Star. — London, England, 1810-09-21 00:00:00

pmented tention of the Court, and,_advertiog to a recent pub ,' lication (the Report of the Bullion Committee of the Rouse of Commons) which he observOd the Chair man could not officially notice, the Learned Gentle man spoke to the following effect—When, said be, the character of any individual or body of men is pub licly attacked, it becomes a duty to take the first op portunity of vindicating that character ; and although I am as unwillirtg as anrrnan to step out of the line •f my professional pursuits, yet I feel too strongly I how much I owe to this institution, to the interest') of the public and to my own interest, to overlook the animadversions contained in the Repbrt to which I have alluded. That Report appears to me to con tain in effect very serious charges against the validity of our stock, and our public stock. I wish to be un derstood that I do not mean to speak disrespectfully of the Committee, nor to attribute their Report to the influence of party motives ; but I must observe, that that Report is clearly and avowedly inconsistent with the evidence taken before that Committee. This inconsistency is, indeed, so glaring and so material, that I could not wish for any more complete vindica tion of this institution than the universal publicity of that evidence. The fallacies contained in the Report are of such a natute that it is in my mind of consider able consequence to guard against or remove as soon as possible the impressions they are calculated to pro-1 duce. Among those fallacies, the first that strikes me is the assumption as a fact, that Bank notes are below par, because £lO5 would not buy gold enough to make 100 guineas. The fact is, that the market price of bullion has risen considerably above the mint price, I believe about 16 per cent. But let it be recollected that £lO5 in notes would buy as much of gold as 100 guineas, if the gold were not preferred for the criminal purpose of melting it. For ifery legitimate purpose the one were quite as effici tient• as the other, and how was the disposition of men to violate the laws, to act disloyally, to risk %their liberty and character, to be provided against, or bow could that disposition operate in any fair consi, deration of the subject ? Mr. Merle, Mr. Goldsmid, ' and other gentlemen of high character and intelli- Renee, stated in their evidence before the Committee, that there was no difference between the value of Bank notes and coin. These,..Gentlemen alledged, that they neither felt nor perceived such a difference in any of their extensive and various transactihns.— In fact, they declared that they would as soon take Banknotes as cash in payment ; and why not ? when Bank notes were as acceptable as cashin any payment whatever to be made, either for corn or goods of any description. Yet the Report of the Committee to whom this declaraticin was made by such high autho rity, before whom the depreciation of Bank notes was broadlpand positively contradicted throughdut , the whole of the evidence, thought proper to express quite a different opinion. The next fallacy with which I have to charge the Report is, the allegation that this institution has is sued an excess of paper, to which excess the Com mittee attribute the advance that has taken place in the necessaries of life and other commodities. Is it possible, I would ask, that the Committee can se riously mean to impress upon the lower orders of the people, that the advanced price which they pay for provisions is owing to the conduct of this institution ? But what do the Committee mean by an excess of is - oue? I am prepared to shew that the issue of our paper was comparatively more, considering all circumstan ces, previous to the Act of Restriction, than it has been since that period. It is, in fact, clearly dedu cible from the evidence, as well as from notorious circumstances, and from admissions, even in some p a rts of the Report, that your issue has beenyather parsimonious than excessive. in the year 1797, when the Restriction took place, your issue was at about 11 millions, but it was reduced to that amount in con sequence of the alarm which then prevailed. Previous to that alarm your issue was generally about fourteen millions. That issue including the £1 and notes, without which society must have stood still, has for some years averaged about 20 millions. Thus the increase of your issue has not exceeded six millions, and how can that with any colour of fairness be pro nouoced an excess, considering th e progressive in crease of our commerce, and also the increase of !punt!) , Bank piper ? It is known that the increase of our commerce from the years 1805 to 1809, was tie less than 15 millions ! and I believe I do not over rate, when I State the increase of our commerce since the year 1797. at 50 millions. I ani'not in possession Of any memoranda at present to justify this estimate, but the increase of our commerce is undeniable, and it is equally undeniable that the increased issue of our paper has been trifling, compared to that in crease of commerce. .Now as to the Conntry*Banks, it appears that since the year 1797, when their number was at about two or three hundred, they have increased to between 7 and 800, and that their issue amounts to no less than $0 millions—yet no charge of excess was applied by the Committee to this issue— no, that seemed to have been. lost sight of, and the whole of the sin was con : fined to this institution, for making an increase of six millions in its issue within a period of thirteen years of prodigiously-increasins commerce ; this increase of fssue.too having been made in the discount of corn mercial bills, secured by valid bona fide mercantile property. But the cause of the increased issue esca ped the notice of the Committee. The commercial accommodation which the Dank afforded by that issue was overlooked by the Committee. This T com plain of as a sin of omission against this institution ; but I am more disposed to complain of the sin of commission against you, in imputing to you the rise that has taken place in the price of provisions. But here, as in other points, the report is inconsistent with 5 .,• - „,•'....t0r while it attributes to you, whose increased Albite has been, as I have shewn, only six millions, it VI Woes in another put,-that your circulation is chiefly to Lowden and its vicinity, and consequently paper ram* the• cause which affects the • keufttit markets. This must surely proceed from tha • 1a of the Country Links. The fault alledged by of the . regard to these , -t of the justl and who to commerce, requiring Another fallacy of commerce, which is in no,degree attributable to this institution. The suggestion in the Report upon this point is indeed negatived by the acknowledgment of the Reporters as to the moderation and self-denial of the Bank in its issues. It would, in fact, ge quite preposterous to maintain that an issue of 20 millions of paper could have the effect ascribed to it upon the commerce, the provisions, and the general currency of the country. Undoubtedly the price of provisions must be affected by the mass of our circulating me dium ; but the same effect would be produced whe- ' then that circulating medium were in specie or in pa- per. But in the eager prelerence'which the Commit tee express for the circulation of the former, and their urgent desire that you should pay cash for your notes, there is an omission on their part, which I think be trays a Kant of candour. In no "part of their Re port do they notice, that but of the 20 millions of notes which we have in circulation, the public awe us 18 millions—* that the public hold a security in their own hands for no less than nine-tenths of our whole issue. This is a fact of importance, which plies to no other moiled or mercantile institution in the country. From this fact, indeed, we are entitled to say, that if the public think Bank issues au evil, they may annihilate them in twenty-four hours. If they wish tb dissolve this institution, let them pay us the 18 millions they owe us, and we will make up the remaining two millions by subscriptions among ourselves within an hour, so as immediately to dis charge all our notes. But there are other and im-' portant advantages derived by the public from the Bank, which the Report has declined to notice.— We actually pay to the public, at present, 4210,000 per annum, in consideration of existing circum stances—that is by lending three millions gratui tously until a peace is concluded, and by an abate ment of interest to the amount of 010,000 upon a former loan. This, however, is not the only grant we have made to the public. You agreed with Mr. Pitt upon the renewal of our charter to lend 3 mil lions to the public for six years gratuitously, and afterwards at an interest of five per cent.—This interest was afterwards, by an agreement with Lord Grenville, with whom your bargain was open ed, reduced to three per cent. which produced the abatement of £60,000, which I have mentioned.— Again, your bargain was opened with the present Administration ; but let us hope that the report upon which I am speaking may not be the forerunner of another opinion. Your grants to the public are al ready sufficiently ample—are as much as justice co-ld allow, or liberality could accept. For, lade. pendly of the sum of £210,000 which I have sta ted, you have agreed to abate your claim for the ma nagement of the public debt, to' the amount of £70,000 per annum, besides relinquishing the advan tage you derived from the unclaimed dividends.— Thus are the public considerable participators with you in the profits of your concern, and of course the amount of the dividends to the Proprietors is propor tionally reduced. Yet these facts are not mentioned ---,are not at all alluded - to in the Report, and I be lieve they are but very partially known to the country. Notwithstanding the liberal participation of our profits, which, as I have detailed, the public enjoy, it appears from the Report, that a suggestion had been thrown out to the Committee to seize upon our surplus profits What, to seize upon the profits arising from the legal and honourable exertion of our trade ! —upon that which was the result of labour and ha zard, conducted upon the same just principles, and standing upon the same fair footing as other mer chants ! The very idea was extraordinary, and it WAS almost equally extraordinary that the Commit tee, instead of merely expressing their disapprobation, did not reject k with all that marked abhorrence and indignation which such an iniquitous proposition was calculated to excite in virtuous minds. Upon recollection, I think a similar proposition was made by Marat, in the National Convention. —I remember that his proposition referred to the property of the merchants of Marseilles and Bour dean:, and he had many supporters. Yes, that factious demagogue and Ins coadjutors, having suc ceeded in prostrating the aristocracy of rank and birth, wished also to break down the aristocracy of wealth—the public necessity being their pretence, but universal revolution their object—supply being their profession, but equality their principle. I come now to the conclusion of the Report, and from a view of all the circumstances, a most extraor dinary conclusion I cannot hesitate to pronoun& it. The Committee recommend that you should be com pelled by a Legislative Act to pay your notes in specie in two years. What a variety of mischievous consequences would flow from the adoption of such a recommendation. It has been often observed, that sufficient for the day is the evil thereof, but that adage is totally inapplicable to a case of this nature. Pre cautions cannot be too early taken to guard against a great public calamity. We cannot too soon enter our protest against the recommendation I have mention ed —There is no man who has the honour to know and the opportunity to appreciate your Honourable Board,but must concur in the compliment pronounced upon your conduct by the Report. I am the more glad of this compliment, because it proceeds from a quarter evidently hostile to your interests, and indif ferent to your feelings. If they were not so hostile and indifferent, why, in the name of common justice and common sense, should they demand that which in plain English is nothing less than this, that what ever may be the price of bullion, you shall be obliged to buy it, in order to pay in specie at a fixed period ? What an encouragement would thus be held out to imposition by pointing at you as those who must sub mit to imposture—who must buy bullion upon any terms ! Can any proposition be imagined more un ! just and ungenerous, and if acted upon, more inju rious to the commercial world ? In the name, then, of justice and generosity—in the name of all orders and professions interested in sustaining the monied and mercantile interest of the country, I enter my protest against this extraordinary proposition. examining the justice and gencrouty of such the sacrifices you made in 1 Y 797, our army must b 1 starved in Flanders. You besides made advances to enable Government to subsidise our allies. It is not now necessary to inquire into the policy of these sub sidies. It is undeniable, that the circumstances of the times and the sacri fices you made for the public safety,_ produced the inconveniencies you then ant lered. Yet your wish was, under all disadvantages, to eentinue the issue of your specie. No less than 29 4 1lines in 1'795 and 1796, your Honourable Board of Directors remonstrated with Mr. Pitt against the pro ject of restriction. Here I must observe in passing, *it it would perhaps have been as well if your Wo. 'Ourable Board had convened the proprietors, had consulted your constituents instead of repeating your remonstrance* to Mr. Pitt, and had taken their op nion before you had concluded with him. To the public, however, you advanced your Money, and had you not conceded to the proposition of Mr. Pitt, the Government could not have gone on ; and was it now for that public to say to you, g , yoti have ex hausted yourself of bullion to sustain us in the day of need, and yet we will now compel you to buy bullion at any price, in order to give it in exchange for your looms, or even for the notes which we have borrowed from Tod ?" But what would be the consequences of , obliging you to comply with such a requisition?. The first effect of appointing the payment at a fixed pe riod would be to encourage speculators to hoard the coin, in order to make the Bank pay through the nose for it. But the moment you were ordered to pay, you must prepare by limiting your issues, by confi ning your discounts, and what a convulsion Would that occasion in the commercial world Those who remember the circumstances which occurred in 1797, arising out of your resolution to limit your discounts, must be aware of the effect of such a measure upon the mercantile body ; must be able to foresee the ca lamity the advice of the Committee would produce, were it possible that it ever could be acted upon by an intelligent House of Commons. from some parts of the Report of this Committee, 'one would really be inclined to suppose that it was drawn up by persons not at all in the habit of consi dering commercial operations, particularly with re gard to exchanges, and the appointment of a fixed period for the payment of bullion. Why not leave this question, as to the resumption of cash payments, to the discussion of the Directors, its all the mercan tile witnesses so strongly recommended to the Com mittee ? and why doubt the proper exercise of that discretion, which even the Committee itself applau ded ? It is a fact easily capable of proof, that the compulsive resumption of cash payments would be much more fatal to the interest of the Commercial World than to that of the Bank Proprietors. In the event of such a compulsive measure, the Bank would naturally, in its own defence, forbear to issue notes, to pay which they must buy bullion at an advanced price. Judge then of the consequences. From what happened through the reduction of discounts in 1797, what must be apprehended from any such attempt in the present augmented state of our commerce ? Even the Committee deprecate any recurrence to such a measure of limited discounts. On the con trary, they recommend coinage to the Bank, without any consideration of the means by which that coinage is to be sustained. They recommend coinage to an in stitution the character of which the Report is running down ; they recommend coinage to an institution, while a prospect is held out of seizing . upon its surplus profits. I do not mean to deny that it is a solecism that the Bank should not pay its promissory notes, but still, considering the case and all the circumstances of the case, I would leave the time of payment to be settled by slow progression and deliberate caution. I would confide in the discretion of that honourable Board to whose character and conduct even the Report, which would deprive them of discretion, bears the most com plete testimony. The Committee states, that it is necessary for the recovery of our credit upon the Continent, as well as at home, to resume cash payments at the Bank, and that such resumption would serve to cure the evil of exchange ; but does any thinking man, acquainted with the subject, imagine, that if cash payments were resumed at the Bank, these payments could continue for any time.—ln fact, all the ld would vanish in a week after its issue. Then we should be under the ne cessity of soon restoring the restriction again, and I would ask you, as merchants, whether it would not be better to make no pledge than to make one you must break—whether it would not be better to decline mak ing a promise which you cannot perform ? Such must be the consequence of the rate of bullion,and the state of commercial exchange, which I contend isnot afFected, as the report alleges, by the restriction of the Bank; but as the mercantile witnesses stated before the Commit tee, by the nature of our commerce, by the balance of exports and imports. For what effect could gold sent to the Continent have upon the rate of exchange any more than any other article of merchandize of equal value ? But as a proof that the rate of exchange has not been affected by the state of the Bank, it is only necessary to state this fact, that the exchange with Hamburgh is thg samenow that it was in the year 1797. —But when the Committee determined so earnestly to recommend the resumption of cash payments, and a compulsive measure upon this institution, it would have been but becoming in them to recommend, as a preliminary step, the repayment to the Bank of the 18 millions due from the public, and also the resto ration of the £210,000 derived from the Bank in con sequence of the supposed advantages resulting from the non-payment of cash. This was a line of proceed iag which at least common justice should have urged the Committee to propose. The Learned Gentleman f concluded a very impressive speech, in the course of which he was repeatedly cheered, and particularly on his deprecating the proposition pf the Committee, to resume cash payment in two years, by exhorting the Directors to continue to pursue that same firm, up right and undeviating course which it appeared by the evidence had distinguished their conduct, claimed by power, and unmoved by faction ; to continue tb. same liberal advances to the mercantile interest, and hi Midi k h. with th e the public, they we* at all events. be w t . °Deviate those who ar , L 4 they well deserved the of the Bank of Fate * _ short speech, W ing that HonourableHonourable Court that in the evidence iest; erid u he gave before the Bullion Committee, h e h a d hes i n fl uence d by ao sinister motives whatever, whe t h e of a political or a private nature. In a ene s d ual such vast importance and general interest, h e m utti chaise knew his duty too well, both to that Comae and the public, to be induced by any considered % to give a partial or fallacious statement of wha t% was his knowledge, or of the impressions that . ledge had produced in his own mind ; for the m e i, tors, he would take it upon him to say, that eL would, as they were bound, pay uniform and anio n attention to those measures which might resulefr en the Report of the Committee, and here he could a n help expressing a hope, that the public in read' and investigating that Report, would giv e more c tention to, and lay greater streskupon, the aide s , * laid before that Committee, than, he was sorry to te ,, the Reporters themselves seem to hate done. (li u. hear.) It was to be regretted, that a /tem avowedly founded upon that evidence Was not mo re confOrmable to it. He therefore threw, out this a 'caution to the public, not to suffer themselves is be implicitly guided by that Report, without Ady weighing the nature of the testimony laid before d e Committee. From the able speech they had jec 'heard, it would be unnecessary for him to detain** ! by any observations upon points which had been 4, ready so satisfactorily dwelt upon. He, however, concurred so entirely in the opinions o f t h e l et "speaker, respecting the issue of the Bank Paper, de; instead of agreeing with those who professed to thick that that issue had been excessive, that he, on the ace. Crary, thought it just matter of surprise, that torsi. dering all circumstances, it could have been so ma derate as it had been. The increase of issue, instead of being so extravagant, as some have repres ente d, was not in proportion .to the exigencies of the time. Tray issue of paper for this year, independent of the este pound notes and two pound notes, was very little mote than fourteen millions, a sum to which it ins well known, that their paper issue, with the same et. eeption, amounted a short period before the year 1797. In the course of the year 1795, this piper issue amounted to fourteen millions, and it was at present very little mere. 'There never could be an excessive issue of paper, as long as the Directors took art that there should be an exact proportion thief.* betweeu the necessities of the public and that nai l that object thn laudable caution of the Dimon would uniformly support, by resorting to those seme within themselves, and refusing to disease eile did not appear to be valid mercantile paper. The disposition to accommodate the public would near sarily, for the sake both of the public and theme% be regulated by this very proper caution ; and is as the manuerin which their notes were Wild &poll so much upon the extent of the applicadwpedale discounts, in order to make good thew ••• of course followed that this was of itseWieeh t gin troul oaf tie issue as that it could never deabunt gbs excess. With retspect to the rate of exchasz e h n ezdd not agree with those who thought that it ea the price of bullion ; his opinion was, that the rated exchange was rather effected by the gated MINIM and that as the circeasstances of assieuraldidbappea to be merger less favourable, so in proportion wade rate of exchange more or less advon - corous; sal if repeated it as his opinion chat it frif do= did not in proportion to its the price of bullion, or in materially a ang tho IMP of the exchanges. He regretted that be was unibleahl,l qukelt to express his own sentiments, and thowaf Gentlemen in the Direction, for the very handset' manner in which the Gentleman who spoke last Indi done justice to the motives which had actuated their conduct. He had no'doubt, that the Directors Ina, by adhering to the same line of conduct, to the same. prudence and firmness, secure a continuance of that support which the public had hitherto given them. — In answering all demands made upon them for his counts, they would never lose sight of the public 10 terest by looking not merely to the solidity of the paper, but endeavouring, as fir as it might be porsi hie, to be certain that the paper is to be issued for commercial purposes. He concluded by thanking the Court for their attention. ( Near, hear.) Mr. PAYN, of Bath and Wells, Banker, when the question was about to be put, rose to make one more &mm•vations. He applauded in his heart the greater portion of the sentiments so ably and eloquendy urged by the Gentleman who first spoke, but as it was ad misted that the present circulating medium of the coun tr y had fallen into depreciation, if the cause of that des pr!ciation be not what the Report of the Bullion Com mittee alledges it tobe,he thought it was desirable to rs. certain to what other source this a cknowledged _ ,efe 4 was to be traced. In the corn countries ea_ L 11 1 1 •1 the paper money of'ootintry bankers meet adammw•___ He admitted that the issue of their nous by 30 ". ' country bankers had been very indiscreet- He w s t himself a country banker, and he had with annul others in Cie same business endeavoured, as far as he could, to restrict the issue of the smaller notes. He thought that the issue of all notes under a aqua amount should be confined to the Bank of WV ; solely ; but he had known persons after set blo . losses in other trades, take up that of a country and proceed to issue small noes, though at the tin% he, Mr. Part, could not with safety to himself gist them any accommodation. It was known t o* be d's practice of corn-factors and other dealers, to ems"! in their demand for their respective coonnotlitimr nature of the medium in which they were to be pot; and liehas known the practice to have prevailedoll t !', ing very considerable a batements in the tinkles Wel for'sale,in proportion to their opinion of the omit/ • themedium in which they were to be paid for thole s& cies. The farmer sold his grain to the comfastor, cornfactor sells again to the bread-baker, the bat may be paid in a very different manner, he receiriag r fr . payment in the existing smaller currency o f t hat of the country. He wished be was able to follow IP" through all its consequences. He hoped, bouve' that others more capable would consider it. Hf, fessed himself lie advocate act the honour 1"" . . 'the ea ittETING 4E TEA &OM. In ma] • dersto4 Yesterdaytheie was a thrtneious meeting orthe Di- mesh sectors sad Proprietors, :ee their house in Thread- regard needle-caret: "About one o'clock the Chairman of that of the Conte...of Directors ptepoied that the dividend more, Upon their prof is should be 10 per tesit. Upon this utility proposition being pUt, try req Mr. RANDEL JACKSON prC4elited himself to the at- Anc . . . .` . - : . • , _ te must beluga to that, and il ' - . let it Ise mama W Amer ma - for too___ is ° ll °° entillos At bi us observation, I beg to be ' , , ~., , ... you were e xha u sted or your berms in .sprared thas titel beea t esserued. istae tt s . at Ido not meta to speak in -„7 ~ public interest was . placed in a state of Iva bat interests, Country Banks — No, my ~'. as • • Atiabost peril, mid for th t z!ic safety and accom- = aad erlide Its boomer of the public, ti 4.. i. se institution:perfectly correspond .: . monsoon you lent your b Without entering be sure of public support ;or at all e v ent ustly respected Baronet who is now 1140 "Into any question as to the propriety of the conduct bled, as they had done, to convince those i ho so properly pronounced them of great you then adopted, without considering your disposi- inquire into their affairs, that they well d es Imerce, and of peculiar utility in a court- tion or your duty to submit to the utmost sacrifices in support. a large circulating ratdium. i your power, when fighting for our liberties and our Mr. Prime, the Governor of the Bank of Macy in the Report refers to the balance homes, t believe I may say, that if it were not for next rose, and commenced a short speech, -. . • . . .. - . . , A__ _.._.:e___ ___ -- -a- :- I "nor ..... ....en. mitt linos ;no that Presserilide entirt thee ig. ei....-:.2. 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