The British Press; or, Morning Literary Advertiser. — London, England, 1826-02-21 00:00:00

d the Government, of the Bank, er of the country bankers, or from the combined misconduct of all three, as he before Yid, ft was impossible for Government not to come fiat inni. it (would Piave been impossible for him and his colleagues rfit to have come forward with their views of the causes of the die. tease and to have stated what in their judgment, to postpone—he b i d never said to prevent—the recurrence of the evil, and to mini. gnu its effes n a ti on it did occur. If Ministers had sat in silence wilt an aff of mystery and importance, any gentleman who thin loner a ny gof the country or the House of Commons must feel t old such a line of conduct would neither be advantageous nor ho norable, and for his own part he would say that he would oor that l ie s hould be ashamed to be a party t o s uch a proceeding. (Hear.) Shooters, therefore, should not have been reproached with acting with haste and precipitancy, for circumstances rendered it imperative u pon them to adopt the line of conduct which had been pursued. If in the progress of the measure difficulties anise which were antis. peed, for he contended that the original propos ition assumed that there vas difficulty, and that delay was necessary—if, upon chase consideration, it was thought that the measure aright operate with more direct and sudden effect than when it was considered in the abstract. was this a cause for reproach ? The proposed amendment would meet that case and when there wan nothing in the modifi anion opposed to the material principle of the measure, he thought those who favoured the principle were pledged to support the amendment. Tmally differing as he did with the Hon. Member for Aberdeen (Mr. Hume) who was of opinion that a Bank note circulation convertible into gold was unobjectionable ; differing in toto Carlo from that Hon. tient.. and believing that the loss of the measure would be a great evil and misfortune to the country—. (Bear, hear)—he proposed the amendment. If the measure was abandoned he was convinced this country would never be free from fluctuations, and hose constant fluctuations were, in his opinion, evils of great magnitude. If lion. Gentlemen at the o her side of the House thought it their duty to sacrifice the feelings, which he had almost said, naturally Influenced their conduct in that house; if they thought it their duty to give their support to Govern ment on this measure, he really believed only because they ttiooglit that the measure would be serviceable to the country— tHest)—he hoped they would not now withdraw that support. If it was only because the details of the measure afforded them a fling at Government, he hoped they would not oppose the details. At all events they niust continue to support the measure, and there. f are if the mollification was rejected, the principle must be sup. p tried. They could not deprive the country of the measure, if they deprived it of the advantage which he believed would r, suit front the modification he now proposed. Being convinced that the bad was absolutely necessary, he thought the modification was good to meet the dangers which may arise In carrying the hill Into ed.st. To make the ultimate measure mare certain and secure in its operation, he proposed the amendment. Wishing to guard the mercy fawn the possibility of the tioveronent and the Bank being urge 4, from any secret motive, to give a grater currency to small ;WO than circumstances required, he meant to propose a clause which would give publicity to the issues of the Bank. The regu. I ition would be similar to the clause proposed in 1819, by which the Bork was called upon to publish at fixed periods in the Ga zette, to be laid before the Privy Council, an account of the small notes which they should Issue. These accounts should be laid beton Parliement, and thus publicity as to the amount of the Bank issues would be secured. This would effectually protect the country against the Government and the Bank combining together in the miserable and obscure manner which had been hinted at, in order to defeat the principles of the bill. The Right Honourable Gentleman concluded by proposing an amendment to the effect, that the Bank of England should be allowed to issue one ard two pound notes, dated subsequent to the Sth Feb. and prior to the 10th Oct. 11125. (He sat down amidst loud cheers.) Mr. A BERCROM BY rose to oppose the amendment. He said lie had never heard any speech which so totally failed to convince lhtnh u that made by the Right lion. Gentleman who had just sat down- fie would oppose the amendment in every possible stage. though the Bill should have his support. The Fright lion. Gen tleman in promising such an amendment had done not only what was injurious to the general principles, but had taken steps which would impede the progress of the particular measure which a few evenings ago he had so strenuously advocated ; and not only of that measure, but of all the other great measures dependent upon the mme principle. The misfortune was, that the Right Hon. Gentle man could not make such a proposition without doing an injury to the cause of truth. He (Mr. Abercromby) could not do justice to o the proposal without recurring to the arguments of the Hon. .ientlemen opposite. What was the proposal ?—to take the power if issuing small notes from the country banks and to give the Bank England theexclueive privilege Such n proposal was calculated to iefeat the original measure in its operation as well as in its princi. des. Unless some. great reason could be produced Intervening Una last Monday, unless more could be stated than had fallen from the Right Hon. Gentleman, and he supposed the Right Hon. Gentleman had stated the whole case for his Majesty's Government, ne meted the House would not agree to the amendment. What lid the Right Hon. Gentleman ask of the Home to support a lireet inconsistency. lie (31r. Abercromby ) could not recollect a tingleargument which the Right lion. Gentleman had used to tupport his original proposition that was not directly opposed to the present 'preposition. When it was sought to establish true principles, it was MOH essential that there should be no wavering, no vacillation, to create mistrust and doubt, which could only have the effect of throwing off timid friends, and giving a triumph to open enemies. The proposal of the Chancellor of the Exchequer, 'le contended, could have no other effect. In what light could such 'nconsistenty be viewed by the country, especially when the Right lion. Gentleman aideced no reason whatsoever for the change in tits measure, It would be said that bowevet true the principles were which had been propounded, when they came to be acted upon the Government shrunk bark, finding them inapplicable in practice. Or perhaps it would he said that there was something in the peculiar situation of this country which rendered it impossible to act upon true principles. The Right Honourable Gentleman had utterly failed in giving the House any reason for the present amendment which he could not as well have stated on Monda y night last. Surely, if Ministers were endued with common fores ig ht and wis dont, they would not have proposed a measure utterly inconsivent with their former principles, unless something had occurred since the last discussion to warrant such a revolution of sentiment. The Rigrt liononralate Gentleman had put the question to a true issue, when he said that if the amendment was calculated to impede the ultimate measure, it ought to be opposed. What was the question but one of time? Some thought the measure too rapid, others too dilatory in its operation; but in all the debates which had taken place on it it was argued as a question of time. The Right Honourable Gentleman could not forget the argument of his Right Honourable Colleague, the Secretary of State for the Home Determent. His arguments were given as a practical statesman, and he warned the House not to delay the measure. Irld the Right lion. Gentleman forget the arguments of the President of the Board t f Trade (Mr. Huskisson)? lie triumphantly asked, if you give the bankers a year, do you not feel that you give them for ever? An lion. Gentleman at his (Mr. Abercromby's) side of the House had asked for a month. He said give us tine little Death to get our houses in order and prepare for what is to come. But so much opposed were Ministers to any the aligheit delay, that they scarcely deemed it necessary to reply to that modest re quest. The President of the Baud of Trade said, if you give a year you defeat the measure for ever. Ministers on Monday night last refused to give even a month, and now they give eight months. It was now for the President of the Board of Trade to show how twelvemonths would derma the measure, and yet eight months tun at all affect it. The argument of the President of the Board of Trade made a deep impression on the House. He said it was impossible we could ever have paper and gold of the same deno mination circulating together. He said, put out one pound notes, and you drive out sovereigns. At the end of the proposed period what then would be the result? The Government would find itself in a much much more difficult situation than at present. There would then be more paper and less gold. Was not this cal. culated to defeat the success 01 the original measure ? He could not argue this subject without borrowing from the Rt. Hon. Gent. on the Treasury Bench. Mr. Huskisson asked, Will you not destroy your enemy when be is weak,rather than wait until he has acquired vigour ? Yet it was now proposed to hesitate until the enemy had got vigour, and still the House was told it was not inconsistent with the principle of the measure. In his (Mr. Abercromby s) opinion it was utterly inconsistent with, anti in defiance of every sentiment which had fallen front his Majesty's Ministers on the subject. The Right Hon. Gentleman may quote one thing one Monday and the reverse the next, but he must be excused if he did not deem such a line of conduct inconsistent. But it may be said by Ministers there was no inconsistency ; what we said was in relation to the country banks. and not to the Bank of Eng. land. Good innocent souls ! there can be no reason to nilstrust them. Ile (Mr. Abercromby) believed that as a body the Directors of the Bank of England were as honest, upright, and respectable a body of men as could be found ; but as to the proceedings of the Bank, he put it to the House whether, since the Report of the Bullion Committee in 1810, on every subsequent finance discussion, the extensive issues of the Hank of England were not put in front of the discussion. il'as not a large portion of the existing distress ascribed to the Bank of England ? it was said that by over issuing the Bank had given the first impulse, that when they beheld the effect of their own proceed ing thqp took fright, and injudiciously and injuriously contracted their Issues, which aggravated the evil, until at length there was no stopping it. It was always held that the first impulse was given by the Bank of England to the country bankers, and that this was the primary cause of the present distress. Should we not take a lesson of practical experience from what had passed ? Could it be forgotten, that in every discussion which had taken place on this subject, the over issues of the Bank of England stood in the front of the battle ? He was at a loss tp know upon what principle or upon what grounds the Government thought proper to give such an extraordinary and important power to the Bank of England. lie could not help thinking that upon a eubject of such vital importance as the present, it was a most can. fortunate eircumetance that the whole question was not before the House. It was most essential that the whole of this important subject should be taken into consideration. lie understood some neat Important ings had taken place that very night In an ethee liana 'ra e s ee i t t i true that the Bank of England was now !!mast to be invested with die power of establishing branch banks u 'K'nebout the country? From the pressure of circumstances !lan, country banks were utterly destroyed; from the measures of hisjesty's Ministers many were in expectation of finally sharing ;Mame fate; bat the Bank of England was, he understood, to its powersaugmented and enlarged in every point of view. The hank of England may now establish as many branch casks h t rolighout the country as the Directors think proper. The only effect of this measure (said the lion, and Learned Oen tllntan) will be to enable the Bank to inundate the country with he small notes. The Chancellor of the Exchequer need not be alarmed with apprehensions of a deficiency of medinm; the Bank of England would now have the power to circulate an unlimited paper currency. What then would be the situation of the country on the 13th of October text? Ought we to suppose that the Go vernors and Company of the Bank were incapable of understand ing their advantages, or would be slow to make use of them ? The Right Honourable Gentleman had armed them with the means of doing mischief, and the conviction that this amendment yielded that power was enough to induce him (Mr. A bercrcrrnby) to with hold from it his assent. 'lt was extraordinary that the Right Hon. Gentleman should come forward to support his amendment with reasonings which might have been adduced with equal plausibility on Monday last s This was another objection to it; for however a man might be willing to countenance such measures, when brought forward with firmness and consistency, it was utterly impossible to advocate or support Inconsistency. This amendment would effect nothing short of reinstating the principle of depreciation, a prin ciple to which no argument could reconcile him. The Bank would always indulge the hope of postponing the period asssigned to its issues, and the depreciation consequent on paper currency would thus go on. It might be said, the period is now definitely fixed when paper issues must cease. This answer, at first sight, to be sure, had the colour of argument ; but, on a nearer view, what pro bability was there then to be formed of this period ever coming to an expiration ? Was the party interested capable of hindering such an occurrence ? Could not the Bank prevent it? Paper is now allowed to be Issued to meet an emergency, and who could so well create such an emergency as the Bank itself? The Bank couid render nugatory every provision, and falsify every prediction of the Right Honourable Gentleman. To this line of conduct it might be impelled by that most incessant of all impulses—a sense of private benefit. The Right Honourable Gentleman had his for. ' mer measure sanctioned by a majority of 222 against 39; and he (Mr. Abe-mouthy) could nut see what induced him to come down now with an amendment pregnant with mischief, and so much at variance with that measure which had so lately met with the appro. bation of the House, Mr. JOHN SMITH could not avoid differing from his Hon. and Learned Friend with respect to the expediency of the measure then under contemplation. Ile wished to consider the matter in all its bearings, and was willing to believe, with the Chancellor of the Exchequer, that the nature and effects of this measure were not understood. It had been just now called a measure pregnant with mischief, but he felt convinced that the worst consequences would ensue if it were not adopted. He believed it to be the object of the Chancellor of the Exchequer, in following this course, to assist as far as possible the country banks. It was necessary that there should be an issue of some kind, to supply the room of the circu lating medium withdrawn; and in order to constitute the lit organ from which this issue was to proceed, a high character was indis pensable, such as that maintained by the Bank of England. If we were to look back on the late embarrassing confusion, and see with what promptitude the Bank lent assistance to all who had the slightest claims to it, we would find that the Bank did not want a due sympathy with the public weal. But many of thaw persons, on receiving the advances. immediately turned round on the Bank and asked for gold. But how could the Bank comply with this de. mend, an acquiescence in which would have made their kindness to others ruinous to themselves ? In this crisis they issued small notes, the only medium suited to all the circumstances. He there fore hoped and trusted that the House would not deprive the Bank of this means of rendering an important service ; for supposing that a similar panic were to take place again, and that the law then be fore the House were rejected, what would be the consequence?— The Bank could not issue nor lend their credit to resist the progress of embarrassment. We should have every shock of credit termi. nating In irretrievable confusion. It appeared that some gentlemen had got the idea that the Bank seized every opportunity and devised every means of issuing their notes ; but he did not really believe that the Bank were desirous to issue small notes, nor would any one believe it who considered that small notes were a source of perpetual risk and trouble. They were indeed a sort of medium in a peculiar crisis, as we had just experienced, and he hoped that as such they would be still available. The Bank was at present well provided with gold, and would shortly be still better stored: before the month of October the danger would be gone by, and then the bullion cur rency would naturally be pressed into circulation. He did not fear the reproach of inconsistency because he supported the present amendment as well as the original measure; but on the contrary, he thought that if he withheld his vote from Ministers on the present occasion, he would render his former vote imperfect, by plunging the country in difficulties. Con. sidering the trying circumstances in which the Bank was placed, he was sorry to hear the reflections which had been cast on it. He defied any man living to point out an example of greater modera. tints or greater integnty than had always been manifested in the conduct of the Bank of England. He would single out an instance which might be proved from the Bank books. In the year 18IR, when they were about to divide a b onus o f 2.51. to the holders of stock, the Directors took no advantage of this valuable secret, which was confined to themselves ; nor was there any instance of a Director holding a larger amount of bank stock than the moderate sum which was made necessary by their charter. Keeping in view, then, the character of the Bank, and the hopeless state in which the country would be plunged in case of a recurrence of distress, when the small notes should be recalled, he felt himself bound to vote for the present measure, in aid of that which he had previously supported. Mr. PEARSE begged to assure the House that he did not sup. port that measure Because the Bank of England was concerned ; he approved of it from principle, nor was that measure ever sought fur or suggested by the Bank. He also assured the lion. and Learned Gentleman who had spoken before his Hon. Friend, that there was nothing to be feared from the anxiety of the Bank to get their small notes into circulation. The one pound note returned too soon to compensate for the trouble it gave, and on the slighest panic or alarm it proved the source of serious inconvenience. The Bank, he complained, had met with reproaches from all sides; it had been charged, among other things, with suddenly increasing and then as suddenly retracting its issues ; but, in fact, the Bank had not the power to do this ; the issue of Bank paper depended on the demands of merchants, and was proportioned to them. Their principal issues of notes were always made in consequence of applications to that effect, so that as far as those charges went, they were not founded in fact. (Hear.) 11-. Secretary CANNING said, he could discern in the discus. sions on this measure the hostile contentions of parties differing as much in principles as in the application of those principles. He presented himself catty in the debate, in order that the House might know how much he wished the question to be thoroughly ex amined. Ile wished that all who entertained discordant opinions would candidly and thoroughly examine each other, so as to arrive at a concientious and just conclusion. The question then before the House was simply whether the degree of latitude which Government would allow the Bank by the provisions of this amend. ment would or would not defeat the great object of the bill. But an Hon. Gentleman asked, how could Minima's demand support in an amendment which they themselves discountenanced a few nights ago, and which was incompatible with their own measure? But the truth was, the proposition now submitted to the House was not the same which was then brought forward. The original resolution was, in substance, that all promissory notes for less than five pounds, whether issued by country banks or by the Bank of England, should cease to circulate after the sth day of April, 1829: to this it was proposed, as an amendment, to leave out the words "Bank of England." Was this proposal iden. tified with the proposition to allow the Bank of England to do so ? No ; but it was to give the Bank an unlimited duration, so that no two propositions could be more different. That of the Hon. Meru. ber for Newtown would hays left the Bank whe'e we found it, while that before the House would establish it on a very different footing. When it was said that there was no consistency between the votes, those who made the assertion must be ignorant of the nature of the amendment, as well as of the circumstances which gave rise to it. During the whole course of those delicate discus sions no suspicion had ever arisen chat the country bankers would abuse their public trust, or make an imprudent application of the hints thrown out by the Member for Taunton, by withdrawing their notes suddenly from circulation. But let the House mark what oc curred in the course of the measure. Reports of the country bankers acting on the pin ci plea above alluded to reached his Majesty's 31 in is tent. Ministers never could have been persuaded that such a line of conduct was likely to be followed by the bankers ; but they were now left to consider its effects, to weigh seriously the consequences of the sudden contraction of the currency, and then to devise a re medy for it; but there was obviously none, unless we could pro. care gold suffizient to fill the vacuum at once, and to supply the deficiency thus hastily created. Hence it was necessary to recur to paper. This would operate. though in a minor degree, like the paper issues of the Bank in October last, when it was compelled to such a step by the circumstances of the period. All practical states. men, he believed, would allow, that while they were anxiously en. gaged in the pursuit of the greatest public good, they ought yet to show as much tenderness for private interests, private prejudices, and private feeling, as it was possible to show without endangering the accomplishment of the measures they had io contemplation. This delicacy had in some measure restrained Goveroment in the choice of its measures. In order to ascertain the title of the Bank of England to the advantage conceded by this amendment, he would consider—first, the conduct of the Bank of England ; and secondly, the conduct of the Government. He did not expect that the Bank would sacriiice its private interest, and act exclusively, for flea of the public ; he would expect it to study the public ad. vantage only when it yielded to them a collateral benefit and suited, their own interest. l'et how did the Bank of England act when compelled to withdraw its notes from circulation? It retracted its issues slowly and cautiously, not precipitately. Ile was aware that the Bank did not reap much benefit from the small notes; that was the sort of issue which produced least profit and most in convenience. It was a mistake to confound Bank issues with issues of one pound notes, these were not convertible terms. It was by no means the interest of the Bank to multiply that circulating me.l nium which was continually offered to be exchanged for gold, the consequence of this attention to their own interests was, that then small notes were all withdrawn from circulation betbre the period arrived when such a step was imperative. When the question regarding the state of the currency arose In Desember last, he (Mr. Canning) did believe that the Ilea of England one pound notes were actually prohibited by law, lie was not aware, nor was lie, he believed, singular in his error, chat the Baniemight issue their notes if they pleased, yet it was evident they declined doing sot nor was it to be supposed they had withdrawn tltens in order to conform to the theories of Ministers ; it was sufficient to Incl.(' to the fact, that the Bank declined to issue small paper-money, while it still had the power to do it. It was also notorious, that the Bank of England made many exertions to force gold into circula tion, but had never been able to succeed, the gold returned, like the dove to its ark. fur it could find no resting.ptice. These were important facts ; the voluntary recal of their small notes, the non issue of them, while such an issue was still lawful, and the at. tempts to circulate a gold currency were so many guarantees of the future conduct of the Bank. When in December last the public distress made it necessary to depart from this reserve, the Bank suggested the advantages that might arias from au issue of small notes, and asked the opinion of his Majesty's Government on the measure. Ile (Mr. Canning) held in his hand a paper which recorded the principles on which Ministers acted. It was an arisen to the suggestion of the Bank, and its purpose was merely to rel:eve a temporary deficiency, and to meet the neces sities of the times. The purport of it was, •• that if the Bank were disposed to avail themselves of the right which they still had by law to issue small notes, his Majesty's Government lied no ob jection, provided that this were to be considered as a temporary measure, and that the Bank took advantage of the favourable state of exchange to provide themselves with gold, with a view to the re. establishment of a metallic currency." (Cheers.) When Ministers expressed themselves to the Bank in these terms, they had no idea that this subject would become a theme of discus-ion, nor did they believe that the retracting of country bank notes could ever produce an exigency similar to that which then afflicted the country. The power which the Bank then had of issuing small notes was the power of administering relief, and if it were taken away, Parliament might perhaps hereafter hesitate, if a similar crisis were to occur, arising from simultaneous contraction. Even in the supposition that that the Bank could have issued on that occasion only a small quantity of paper money, what milt. chief might have arisen in consequence ? The Bank of England then, it appeared, though disinclined to paper issues, yet withdrew its small notes slowly, and he (Mr. Canning) wrath' have been glad if the country bankers had taken the same view, and thereby avoided the imputation of producing a crisis. If the lion. and beamed Gentleman would consider the state of the law before and after this enactment, he would find that before this law the issues of the country banks and of the Bank of England were unlimited for seven years. This long run to an unlimited paper currency was likely to prove a great destruction to the resumption of cash payments, bat by the new Bill paper currency was all to be extinguished in the year ; but there was still a possibility of a crisis in the mean time. No man, however sanguine, could suppose that gold could find its way into the country immediately. In order to provide for the Interval this amendment was introduced, and he would not have recommended it if he did not sincerely be. lieve it would facilitate the return to cash payments, by taking out of the way those obstructions which were most to be feared, as they impeded the measures of Government at the very moment when they were going into operation. (Cheers.) Mr. TIERNEY was at first inaudible, from the great noise in the gallery at the close of Mr. Canning's speech. W hen we heard him, we understood him to say he could not understand how Gentlemen who supported this Bill without the clause could also support' it with the clause. He did not object to the principle of the Bill, and he believed no one did. The general impression seemed to be that it had raised the value of paper currency ; but he did not think that Government ought to have taken the alarm when the country bankers thought fit to mutiny. He thought that if the Ministers had faced the bankers with firmness it id deli. beration, they might have compelled them to submit in one week. He did not believe they could have protracted their rebellious resistance. Of the Bank of England it was diffi cult to speak without the appearance of aiming an attack on it; he had the greatest confidence in the honour and integrity of that body. Ile was distinctly of opinion that the Bank of England was in a ' very great measure the origin of all the afflictions with which the country had been recently visited. It had encouraged every species of extravagance and speculation, until the country had been plunged into a vortex of trouble. It was indeed asserted that the Bank had come forward very handsomely to relieve the country from the dan gers in which it was involved. This he did not mean to deny, but he must, at the same time that he made this admission in favour of the handsome manner in which the Bank had conducted itself, say, he could not forget that the Bank was the great source of the evil ; at least if he excepted the Bank, he could not acquit the Directors. (A laugh.) So far however were people disposed to view the alleviating conduct of the Bank with gratitude, that a vote of thanks was passed with the greatest approbation at a meet ing that had taken place not long since. But Gentlemen who con. curred in the adoption of that vote of thanks did not advert to the circumstances which gave rise to the occasion of its The ease was similar to the situation of a man who should apply to the Humane Society for a reward on account of having saved a boy from being drowned. The man would no doubt ap pear in the abstract view of the matter to be entitled to the reward of his benevolent action in rescuing • fellow-creature from his state of peril ; but the feelings of respect and admiration excited by the apparent generosity of the action would be considerably diminished, if 'not completely altered, if the boy were to accuse his deliverer with having first thrown him into the water. (A laugh.) The Bank, however, charges the Government as the compulsory cease of its proceedings, and alleges its reluctance to those measured which it had been obliged to adopt. That was a system and course of pro. ceedings to the principle of' which he could never agree. The Right Hon. Gentlman (Mr. Canting) had stated that there was a vacuum which it would be requisite to fill up in the country circulation. This was all very fair, but he would ask that Right Hon. Gentle. man did he think that the country bankers would quiet!) , yield to the operation of the proposed mrnsures ? Did he imagine that they would strike under ? Thht was a point very important, and deserv ing of much consideration. If it were intended that the currency should be contracted, it. might be a question whether the present crisis was favourable to the experiment. In the year 11122 a Bill was passed to enable the banks to renew their issues, and the prin. ciple of the present measure is to contract the country currency, and to reduce it to a metallic circulation. But it may be a fair case for suppolition, whether the Bank of Eagland will not fill up the de& dency occasioned by the removal of country notes by a substitution of its own paper, and then destroy the principle of the Bill, which contemplates a return to payments in the precious metals. But if in the course of one or two years the measure should not produce the desired results of restoring a metallic currency, the consequence of an unsuccessful attempt may prove most disastrous. Impedi ments of • very formidable kind may be thrown in the way of its /UMW if the country bankers should continue for a period of six months to prevent its operation. They might then say, what was the use of the abortive measure? and ask why not continue the Mercier system for the four years longer—until 1113.1 ? As to the allowance to the Bank of England to pursue its exclusive issues for a short period, he could not appreciate the necessity or expediency of giving to that establishment the power of sending forth its issues for nine months longer. It had been said in extenu tien of the grant of this privilege that the Bank would not abuse the power. For his part, he entertained no doubt that they would exercise the privilege and issue extensively. The end of the matter would be, that at the termination of three months the country would be in the same state as it is In at present,'with respect to the necessity of returning to a metallic currency'. There would however probably be this difference, that when that time arrived the country would not be in possession of so many facilities as it has now. The favourable state of its relations would in many respects be altered in the interval. Gold was t,ow easily procured. The exchanges were in favour of this kingdom, arid all the foreign powers were most amicably disposed to all those interchanges which were calcu lated to facilitate the the project which it was contemplated to carry totoeffect. His Majesty's Speech had instructed them that such was the rate of the foreign relations of this country ; but could any one say how long matters would continue in so fortunate position. A prpetuity of that kind was very precarious, and the present opportunity should not been neglected. The Corn mittee had sent to the Bank to know what was to be done, bat all the infornistion which was derived amounted to a declaration that the Bank could not pretend to know what would he done in a period of four years. They thought it more prudent to let the Parliament and the Government manage the matter between them, and take whatever consequences might ensue. But if he could be convinced that at the end of three veers a metallic currency would be restored, be would not oppose the measure of the Right Hon. Gentleman (tile Chancellor of the Exchequer). But to such an opinion he could not bring himself to assent, after the most care. hal examination of the subject. At the same he wished that the tvernment might succeed in this measure, although it differed from his judgment. He did not, however, desire, because he did not agree on this point that the correctness of his Opinion should he verified by so sada proof of their error as a failure must be. It would not surprise him if in the course of ten days the crisis and panic ter minated, and were confidence fully restored; but if the present mea sure should pass into operation, it was greatly to be feared that the country bankers would defeat its object. They have nothing to do but to draw off the circulation—to hoard not only the gold but their own notes. By this means they could destroy the principle of the measure, and it was a subject of serious apprehension, that between such conduct on their part, and the Bank of England tak ing advantage of its privilege of unrestricted issues, that the coun. try would have little chance of being retrieved from its embarrass. ments. He 'should sit down satisfied that he had done his duty in warning the !louse of the injurious effects which might result from the adoption of precipitate measures. Mr. T. WILSON was of opinion that the circulation of the country was very much contracted. In Yorkshire such was the case to an alarming degree. It was natural to expect that the country banks would play their own game, and it was probable that, in the course of three months, they would draw back the dr. dilation and embarrass the country. If it was proposed to with. draw the small note circulation altogether, it would not be so inju. partial removal. The country riot's as the cousequences of its banks will now hoard up the gold and their own notes, anti the country will thus be left ttestitute of both. Mr. GRENFELL, in allusion to what had fallen from a Right lion. Gent. (Mr. Tierney), wished to explain that when lie pro_ a vote of thanks to the Bank at a meeting of the proprietors, posed so in a limited manner. The vote did not include all the acts of the Bank. They were,- however, entitled to sonic grati tude for their conduct during the panic, and on dust opinion he acted. Mr. Secretary PI:: .hat tl;t - Argument,' had been exhausted on the subject b his Right Honourable Friends who had supported the measure , l i e was of opinion that the Right Hon. Gentleman oopotiite (Mr. Tierney) was in an error, so far as he thought the result would prove unfavourable. The Honourable Member fur Alidhurst (Mr. John Smith) seemed to have committed a solecism when he admitted that the necessity for the measure existed, and at the same time thought that the delay M. a month would be pro ductive of benefit. It was the duty ni Government to yield to the , force of circumstances. The delay of a month , after the agitation which the disussion had produced in the public mind, would be exceedingly objectionable, particularly as the view which Govern. ment had taken was that 'MA seemed to meet with general a pp le _ batiutt. The night Honourable Gentleman had said that the paint or time was of little conseqtrnce..but that the principle was objet. tlonable in a great degree; but this did not seem to be the case, for the Honourable Gentlemen who had spoken on this measure a ll concurred in the propriety of the principle, and differed only in re. gard to the time. The Right Honourable Gentleman h a d sa id that a week or ten days might suffice to restore confidence to the commercial community; but there is a distinction i n t h e ethic when the Government has to deal with the Plank of England and the country banks. In respect . to these latter the Government Lbas no control; it cannot Prescribe *hat coarse they must I pursue. The Government cannot dictate to them, nor prevent them from proceeding as they may please to counteract the prmei_ ple of the measure. This was an evil inseparable from the nature of the case. The Government should mg be so wedded to any measure as to interfere wantonly with the interests of individuals, which may come into conflict with the full operation of the princi ple. It was impossible to propose a perfect measure which would not admit of deviation; butt if the country banks should act in such a manner as was apprehended, it became Government to provide against the contingency. (hear.) There was a difference between the present period and the year 11119, for now there was a metallic basis. IVould it be right when 700 or GOO country banks were shut up, to prevent the Bank of England fr tin supplying the deficiency for a short period until matters might gradually settle ? Surely not. Time was required for the accomplishment of the purpose. It had been well observed by his Right Hon. Friend (Mr. Causing) that the Bank did not exercise the power of issuing since the year HIM, and there was therefore a strong presumption against the abuse in the present care. On the various grounds which had been urged, and under the opinion that the predicted evils would not happen he concurred in the measure. Mr. ELLICE defended himself from the imputation if incon sistency. He did not know how Government was to beresponsible as he had not heard of the appointment of Commissioners. No gold would find its way Into the country if the bill were to pass. every thing would be paid for by R an k or England notes. If then this was to be the case country bank notes would be preferable, as they were less liable to forgery. This bill would be a virtual re peal of the bill of 1819, for though he gave the Bank Directors credit for their recent conduct, he was apprehensive they could not resist the temptation afforded by the privilege of issuing. Mr. HAVING was in favour of the measure. The calls of "Question" which had been regular conclusions to the speeches of the last speakers, now became exceedingly loud, and prevented us from hearing distinctly. 111 r. BA RING defended the consistency of his opinions. He at first, and still, attributed the panic and n.isery to speculations, and the great nuisance of over speculation. lie agreed in the re medy proposed; but he thought that the three ye ar s specified would prove a nullity, for the very discussions on the subject were like sending the cry of" mad dog " through the country ; no great was the prejudice excited, that the people in the country would shower in the notes to the bankers, and the bankers would be obliged to draw in. The existing evils had been undoubtedly oc casioned by the wild schemes and projects which were forwarded by the great abundance of money. Ile agreed on the principle of the remedy, but thought that the hill was anticipated in its con tracting operation already. The effect of it will be this, that the country bankers will remove the sovereigna•from circulation, whereas now it is their interest to keep the gold in the country. The cries of question were renewed. Sir JOHN NEWPORT was of opinion that the adoption of the amendment would frustrate the object of the bill. ' Lord FOLKSTONE augured from the conduct which had been exhibited by Ministers in that House, that they would he so firm end determined as to resist all external hostility , o the measure. I The House should, however, be cautious that they did not rush into difficulties from which they would find their inability to extricate themselves. Mr. MONCK said he had heard it observed that if they went on calling in the notes they would create a defficiency of the circu lating medium ;to this lie would reply—if they could not have gold, let them have silver. He had never known it to be asserted, though there was a scarcity of gold, that there was a scarcity of stl. ver also. If, however, it should turn out that nether gold nor silver was to be had, the country was in no very enviable condition. This might be the fact ' • but it was an awkward confession to make, and would not be likely to contribitte much towards a re. storation of' the country's lost confidence. It had been said there was a mutiny amongst the bankers; he believed there had been a mutiny amonst the holders of notes. At Manchester and other places they had come to the res o l ut i on o f not ta ki ng t h e country bank notes. ((Cries of " Question, question: ) Mr. BROUGHAM then rt s. lie Oulu ant long trespass on the patience of the Lion. Gene mien. He h. d thought, from the earlier reoresentations of the C tancellor of the Exchequer, that he should have been enabled to lave given his full concurrence to the whole Bill, to the progress of which he then felt disposed to offer no im pediment . whatever, thinkin g it most eslelll64 to the country, crippled as it then was, that this step should be made ; and let it be recollected, this was the first which had been made to. wards the establishment, or effectual restoration, of a sound healthy currency. But the Chancellor of the Exchequer seems to have changed his views to a certain extent, so far as might be mice?. tanned from the measure before the House; and he (Mr. B.) could not, consistently with the opinion he had then expressed, support the present measure. All seemed to agree in the belief, that a metallic circulation would be productive of great benefit; ; but the question now was a questinn of time. The House, however, would be decidedly in the wrong to entertain the idea of any post. ponement of the measures. The answer to those necessary dest. roils of abstaining from present proceedings was, " If you wait a year you will then be as badly off as you are now." The time given would not be used as it was suggested it might he —the hankers would not during that period prepare themselves for the projected change. On the contrary, they would, instead of contracting their bank-note issues, proceed with them to the end of the year, in the hope that some new circumstances would transpire, and give a new view of the subject, or induce a further postponement in their favour. It had been urged that the bankers should be afforded a year ; but he now said, Do not give them a month—a little month! If it was a question of expediency, the same principle which objected to the granting of a year would suggest that there should not be any time ceded at all. What was the nature of the other arguments used ? They contemplated a more convenient period for carrying those measures into effect, and sought time that this period might be brought round. But the step had been already made. (Hear, hear.) Circumstances had done it fur them. The recent distresses of the times had effected that which furnished the only argument they could use in favour of delay. It was well known that the country banks had confined their issues; one benefit, therefore, had at least resulted front the dreadful amount of suffering to which the country had been subjected. The clause before alluded to enabled the Bank, by giving them time, to fill up the very void which the recent distresses had occasioned, by obliging the country banks to confine their issues. There was one observation he would make as regarded the reputation of the country bankers ; they were known to be men of the highest respectability, land any offensive expressions, therefore, used in relation to them must fall powerless. It wu said the Rank of England, to relieve the present distresses, which were partly attributable to the calling in of country bank notes, was to have the power of filling up that void by the issue of one and two pound notes of its own. But he would ask Ministers what security there was that only this void would be filled up ? They might go on stamping and signing and healing notes without being subject to any discretion but their own, until the very void which offered the opportunity of now introducing the measures before the House was filled up. Ile had always been of opinion that paper and gold could not exist together but within certain limits. He was considered to have said that a great deal of paper, in a healthy state, convertible into gold on demand, was the preferable circulating medium. What he really did say was that lie thought the larger notes convertible into gold, such as a Al., HI, or 20/., would circulate advantageously with the sovereigns ; that the too ment they introduced the one and two pound notes, away would go the sovereign piece. He understood the Bank of England was to have the power of establishing branch banks. He should say nothing on the oppression of this, or the injustice of imposing certain restrictions on those who had certain rights ; but it appeared to him an extraordinary power given to the Bank, which nothing but necessity could justify. Ministers should remember they had thus deprived those of privileges who never had offended, and had given to a great rival power the means of competing with them considerably to their disadvantage. Ministers talked of decreasing the circulation ; but by this system the Bank of England notes would get into all possible channels. Poor men in the country did not go to get their notes changed, per haps because they did not know how or where ; this was one way in which the evil would be effected. He trusted, if these branch or local banks were to be established for the issue of small notes, that they would be made payable at the places whence they might be issued (hear, hear), or those who wanted to get them cashed would have to go a distance frequently of 21) or 30 miles. Another objection which he had to theme proceedings was the increased fa. cility they would afford to tbrging. (Hear, hear.) To mention the name was enough. Ile recollected, six or seven years ago, seeing 20 or 30 for trial when on his circuits, and all for the same offence. Mr. 1103KISSON explained. He would ask, whsther, if the small notes of the Bank of England were not substituted, considerable difficulty would not be entertained. The Hight Ilonoureble Gentleman said he had no wish that there should be a one.ponnti note in circulation, but it was very difficult to execute such a purpose, seeing the panic that had taken place two months ago. The Bank might say no, we will not issue polite, you shat take gold. In regard to the observation that had fallen from the Honourable Member (Mr. Hume), whether the branch banks and agents were to pay in gold, he (Mr. Huskisson) would say, certainly, or else they ought not to be established, tbr it could never he in. tended that there was to be a restriction in their favour. The Right Honourable Gentleman said he would ask what was the state of' the larger notes of the country bankers ; why, that while the small notes were payable on demand, the larger notes were payable only in London. (" No, no," front the Opposition Benches.) The Right lion. Gentleman said he had heard the statement from the Honourable Member for Stafford, and though it might not be a general practice, still if it existed at all, which he knew it did, what a situation it with for the country to be placed in in which these notes circulated. In a county, for instance, where large paymenta for o n u ot t es n etootnb,etbwetitehdiaranwsn4 note, then butthe annihilated by country . bankets,but 51. notes would be made.. and the y bw ou aarke m r u tmw st ok g u ei l v saca si e u : e ws f eti o Pean r P :t neo i t n spin bo ayali n yi don. One pound notes might be possibility of' such circumstances rendered it the more necessary for Interference should such aircurnstances arise,and therefore it was that there was the necessity of those establishments being watched by Parliament and the Government. The Bank of England had no de. sire to put out their one-pound notes into circulation ; and it truckler the country banks out not to put them out, or if they did, that Parliament would take cognizance of their proceedings. If the issue of small notes was necessary, at least let Parliament have the power of preventing a recurrence of that distress and difficulty which had been brought upon the people. The Bill before the House would go to effect that object. The Hon. Member con cluded by say ing that the Bank of England was the pram este. blishment to issue small notes, and therefore he should vote for the amendment. The gallery WU then cleared fora division ; the numbers were—. For the Amendment . - 187 A_ainit it - 24 Majority in favour of the Amendment —lO3 The CHANCELLOR of the EXCHEQUER said that he die of know whether it VI WI the intention of the Honourable Mernl.er for A herdeen (Mr. flume) to oppose any other claims, he having understood him to say he had something to move. Mr. II UM E said that it was kit intention to propose thcre.enect. meta of the penalty clause against persons issuing or re.issoingootra not being duly licensed. but wished to ask the Chancellor of the Exchequer if the clauses were all brought up when he meant Pi re port the Bill. The CHANCELLOR of the EXCHEQUER said be had proposed to bring up the report that tifelt6 111 r. HUME said, if the House resumed and the report was brought up, he must move for the Committee bring resumed. After sonic conversation between the CHANCE' Lon of the E [- CHEWIER, Mr. Hiram, and Mr. MADER LY. The CHANCELLOR of the EXCHEQUER intimated /bat he had no wish to proceed inconveniently to the lion. Gen bonen who had clauses or amendments to propose; and therefore be shonld move that the report should be brought up on Then.day. Mr. 3tABERIX rose in consequence of being alluded to by the Right Hon. Gentleman, to express his wish that the .Basilt of England should publish monthly in the Go-fette an account of their issues. The. lion. Gentleman said he did not wish to press un. fairly on the Bank; but he should wish to know if they wotld consent to the demand. (Order). Mr. 11113 IE said, that he hoped the Right Hon. Gentleman the Chancellor of the Exchequer would call for a quarterly return roma the branch banks of the amount of notes in circulation. It w.os most important that the amount of the currency should be known, or else the country would soon be in the same situation it had been lately. Ile wished to propose a clause to stand in the presto Bill, which was that which empowered a Justice of the Peace to distrsin in three days a'ter the refusal of a country hanker to pay in gold. This clause had stood in the diffirent hills front 1767 1816, and teas then left out, He did not wish that it should opt. ratelwithout suffidtht notice, or else considerable inconvenierice would be occasioned. The CriA :};,Loa of the EXCHEQUER begged the Ito. limitable Gentleman to favour him with the cisme; he intended to propose, and he would look into them befute the questiou came on H1731E said that he hoped ihe prtneiplenfcompelling to give security 'by funds lodged for that purpcn , e would •he entertained ; also that the one and live pound notes should be made payable att he place of issue ; these were matters that he wished strongly to impress upon the Right Hon. Gentleman before the Bill came on again. After a few'observatione from Mr. H. flurnm Mr. Alderman Heygete, and .:11r. Caleraft, the House re►umed, and the report was ordered to be recei►ed on Thursday. FINANCE STA TEMENT. The CHANCEL LOK of the EXCHEQUER gave notice that he should defer his statement of the Finances of the country frum Friday till Monday next. The Transfer of Aids Hill, the Exehemter Bills Bill, and the M'est India Clergy Bill, were each read a second time. The Annual Indemnity Bill went through a Committee, and the report was brought — JURIES IN INDIA. 51r. C. W. WYNN gave notice of a motion for Thursday next, respecting the regulation of Juries In India. Mr. lIERRIES moved that an humble Address be presented to his Majesty, praying that he would direct the 14th Report of the Commissioners of Inquiry into the Temporal and Ecclesiastic - al Courts in Ireland to be laid before the House.—Agreed to. The House adjourned at ONE O'CLOCK. NOTICES OF MOTIONS FOR THIS DAY. Mr. Denman—Motion on Papers relating to the Trials of Slaves for Inmrrection in Jamaica.lierl were presented to Parliament in the last Section. Mr. Ilume--Select Committee to inquire Into Sinecures, and Offices performs! by Deputy also Pensions now paid in every Department. 11r. Martin (of Galway)—Bill to prohibit Bear Baiting, Dog Fighting, and other Cruel Sports. Mr. Martin (of Galway)—Blll to amend Act 3 Geo. 4, c. 71, intitteed, An Act to Prevent the Cruel and Improper Treatment of Cattle. ' Mr. Sykes--11111 to intend the 7th and Sth William 3, relative to the Collection of Small Tithes. ORDER OF THE DAY. Charge against Mr. Kenriek—Conelderation of Report. MINORITY Of 24 who voted against theieite;;ierriiation of the One Pound Bank of England Note, Ike. -..- Abereromby, J. Robbouw, J. C. ?donee, J. B. Ilerney, Rt. Ron. Althorp, V. Inelby, 81r W. Newman, J. G. Bloke, Sir P. Johnson, Colonel Newport, Sir J. Whitmore, W. W. Broughton, H. Knight, B. Nugent, Lord . Wood, Alderman Clutntherloyne, H. Louth, Ron. G. Bickford, .1. 'Davies, Colonel Moberly, J. Ittivaell, Lurd J. TCLLER. Ellice, Ed. Macdonald, J. Burrell, Lord W. Lord Follestoo• PRICES OP BRITISH Bank Stock 20$ 3 per Cent. Red. 741 804 791 3 per end.. tow. 77} 794 7 9 1 79 DIM) Acct. 77 76.2 791 781 79 791 79 n per Cent. :14 per Cent. Red. SG* 881 PRICES OF FOREIGN Alratillon Bon& ni 7 * Cbillon Rondo 44 6 Colombian Bond.. DPW Bonds (1d24) 47 5 4} 6 51 65} Ditto Acct. 44 4; 66e6 61 Dankh Bond. 54 5 43 Ditto Acct. fon I French Berlins 5 per Cent. WE 97f. bloc. Peg. boc. Exchange 25f. 50c. French Ilente. 3 per Cent. 65C. Exchange 25f. 40c. STOCKS YESTERDAY. New 4 per Cent. 96 96j 97f Long Ann. 19i 2114, 2tl India Stock 226 Ditto Bomb I 5 I pin Ex. Rind liamoi. par 1 pm Ditto bOtot. par 1 pm Dittu Small par 1 pm Lottery Tickets 191. 19e. STOCKS YESTERDAY. • Greek Bond' 15 Ditto Sunda , itl2s) ISj * j Ditto Acct. Ist IS 4 Mexican Bond: 54 6 • Ditto Bonds (1824) 60* 1 04 2 1 * 2 1* DIU° Acct. 61 j 601 2 1 j 2 1* Peruvian Bon& 3.4 421 Russian Band+ 00 Ditto Acct. 80i 79+ Spanish Bonds 101 10 Ditto _keel. 10 4 Ditto Bonds •,183111 8) PRICES OF SHARES TESTEILDAY. Mll4ll. Anglo-Mexican Anglo-C*l3llkm ....... ........ ........ Arigna Iron and Coal Brazilian Britian Iron Colombian Martian Puro-Peruelon Poxyal, La Pay, and Peruvian Anrociation 'teal del Moate nnlptixabita United Mexican Ditto New Welsh Iron and Coal Shane. Patel. £lOO 40 24 dia. 100 5 21 &a 50 12 34 prok 100 10 • 100 26 S tdl. 100 5 5 dts 100 10 5 die 50 5 ,3 clts. 400 60 25 275 pOl 41) 20 pi) 40 12t 3i 2ps 25 20 a die AitaiCIANCI COIIIOII3II. Alliance British and Foreign 111111CaLLANZ0111. Canada General Steam Navigation Mexican Pearl Flanery (Yellow) 100 10 11 pm 100 5 2i 3 die 100 10 S die' 23 2 b 6 Am !ht. MritiOh ;uresitS. DRURY- L AST E THEATRE. This Evenlad, TUESDAY, Feb. 21, will be performed the new Nadottal Ballad Opera of 111 ALVINA. . . The principal Characters by bre;Wal Wallach, tAllnchdr, Horn, Bcdfod. Harley, and Pilawllllam , Mitses Stephen+, Pore", and lieny. After which a new Farce called JOHN BROWN. . _ _ The principal Characters by Mews. William; Walled, and Harley Mre. Hiudowe, Mrs. Vate4, and Hiss Nicol. To-sorrow there will be no Performance. COVENT-GARDEN THEATRE. We Evening, TUESDAY, Feb. 21, will be performed the Comedy a A BOLD STROKE FOR A WIFE. Colonel Feignwell, M. C. Kernble; Perrin 3tr. W. Fano. ; Obadiah Prim, Mr. Fawcett; Freeman, Mr. Cooper ; Simon Pure, Mr. Meadows. Ann Lovely, Jones. After which the new Operatic Piece of "rIA'A9 1. The principal Chaaactera by Messrs. Ehnuwt. Keeley, Evan., and Barnes ; Mies Janes, Madame Veatri., and MN. Davenport. . . To 'conclude with the new Piece of TUE tiCAPE-GOAT. The Characters by Me,isrs. Ulanchard. Cooper, W. Perna, and Meadow, MisAes Junes and A. Jones. To-aeorrow the Oratorio of Thanksgiving. The Barriss Palsseommencsd publishing yesterday alarming as five o'clock. LONDON, TUESDAY, FIBIVARY 21, 1926. At an early hour this morning we received the French Papers of the 19th instant, from which we have only time to give the following extracts : [ From the Etoik dated Sunday, Feb. 19.1 PAXIS, Fan. 18. We find in the Allomeinc Zeitting the following ►etter from St. Petersburgh : To maintain tranquillity in the city, detachments of Cossets patrole the principal quarters in the evening and during the nignt. The funeral of the Emperor Alexander will take place on the 24trs March, the anniversary of his coronation ; among the nutnerot:a strangers who will be present sm. the Prince of Orange, the Arcu. duke Ferdinand of Este, the Hereditary grand Dukes of Weituar and Mecklenbuig-Se.bwerin. The Committee of Intiuiry has succeeded in discovering all the secrets of the conspirators.: and is to divide the guilty into throe chases. 1. Those actually guilty of high otosion, who were, during the troubles, found with arms in their bands. 2. Those whose youth has been misled, and who have Inconsiderately been drawn in. 3. Tboageto neglected to give itsfo.inatiott of the earn. spiracy. • Front the accounts received at St. Petersburgh it appears that all the corps of die Russian army bad taken the oath of . allofflance ,to the Emperor Nicholas. The a r my i n G eorg i a , on account of . '"lt • great distance, is the only one from which bo news had been re. ceived since the 31st of January. Farmed . FUSDS.—PARIIS, FEB. 11-I%ve Per _Ceints• Ser. 350. Three. Per Cents. 64f. bile. Bank Steck. SAW Reilleillo Naples. 72f. 10e. Reale d'Espaann, Rolla !Vanish . 1 211nt.1 47i. Harlan Loon 770 t. Exchange on Loudon :—One Month, 24. 60e. t Three ditto, 96f. 241c.—(',sus Antlierttiquit.• Brazilian Rapers from the inth to the 24thbee n enibft inclusive, arrived yesterday. The yonug Prince has bets; THE BRITISH PRESS. 17'