The British Press; or, Morning Literary Advertiser. — London, England, 1826-02-28 00:00:00

bad, and other parishes, in the county of Lincoln, praying for the rialitton of Sbreery. . _ _ Similar petitions were presented from Royston by Sir John &bright ; from Stoaehaven, and inverurie, Aberdeenshire, by Capt.'W. (Jordon; from the Eastern districts of Cornwall and Medrittli by ale. Trentayne ; from Newark-on-Trent by Mr. Wil loughby ; from Shifnal, Colne, and several plecos in the county of Lancasser.by Lord Stanley ; from Burlington, Aldboruugh, and ether towns in the county of York, by Mr. Sykes; from Bath, aloe from Ofilingitatn,Durset, by Mr. Portman; from Summerton by Lord John Russell; and from Luton, Beds, by Mr. Pym.—Uttered to be printed. ATTORNEYS TAX. Capt. W. GORDON presented a petition from the Presadent and Adsocatca of the .R nyal Chartered Society of A herilem, mar ilia for a repeal of theAttorneys' tax ; from certain Attorneys in Ireland, by Mr L. Forster; also from the Attorneys of the cowry of Perth. by Mr. Bohn Smith, to the same effect.--Ordsred to he oa the table. 1 ) 1:R CURRENCY IN SCOTLAND. Mr. S. WORTLEY presented a petition - from the merchants and other inhabitants af,the county of Fafar. praying that no alteration might take place in the currency of Scotland; alto from the Merchants, Town Council, and under, of Aberdeen: rid the Town Council of Arbroath, be 3lr. Hume, to the same effect.— O►i'ered to be pnnted. CORN LAWS. Lord sTA N LEY presented petitions from the nrevativrs of Man chester and the inhabitimes of several plucea in its vicinity, praying fur an attention in the Can Linn. Similar petitions were presented from Aehton-under.Lyne. by Mr. Phillips ; from , he operative mechanics of the City of Durham, and from the operatives of illackwall. in 11•ddleaex, by Mr. flume. —Ordered to be printed. ASHUkT iresented a petition from the owners of land is the netahbourhoodlof Chipping Norton. nra)irtg thit tosheta• two should take plate in the Corn Laws.—Ordesed to b.: printed. USURY LAWS. Lord STANLEY presented • petition from the Chamber of Commerce at 31eneirsater, praying for the repeal at the Ceer Laws.--Ortlered to lie on the table. BANK MONOPOLY. Lind STANLEY presented 3 petition from the Chamber of Culimerce at Xlanchester, preying for the ativiition of the Bank snonopoly ; fur the reduction of duty on small notes and fur a metallic currency. SMALL TITHES. Mr. J. SYKES brought up the Report on the petition for $ Bill for the more easy recovery of small Bdl was than rnd a ling and second time, and committed. FOREION PICTURES. _ . Sir H. PARNELL preaented a petition trout General Gear 'Cockburn, praying the House to take into its consider.uton the n.4ty on foreign pietism—Altered to lie on the table. AIERCKANT SEAMEN. Mr. C. CALVE nndce oY a motion for a retum from Greenwich Hospital of the amount of lid. r.rr month pout into that Institution on account of merchant seamen, (mm the Slot Decem ber, 1821. to Slst December, MI% Also tor a similar return Irons the Corporation of Merchant Seamen foe the same period. JURIES IN INDIA. Air. C. W. WYNN deferred his nice of motion from to morrow to Friday next, on the subject of Juries in India. CORN LAWS. . . Mr. W. W H I TAI OR if said the 'Trenching A sslsell. mail Hon. hlemhers would he absent from the House whose uptowns it would be highly desirable to have on the subject of his proposed measure on the Corn Laws. With that view of the question, and being fully convinced of the necessity of going into It coolly and dispassionately, he should heg leave to postpone the motion of which lie had given notice mad the 13th of April tiest. EDUCATION IN SCOTLAND. ABERCII64/11 7 moved that the respecting edu citron in Scotland, which had been presented to the House, shou:d 'be printed.—Ordered. CRUELTY TO ANIMAL A. Mr. HOBHOOSE presented petitions from St. Margaret's, Westminster, from Pentonville, and from at. 31arylabone, all in the county of Middlesex, fn favour of the Bill fur the Prevention of Cruelty to Animals.—Ordered to be printed. DEBTOR AND 'CREDITOR ARRANGEMENT BILL, Sir CHRISTOPHER COLE presented • petition from the principal creditors d Oubhins and Ci., late bankers of Swansea. praying that the House would accelerate the Debtor and Creditors' Arrangement Bill. The petitioners were induced to petition the HOUse from the circumstance of the considerable diffi culty which had been felt by them i, respect to the affairs of the Swansea Bank. One of the partners of that bank having been engaged in banking concerns elsewhere, it was necessary to take the opinion of Counsel as to whether he should be made a bankrupt in that" concerne as well. The case was eubmiced to three erni. vent Compel, who all,differed in sheir opinion on the subject. The 'bank in'huestian had fallen a withillee to the peak which had over run the country, and they propesed to their creditors to pay twenty elitllinr in the pound, three instalments of eve shillings each in the year 1£26, and a fourth to the sante amount in the year 1827, and further, to pay interest on the amount of claims, from the titre auf their stopping payment, at the rate of four per cent.; [list ar rangement was opposed, and the parties were made bankrupts. 31r. BRIGHT said that hie attention hid been called to the subject before thy House by the circumstance of the many failures that had lately taken plate in great establishments, and the du 8.. culty that had been felt In entering ion. agreements by asslgnnient and otherwise. The Hon. Member said shut he had received let ters from all parts of the country, approving of the Bill which be 3lr. Bright) had submitted to the House. These letters said that it would confer the greatest gocd on the country. Ile had received one letter from Bristol, which stated that the writer knew a CAS! in - which a person offered his cr:di!ors twelve shillings in the pound; It was not, however, acceded to, and he um made • bankrupt ; the result was that a dividend of threepence.halfpenny only was de. dared. By the proposed measure seven-eighths of the erettiows could carry Into effect the measures that appeared to them beet for toe good of the whole. The Honourable 3lerober said that be should defer the Committee on the Bill, io order that he might have the eivaetage of all the information Fusible that could be *ained on the eubject. After a le , words from Mr. Loot satyr, who hoped the Bill would go further than it was at present proposed to carry it. and Vow 31r. Alderman Wool) in favour of the measure, the petition 'was brought up and ordered to be printed. ABrSES IN THE CORPORATIONS OF IRELAND. Mr. DENMAN presented a petition frem 31r. Thos. Flannigan, complaining of Abuses in Corporatism. le Iceland.—Ordered to be 'pm test. PROMISSORY NOTES BILL On the motion of the C II A NCELLOR of the EXCHEQUER, I' , st the [louse resolve itself into a Committee upon the Promissory 'Notes Bill. . . .....__ ......, Mr. CALCRA FT said that he would trouble the Bowie with but a few *opts on the pr sent occasion. He would have an oppor turity at a !inure time to enter more at large into the quistion. He telt great reluctance to presto his views in opposition to the sense and feelings of the House; and to avoid the ineonveuience of having the discussion of this measure protracted to a late hour (which he ti...itight must be the cam if It came on to-nighti, he was anxious that the Report should be brought op early to-morrow. The CHANCELLOR of the EXCHLQC Elt said that he co incided with the observations of the Honourable :Bernina. When the House was in Committee on the Bill on Friday last, the debate was prolonged by the excel bons which were taken to it. and a kind it sparring took place, not between himself and any linnour able Member at the other side of the House, but between some Honourable Gentlemen opposite. lie was certainly dis inclined to have the debate unnecessarily protrac'ed, and was willing to afford every accommodation to prevent it. On Friday tight they were obliged to report progress, and consequently post. pone the measure, which they were driven to by the persevering oppbsition of the Hon. Member for Aberdeen, who had given notice that he would propose the introduction of several clauses Into the Bill, which molt not then be discussed, lie thought it .null be impossible to report to night, and would therefore hays Do objection that if Should come forwsrd the first Mier' of the day to morrow after the motions were disposed of. On the question that the Speaker do now Lave the Chair, Mr. Ht. ME said that he was quite satisfied that no Honourable 'prober, however he might differ from himself, would wish to ree any measure pass through the House withoct its undergoing the fullest consideration. lie thought the measure proposed, far from curing the evils which pervaded the country, would have quite a contrary effect. lie could not think the measure at nil called for, and he would warn lion. Members who were desirous of preserving the paper currency of Scotland in the position It watt now in, how They gave their support to the present Bill. If they supported it, they could not afterwards turn round and oppose its introduction into Scotland. He wished to have one uniform system of banking for England, Scotland, and Ireland. It was evident, from all that bad been said on the subject, that a metallic circulation alone would not answer the purpose of the currency, nor would a paper circulation beef greater utility. To produce anything like a eircu. Lubin that could be beneficial to the country, they should have a mixed currency, consisting of gold and paper, In concurrent circu hrion. If, as had been argued. the stamping of small notes was ecntrary to and entrenching upon the prerogatives of the Crown, it was absurd to limit ti.ut objection to the one-pound notes, and sly it was not applicable to those of five pounds ; if the argument was good for anything, it referred equally to bet:). It had been said, as a reason for withdrawing the one-pound notes from circu lation, that they circulated principally among the poorer elapses of society, who might to be secured against lose; but he knew that live-pound notes had a wide and extensive circulation amongst afiadesmen, and therefore he thought they ought, in that view, to We secured from any danger or want of confidence in t , :em, equally as they should be protected !tom tiny danger or inconvenience that could arise from the circulation of one pound notes. Such reason. nig appeared to him unsatisfactory and incouclusive. Ile protest. ed against their withdrawing those notes from circulation, If they excluded them they were bound to replete them by a metallic coin age; but that would be attended with serious inconvenience. be cause, while the broker found it his interest he worthl carr on a 'fade in billion, which would enhance its value, and sffxt t he cif vitiation. if Ministers persevered in supporting the present hank ie( system, and it they did not demand security Gtr the extent of their boot's. they would be answerable for any failures of country brinks which might take place between the present time and Inf. The people must look to the Government and nor to the Bank. Tice Crown sal the Government would bi aastverabls tor those f rot. There tisekers at that m o m en t issuing notes who were no more solvent tlthou who had already failed. There was not':ing to prevent them. At the Dock-yard at Portsmouth seven or eight hundred pounds had been paid weriqy to the workmen in the paper of a country bank. Ills Majesty . Ministers mod those workmen in the paper of that bank ; the bank broke, and much distress ensued among the tradesmen who had taken those notes. He thought Ministers had no right to use the paper of any private bank for such a purpose. Theincor venici. re and insecurity of the pa. per currency, and the encroachment on the prerogative of the Crown, e were the only argUmentn brought forward in favour of the measure. When the House has in &Committee upon the measure, he would move to introduce into the Bill a clause, that all bankers should be obliged to make deposits in. the Exchequer, or time other proper ; place, to the full noisome of the note. they intended to issue. Any person who had the preregetive of the Crown, which every banker ; had in possessing the privilege ul having paper stamped for cireu ;tenon as money, ought, in hie opinion, to pay for that privilege ; be ought to give security for the ntrount of his paper issues. He thought, alma that Commissioner in London should be obliged to pay on demand ape note which had been refused payment by the bank in the count' y. Such an arrangement as that would afford security, and would be similar to the mode pursued in ilamburgh. Another emerision which he would suggest would be, that the country bankers should be obliged to pay their notes at tee place at which they were issued. Great inconvenience resulted.from the present mode of transacting business. He also would move that ; all bankers should be obliged to make monthly returns of the amount of their circulation. Ile thought it necessary that the amount of the entire circulation of the country should be known. He considered the extent of the circulation unimportant, provided It was armee ; it was Ito matter whether it was twenty millions or 1 thitty millions antler such regulation.. These were the clauses ; which he would wish to hare introduced into the litel, and would requite nothing more, unless a penalty for noncompliance with those provisions. The circulation of small notes in Ireland i teas e t ester by two million, than my where else. and yet it was 313 Ilaught mensal in Miser*** the circulation of thatcoun. I try, anti consequently he was free to infer by verity of reasoning ileat there Was no mention fuse the measure promoted. Those views were acted upon in America with the greatest advantage to that country. In the states of New Hampshire and elamachusets, there acre thirty.tive chartered banks. T! ore Minks are always obliged to have a capital subscribed tend paid lip before they can carry 03 husinem. They give security for the amount of their Mules, and are obliged to make regular returra to the President of!, the United States of the amount of their issues, discounts, dec.' If any doubt or suspicion arose vine repot' to any one of those ' hanks, then a coinnettee was appointed to investigate into its affairs, and to report on the state of the back in question. Since die year 1016 but one of those banks had failed. and that was at-' tributatle to connexions •liirti it had with a private bank in another State. There was another important regulation relative to those bank., which was, that if they refused to pay any of their notes upon being presented, they forfeited their charter. They eircula ed notes from the value of one dollar upwards. The ad vantage which those chartered banks (gnverned under such regula tions) had over private banks was evident front the tact, that at a dine when the notes of pirate banks were at a discount of 15 to 20 per cent. the banks of the States of New Hampshire and Mama. cheesys paid all theirs in specie. lie therefore would feel it his duty ' to urge those vjews which he had already stated, and would first move—" That it be an instruction to the Committee on the Bill, to provide for requiring from banks and banking establishments de poen% (to be lodged in the Exchequer or other proper office), equal in amount to the amount of promissory notes payable on de mand, limiest by diem respectively. ' The CHANCELLOR of the EXCHEQUER said he should object to the Introduction of any clause. into the Bill. The object of the Bill was to accelerate the period when the circulation of small notes was to cease. The Bill was of a temporary nature, and could not by any passibility be considered in any other light. He had a decided objection to the plan which the lion. Member had suggested • that Hon. Member founded his objections to the principle of the Bill on the grounds that the circulation of one pound notes would be rivalled • but that had been already de. tided by the !louse. He also th'ought that the system of country bankirg should be rendered more secure; but he (the Chancellor of the Exchequer) would inquire why should they rescind what the House had already most eecidetlly and unequivocally assented to? Besides, lie considered the propositions of the Hon. Alentber liable to objections in principle; the principle of the regulation of those banks was decidedly objectionable. lie felt himself bound to say, that though the Government of the country would not make an improper use of any power which might be committed to their hands, yet he thought the Treasury the most untit possible de. pository. Such an arrangement would give a very dangerous power to Government, and might in bad hands be productive of great mischief ; he had a strong objection to the regulation pro. posed, upon the grounds that it gave too much power to the Go. vernment. The Honourable Member haul said 3 great deal of the inconveniences that might arise to those who received those notes, but had entirely omitted those which might tall upon those who paid them. The Honourable Mentber thought it a very simple measure to establish banks upon his principles; but if any judg. 'went coati be formed by what had taken place, very few banka' would be established upon those principles. If they were at liberty to establish charter banks, the case would be In souse measure dire ferent. The Honourable Member argued that if they gave a pri vilege they should expect a return, and that deposits should be made te the amount of paper issues ; but such a demand upon the bankers would be unfair in principle and efeert—it would be im. posing an unjust restriction on the use of capital. He considered the present measure, the object of which wits the gradual extinction Molten note', a much better plan than that which the Honourable Member so strenuously ad% oceted. lie regretted that the Honour. able Member had not found colt sooner the plans he intended to propose, as it would have spare' much time, and not have occupied the Hansa with a long debate. Ile objected to the plan proposed, and would give it his decided opposition. Mr. SYKES said he thought that a mired currency would be productive of great advantage, but lie thought that the agita tion of the question ought to have been deferred to more quiet times. He thought that the Government had acted wisely in ex tending the issuer. of the Bank to November. Before he eat down he was anxious to correct 'mistake which the Right lion. the President of the Board of Trade was reported to have fallen into. He was reported in the newspapers to have said that a bank at Hull had tailed. The bank to which the Right lion. Member meant to allude was a bank at Horsham. Great injury had arisen from that mistake, and the effects of it were still felt. He hoped the Right Hon. Member would correct that mistake. which would re pair the inconvenience which had grown out of it. Mr. 110BHOUSE said that he would rot trespass long upon the attention of the House; he had supported the memure as far as his vote went, and he now saw no reason to alter his opinion. Ile was one of 21 who had upon a former occasion retired from the (louse in opposition to the measure which was then proposed, but he did not capsider it any abandonment of principle or consistency, to vote now for the measure of the Right Honourable Member; he thought from what had lately taken place, they should strike at the root of the evil. Those who were desirous of enjoying the privilege of coining ought to be obliged to do so under such regulations as the interests of the country required ; and that was by a deposit of so much capital as should be a fair guarantee to the public that the country should nut be again thrown into that ruinous condition into which the House had so lately seen it involved. He would ask his Ma. jetty's Ministers whether they really conceived their plan would put the banking system on a sound and permanent footing ? It was, in his opinion, impeonible, unless some means were found of preventing persons Senn having the power to enlarge and contract the circuletton of the country at will, lie thought that the real cause of the reeent calamities of the country could be traced to nothing else than that power whith sometimes was exercised is mg meeting. and at others in contracting, the currency, not particularly by the Bank of England, but by the country bankers. It was a notorious fact, that whenever there had been any really great dis tress prevailing there had at the rime time alwave been first a great augmentation, and then a sudden and an unnatural contrac tion of the circulation. Seeing these things invariably tally toge. they, the inference was that the one must he the effect a the other (Hear, hear, from an Hon. Member on the Opposition bench.) The fact was precisely .n: and the linnourahle Mem ber who cried " hear" he° himself stated in evidence before the Committee in 111115, that countrx bankers invariably enlarged their Witte when the price of corn rose ;'whereas it became ahem at that juncture to have pursued entirely a contrary course. Such would have been the case if a metallic currency had existed, because there would necessarily have been a considerable portion of it sent abroad. The conscquencoof all this was, that the prices of every article from cotton dawn to nutmegs, as the President of the Board of Trade had said, were constantly in a state of fluctuation, which enabled persons to put their corn and other things into their ware. houses, which had a natural tendency further to increase the evil. An lion. 31eniber thought that this proposition was an unfair in terference with the currency ; but that lion. Member seemed to have forgotten that it was the currency that regulated every thing. Those who held the issues of the currency within their power were, in fact, the holders of the entire property of the country. As long as the trade of making money was permitted, as long as Cell bank-' ers were allowed to deal in the currency without putting same re -1 straint upon them, so long would the mischief exist. He had' heard much of the cliaractere of the country bankers, As English', gentlemen, no doubt :hey were a highly reptitsible class; but as a body of traders under the present uncontrolled system, he considered them rather a pernicious set of men than otherwise. lie begged to quote the opinion of one en that 'subject. who, God knew, had as I large a portion of the milk of human kindness in his nature as any man, he meant the late highly respected and lamented Ala Ricardo. That gentleman stated with regard to the coumry banks, that he be it would be found that in the major part of those failures the party could be charged with offences much more gross than mere want of caution. • And to protect the country egaime the conduct of those persons, it ought to be required from every one cf them. on their commencing the business of bankers, to matte deposits to the amount of their issues. t Hear, hear.) This opinion came from a person who, though a great authority in every thing, still was' thought to carry his principles of free trade somewhat too far, and was set down by many as an enthusiast; a'd vet that intelligent I person saw what the Han. • Member for Hull slid not seem to see, namely, a diffesenee between a trailing in the currency and a trading in other commoditim; and that he considered it to be ne. nary to have demons from the former, to secure to the country a re sponsible fund tor the ladies that should he made by them. lie begged to notice an observation whiih had been made by the Chan cellor rtf the Excheque, who had said that the Treasury did not want to he made acquaiated with the private circumstances of every country banker. The CHANCELLOR of the EXCII eXeli ER made an obser vation across the table, hut which was inaudible in the gallery. Mr. 11011110 USE continue,—There was no necessity for the Treasury to possess this knowledge; there was no season why the deposits should nut be placed in other hauls. It had Leen cbjected THE BRITISH PRESS. that these deposits would be an improper interference with the de posit bankers, who had no issues of notes. Ile was not desirous of interfering with such a description of bankers; those, for instance, erho carried on business in London, and who did not coin the cur. rency of the country ; but the country bankers ought to be Interfered with, and unless they were an. the House might depend upon it, no thing would prevent the recurrence of similar calamities to that which had been lately witnessed. He understood a Bill was coming down from the other kloose of Parliament respecting the Bank Charter, when an opportunity might be had of inserting the clause which his lion. Friend (51r. Hume) proposed ; if so, he (Mr. Henhouse) would withdraw all objection to the Speaker pow leaving she 1 Chair. But he would repeat that his Hon. Friend had taken a correct view Mahe subject ; and his Majesty's Government did not like at this moment to come forward to do anything which should hurt the feelings of any body of traders In the currency, notwith. standing they possessed so pernicious an inlluence over the property of the empire. The President of the Board of Trade knew that this was the case, aid so must his Right Hon. Colleagues. He must say that the Chancellor of the Exchequer bad nut satisfied him at all with the reasons he hail given for objecting to this pro. position excepting as to the matter of time. But whilst he vesture d to trouble the House, 'he begged leave to say that if re course was not hail to some measure for ',cruelty similar to what was now proposed, he was confident that the next step taken would be to destroy the country banking system altogether. But really why there could not be some means found for the Bank of Eng land to be the only establishment in the country far issuing the circulation of the kingdom under the guarantee of Government, he could not comprehend. (Hear, hear, hear.) lie agreed with the observation that had been made, that the Government might do it themselves; but if that course was not adopted he could not see why the suggestions of his Hon. Friend (Mr. Hume) should not be embraced. The Bank of England, if properly constituted, It ap geto him ought to he the only eetablistiment for issuing and en td rig in the circulating medium. They might fable leave the dealers in money (for aacb they would still be) as depot t hankers, as they were at this motile/a. H. particularly agreed with Mr. iticardri that when bangs failed It wee not so ntuch from impro ' •idence and want of caution as fiche baring traded upon bad prin. ciples ; and for want of capital. It was the fact, generally speak ing, that persons did carry on that trade without capital. There were great establishments where it was not the case, no doubt ; but In the majority of cases the trade As carried on without any capital being employed. lie was quite certain that it would be foundtneemaary fur his Majesty" Monsters, it they had the courage, to make some radical change in the system that now prevailed. Mr. UaKISSON said he should not have felt it necessary to address the House on this occasion, if he had not been called on by the lion. Member for !lull (Mr. aiykes) to set right a misconcep tion which he (Mr. Huskisson) was sorry to say had occasioned some uneasiness to the Hon. Member's cenetituents. On a former night, having occasion to reply to some observations of an lion. ',ember who had argued that the circulation of small notes could not be diminished without diminishing the consumption of agricul. tonal produce, lie (Mr. Huskisson) attempted to show that If any inconveniences should ensue front the contraction of the paper CllT tency on the one heed, there would be inconveniency on the other hand if the state of the currency were permitted to remain in its present defective condition ; and an referring to the agricultural districts in those parts of the country altogether uoconnected with manufactures, he illustrated his own argument by stating what had occurred in the town of Hortham, in the county of Sussex, which was a purely agricultural county. He had represented that about ten years ago there was only hue bank in that town, and that it failed, anti that its failure involved the neighbouring districts in ilia greatest distress. He also stated that after that failure another bank was formed in the same town, and that in the late crisis that bank also failed, and the distress it occasioned to the lower classes of the people in the surrounding districts was very great. By some of those accidents for which no Member in that House could be accountable, (hear, hear,) and which be could not but regret, al. though over which he could not by possibility have any control, it did so unfortunately happen that in some one of those vehicles through the medium of which the proceedings of the House became known to the public, that instead or the town of I lorshant the town of Hull was mentioned. Thus was certainly to be reeretted, and when the intelligence reached the town of Hull, it very naturally created some feelinge of apprehension and of regret ; and the Mayor of that place had felt it necessary to write to him on the subject. He (Mr. uskisson) had informed the Mayor that he had made no such assertion, and that he was not aware of the mistake that had happened, otherwise be should have Set it right the very evening after it occurred. He hoped, therefore, that whatever inconveni ence might have ensued from the accident had been corrected by his answer to the Mayor of Hull. With respec: to the subject immediately under consideration, he would just observe to the Ho nourable Member for Westminster (Mr. Hohltouse) that his (Mr. Huakisaon's) Right Hon. Friend (the Chancellor of the Exche quer) never meant to say that there was any thing inconsistent in the Hon. Gentleman's giving this measure his support, and at the same time approving ut the proposition of the lion. Member for Aberdeen. Neither would his Right Hon. Friend be. guilty of any inconsistency in adopting that proposition, as an addition to the Bill which he had introduced. But the Hon. Member for Aberdeen proposal this amendment, not with a view to vender that measure more perfect, but ; de a substitute for that measure. (Cry of " No, no," from Mr. Hume.) It was so argued. Th • Honourable Member fir Aberdeen said that he approved of a •er currency' founded upon a responsibility to pay in cash ; but th. tion..Mern ber for Westminster, as he (Mr. Huskisson) understood him, was most anxious to put down li. notes. The argument of the lion. Member for Aberdeen was, that those notes might exist provided it could be done without putting the convertibility into any danger. That Hon. lEember had observed upon the objection made to the small notes on the ground of interference with the privilege of coining. The argument which he ( Mr. Huskisson) had used was that these one pound notes, more than any other part of the paper currency, interfered with the prerogative of coining. It was in that point of view, and in that degree only, that he stated that it did partly interfere with the prerogative, and that the due and proper exercise of that prerogative was to give the country a metallic cur rency. This was in his opinion a very important objection to the circulation of the small notes, because his argument was that a metallic currency could not exist at the mate time with a circulation of paper money of the same denomination. Good God ! he never was or could be guilty of such an absurdity as that which the Hon. Member for Aberdeen had imputed to him, namely, that the issue of a 201. note was an interference with the prerogative of coining, lie never did advance such a proposition, simply be. cause there was no metallic coin of the value ut twenty pounds. lie, however, would repeat that his argument was, that by destroying the exercise of the prerogative, which it partly did by allowing the substitution of one pound notes for sovereigns, was in fact an inter ference with the prerogative. With respect to this proposal for requiring country bankers to make deposits, he conjured the House to consider the consequences that would inevitably result from the adoption of such a measure. It was unquestionably true that the country was in great difficulties There was a want of confidence prevailing, and a difficulty experienced in carrying on the transac. tions of daily commerce, and even in the dealings in the common necessaries of life. Under these circumstances what dal the lion. Member for Aberdeen propose ? That the House should (but not as put of the measure introduced by his Right lion. Friend,) make a regulation, that country bankers should deposit somewhere an amount in value equal to the amount of their paper circulations. That, if he understood the Host. Member correctly, was his pro- posal. The lion. Member for Westminster had said, indeed, that he did not desire or mean to interfere with bankers of deposits merely. Bat did the lion. Member think that the banks could go on without deposits ; and if so, see what would be the effect Male proposal if adopted. In the first place it would have the effect of shaking the credit and confidence of those batiks in a far greater degree than now existed ; and in the next piece, it would aggra vate in a coosiderable degree the very evils that had already die. tressed the country, by the withdrawal of those deposits that still remained with the bankers. That Nis would be the consequence was obvious for this reason, that by the operation of the proposed measure every person who had confidence in a country banker would have this language of caution addressed to him—" If ycu place your money in that bank, take care what you are about ; look well to what your security is ; for the holder of the paper cir culation of that bank is guaranteed, by a deposit made by the banker with the Government, • and your deposit Mahe bank is to come in after all the bola* of atnoterfine been sodded" ( Hear). The consequence of such language would be the instant with. drawsl of every shilling from sU the country banks in the king. dons, and the entire loss of confidence towards them. He would venture to gay, that if it could be known exactly the state of the country banks when the present unfortunate changes began, per. haps the proportion of the delimits with the bankers were to their circulation as five or six to one ; anti yet tinder these circumstan ces the House was called upon to tell the persons making these deists/ate, " Whatever your confidence may be in the one pound notes of t:iese habits, take care of your deposits, fur they have not the same security which the holders of those notes peanut." He thought that he had said enough to convince the House that if the principle of the proposition were right, yet it was not fit to broach pinch a principle, oi to attempt to carry it intoefiect at this moment. lie had no hesitation to say to the Hon. Member for Aberdeen, that if there were chartered banks existing ; that if it were consistent with the regulations of the Bank of England, and with the privi leges which that body had given up, for Government to charter banks in the country ; that then his Majesty 's Minbiters would have not only a right, but would owe tt as a duty to the country, to impose upon them an obligation of this kind ; but then that must be under other regulations than what at present existed; stud did any Honourable Gentleman expect that there would be any confidence reposed in the deposits of the country. barks, even if such a regulation were to take place ? (hear,.) Jr was inconsistent that they should be left with an unlimited responsibility as to the amount of their issues, while at the same time they were to be subject to this restriction. For his own part lie had no such expectation. (Hear, beer, hear.) lie should have been glut if the charter of the Bank of England had been further relaxed ; it was not, however, in their power to compel that respectable body -to consent to such a measure; but, if the charter of the Bank would have permitted it, be thought it would have been fair to have put n further responsibility upon the banks that might be chartered. lie wished that the Bank of Ergland walkd concede that paint; and he trusted that the time was not gone by for such hers to he en tertained ; but in the mean time, to propose such a proposition 114 that of the Honourable Mem& r for Aberdeen would be to legislate without the prospect or possibility of effecting any real remedy. If they had the chertered 'Janke, lie should then have no.objection to the publicity which this proposition would induce, nor should he have any objection to propose other regulations—such as, for in stance, that those tanks should not trade, anti, like the Bank of England, should be precluded from doing anything but the Mon. neesot hankers, and then a greater security would be afforded to the country. But if the restriction proposed were new adopted, there would by to-morrow morning be greater difficulties in this country than any which it had hitherto experienced. (Cheers.) Mr. ROBERTSON repeated the objections he had on former occasions urged against the measure of his Majesty'e 51 iniaters as regarded the currency, and compared the state of the circulation of this country with France. In the latter the currency amounted to ISS millions sterling, among a population of 33 millions. Now. the population of England amounted to. 22 millions, which would therefore r?quire a circulation o' between 50 and GO millions. But if they once passed the Bill now in . progress for withdrawing the small notes, amounttog to eight or nine millions, where, he asked. was the money which was required for the carrying on the affiiint of the country to come from ? If the proposition of the Honourable Member for Aberdeen were adopted, the consequence would be that instead of the batiks being as now carried on in the districts that required them, they would fall into the hands of men of capital, and would become mere jobbing establishments. If the House paSsed the Dill at the present moment, lie considered them to be doing so without sufficient information. Mr. LESTER rose fur the purpose of alluding to the practice of 1 country bankers in tot inaleng their U. notes payable at the place ' where they were issued. (Heim) That practice was, he had been informed by Moto who were acquainted with the fact, a real prac tical grievance. Ile confessed he knew nothing of it himself, for happily in the part of the country where he lived they were not troubled with the company of note. of that description This he conceived throw a loose rein to the issue of 51. notes. It gave the bankers an unbridled license to circulate a species of poison through the country. Under this practice the convertibility of gold was put out of sight and out of mind; and instead of proving a constant check and a gentle corrective,. it afforded an opportunity to elude and evade the law. (Hear, hear.) He therefore thought himself entitled to request that an amendment might he introduced Into the Bill, prohibiting this practice ; and he hoped the Chan cellor of the Exchequer would consent to introduce it. He ap proved of the principles upon which the Ministers were acting. and he trusted that they would persevere io ;heir adherence to them, and in their reaistance to those importunate demands that were made upon them to, dip their measures. He called upon them to pro ceed, and he ho they would give him an opportunity ut toying, non coedited arm toot. (Lieu, hear.) Me. MOCK conceived that one great evil In the extended cir. eulation of small notes was, that it was a certain means of dis placing [ by degrees all metallic currency. It gave the country bankers an encouragement to issue them till they got out of !Haw- Istion every other species of currency. There was no doubt that it bankers were allowed to issue notes for se. or as low as sixpence, as was once the case in Yorkshire (and which the 151 h Geo. 111 was passed to do away with), it would make it the interest of the bankers to get in all the silver, and then the country would be without any metallic circulation at all. Another evil of these small nines was that they introduced a constant fluctuation in prices. With regard to the particular proposition of the Hon. Member for Aberdeen, it seemed to him (Mr. Monett) to be particularly wise and just in principle. The President of the Board of Trade, in. deed, did not appear to differ with the Hon. Gentleman as to the principle, but he objected that the proposition wan wrong in point of time. It was no sort of objection to this measure that the depositors would not have so great us security as the holders of notes ; on the contrary lie thought it would give them that very security which was required. Much had been said about the characters of the country bankers. For his part he admitted their general respec tability ; but at the same time he could not look at some of the circumstances that had lately occurred, and not be convinced that some of them were not better than swindlers under the name of bankers. It was therefore highly necessary there should be some distinction made as to the persons engaged in this busi ness. It was the duty of Minietert to take care to maintain in the country a safe currency. Was it to he tolerated that persons, without giving any security whatever, should take the coin of the realm out of circulation, and substitute their own notes fur it ? Such things ought not to be permitted. The measure proposed would not be an interference with trade, but merely a protection given to the currency to preserve it from de. terioration. The paper circulation was, in fact, no currency at all. He had always understood that the currency was to liquidate debts ; but, instead of the paper money being a liquidation of a debt, it was. in truth, the creation of a new one. This was a state of things which ought not to be tolerated. If the measure should not now he adopted, he hoped, at no distant period, the Ministers would see the propriety of preventing persons from abstracting the currency of the country without giving any security for that which they substituted for it. Mr. 31 ABER I.V thought the Honourable Member (Mr. Hume) was answered in the first half dozen sentences which had fallen from the Right Honourable Gentleman (Mr. Huskisson). Whatever the Honourable Member's object was, the efect of his motion would be to alter the exis-ing laws between debtor and creditor. When such would be the effect of his motion, it must be agreed that he had not given stiPleieut notice. He hoped, there fore, that the Hon. Gentleman ovould withdraw his amendment and take another opportunity of twinging forward the subject. Mr. HUME roue to explain =lion erns of " Question." He believed that all were agreed as tolhe principle, the only objection was as to the poid of time, and to rw tired he should like to take the opinion of the House. Mr. HVS K ISSON said it appealed he was not distinctly under stood. His observation was that he could not agree to the altera. tion in the law proposed by the Honourable Gentleman, until the chartered banks were introduced and placed under proper re gulations. Strangers were then ordered to withdraw, and the numbers were— For going into Committee, 120 1 Against it, 91 Majority, 111 COMMITTEE ON THE PROMISSORY NOTE BILL. Upon our readmission into the gallery, we found the House in Committee and the Chancel:or of the Exchequer on his legs. The noise created by the retnrn of strong: Ts to the gallery rendered what fell from the Hight Hon. Gentleman for some minutes in. audible. We understood him to say that in his view the question at present before the Committee turned upon an amendment pro posed on the last night by an Honourable Gentleman opposite 11lr. Moberly), to the effect that the Bank of England should publish regular monthly returns of all its issues. lie (the Chan. cellor of the Exchequer), speaking generally, was not an enemy to publicity; quite the contraty; but he knew there were many mem. stops where the proceedings recommended by the Hon. Gentleman would prove very inconvenient. For particular purposes the liouse was entitled to call upon die Bank to state its issues; but as a matter of course the House had no right to insist upon a regular and compulsory return of the issues of the Bank. Mr. 31.111ERIX next addressed the House in support of the amendment, but was, from the low tone in which he spoke, indistinctly heard in the gallery. He said that if Government declined to interfere with the concerns of the Bank of England, why was there not the same gentleman.) , feeling towards the country banks? When it was asked what right the Government had to interfere with the country banks, the answer was, that Go vernment was bound to protect the country; and the same rea soning applied to the proposed ,interference with the issues of the Bank of Englard. The measures of Government Recoiled to be chictly founded on the reasonings of • gentleman (Mr. Tooke), whom he (Mr. M.) should now quote. He knew that reading from a book was very tedious, but on this occasion he should not trespass at any length upon the attention of the House. The Right Hon. Gentlemen had followed the most material part of hl r. Tooke's recommendation, and it was of some value to hear what that Gentleman thought of publicity. In his (kit section, in which he treated of the defects of our circulation, which called for an immediate remedy, he said—" There are two specific evils, which are severely and extensively felt, and of which the remedy is so obvious and easy as to admit of being immediately applied. One of the evils is that to which I have already alluded, viz. the secrecy and mystery in which all the proceedings of the Bank of England are enveloped. AVliile that secrecy prevails, all in vestments of capital, all mercantile engagements, and all contracts of whatever kind, are exposed to an element of uncertainty, in addition to any other that can have been in contemplation ; and plans, otherwise well combined, may be defeated by some great operation of the Bank upon the currency, which, if it were known arid exposed to public scrutiny and discussion, would either be quickly abandoned, or would admit of being appreciated and acted upon. It may, I believe, be set down as a rule that the administration of all institutions, of which the functions or opera. tione, in any degree, affect the public Interest, ought to be con - . stantly and strictly subjected to the supervision of the public. Such supervision is the only effectual safeguard against errors and abuses." Such was Mr. Tooke's opinion as to the necessity of hill pnblicity. There could be no more reasonable ground than those stated by that gentleman ; anal in the following page lie added..." There is no reason whatever why the accounts of the Bank of France should not be published with as much fulness of detail as is exhibited in the accounts published half-yearly by the Bank of England." If the exchanges should turn against us the contraction of the issues must of neceßsite be rapid. For his part he thought the issues of the Rank of England were at present quite suffieient. If the Bank of England was not aware of the manner in which the Funds and exchanges were affected by their issues, no one else was ignorant of 'it. lie could not conceive what disad vantage could arise front publicity. Ile hoped die Bank of England would not object to it, but if it should be objected to, he thought it his duty to press the amendment. Mr. HERR lES said that die chit?' ground upon which he op. posed the amendment introduced by the lion. Gent. who just sat down was. that It had nothing at all to do with the Rill before the House. That Bill was simply intended to produce the compression of one and two pound notes. There was a very general anxiety for the passing of the Bill, and also that it should peas speedily. it was impot tont, therefore, that the Rill should contain nothing that would not tend to produce the single effect which was intended. He (Mr. Berries) knew that the lion. Member for Montrose (Mr. Hume) had many immortals to make which that lion. Gent. thought bore upon the present measure, but which he (Mr.ilerries) thought were as much beside it, as the amendment proposed by the Hon. Member for Abingdon (Mr. blaberiy). In his opinion the present was not the fit time for the lion. Gent.'s proposal : but even if the dine suited the proposition wan liable to strong objec tions. It was admitted on all hands that the amount of Bank notes issued was no criterion of a redundant circulation : it eflinded no guide to die judgment, except in conjunction with other circum stances. (Hear.) Then what would be the effect of the proposed regulation ? only to gratify curiosity. And if the issues of the Bank happened to exceed at one period, suppose one year, whet they had done in another, it would be laid hold upon as a ground fur alarm, and occasiors an inconvenient pressure. Mr. CA LUBA PP said that the principle of the proposed amendment was already MI far admitted, that it was embodied in the Bill, and the Bark was there called upon to publish an necnunt of their issues of one and two ;intim] motet. This was a distinct admission of the principle that publicity was useful and beneficial. inasiinich as it acted as a hole , o:ne cheek upon the Bank, and was calculated to satisfy the public. In his opinion the more pub licity the better for the public. It was not for curiosity only t h at the Bank was asked to publish returns of its Iss u e s o f one one," pound notes, and if the principle was admitted with respect to small notes, why not extend it to the larger notes, whi c h i s the more important part of the Bank issues % In conclusion. he sa w no objection to publishing an account of the issues of the B an k of returns from the Stamp-office. h E a t a igl b a y nd once a month, instead of once a year, when it cou l d be The CIIANCELIAM of the }ACM LQUER said the n" Gentleman opposite seemed to assume that the H ouse h ad a right to call upon the Bank, as a matter of course, to publish its issues AIL MA lIBRIN (across the tablej—During the operation of the Bank Restriction Act. TheCHANCELLOR of the EXCHEQUER continued.—c e , tainly, doting the time of the Bank restriction the Bank wet bound . 'ry Act of Parliament to publish nceounts of its issues, but when the restriction ceased the compulsory clause to publish ceased also He remembered, in the arguments which then took place, the Hon. Member for Penryn (Mr. P. literfell) said," Put away ih a Bank restriction, and I don't calla farthing for the returns." H e (the Chancellor of the Exchequer) never mid that there were not cases in which there may be specific grhunds for requiring a mom from the Bank, And if such ground should be proved he would feel it his duty to recede to the proposition ; but he conceived th at pub . Halting an account of the Rank issues as matter of course would tend rather to mislead than to infonu the public. No doubt a fall in the exchanges coincident with an extension of the Bank ileu m contre quenees. It lir/ cause an alarm. It was true too that the actual amoun t o f the issues was no necessary criterion of the excess or suffi c i ency o f the circulation. But what be depended more on was thi s , t h at i f increase of the issues occurred coincident with a ris e i n th e at. duce every one to believe that though the flank c i rcu l ariea changes, it it would lead to the i njurious most way increased the general circulation wax too small. This would give 3 stimulus to circulation, which may produce the most serious consequences. The Hon. Member (Mr. Calcrafi) said, if it begood I to have returns of one and two pound totes, why not have returns of all the Bank issues! But the cases *ere very different: tn. 'Bank was place:thin a difigrent situation, with goopeet to the 'on. and two pound noses, from all other banks. Flew s4reed ta pes. fee that extraordinary privilege no the Bank or Ingland, net be. cause he liked it, but because he conceived circumstances rendered it indispensably,necessary ; and when the Bank got this increased privilege, they got it with the qualification that they should publish monthly account.. What had arisen therefore from a particular ex. ception in favour of the Bank of England could not extend to its u. rangcments when placed nn the same footing with other bank s . A s to their issue% of all other notes but one and - two pound notes, the Bank of Eti,,land was precisely circumatanted as all other Banks were. lie therefore opposed the amendment for two reasons; be. cause these was no necessity for it under present circunistances.and because if such a regulation was enforced us matter of course, it would produce inconvenience, and tend to create ao improvident confidence. Alr. P. G HEN FELT, said that since the:Bank restriction ceased he bad every year called for returns of their issues. which the Stamp-office was obliged to produce. Ile did not think the amend. ment now proposed wan an milt clause to be admitted into the Bill. and if his lion. Friend pressed it he should certainly give it his support. 11r. PEAHSE (the Bank Director) assured the House that the Bank had no desire to withhold the information required, ex. cept in a public point of view. The payment of their issues was the best control that could be provided against over-issues, but great inconvenience may arise to the public from the propos e d arrangement. It was for that reason and that only that the Bank objetted to the proposal. The variations that would arise from time to time, as to the issues, would give rile to all aorta of wrong speculations and schemes if the returna were published in themes. ner proposed. lie hoped, therefore, the lion. Gentleman would cot sent to withdraw his amendment. Air. HUME said that from what had fallen from the last speaker he was inclined to thilk that the Bank Directors were rather disposed to look to the convenience of their own establish. ment, than to that of the public. Ile confessed he was anxious to see a reguler publication of the Bank issues. He felt pleasure in hearing the lion. Gentleman state that the issues must depend upon the exchanger. Air. PEARSE begged to set the Honourable Gentleman right he had never made the declaration attributed to him. Mr. HUME resumed. lie was sorry he had misunderstood the Hottoorable Gentleman ; but the Honourable Gentleman's die. avowal was a stronger reason to prove the necessity.of publicity. As to any alarm arising from ignorance as to the state of the circula tion, he would ask what billion broker there was who could get one per cent. on gold coin, and yet not know the state of the circhla. tion ? What cause was there for alarm when we looked to France, where the issues of the Bank were regularly published ? Ilis in. tention was to move that every banker in the c.iuntry, as well as the Back of England, should return to the Stamp-office every month an account of its issues. There was no necessity for mentioning the names of the bankers if that was obieetionable btu there were eight hundred banks licensed, and the akgregate amount of their iesseee might be published ; at all events the experiment was worth trying. Mr. G. GURNEY spoke In so low a hate that he was for the greater part e undentoo& him to say that be admitted there would be an advantage in the Batik of rn g land making re. turns of its issues in some shape or other. He considered that prices were in a great degree affected by the amount of circulating I ' credit ; and that as bank notes were tae medinm into which this ~ credit resolved itself, it was material that the saloons of the buttes should be published. He thought that a clause like the one • now proposed was unfit to be involuted into the present Bill. and had much rather that such an arrangement was made voluntarily by the Bank. (Hear.) Mr. LALCRAFT hoped that the suggestion which had just fallen front the lion. Gentleman (Mr. H. Gurney) would be agreed to. He would not press the amendment if the Batik agreed to pub. lish an account of its issues gear Tly in the Gazette. This would answer all the purposes of the proposed surer dment. He could not quit this subject without observing that his Hon. Friend (Mr. Pearse) with whom he had just consulted, spoke, in big (Mr. (al craft's) opinion, more fairly, more directly, and more Intel- • ligibly, than any Batik Director he had ever heard in that House- If the Bank were to be at liberty to issue a small note circulation, it would virtually amount to a state of restriction, as there would be little probability of converting country paper into gold. Mr. )10NCE. said that unless renorts of :he issues of the Bank of England were regularly made, the public must remain coal. pletely in the dark as to the exact state of the circulation of the country. Mr. Secretary PEEL said that an Hon. Member bad alluded to the affairs of the Bank previous to the year 1797. and stated that if at that period its affairs had been regularly laid before the public, the Restriction Act might have been avoided. That this was an erroneous impression might be inferred from the fact, that previous to the year 1797 the Bank issues amounted to eleven mil lions. which, however, were reduced to eight millions after the passing of the Restriction Act. whi h took place in February in that year. Ile thought every degree of publicity which could he desired as to the total issues of the Bank was given in the returns annually made to that House , and to attempt to publish them weekly was grossly absurd. The Bank had no objection whatever to these returns, other than that they could answer no good pur pose, and migh t lead to erroneous impressions. He should there fore oppose the amendment. Mr. GURNEY explained. Mr. A BERCROM BY said that the induloerce which had been extended to the Bank of England, by allowing them to issue small notes for a longer period than was permitted to the country banks, offered no sound reason For comoeliing them to a disclosure of the state of their accounts. Were they to he so called upon, it might lead to a supposition that the Bank Directors were acting for the interests of the public, instead of for the interests of these who chose them. (Hear, hear.) Under these circumstances lie should recommend his Hon. Friend (Mr. 11Iaberly) to withdraw his amendment. Mr. MA BEREA' said that the issues of the Rank ought to he regulated by the rate of discount, whereas the Dirzctors had adopted a different criterion altogether. The Bank also held deal. ings with Government to an extent calculated to excite alarm. and indeed conducted their affairs contrary to the true prieciples which should regulate bailking establfshnients. lie hid heard that the 'Bank had contracted for thirteen millions of the naval and military pensions, eight millions of which had been already paid. He had little hesitation in saying that it' their atcounis had been published weekly they would not have dared to Nave encumbered themselves with such a dead weight. If the exchanges should turn against the Bank, another restrictive Act must Le had resort to, and pri-ce must inevitably fall ten per cent, if any variation took place in the value of Exchequer hills. The Hon. Member then adverted to the advance of two millions by the Bank, for the purpose of raising the value of Exchequer bills, in order to prevent the depreciation of the Government sectirities, and said that those persons who had sold Exchequer bills while at a discorin: it* 20. and having no anti cipation of such a measure as that which had suddenly raised them to par, had great ?flacon to complain. He thought it quite nut of propriety for the Bank to advance money upon mortgages, and he also thought, while Government conferred the power upon the Bank of thus making money, they were bound to protect the public by having an account of their issues'. If however the Hon. Director would say that the measure should he taken into consi deration, he would rely entirely upon his candour, which lie must say had been on all occasions the most liberal and praisewotthy. (Hear, hear). Mr. PEARSE said that the Lank was not to blame for the large amount of their issues, which had been occasioned by the distress of the country, and for which Government had lent their sanction. No men were more intelligent than the holders of Rank stock—nu persons be:ter understood the philosophy of banking transaction , , and they would theenselvesdiave called long ere this for their ac. counts, were they not satisfied that the greatest inconvenience must be the result of ruhlieity. (Hear, hear, hear.) Mr. IRVING said that he should rot hesitate to say that a circulation of twenty millions was not adequate to the wants of the country. Other portions of the circulation were fast in the course of withdrawal, and in his opinion not less than thitty could supply the deficiency. lie entirely, agreed in the great in convenience which must result from disturbing the public mind upon n subject of such importance, and therefore it was that he wiut unwilling, althoutsh secrecy was not nbaolutely necessary to the Bank. to agree to the amendment. With regard to what had been said by the Hon. Member for Abi ng d on (M r . Illaberly) as to he connexion of Government with the Bank, lie could not imagine what oltjection-there could be to that Corporation affording sup plies to the Government. Their connexion was convenient tnr high. (Cries of " hear, hear," front both side; of the House.) It was it connexion that was absolutely necessary, and they stool in the sable relative position towards each, voodoos a private individual with, his private banker. Ile wished to ask in what manner the circultitioa of the country was to be supplied ? Gold and miter, s=m both The U 1 r Sob Db not 11 giu t a GP ,lent He k ce fa the j of I gesi 10 1 th war the yam