'end -sucbditn were de upon the Bank for cash, when the ex annexed Reviews and correspondence. - The prineie demoucis . ;. and this reserve must, .Ic.tht present elit use changes west above par, and the tenet ef goldbelow pies epon . whieh the Treasury has Acted in middy/ of cur . circulating medium,, B consist ' o f a great pp- . .es eithee bit ank 1 • —F; lan dg into evtece the Mint price, as such a demand could only be eio- these applications during the last four years ire ex=' portent . of I's - plained in a memorandum delivered to thecornmittee '. tneir own tees a te e rertibleet( reletordhilted,) oinioned by some sudden patron or& by a failur,e in • ,4 * t