The Sun. — London, England, 1844-05-07 00:00:00

'~I THE SUN, LONDON, TUESDAY MORNING, MAY 7, commerce it is likely to be taken out of the country. Now I maintain that it is just because gold is an article of commerce—(Hear, heir) — subjected to the same laws which govern other articles of commerce that it is fit to be made the stendard ; because Precisely the same laws as regulate the import and the possession of all other articles of com merce regulates the import and the possession by this country of gold. Bullion is distributed according to certain laws which we may not well under stand. It is distributed over several countries, according Ito the several necessities of each country ; according to principles which the people of those countries do not, 'Perhaps, dive into; but in general I contend that the supply of bullion is regulated by the same principle which governs other articles of trade. Some say when eve have a deficient harvest, and there is a great demand for corn, all our corn leaves the country because we have no other manufactured article at the time to send in e xchange for it. But I believe that bullion has rather a Preference over coin for that purpose ; because the ex perters have a guarantee that it is of a certain weight and fineness. Depend upon it, coin will never be sent out of the country, unless it is more profitable to send it. When corn is dearer compared with other articles, the fact that the laws which govern it, are exactly the same, is proved by this, that when there is a l!uctlen demand for corn or anything else, if it Is more profitable to send woollen, or cot ton, or o th er manu f ac t ures i n exc h ange for it, they will be sent out of the country instead of gold. Therefore coin and bullion are identically the same, and there is no reason why coin should be exported in exchang e more than any other article whatever. I have now • stated the great elementary truth which I apply to th emeasure. No w i , f there are contradictions I want The m to be po'n.ed out by a clear and definite stat ement on the other side.—(Hear, hear.) d ' ant bewilder you by any me :sures of value. I have taken a pound. But I object to the Gbl ig:ition whi c h H on . G en tle men might impose upon me of reeding a pamphlet, or perhaps an octavo, stet ng W hat the definitien of a pound is ; the real fact is, 11 at in cnifeh the se are great truths, yet occasionally there TO small occurrences which appear to be contradictions of w r e ; end if there are small facts and circumstances hare not easily explained, ingenious writers t: ke advantage3,o of them, and say " these do not conform to truth tru e W hy, the.n—dpal'es, not rtrgre'tand therefore your principles : re when Sir Isaac Newton deduced the the gre t planetary movements were owing to phengereat principles of gravitation, there came slight detected Plena and disturbances which he could not recon cile; 1 " the. course of time, subsequent philosophers his slight errors, and reconciled all those Phenomena and disturbances to the original of the P r inciple. So that that which at first appeared to be a contradiction, turned out to be a confirmation of the truth, and so it will be here tore—(Hear.) Depend upon it ' i f You had every cirumstence—everything tending to e ° 4 me apparent deviation fully explained, you would find It Would not clash with the great truth originally laid mewn: If these principles are correct, it would be con sistent with them to establish some other measure of value than that which you have taken. You might con !intently with those principles, if you were at li berty to decide fir a new state of society, adopt silver instead of a gold standard; you might. if you thought it desirable, adopt a new metal ; you might abolish all metals, and might, as Mr. Ricardo said, make notes the standard of value, so that a man , 501, in notes, might demand bullion or coin from the Bin?;, and it would be in conformity with this great Principle to adopt that. But, in our present position, 11 ?Illiog would b e more u nwise than a departure from the great principle which regulates the currency of the I believe 'seven-eighths of the House concur th me on the subject. You may, however, select some other mode ; but, before you depart from that now establish e d, I would entreat you to recollect that the measure of value you now have, viz. gold, is that nteasure of value w hi c h you have had upwards of a hundred .l ::, years, always excepting cases of bankruptcy. t the writers of authority on the subject—Sir W. Petty, Mr. Locke, Mr. Harris, and Lord Coke—were all Lenidedly in favour of a single standard of value. Cr Locke was o f opinion that silver ought to the metal selected for the standard of value. He assigned reasons which appear to me to be erroneous, ..."7 silver instead of gold should be taken as the stand -74 0 , f value. B u t as your t ransac ti o ns have been for ton g a period of time founded upon a single fetal, and that metal gold, and as you have determined ecat it should perform the functions of the lower order throughout at least England and Wales, I do hope that not hing will ind uce thi s H ouse t o disturb that monetary 2 1/ tera. That which we have now is in exact conformity W7,th the opinions of the ablest writers on the subject , and the opinion under a different system, and in conformity with h n • e °Pinion of the greatest recent authority on the sub- Ject relative to coin—l mean the first Earl of Liverpool; an d he, in hisletter to the King, which, I think, contains as much truth and sound sense on the subject as any publication that ever emanated from the press—he strongly argue s th a t th e p r inciple which we should f ) Pt. 13 the principle of our coinage; an d the principle whi c h is now established, Lord Liverpool says, after a f i el cons i deration of this extens i ve , a b s truse, and mu:tilt suleject, " I humbly offer to your Majesty, as the result of My deliberations (he was then writing in 1804), that it is better that silver should be made merely a re- Iresee tati cein." (The Right Hon. Gentleman proceeded t I 0 read the opinion of the Earl of Liverpool, which set forth that the coin, which was the principal measure of P i .roperty. an d i nstrument o f commerce , s h ou ld b e ma d e °` one riveal ; and, secondly, that for many years past, ' ll the practice and opinion of the people, gold was the Eriacipal measure of property and instrument of com 'rree, and that, therefore, gold should be made the 3, aridard of value, whereas, that silver should be merely representative metal.) This is exactly the prin ciple which is in operation at the present time. It the system which still prevails. The humblest member of society having a 51. note has the command et. gold. In my opinion, by taking this em fte you will provide a greater security for P e ,.. os rmanent convertibility than if you merely say, " He c an produce 100/. in gold coin shall be able to take i n t ote ' s ' s Banlc, and there shall be no hing e but I k elrculating throughout the country.' Sir, cha n , ll „ r ' w it has been said that by some crease cu Might diminish the chance (doubt, and in legislati "` ; 9 l. itY• Now, I very much. whethern Preventing Ye interference can have the slightest effect fat.o panic. I believe you may adopt . certain re ey, L ns which will give much greater security. I be have a greater security against th . at . upon it is Impossible to reason, and for which it I 3 no- Possible to to provide, by having a geld circulation through outlbwl,llt country, and by manifesting confidence, than by isz e o lsiati b e . 0 ee et provide against the existence of panic. d ' 3 ir, I have done with the principles which I think ermin e the measure of value, and which I think in rs country oug h t to regu l a t e , so f a r as coin is con cerned, the m e di um o f exc h ang e. I hope I shall not be °l.ll:Tht to have exceeded the limits which I ought "u observe. I thought that considering how ra rely the se great su bj ects come u nd e r our notice, it s c T id be an advantage to give to my opening - fear, as f a r a s possible an elementary character. — f ear, hear.) Now, Sir, I come to that which is the imm ediate subject with which I have to deal. Here, again , Must be allowed to state what appears to me to be the Principles which should regulate a paper circulation, I bean the circulation of promissory notes payable to the ann e4r ,er• I speak of those, and of those only, when I realm, or I me a n promissory notes, payable to the bearer tr - ,,urnan 1 in the coin of the realm. Now, I will not re fined myself, and I will not disturb the House, by t • ft speculations about a variety of other descrip tions Of peper credit. I will say little or nothing i r ra that great cpeestion which was discussed e h t he Bank Committee, as to whether deposits or she r ti s es th n ey pon bankers or bills of exchange partake of nature of paper currency. I say that in some re may partake of the nature of paper cur -1 11 eY• But on that particular point, with which alone Ca n deal, namely, the effect which paper currency has e rn pric es , t h e e ff ect w hi c h it h as upon change, the e ffect which it has in distributing the measure of value, o s aY promi ssor y no t es , payable to bearer upon demand, eff F or a diff eren t c h arac t e r, and have an entirely different e et• In the first place, those bills are used precisely Lt bc , - , ce in• They pass from hand to hand. There is no —ee nal guarantee required—there is no new indorse mellt at every transfer, but they are really substitutes Money and operate upon prices as money does.— ie .-Le ar, hear.) But it must not be understood a t bills c of exchange do not affect the pre res metals. They economise the metals, and Prev ent the necessity of so much gold being required in J ade th at would otherw i se b e wante d. Th e y m ay have : } e l .erfect of displacing four or five millions of gold, which is an effect hardly perceptible, altering the value of gokl with reference to other countries in a very slight b:g n r ee t. •—(Hear, hear.) But the promissory notes of the lyir e being payable on demand are very different f ro m bills of exchange. The effect of the issues of the Bank, t the restriction was to raise the value of the guinea o thirty shillings. The Bank lent money to the Go vernment,on to private individuals, and advanced largely u Posits. But they found that the exchanges were eeir e , Id greatly against this country; and, by the advice e ll ' persons well-informed, they limited the numbrr of their I ,; .. )t 's,andthe exchanges were again turned in our favour. _ so it was in Scotland. In consequence of the largeness e co r the issues the exchanges became very much against that ilel rY But the banks there took the same course that 8 the Bank of England had taken, and the result was the r ree• The issues were limited, and the exchanges were Rill Those who have paid attention to this subject Plane s remember the very able report presented to the ' 11 11 1" o f Commons, in 1804, on the subject of the Bank e : e nd- The exchanges, as between Ireland and this The Bank were at that time very much against Ireland. Bank notes issued by the Bank of Ireland were rY touch d eprec i ated. It requ i re d a b ou t 1181, of Bank notesee of the B an k o f I re l an d to purchase 1001. of Bank e s of th e B ank of England. The geinea, too, was hgreatly enh ance d i n value as com p are d with Irish a nk "tee' The Committee appeared to consider that The 'link of Ireland ought to contract their issues. Bank of Ireland denied that they had over issued. de ._ e y had not issued anything, they said, but what was manded in the legitimate course of business. The Commit te ehrai told them they would never restore the ex changes, unless they diminished their issues. They at The declined to do so. The exchanges never improved. auk considered that perhaps it might be as well to try t h du ,e recommendations of the Committee. They re ththeeoelontheir circulation from 3,000,0001. to 2,400,0001. ; e sequence w Irish Bank was that the exchanges improved, and fi nalise Bank note regained its relative value to the Bank note. Now are not these proofs that pro :hisisarYbill notes exercise an influence over exchanges, do not sof exchange, deposits, and cheques of bankers bills of It is useless, then, to tell us that there are exchange to the amount of 300,000,000/., and that •b .. 11 Manifest if they wer e a ll presented at the same time i , the Bank, that th e Bank could not pay, and that it would be of no use to adopt rules with regar to promissory notes, which we are nut prepared to adopt with regard to bills of etch enge, deposits, and cheques.—(hear, hear.) I hope this House, therefore, will admit the principle that promissory notes payable on demand constitute matter worthy of separate consi deration, and having nothing to do with other forms of the circulating medium. An attempt was made at the period of the Bank restriction to make use of the same kind of argument, but what said that wise man, the first Earl of Liverpool ? In the book from which I have already quoted, the Earl of Liverpo )1 says :—" It is a common artifice"—l do not wish to apply so harsh a term to those who adopt the same course in the present day—" It is a common artifice on those who write in favour of paper currency to confound paper credit with paper currency."—(Bear, hear.) Now this was written between the years 1802 and 1805. " There may be many circumstances necessary to be con sidered relative to paper credit which is necessary to carry on trade, and which is based on the circulating medium, which do not apply to paper currency, which is in itself of an undefined nature, and is used as a species of circulating medium; but those who support this paper currency endeavour to confound it with paper credit, so that the arguments by which paper credit is supported may also be brought forward in support of paper cur rency." Why, is not such the fact at the present mo ment ? As Lord Liverpool says:—" Paper currency, strictly speaking, consists only of bills, or notes liable or convertible into cash by persons issuing them, at the will of the holder." Then I assume that a paper currency differs in that essential character which entitles us to deal with it as with a currency otherwise founded, and that a metallic standard is alone the one which can guard us against depreciation directly or indirectly. Further it has been established that the only satisfactory way of guarding against excessive issue is to be found in immediate convertibility. That doc trine has been founded and maintained under the autho rity of Adam Smith, Mr. Ricardo, and others of the most eminent writers of our country. But whilst main taining all doctrines which time and experience have proved to be correct, it will not do to shut our eyes to the new discoveries which have broken in upon us. Let us profit by experience, but do not let us be deterred from adopting those doctrines which our judgments tell us are fur the safety and welfare of society. Now, I am about to contend that convertibility with gold, e ith unlimited competition as t i issue, does not give the required security; that free competition is calculated to procure the article you require at the cheapest rate; aut in commenting upon that it must be remembered that a paper currency is governed entirely upon different principles to those which govern almost any other commodity. I don't want the greatest quantity of currency at the cheapest rate ; what I want is this, to have art ample supply of paper currency, the supply of which is conformable to gold, and that the supply shall be givers to me by the party on whose honour and integrity I have the greatest confidence. I want the best article, but the quantity is to be governed by other principles than those by which other commodities are governed. The amount and quantity of papercurrency must be determined by the pre cious metal, and if exceeding that, it is rgsued to excess. A different doctrine has been supported by those who contend for unlimited competition. Now, we contend that it must be a true principle that, where there is an unlimited competition, although the value of the notes issued might ultimately conform, there must be a con siderable interval elapse before the conformity is estab lished, and that the means of establishing it, although certain, would produce great embarrassment and dis tress before completed. The predominance of the power of gold was denied by many of the country bankers, and many persons who gave evidence on the subject, but they were all at last obliged to adopt its influence. One gentleman, Mr. flobhouse, brother to the Right Hall. the Member for Nottingham, a cluntry banker, was examined before the Select Committee appointed to inquire into the banking system. He was the selected organ of the private bankers. Whea asked if there would with rise of price be an increase in paper issue by the country banks, he answered, that in his opinion there would be an increase in the local circulation of the country, when the prices would rise. And, again, this witness said there might be " a glut of gold as well as a scarcity." He was asked if there ought not to be a con traction of the circulation under such circumstances, and ho answered, " Whether there ought or not I can't tell. lam perfectly satisfied that it is quite impossible for country bankers to tell how far the currency is in fluenced by foreign exchanges." He was asked if it did not often happen that the circulation increased in the beginning of a drain of gold ? He said it did frequently so happen, and that their circulation was not guided by gold. And another intelligent witness, examined before the same Committee, said that the system of banking in the West of England had little or nothing to do with foreign exchanges. The fact is (said the Right Hon. Baronet), the country bankers have no control over issue, the amount of issue with them depending on prices. When speculation is afloat and prices rise, that is the period chosen for the increase of issue by country banks. The activity is thus stimulated which it is most desirable to check.—(Hear, hear.) There is a competition as to issue. What I seek to establish is that unless there be some control, or some check, the danger will increase just at that very period when warning is given. The country bankers have no con trol, and there is among them a total abnegation of all attention to the foreign exchanges. It often happens that the circulation is increased in the beginning of a drain for gold, whereas, if at the critical period there were a simultaneous check a healthy action would be restored and nobody would he injured. There is little use in individual contraction, and so individuals reason with themselves ; the increase of issue goes on until the period arrives when the paper is discredited and the de mand for gold arises, and then comes the severe ordeal of distress and individual suffering and ruined fortunes. It then ee becomes necessary to es t a bli s h a n eq uil i brium between gold and paper. Co m p e titi on ma y b e ver y usetel in its way, but it will not give you security in the fluctuation of the value of paper. If we con sult experience as well as reason it will confirm us in the justice of these views. What has been the condition of the United States ? Let us learn by the misfortunes of our neighbours. Their private banks, joint-stock banks, which were established under excellent regulations—they had immediate convertibility into gold —there was unfettered liability of the shareholders—the issue was increased, for there was no control—a sudden crash and a total suspension of cash payments—indi vidual fortunes were ruined, public credit was destroyed, and the industry of the United States was paralysed.—. (Hear, hear.) If convertibility be security against de pression, why did it fail in the United States?—(Hear.) In the United States, so long as there existed control over the action of minor banks by the central bank, the issue was in some measure restricted, although it could not prevent occasional failures. The other issue banks were, in the first instance, bound to conform to the prin ciple of circulation practised by the bank of the Uni . ed States. But, when these wholesome restrictions were removed, unlimited competition ensued, and desperate speculation, and a vastly extended issue, and, finally, almost national bankruptcy itself. With respect to the coinage and the currency, and the prin ciple which regulates the currency, promissory notes payable in demand, I have stated the broad and general principles which ought to regulate those three great elements of the monetary system. On this, as well as-on other occasions of a similar nature, I have stated great leading principles by which I think the Go vernment should be guided, without the slightest cornpro • mise. I have treated them as principles, and gone the full length to which I think in candour I could go. I know to what I expose myself if I do not carry out those principles to the full extent. I shall be told—" Those are very good principles you have laid down in the abstract, but you shrink from putting them into practice." But I think, Sir, it is of great importance that a public man should lay down general principles and elementary rules. I would much rather have it said of me, in discussing a question, of this magnitude, "You have fallen short in the application of your principle," than that "You have concealed and perverted principles for the purpose of achieving a tem porary object." I shall always state, when I address the House, in the first place what I believe to be the correct principles—what doctrines our future legislation should be based upon—and then I will consider, with the same unreservedness, how far attention to existing circum stances and interests, and habits of the community, will modify the manner of immediate application. All that I can promise is, that I will propose no practical measure inconsistent with the application of the principles I have laid down, and which does not lead to the ultimate and complete establishment of these principles. But it is the part of prudent men, responsible for the management of the affairs of a great country, to hesitate before they take any course which may so seriously affect private wants, which may create a panic, and which may raise an undue prejudice against these very principles, and make men believe that they could not be carried into effect without bringing ruin on the people. Care should be taken to secure the ultimate adoption of those prin ciples, but with as little risk as possible. Some con tended, and he was not prepared to deny the force of the argument, that if we were in a less artificial state of society, and about to establish principles of banking, by far the worst plan would be to claim from the State the exclusive privilege of issue as well as the exclusive privi lege of coinage ; but I do not think, under the present :Aim. of things, that such a system would answer. Lord Althorp, with whom I altogether differ in political matters, is, I must say, sound in his views and well intentioned in his motives—a man every way entitled to hold a high place in public estimation—Lord Alrhorp said, when this question was under consideration in 1833, that though there was the benefit of greater security in the responsibility of a Government, yet still he thought that the present system of banking could not be changed without injury to the community, and any advantage arising from increased security, would be more than counterbalanced by the State having a complete control over the circulating medium. The !Noble Lord said he thought such a system would be most mischievous. I entirely concur with the Noble Lord, that the Bank of England is pre ferable to a Government bank. This brings me to the measure which I have to propose to the House for the future regulation of banks. I will state them without comment, and fully, in order that the House may be put in full possession of them. I think it is of great im portance to increase the controlling power of a single batik of issue. I think it is better, as I said before, to work with established instruments, and to guarantee to the Bank of England that con trol which it formerly possessed -- that it should continue as a central and controlling body of issue, rather than appoint Commissioners, acting under the authority of Parliament. I propose, with respect to the Bank of England, that it should continue in posses sion of its present privileges, but that it shall be com pletely divided into two departments, which shall be kept entirely separate and distinct : the issue and the banking departments. That the banking business shall be administered on a principle perfectly different from that by which the department of issue shall be regu gulated, shall have separate offices, and a separate system of accounts. I propose that to the issue department shall be transf-erred the whole amount of bullion now in pos session of the Bank, that the issue of the Bank shall hereafter take place upon two, foundations and two foundations only. The first that there be a definite amount of security ; and, secondly, with regard to the bullion, the banking d-part:nent shall have no power to issue notes upon de posits—the discounting of tills be transferred to the issue department. The amount to which I propose the Bank may issue notes is 14,000,0001. I pro pose that there be frequent reviews of the accounts of the Bank —both of the banking and issue departments. Objections have been hitherto made to the publication of these accounts, but I confess I see no reason why these accounts should not be published ; and I think publi cation of these accounts would be highly salutary. I propose that it be enacted by law that there shall be returns to the Government from the Bank weekly of the accounts of the issue of notes; of the amount of bu lion ; of the fluctuation of hellion ; of the deposits ; accounts of every banking transaction in the issue and banking departments of the Bank of England. With respect to the other banking establishments, I will state the changes which I propose, with the sanc tion of Parliament, to carry into eff eq. I must remind the House, that the principle upon which these banks are regulated is different from that by which the Bank of England is guided. In fact, they stand on a different basis altogether. I believe that the privilege of issue is one which may be very wisely controlled by the State. But with respect to the privilege of banking, I am of opinion that there cannot be too unlimited and unrestricted competition. In respect to the privi lege of banking, the Bank of England has no exclusive privileges beyond other banking establishments. We propose from this time that no new bank of issue shall be constituted except under certain conditions. We do not propose—as I stated before, our object is to effect the great changes we propose with as little incon venience as possible to individual interests—we do not propose to deprive existing banking establishments that ere banks of issue of the privilege they possess. We do not wish to raise that alarm, which we fear would be raised if we did not adopt the course we are now about to pursue ; but we propose that they shall not exceed the amount of their issues past a certain extent. We propose that existing banks shall retain their privileges, but they shall not issue more than they have issued within the last two or three years. This decision has not been taken without mature deliberation. I know I may be told that the Banks issue more at one period than another. Now, on that subject I have obtained returns from ten of the best conducted banks in the country, from four joint-stock banks in different parts of the country, and. according to those returns the va riation in the issues is very small. But, supposing there should be a demend for an increased issue, nothing will be more easy than for the bank to sell its securities, and get notes from the Bank of England—it will always be in the power of the banks to command Bank notes for their purposes. Now, while we restrain issue we intend to fa ;ilitate the business of banking. The joint stock banks complain that they have not the privilege of suing and being and being sued ; now there are two principles of joint-stock banks, one establisised in 1826, and the other in 1832, and the time has now arrived when the question should be decided whether you will retain the system of joint-stock banks or put an end to it. If you are determined to adhere to the sys tem, then give them every facility which other banks have.—(Hear, hear.) The banks ask for the privilege of suing and being sued, and we intend to amend the law in that respect. The joint-stock banks complain that they are bound by the acts of unauthorised part ners. Now, it seems to me that it is harsh to make any concern answerable for the acts of an individual partner, and we propose to alter the law by making provisions that the acts of individual directors, instead of partners, shall bind the whole concern.—(Hear.) By that means I think we shall compel parties to select competent, efficient, and responsible directors. —(Hear, hear.) Now the great complaint of the joint stock banks in London is this, that they cannot accept bills for a less date than six mouths, while the private banks have an unlimited power to do so. Now we pro pose to place the joint-stock banks in London upon a perfect equality with the other banks, and to give them the power of accepting bills to any amount or at any.date. It is thought by many that such a privilege will be absurd, and that it will lead to small circulation. Now, for my part, I do not see why joint-stock banks should abuse the privilege more than private banks.—(Hear, hear.) But I distinctly state this, that if it is abused—if there is any attempt to circulate small bills to the detriment of the Bank of England, I shall not hesitate to apply to Parliament on the sub ject. These are the facilities. I now come to the con ditions I propose to apply to all. We intend to require, in the case of all banks, that there shall be a periodical publication of the names of all directors and partners. The London and Westminster Bank voluntarily do so. Another condition we have a perfect right to exact is, that while we are going to give existing banks the privilege of issue, we are entitled to have an account of that issue. We propose to have a weekly account of the issue of the Bank of England, and I cannot see how any other banks should have any objection to it. They say the effect of this would be, that their rivals would take advantage of a weak place. Now, that is just what I want, as I am sure it will be advantageous to the whole conduct of banking. It is the complete publicity of transactions of this kind that is a sure guarantee against fraud and abuse.—(Hear, hear.) With respect to existing banks, I don't want to pry into their affairs, because I think the attempt to do so would not be very useful. I should not require from any existing banks any formal balance sheets, because I have had several such balance sheet=, and the more I looked at them, the more dissatisfied I was. Many persons thought that joint-stock banks should not have shares of less than 1001. Now, there are many banks which have shares of the value of 201. only, and it would not be right to consolidate those shares, and therefore the Government intend to introduce no measure on the subject. Then, with respect to requiring banks to invest part of their paid-up capital in Government securities, lam afraid I should do no good by Government interference in that respect. Then with respect to future joint-stock banks, we propose that no new jointestock bank shall be es tablished without application to some department of the Government ; that the bank shall be registered, to gether with the amount of paid-up capital, that the deed of settlement shall be properly drawn up and strictly issu ing established, audits. entering these into an adhered to. Th an d ee d must a l so regu l ate th e m ode of me n s ego appointing dir ec t ors , an d, a b ove a ll, t h e means of joint-stoc ktiation s with banks Bankm a y of England, and issuing the Bank of England notes as their own issue. Now, we will not exclude from these advantages, if advantages they be, any existing banks. —(Hear, hear.) Now, having made this statement, I will now revert to the position of the Bank of England and its relations with the Government. I said that we intended to call upon the Bank for a division of the issuing of the banking department, that there should be a fixed amount of securities, and that that amount should be 14,000,000/.—(Hear, hear.) We propose that the Bank shall continue upon its present footing, and that it shall ha ve the p ower to diminish the amount of its issues. But then we propose this—that every issue that takes place beyond that 14,0000001., the profit of it shall b elon g exclusivel y to , the State.—(Hear, hear.) The Bank shall not be allowed to issue notes for more than fourteen millions, without transferring the entire nett profit of that portion of the issue to the Government for the use of the Govern meet.—(Hear, hear.) But here will it be necessary to introduce some controlling check upon the Bank, be cause if the Bank have an unfettered discretion, they may transfer the profit of that issue to the Govern ment, but it may still be most unwise that this in creased issue should be based upon increased securities. -- (Cries of " Hear, hear.") We therefore give the power of increased issue on deposits, but do not permit any additional issue on securities, except after_ making a report to the Government , and procuring the assent of three members of it to that issue. Suppose the Bank entered into negotiations with some of the existing banks of issue, that these latter should annihi late 2,000,000/. of their issue, and substitute for this issue two millions of Bank paper ; there would, in that case, be a gap in the circulation of the country to the amount of two millions. It would then be perfectly legi timate on the part of the Bank, as this void would exist, to make an increased issue of notes. But if that issue is made the profit of it will belong to the Govern ment. But, of course, the power to make that increased issue will not depend on the mere will of the Bank, it must have the sanction of three members of the Go vernment.—(Hear, hear.) The only circumstance that can justify this increase of issue on securities is the fill ing up of the void caused by the withdrawal of that amount from circulation. It is for this purpose, and not for the purpose of meddling with the affairs of the Bank, that the Government introduce an additional guarantee that the Bank shall not increase its issue at its discretion. In order to make my statement as full as possible, I will now advert to the question of the legal tender. There is now a clause in the Bank charter which enables any bank of issue to exchange its notes for notes of the Bank of England. At the time that clause was passed, I opposed it. But while making changes, I think it better to make as few changes as possible, and I therefore propose to continue to the Bank that power. I now come to the pecuniary arrangements which the Government has made with the Bank. The Bank is to retain the privilege of issuing notes to the amount of 14,000,000 L All issues upon bullion cannot, it is clear, be a source of profit. The Bank does not gain by its issue on gold; but it does gain materially by its issues on security. The gross gain and profit of the Bank is estimated at 420,0001. The Bank, for the advan tage of the public, conducts its affairs in a very liberal manner. It never re-issues a note, but it provides a re cord of every note issued for the last ten years, and gives every facility to the public for trac ing the business of the Bank for that period by giving immediate access to the notes thus cancelled. The cost of the issue of notes is about 117,0001., then take this 117,0001. from the 420,0001, and it will leave 303,000/. as the gross profit on the issue of notes. Then there is a deduction to be made of upwards of 60,000/., which the Bank pays to the Stamp-office on account of the privilege of issuing notes. In addition, there is about 24,0001. more paid by the Bank of England to those county banks, and those banks of issue which un dertake to issue notes of the Bank of England. The result of these several deductions will be, that the nett profit left to the Bank out of 420,000/., will be reduced to 219,0001. We are going to affect the privileges of the Bank to this extent, to give to the public the profit on the issues above a certain amount, and the question is what does the Bank claim in return ? Now, though, in some respects we af feet the interests of the Bank, yet, in some respects, we give it increased stability ; and we, therefore, demand that the payment by the Bank to the Government shall remain the same as at present, and with respect to. these arrangements I am bound to say that I have never seen men influenced by a more disinterested spirit I than the Directors of the Bank have shown throughout the whole course of their negotiations with the Govern ment. They have reconciled two duties, their duty as the managers of that great establishment, and the duty they owe the proprietors. Their chief object has been to promote the public interest ; they were unwilling to stipulate for any one exclusive privilege ; and, in fact, their conduct throughout has been marked with great liberality and a desire to promote the public, interests. We propose that the sum the Bank now pays the Go vernment for their privileges, under the Act of 1833, shall continue the same, namely, 180,000/ I believe the total amount of nett profit the Bank derives from tha. issue of notes does not exceed 100,000/. Now, on the other hand, the Government is obliged to pay the Bank 280,000/ a year for the management of the public debt. From that 280,0001. we shall continue to deduct 180,000/., which will so far diminish the pay ment made by the Bank to the Government. Now as to the period of the duration of the Bank charter. We pr pose to continue the charter for the same term as the present one ; but we intend to vary from it in the con ditions with respect to its revision. On its present conditions the charter would continue for twenty-one years, but a power is given to Parliament to revise it at the end of ten years. If Parliament, however, should suffer that period to pass without giving it that. revision, it did not possess the power of going into it again till the lapse of another ten years. aWe propose that, after the lapse of the first ten years, the Parliament shall have the power of revising it in any one of the suc ceeding ten years, on giving one year's notice of its in tention to do so.. Now, with respect to other banks, I trust that it will be considered that we are dealing justly. I wish them to consider that they are to be placed on the same foot ing as the Bank of England. I wish them to consider this as a notice and a long notice, that the Parliament has a right to deal with the private banks, and with backs of issue, as it has done with the Bank of England. I wish it to be considered that from motives of reluct ance to interfere with existing interests and from anxiety not to raise an alarm, or to restrict accommodation, we do not put any restriction in existing banks of issue, but it must be distinctly understood that Parliament has an undoubted right to reconsider this question, and, if it should so please, to establish one central bank of issue, and annihilate all present banks of issue. I now come to the case of the Bank of Ireland. I wish to reserve the consideration of the state of the Bank of Ireland until we shall have established sound principles in England—till we have had opportunity of holding personal communications with those im mediately interested in the currency of that country I am, therefore, not desirous of including in the present Bill any legislative enactment with respect to Scotland or Ireland, except one preventing the establishment of any new joint-stock banks, or banks of issue, unless after a process of registration, subscription to certain rules, and such rules as the Government may think it fit to impose. The case of Ireland is a peculiar one. The privileges of the Bank of Ireland differ, in some respects, from the Bank of England. It would require mature considera tion, and that consideration we are prepared to give it if the House will allow us the opportunity of that commu nication with Ireland and Scotland which we think is due to both countries. I have not said a word here of small notes. Let us establish these principles. I do not feel disposed to encumber this question with un necessary difficulty, or bring round my head the storm that I should raise.—(Hear, hear.) This is the way to succeed in legislation—not to provoke any opposition which you are not prepared to overcome. I cannot apolo vise to the House for the length to which I have engaged its attention. The principles I have stated, I believe, are sound, and I wished to make myself intelligible to all. The House, therefore, will not require me to make any apology. I may now place before it a statement, in the way of recapitulation, of my proposal. It is the reten tion by the Bank of England of its present privileges, but restricting its privilege of issue to a circle around the metropolis, of which 65 miles shall be its radius. From the Bank of England we shall require a complete separa tion of accounts, and a separation of departments ; one for banking, and another for issue. The business of the bulking department to be governed on perfectly different principles from those which regulate the issue, there being no power to issue a single note in the banking department, except it shall have been received from the issue department. We propose that an issue shall take place of 14,000,0001 upon securities, and the remainder in bullion ; the Bank being at likely to claim from the issuing department as many notes above 14,000,000/. as they may require, the public having a right to receive notes in exchange for its gold, and to demand gold in exchange for its notes. We propose to compel a weekly publication by the Bank of all its transactions, so that every dealer will be able to regulate his business by a knowledge of the exact state of the issue department of the Bank. We propose that no new bank of issue shall be formed in any part of the United Kingdom, and that no joint-stock bank shall hereafter be established except on a distinct understanding ; the subscription to contain conditions and regulations for audit of their accounts. These regulations are not meant as an interference with the concerns of such establishments, but for insuring all the security that legislation can ensure to the country. Then we propose that existing banks being now banks of issue, shall continue to have that liberty, provided in no case their issue shall exceed a certain definite amount. And we propose that no bank of issue having ceased to exercise its privilege of issuing notes shall afterwards resume it. We propose, that in cases of all banks there shall be a complete and fair publication of the names of all partners. We propose, that in cases of banks of issue, and joint-stock banks, and private banks, which shall choose to retain and exercise its pri vileges—in the case of those banks, as in the case of the Bank of England, we propose a weekly publication of the amount of issues. Thus the Bank of England will know the extent of the issues of other banks, and it will by this regulation be enabled to contract the currency, if contraction be required, at an early period. And there need not be much alarm about this contraction, for, till they shall see means by which they may extend their issues to the maximum amount, there is any easy mode by which they can command the amount of issues in addition to the present amount, namely, by the sale of securities, or the application to the Bank of England for notes, or by exchanging these notes for securities or gold. I believe I have now com• pleted the task I have undertaken. I have given a full outline of the measure which her Majesty's Government will propose, of the principles upon which it is founded, of the limits beyond which we think it would be unwise to interfere with existing interests. ___(Hear.) I ask for no vote or opinion to-night. I hope there will be no expression of individual opinion —(Hear, hear)--but that the House and individual ml it w s i f l a l vo u u n r re o s r erv a e g d a l i y nst ia i tL. before will m a t ure l y cons i der the w h o l e o f t hi s great and comprehensive measure in all its parts and probable bearings on the c ountry b efore pronounc i ng an op i n i on either orr in e l f n ore the th course House ef theto - ow eorrespondence which has taken place between the Go vernment and the Bank of England, in which will be found a more full development of the principles on which we have proceeded, and a more complete explanation of the terms on which we have secured the concurrence of the Bank. The possession of that document is of great importance to the formation of a sound opinion.— (Hear, hear.) I cannot deny that it will be to me per sonally a source of gratification if, after the lapse of now a quarter of a century—(Hear, hear)—after pro posing, in 1819, that great measure which has, I trust, for ever abolished the mischief of inconvertible paper— (C heers) —and placed the currency of the country on a firm basis—l cannot deny, I say, that it will be personally most gratifying to m e , if I , as the organ of the Government, shall be successful• • • inducing the House to assent to this measure, which is but the complement of that other measure, and which is calculated to fortify and give an assurance of stability to that former one of 1819 by pre venting fluctuations in the medium of exchange.— (Hear, hear.) But my gratification will be of a higher and purer nature than any I derive from any satisfaction of mere personal vanity, when I contemplate the suf ferings this country has endured within the last twenty years at the periods of 1826, 1834, and 1839 —when I see the danger incurred, the results which have been produced by the Bank of Eng land having recourse to foreign establishments-- (Hear, hear)--when I see the fluctuations of the currency, the ruin of private fortunes—(Hear, hear) — the defeat of all calculations of commercial enterprise— when I look back to all those thingswhen I look'to details—the failure of joint-stock banks—to the amount of dividends which have been paid; but when I know that the amount of dividends is no test of the circu lation—when I see the sufferings and anxieties of the humbler classes of society—(Hear, hear)—when I see the amount of assets—when, in the case of joint stock banks, though we may know that they are ulti mately solvent, we see the long course and tedious pro cess which creditors have to go through, before they can recover what is due to them—yet, when I see the names of original proprietors having 101. or 201. shares, and that persons in a humble situation of life are induced by flattering prospectuses to enter into specu lations, and looking to the ruin brought upon them— I cannot now enter into the details—but when I look to those things—then, indeed, I shall be gratified if I can prevail on the House now to adopt a measure which will give value and just confidence to the medium of exchange—which shall diminish the inducements to fraudulent speculations, and gambling, and shall insure its just rewards, and just profits, to commercial enter prise, conducted with perfect honesty, and controlled by steady prudence. — ( ight Hon. Gentleman sat down amidst loud cheers, having occupied three hours in the delivery of his speech.) Lord JOHN RUSSELL said, he presumed the reso lutions would be printed with the correspondence, so that the House might have the whole plan before it. He supposed the Right Hon. Gentleman would give ample time for considering the subject ? Sir ROBERT PEEL said he was anxious to have the subject fully understood, because the more it was under stood, the more he hoped it would be supported. He should therefore be willing to allow ample time for con sideration. Mr. HUME wished to know whether the Right Hon. Gentleman would give a return of the number and names of all the banks that had failed ? Sir ROBERT PEEL said he had no objection to give a return of the names of all the joint-stock banks which had failed, and he would also give a return of the number of private banks, but he would not give their names. Mr. HUME asked whether he would give a return of of the loss to the depositors ? Sir R. PEEL said that if the Hon. Gentleman would put his question in a proper shape he would be ready on another occasion to give an answer. Dr. BOWRING said it would be important to know the loss to the public. Mr. BULLER wished to know whether it would be possible for the Right Hon. Gentleman, in that return, to inform the House what amount of notes were outstand ing for each bank at the time of its failure. ' Sir R. PEEL rep lied in the affirmative. Mr. GISBOBNE wished to know whether, if he had a note to be changed, he should take it to the Issue-office or the Bank department. Sir R. PEEL was understood to say that it would be optional. In answer to a question from Mr. S. WORTLEY, respecting the right of existing banks to continue the number of their branches, Sir R. PEEL said that he was very unwilling unne cessarily to interfere with the privileges of existing banks as to the number of branches they might have. But wit's regard to new banks, if it should be desirable to provide that no branch should be established within ten or twenty miles from the parent bank, it would be easy to provide for that.. Mr. S. WORTLEY said there was evidence taken I before Committees of the House showing that a prac tice prevailed of one branch not paying the notes issued by another branch. He wished to know if that was con trary to law ? Sir R. PEEL apprehelded that it was contrary to law. Mr. P. M. STEWART wished to know if the notes of these banks of issue would be received in payment on account of the revenue. Sir R. PEEL—Certainly not. Mr. M. PHILIPS wished to know whether it was the intention of the Government that there should be a general return of the stock, bullion, ace., from each bank, or whether a separate return from each branch established in the country would be required ? Sir R. PEEL said it would be difficult to make the returns simultaneously, but he hoped the Hon. Gentle man would allow him time to prepare an answer. Mr. M. PHILIPS wished to know whether the re turns of stock, bullion, &c., would be published in the Gazette? Sir R. PEEL said he did not as yet know whether the returns would be published in the Leaden Gazette or in a separate publication of a similar description. The following resolutions were then read:- 1. That it is expedient to continue to the Bank of Eng land, for a time to be limited, certain of the privileges now by law vested in that Corporation, subject te such con ditions as may be provided by any Act to be passed for that purpose. That it isexpedient to provide by law that the Bank of EnAland should henceforth be divided into two separate de partments—one exclusively confined to the issue and circula tion of notes—the other to the conduct of banking business. 3. That it is expedient to limit the amour.t of securities upon which it shall henceforth be lawful for the Bank of England to issue promissory notes payable to bearer on demand, and that such amount shall only be increased under certain con ditions to be prescribed by law. 4. That it is expedient to provide by law that a weekly publication should be made by the tank of England of the state both of the circulation and of the banking de partments. 5. That it is expedient to repeal the law which subjects the notes of the Bank of England to the payment of the com position for stamp duty. 6. That in consideration of the privileges to be continued to the Bank of England, the rate of fixed annual payment to be made by the Bank to the public shall be 180,0001. per annum, and shall be defrayed by deducting the said sum from the sum now by law payable to the Bank, for the manage ment of the public debt. 7. That in the event of any increase of the securities upon which it shall be lawful for the Bank of England to issue such promissory notes, as aforesaid, a further annual payment shall be made by the Bank of England to the public , over and above the said fixed payment of 180,0001., equal in amount to the nett profit derived from the promissory notes issued on such additional securities. 8. That it is expedient to prohibit by law the issue of promissory notes payable to bearer on demand, by any bank not now issuing such notes, or by any bank hereafter to be established in any part of the United kingdom. 9. That it is expedient to provide by law that such banks in England and Wales as now issue promissory notes payable to bearer on demand shall continue to issue such notes, subject to such conditions and to such limitations as to the amount of issue as may be provided for by any Act to be passed for that purpose. 10. That it is expedient to provide by law for the weekly publication of the amount of promissory notes payable to bearer on demand, circulated by any bank authorised to issue such notes. 11. That it is expedient to make further provision by law with regard to joint-stock banking companies. The House resumed, the Chairman reported progress, and obtained leave to sit again on this day fortnight. FACTORIES BILL-COMMITTEE. On the motion of Sir J. GRAHAM, the House weir into Committee on the Factories Bill ; Mr. GREENE in the Chair. On the 22d clause, which relates to compensation for accidents to operatives in factories, being read, Mr. MARK PHILIPS objected to the clause, on the ground that it was not called for. They might just as well legislate for accidents occurring in the ordinary course of domestic life. Dr. BOWRING and Mr. HUME also objected to the clause. Sir J. GRAHAM said that the clause was in accord ance with the recommendations of the Committee of 1841. Dr. BOWRING cited a return to show that fatal acci dents occurred only to ten persons out of 116,000 opera tives in factories, in the course of a year ; and he con tended that in such a state of things there should not be that interference in the management of factories which this clause proposed. Sir J. GRAHAM said that if accidents were so rare, still more rare would prosecutions be. The power given by this clause, was not likely to be abused, and he con sidered it of great value. Mr. BERNAL said 'that the return quoted by the Hon. Member for Bolton (Dr. Bowring) contained fatal accidents only, and made no mention of those accidents that were more likely to occur in factories, such as the mutilatiew and maiming of limbs, which might disable a man fur life. It could not, therefore, be relied on in the present case. Mr. PHILIPS thought the return' a very fair one. It showed that the fatal accidents in cotton factories were in the proportion of 29 to 85 to those in coal-pits, and it was a fair inference that the same proportion existed in minor accidents. Mr. HUME asked why it was the Government had not got a return respecting accidents in factories for the last ten years? The Government had it in their power to collect the requisite information. He thought that there ought to be some general account of how matters really were in this respect, to show that they were war ranted in such interference. Sir J. GRAHAM, at the suggestion of Mr. C. Wood, consented to an alteration in the clause, allowing twenty four hours' notice to be sent by a messenger. The clause, with amendments, was agreed to. Clause 23 was also agreed to. On clause 24, relating to prosecutions in case of acci dent, being proposed, Mr. HUME moved to insert the words " provided such machinery shall not be properly secured and guarded as required by this Act." Sir J. GRAHAM opposed the clause, on the ground that if an action were commenced, and it should turn out the machine had been properly guarded, no damages would, in that case be awarded. It was a question en tirely for the jury. The amendment was negatived, and the clause agreed to. Clauses 25 and 26 were agreed to without discussion. On the reading of clause 37, Mr. STRUTT objected to that portion of the clause which would render the owners of mills liable to actions under circumstances in which they must be sure to suffer heavy costs, whether they had infringed the laws or not. He moved the omission of that part of the clause. Sir JAMES GRAHAM did not think that the clause would, as it stood, have so much hardship in effect as the Hon. Member supposed. The Right Hon. Baronet suggested a verbal amendment, which would remove all' possibility of doubt as to the intention of the Legis lature. The amendment was after a short conversation con sented to, and the clause so amended was agreed to. Clause 28 was also agreed to with verbal amendments. On the reading of clause 29, to the effect that children above the age of eight years might be employed in factories, Mr. FOX MAULE said that this was an innovation against the children, for, as the practice was at present, children under the age of nine years were not allowed to be employed. Mr. FIELDEN opposed the clause, and assured the Right Hon. Baronet, from his own practical experience, that (as we understood the Hon. Member, who spoke at some length, but in a tone scarcely audible) children of so tender an age were not capable of enduring the labour of the factory. He moved that the clause be omitted. Sir JAMES GRAHA &I said that the clause, taken with that which followed (the 30th clause), would greatly limit the hours of labour during which children should be employed. The hours of labour for young children would be restricted to six hours and a half.—(Hear.) Mr. FOX MAULE was disposed to support the mo tion of the Hon, Member for Oldham. He did not think that the additional protection to be afforded to the children would be a compensation for their employment at so early an age as eight years. Sir J. JAMES GRAHAM said he would take the sense of the Committee, if the Hon. Member for Oldham persevered in his amendment. Mr. FIELDEN again addressed the Committee in support of his amendment. Mr. AGLIONBY wished the Hon. Member for Old ham would repeat what he had said at the table, for really no one had heard what he said—(Laughter)—and if he meant to divide the Committee, it would be most desirable that gentlemen should be able to understand what were the reasons derived from his great practical experience, upon which he now opposed the clause. After a few words from Mr. FIELDEN, Strangers were ordered to withdraw. The Committee then divided, when there were — For the clause For Mr. Fielden's Amendment Majority 97 On the 30th clause being proposed, for regulating the manner in which relays of children were to be worked, Mr. STUART WORTLEY expressed a wish for a relaxation of some of the provisions of the clause. In places where there was a dense population the clause would work well, but it would inflict great hardship in places where the population was scattered, more espe cially in mills which were worked by water power. He therefore put it to the Right Hon. Baronet whether it would not be right to introduce some relaxation of the clause. Mr. STRUTT said the effect of the clause would be to destroy all the small manufacturers. It would inflict great injury upon the woollen manufacture which was carried on in country places, where it would be, in many instances, impossible to procure relays of children. H e therefore proposed the addition of a proviso, to the effect that if it could be proved to the satisfaction of the in spector, that from local or other causes great inconveni ence would arise in the working of woollen mills driven by waterpower, in consequence of the enactment of this clause, it should be in the power of the Secretary of State for the Home Department to issue a license autho rising the working of children in those mills for any period not exceeding eight hours in the day, or forty .eight hours in the week. Sir J. GRAHAM opposed tho proviso. The clause, I as it stood, was in exact conformity with the recommen dations of th© Select Committee. The_ effect of the clause would be to render the employment of four chil dren necessary where three were now employed ; but as ra countervailing advantage, the age at which children might be employed was reduced from nine to eight years of age. The provisions of the following clause, which allowed children of thirteen to work on alternate days for ten hours, had been introduced at the recommenda- tion of parties connected with the woollen manufacture, and employing water power. They were meant to meet the case whena a supply of children was scanty. Mr. C. WOOD supported the clause as it originally stood. The advantages of the relay system were very great, and he had been informed by manufacturers who had adopted the relay system, that they felt no inconve nience in obtaining relays. The plan afforded the chil dren an additional hour a day for attendance at school. Mr. ALDAM said that the effect of the clause would be to make manufacturers concentrate themselves in large towns. The clause was agreed to after some further discussion. Clause 31 was then proposed, and after a few words from Mr. HINDLEY and Mr. COLLETT, was agreed to. Clause 32 was then proposed. Viscount EBRINGTON opposed it. He was not satisfied with the arrangements with respect to adult labour, and he should, therefore, move the expunging of the clause. Mr. HUME would vote against the clause, consider ing that it offered a premium to prostitution under the disguise of morality. Mr. F. MAULE objected to the clause, but trusted the Noble Lord would not divide upon it. Mr. HINDLEY objected to the clause. Lord EBRING TON said his only object was to re cord his vote against the clause. He was in the hands of the Committee whether he should divide or not. After some short discussion, Mr. III;ME said he was determined to divide the Committee upon the clause. Stran.gers were then ordered to withdraw, and the Committee divided, when there appeared— For the clause.. 161 Against it 22 Majority in favour of the clause 139 The clause was then ordered to stand part of the Bill. Clauses up to 36 were agreed to with a few verbal amendments. On clause 37 being proposed, Lord J. MANNERS moved the amendment of which he had given notice, that the words " Good Friday and Ascension Day," be substituted for the words " Good Friday," as a . day to be observed by a cessation of labour. The day he proposed to add was peculiarly fitted, by the time of the year at which it occurred, for the amuse• went and recreation of the working-people. 'With every anxiety to promote the views of the Noble Lord the Member fur Dorsetshire, he thought it would be to the advantage of the working-clasQs that they should have one clear day ; though their hours of labour might be limited, yet they could not have much time for recrea tion. He, therefore, moved the insertion of the words as an amendment. Mr. COLLETT would have no objection to the day as a day of amusement, but as it was a mixing up religious observances with that relaxation, he should oppose it. Mr. WARBURTON said if a holiday was required, they had better take the Queen's Birth-day than one that was no longer celebrated as a festival even in their own church.—(oh, oh.) At all events it was not cele brated by him.—(Laughter.) Sir J. GRAHAM said the present clause was only in tended to give effect to the existing law. He was not prepared to enter into the discussion of the day, nor could he support the amendment. Mr. M. PHILIPS said if the working people were desirous of a holiday, they had only to represent it to their employers, and they would obtain it. The question was then put, and the CHAIRMAN de clared that the Noes had it, but a division was de manded, and the numbers were— For the amendment Against it ll5 M: thr t -89 _ajority against le amendment.-- Clause 38 was agreed to. On clause 39 being put, Mr. HAWES moved the following proviso:—Pro• vided always, that if an inspector, on his personal exa. mination, or on the report of a sub-inspector, shall be of opinion that any schoolmaster who grants certificates of the school attendance •of children employed in a fac tory, is unfit to instruct children by reason of his in capacity to teach them to read and writ e , f rom his gross ignorance, or from his not having the books and ma terials necessary to teach reading and writing, or because of his immoral conduct, or of his continued neglect to fill up and sign the certificates of school attendance required by this Act, the inspector or sub-inspector of the district may annul any certificate granted by such dis qualified schoolmaster, by a notice in writing addressed to the occupier of the factory in which the children named in the certificate are employed, or his principal agent, setting forth the grounds on which he deems such schoolmaster to be unfit ; and after the date of such notice, no certificate of school attendance granted by such schoolmaster shall be valid for the purposes of this Act, unless with the consent in writing of the inspector of the district ; but no in spector shall annul any such certificate unless in the aforesaid notice he shall name some other school, situated within two miles of the factory where the children named in the certificate are employed. ' Provided, also, that any schoolmaster whose certificate shall have been annulled, or the occupier of the factory in which the children named in the said certificate are employed, on behalf of the schoolmaster, may appeal to the Secretary of State against such decision of the inspector, and the Secretary of State may, if he think fit, rescind such decision. Provided also, that every inspector shall, in his annual report to the Se cretary of State for the Home Department, state the instances (if any) in which he shall have had occasion to annul any such certificate, together with the reasons which he has in each case assigned for so doing. The proviso was agreed to, and the clause passed. Clauses from 40 to 44, inclusive, were agreed to, with a few Terbal amendments. On clause 45, which related to costs, being proposed, Mr. GRANGER objected to the power proposed to be given by the clause of seizing all goods found on the premises. He thought that the onus of proving that the goods belonged to the party subject to the seizure should lie with the party levying the distress. After a desultory conversation, in which Mr. Aglionby, Mr. Stuart Wortley, and several other Hoe. Members took part, Strangers were ordered to withdraw, and the Com mittee divided, when the numbers were, For the clause 77 For the amendment 22 Majority Clauses up to 64. inclusive, were agreed to with some verbal amendments. Clauses 65, 66, 67, and 68, were then agreed to. Clause 69 was then proposed, and, after a short dis• cussion agreed to, as were also clauses 70, 71, and 72. The remaining clauses were then agreed to withou discussion. -------- The House then resumed, and the Chairman reported progress. The Gold and Silver Wares Bill went through Com mittee. The House then went into Committee of Ways and Means, when the 2d,',3d, and sth resolutions relative, to the alterations of duties proposed in the Budget, were agreed to, and the House resumed. The House then adjourned at a Quarter to Two o'clock. On Tuesday morning last this town was th rown into a state of consternation by its being reported that James Thompson, Esq., the late chief constable, had died suddenly at Harrogate on the previous day. On making inquiry we found that the report was too true. It appears that Mr. Thompson, who had been a few days at Harrogate, had retired, on the Monday evening, to rest before the family with whom he was staying; immediately after getting to bed, it is said he was seized with illness, and got up and dressed himself, and requested a friend who was at Harrogate with him to be sent for. His friend arrived only just before life was extinct. Mr. Thompson was much respected in the town by men of all parties. It is somewhat singular that the late Mr. Hartley called at our office with the information of the death of Mr. Rishworth, the banker; in a very short time we had to announce Mr. Hartley's decease, Mr. Thompson being one of the first to inform us of it, little expecting that we should so soon have to chronicle him in our obituary. How true that in the midst of life we are in death."— Wakefield Journal. SIGHT AND HEARING TESTIMONIALS, 39, ALM.. MARLE-STREET, PICCADILLY.—Major-General Sir Ho ward Elphinstone begs to say that the Spectacles he has now had some time in use. have fully redeemed the assurance of the Messrs. S. End B. Solomons as to their excellence, and having found so much comfort and ad vantage from their use, far preferable to every other_rom kind of glasses, 13, Norfolk-street, Park laneo l e,-1 3 : so. the Hon. George Cavendish, to Messrs. S. a d loemrok H otel.—Gentlemen, ns, 39, very much use of _ ry , o s oft e theth Spectacles I purchased from you. I have She _AlGbeemetalermlee•set,relet,apPp"ve e iceadiliy, p p York otel. en able me to see equal to yours and with less inconve nience}'oursglasses for many years , a nd never met with any to to my eyes. I am, obediently, G. Caven._ 'express the comfort and advantage be feelsdis h desirousLeixlipCastle, Ireland Browne Clayton to at his a d t v h a e nc o e se d a o g f e mofes7sOrsy:esa.rsa,ncianßd. Solo mons'afterTh • l hi • Spectacles. Their valuable in ventions fully merit the thwaso derived, at from patronage they have received. Address, Adlington Hall, Lancashire.—lmproved Achro matic Newl y Invented Telescopes, Opera Glasses, Microscopes,&yee.,t in &c.,. of the same kind of Lenses, to surpass any ever ve nted.—The Messrs. S. and B. Solomens' Invisible Operative Voice Conductor Sound Magnifiers, for deaf persons, give immediate relief to old standing extreme uses of deafness.—Caution. —Messr s . S. and B. Solo mons. Opticians and Aurists, are not in any way con nected with a person of the same name in their imme diate neighbourhood, nor in any part of the country. To prevent mistakes be cautious, and observe—Only to be had at 39, Albemarle -street, Piccadilly, opposite the York Hotel. [ADVERT ISEMENT.]—NEW AND UNPARALLELED CURE BY HOLLOWAY'S OINTMENT AND PILLS.—A poor woman residing at Leeds, and another at Manchester, would, from cancerous breasts, have lost their lives but for these miraculous medicines. A discharged soldier at Chatham prevented the amputatioL of his leg, which was in a mass of ulcerations, by the great powers of the ointment and pills. A young man in the neighbourhood of Croydon has completely recovered the use of his limbs, which were paralysed, by undergoing a regular course of these wonderful remedies. Theyears' standing. cure every settled ache or pain, even if of twenty y Sold at Professor Holloway's esta blishment, 244, Strand, (where advice may be had gratis), and by almost all respectable vendersof medicine throughout the civilised world. MONE YAND CO N.IMERCIAL NEWS. CITY, MONDAY EVENING. The English Securities closed at about the rates of the morning, Consols being 99+ to • 'ln the other Stocks we did not notice any alteration, if we except an advance of 23- to 3 per cent. in the value. of India Stock, owing to the appointment of Sir Ifenryliardinge, bar gains for account being effected as high as 281 to 288. Spanish Stock closed a little better, the Five per Cents. being 23i t o i ; an d the Three per Cents. 331 to Mexican Bonds were 352-., The West India Mail has been telegraph e d. B raz ili an New were 79 . to 79i, being rather higher. Portuguese Converted were heavy at 45. Tile additional transactions in Railway Shares have been these :—Birmingham and Gl oucester were 4; Eastern Counties, 13; Midland C oun ti es, 9; an d N ort h Midland Bi, discount. Bristol and Exeter have been 5 to 54; Ditto and Gloucester, 19k; Eastern Counties New 6i; Great Western, 42i ; Glasgow and Dumfries, * to 1; Harwich (Braithwaithe), 1; Ditto (Locke), 1; Birmingham Thirds, 371; Ditto Quarters, 25k; Man chester and Birmingham, 16i; Newcastle and Darling ton, 231 to -1-; South Eastern, 51. to si; Ditto New, 8 to *; York and North Midland, 70; Paris and Orleans, 11; and Paris and Rouen, 17-1-, premium. London and Westminster Bank Shares were 5i to 5* premium. (From The Sun of Last Night.) There was a continued good demand for Cotton at Liver pool on Saturday, at firm rates,—sales about 6,000 bales, in cluding 1,000 on speculation.—There was less done in shares, Dover being the exception, as for them there was a good de mand. French shares were rather better. It is much to be regretted that the commercial letters re ceived from the Brazils do not hold out any sanguine expec tation from the new treaty between this country and the Ministers of the Emperor. Nor can any favourable arrange ment be made, as is stated, until the Government of this country makes concessions as to the sugar duties, so as to embrace the produce of the Brazils, and the admission of the staple for home consumption at a redUced rate of duty. The accounts and advices from India and China are not of much importance, if we except the fact that the markets were generally overstocked with British manufactures. We have accounts to Feb. 23, from the Cape of Good Hope, but being only a day later, they furnish nothing of particu lar interest. The exchange on London, at 30 days was 2* per cent. premium. The Funds have been a shade better to-day, but there is only a limited business doing. Consols for transfer have realised 99* to and for Time 99i to Excheqozr Bills are at the high premium of 755. to 775. East India Stock nominally supports the rally upon the previous depression, the appointment of Sir Henry Hardinge being looked upon as satisfactory. Bank Stock has been marked 195 i to 196. The New Three-and-a-Half per Cents. have obtained 1021 to 1021; the Reduced, 1011 to ; and the Three per Cents. 98i to 4. The Commissioners have taken Consols at 99g. The intelligence from Madrid, of the resignation of all the Spanish Ministers, has led to a fall in the Stock of about one per cent., the reaction here, however, not being equal to that in the continental markets. For the Five per Cents. the quotations have been 234 to 23*, and for the Three per Cents. 341 to 33*. The West India mail being expected to bring a fair remittance from Mexico, the Stock has im proved a little. The Active has been at 35k. and the Deferred at 14 Colombian have been quoted 14i-; and Peruvian 29, being dull. Danish Bonds are firm at 88, and Dutch Two-and-a-Half per Cents. at 61 to 61i. Ve nezuela Deferred have realised to Ili. The market for Railway Shares has been firm, with a moderate business doing, and we quote Blackwall and South- Eastern rather higher. National Bank of Ireland Shares are 3a discount. - MANCHESTER STOCK EXCHANGE, MAT 4.—We have no material change since yesterday. Manchester and Leeds Half, 47i ; Sheffield and Manchester, 79i ; South-Eastern, 37i to 38; Ditto New, 111; Dublin and Cashel, 4-1. CLOSING PRICES. BRITISH FUNDS. Bank Stock 3 per Cent. Red LB% ;Ditto Bonds ......... ...... pm. 3 per Cent. Cons. ...... 3s per Cent. Eel New 3% per Cent ...... New 5 per Cent ... ..... Long Annuities to expire Ditto Small 75 pm. Jan. 1860 1.% , Bank Stock for Acct.... . Oct. 1859 — 'Consols for Acct 99% Jan. 1860 --'lndia Stock for Acct.... 287% - - - 4 FUNDS. Portuguese, 5 per Cent — Ditto, New Ditto — Prussian, 5 per Cent Russian, 5 per Cent Ditto, Metallic . , Spanish, 5 per Cent `23% Ditto, 3 per Cent ......... Ditto, Deferred French, 5 per Cent....... —f ....c. Exchange —f. —c. French, 3 per Cent. —f. —c Dutch, 2% per Cent...—. 61 Ditto, 5 per Cent .........100% FOREIG Austrian, 5 per Cent Belgian, 5 per Cent — Brazilian Bonds Buenos Ayres, 6 per Cent — Milan, 6 per Cent — Colombian, 6 per Cent Ditto, 1924 Cuba Bonds, 6 per Cent ll3 Danish, 3 per Cent Greek, 18,5, 5 per Cent Mexican, 5 per Cent Ditto, 6 per Cent., 1837. Peruvian, 1825, 6 per Cent 29 - - - SHARES. Birmingham and Gloucester (100 paid) 96 Bristol and Exeter (;0 paid) 75 Bristol and Gloucester (30 paid) Chester and Holyhead ( 5 paid) 7 Eastern Counties (23 paid) Ditto Registered (Si 6s Sd paid) Great Western (75 paid) Ditto Half Shares (50 paid) London and Birmingham (Stock) Manchester and Birmingham 56% Midland Counties (100 paid) Ol North Midland (100 paid) Norwich and Brandon ( 2 paid) ...... ........ South Eastern and Dover (33/ 2s 4d paid) ...... Ditto New Shares ( 4 paid) Paris and Orleans (20 paid) LLOYD'S SHIPPING. LONDON, MAY 6.—Light northerV. DEAL, MAY 4.—Wikd N.E. by Is., strong ; 5th—N.N,W. to N.E., fresh.—Arrd. Coquette, St. Helena. Sailed Fox hound, South Seas ; Athenian and Trov, Bombay ; Mary Ann, Algoa Bay ;Colony and Randolph, dape of Good Hope ; Floraville, West Coast of Africa ; Woodmansterne, Ascension and ditto; Edward Thorne, Miramichi ; Messenger, Ima gine, Horneley, and Elizabeth. Quebec; Henry, Woolley, Montreal ; Harriet, Newfoundland. OFF THE START, MAY 4.—Thomas Coutts, Bombay. FALMOUTH, MAY s.—Wind E., light breezes.—Acrd. Penguin packet, Rio, sailed March 13, on freight about 20,000/. in gold and diamonds. Off port John Brewer, China. The brig Ann, which sailed from Liverpool Dec. 13 or 16, had not reached Rio when the Penguin left. YARMOUTH, ISLE OF WIGHT, MAY 3.—Wind, E.—The Vivacious, from Ensworth and Newport, got on the Shingles, and remained two hours, when she got off and proceeded. NEWPORT, MAY 4.—The Severn (steamer), Parfitt, in leaving her station this evening, got athwart the bridge, and after hanging two hours upon a spring Hoed tide, filled, and went down, head foremost. LivEnrooL, MAY 4.—WindE.S.E., light. 5.—N., light.— Arrd. Elizabeth, Patten, New Orleans ; Enterprise, Ro bertson, Calcutta. s.ld. 4. Albert, Edward, China; Marina, Cape of Good Hope ; Chilian, Lima ; Richard Weston, De merara ; Margaret Trinidad; Arabian, Cahaba, and Liver pool, New York ' • Richmond and Marion, Halifax • ' Britan nia (steamer), Halifax and Boston; Bridge Town, Ellicolie, and Ocean Queen, Quebec. s.—Lima packet, Cape of Good Hope ; Revoke, Ditto ; Bee, Africa ; Merchant, Rio; Ga zelle, Miramichi ; Ann, Boston ; Peter Hattrick, New York. CLYDE, MAY 2.—Sld. Nelson, Bombay. CORN, MAY 2.—Sid. Lord W. Bentinck, Port Philip. SHIELDS, MAY 2.—Sld. William and Ann, Quebec. 3. Thunder, Rio. 4. Cingalese, Cape of Good Hope ; Ma zeppa, Montreal. SUNDERLAND, MAY 4 —sld. Spartan, Quebec. DEAL, MAY s.—Sld. Cleopatra, China ; Fairy Queen, Cape of Good Hope. PLYMOUTH, MAY s.—Wind variable. Arrd. Johanna Cristoff, La Guayra, for Hamburgh. OFF PENZANCE, MAY 3.—Montezuma, Selkirk, Sydney ; Briton, Jeffrey, Mauritius. Main-rola, MAY 2.—Sld. Ocean and Jane, Quebec. DINGLE, MAY 2.—Sld. British Queen, Halifax. STROMNESS, MAY . l.—Arrd. Suffolk, Hull, for Quebec, bore up leaky, and crew refusing to proceed. Sir Robert Peel has taken a house in the Isle of Wight for thirteen weeks from the Ist of June. REMOVAL or TROOPS.—Orders have just been issued for the removal of the undermentioned troops to the several quarters mentioned :—The Ist Dragoon Guards from Newbridge to Dublin; the 49th Foot from Portsmouth to Winchester; and the 76th Foot from Plymouth to Gosport. SERIOUS ILLNESS OF SIR JOHN LOWTHER, BART. —We regret to hear that this -venerable Baronet, brother of the late Earl of Lonsdale, has for fome days past been la bouring under severe indisposition, so as to cause alarm to the members of his family. The respected Baronet is at Swillington House, near Ferrybridge, Yorkshire, surrounded by his family. Although the accounts received in town on. Saturday were more favourable than these forwarded pre viously, yet it was feared the Hon. Baronet would sink under the attack, as his advanced age and consequent infirmities will militate against his recovery. . Sun da afternoon TRAFALGAR-SQUARE. —During thousands of persons visited Trafalg ar - sq uare. For several hours the spacious terrace was lined with frpmenpaildlaerr,s,gathvoe appearance of whom from the bas e of the Pelson a living interest to the scene. It is said that the expensive establishment of the Royal Buckhounds, which, with the salary to the noble master, the Earl of Roslyn, 2, 1. ! the chief &c., huntsman, Mr. Davis, and the wages to whippers-n, feeders, amounting to a ' considerable item in the Civil List, is to be broken up. llis Royal Highness Prince A h lbert vfill still keep up his fiue with which t e Prince will regularly hnnt pack of hariers, next season. F IRE IN P A RLIAMENT-STREET, THROUGH THE sriscoxnvc-r OF A FOOTMAN.—Yesterday morning, at a quarter before eight, a fire was discovered raging in the base ment story of the offices adjoining the spacious residence of Mr. Driver, the eminent land surveyor, situate at No. 8, Richmond-terrace, Westminster. It appears that the care of the plate was entrusted to the footman, William Cotton, whose duty it was to sleep in the pantry, but, availing him self of the family's sojourn at East Grinstead, Sussex, he re mained out the whole of last night, leaving the gas burning in the pantry. Upon an alarm being raised, the engine from the Chandos-street station, and five other engines belonging to the fire brigade, were speedily upon the spot, and a good supply of water having been obtained, the firemen succeeded, in less than an hour, in subduing the flames. The pantry, however, and the valuable family plate, is nearly entirely destroyed, and the staircase and one of the front offices abutting upon Parliament-street, are considerably injured, and but for a massive door connecting the offices with the family mansion impeding the progress of the flames, the valuable collection of pictures and costly furniture, &c., be longing to Mr. Driver, might have fallen a sacrifice to the devouring element. " BELL'S LIFE IN LONDON" OF SUNDAY NEXT Tay 12.—Newmarket Second Spring Bleeting—The Suffolk Handicap and important matches between Oakley and St. Lawrence—Semiseria and Extempore—Pegasus' s fore gatherings of Gorhambury Races—Shrewsbur7 otheran d Races—Racing, Steeple-chasing , andFox-huntingaet * Rome ster —Angling, by Ephemera—The Cricketters' R Aquat i cs— S a ili ng - ma t c hes and Regattas on the Team Pedestrianism —Coursing—Alphabetical List of " Run-up Dogs"—Pigeon Shooting—Fa doings on Tuesday, and the usual Sporting varieties. Puce of Bells' Life, 6d. Office, 170, Strand. Bells' Life of last Suday, May 5, gave three long and wide folio co l u mns of Chester Races, 100 advertise ments connected with sporting matters, Marylebone, Cam bridge and Oxford Crieketting, Meetings of the Royal Thames Yacht and Thames Regatta Clubs, &c. BRIDGE OVER THE SEVERN.—The project of a bridge over the Severn at Newnham, is, we under stand, connected with the contemplated Railway, to be called the " South Wales and Great Western Union Railway," communicating with the Great Western Branch near Gloucester, and leading through Mon mouth, Chepstow, Newport, Neath, and Carmarthen, to Pembroke ; thus giving a direct communication with the South of Ireland. The estimate for this line is about 2,500,0001., and so abundant is capital that sub scriptions are fast filling up. Mr. Brunel is the engineer employed.— Wiltshire Independent.