The Sun. — London, England, 1844-05-21 00:00:00

r;FItE LON:DT means of employing.-4-te thought it-very desirable - with respect to the security of three millions, that theAla:A should have the power of depositing other securities than those deposited originally. He did not see any dis advantage in that as regarded the security afforded to the public. He apprehended that the Bank would, in fact, perform all the functions which it' had hitherto per formed. There was one point to which he must advert for one moment; to which he attached some importance, namely, the desirableness of introducing a principle of greater permanence into the direction. He was not at all desirous of imposing a Government officer on the di rectors, but he thought that no one, who was so well " acquainted with the subject as the Chancellor of the Exchequer, could fail to see the necessity for alteration. The amount of issue was fixed at the average of the last two years. That ave rage was low, and he thought this was in its faVour.. A great - deal had been said as to the extreme-hardship to country banks of being tied down to the average circu lation of the Bank of England. It, was said that the circulation varied very much. Now he had taken the trouble of examining the variation for the two. last years, and he had found that the average difference was about 800,000/. The Right Hon. Gentleman had re ferred to country bankers who considered an unlimited issue absolutely necessary for the farmers and the agri cultural interest generally in this country. The grounds of this objection appeared to him altogether absurd. The evidence on the subject was contradictory. It was contended that it would be impossible for the banks to make advances to the farmers unless they had this power of issue. An Ipswich banker was asked in what half-year his circulation was the low est. His reply was In the half-year ending in March." 'He was asked whether the period when he advanced most to farmers was the period of the lowest circulation ; and he replied, " Certainly it is." There There was other.evidence to the same effect. The next "assertion was, that it would be impossible for the country bunks to afford to the farmers the means of paying their rents.. They had the power of obtaining Bank of Eng land notes, in addition to their own circulation, to any amount they pleased. Mr. Gill was asked whether he apprehended that any inconvenience had arisen to bank eudtomers from the substitution of Bank of England .notes for country notes ; and his answer was, that the only inconvenience consisted in the banks being more liberal than they otherwise would have been. With regard to the Scot& banks, he apprehended that they, were to be subject to the same regulation of issue and the same publication of accounts as the English banks. But he could have wished that their publica tions of accounts could be made to correspond more closely =with those - of the English banks. In England the returns by the banks to the Government included 'the whole amount of their stamped notes; but this was oot the case with the Scotch banks, and he understood that the difference in the mode of making the return made the circulation of the Scotch banks about thirty per cent. less.then it would be if returned on the same principle that was adopted in England. 'With regard to the effect ef the measure, be thought it might perhaps produce some_ degree of . .pressure ; but if the present system was insecure, the price they must pay for greater stability and security was - the • loss of. the present facility. lie believed that the'davantages to trade and commerce of the aecemmgationefforded by the Bank of England had been much overrated. He was supported in this opinion by no•less•un 'authority than Mr. Ricardo. - Having read the.opiPion of ahat 'writer on . this point., .in which he s t a t e s.that the effect of this accommodation is often very insignificant compared with . the accommodation from pri arate sourcei, gave, as an illustration a case that oc curred in 1829, a year of great pressure, in which all the.accommodation that could be procured at the Bank Was 300,000/., to be repaid in one month. This was utterly inadequate, for the purpose of the parties, who raised from" private' sourees the sum of 200,0001. fora an nallinited time.. He also read a statement of. the circulation of the Bank of England derieg the: same year; and of the amount . of its dis counts for the same period, in order ,to show that the restriction of its issue did- not 'produce a diminution in the aliment of its . acComodation, but the reverse. In April, 1829 0 the circulation of the Bank of England was 18;000,000/. ; the . bills it discounted in the same 'month, amounted . to 3,500,0001. In July its eirculation• was 17,500,000/., and the bills it dis mnted, ' . 6,700,000/. 'October its circulation was .216,660,000/. ;. 'discounts, " 7,700,000/. In December its • circulation had fallen to 16,000,0001. • and the. amount of bills it discounted was 8,500,0001: This disproved the assertion that the power of the Bank to accommodate the public -depended on the increase of its issues. , that the present measure would effect good by checking the drain of gold at a compara tive 'early period of its tendency 'to 'leave the Bank, and thus lessen the ultimate shock such drains occasioned. The experience for the last twenty years proved that monetary embarrassments passed over quietly in propor tion as the paper of the country was diminished in com-. parison with the circuladdn of the country. Such he' took to be the principle of the Right Hon. Gentleman. :le believed it would not only check the tendency to a drain of gold, but go far to prevent the, necessity of its' occurring at all. He read an extract from the evidence given before the Committee by Mr. Kennedy, a Scotch banker, to prove that it was usual for banks to restrict their issues according as the rate of the exchanges created. a drain of bullion from the Bank, and that such a restric tion in the issue did not cause a loss to the Bank on count of the increased rate of interest the Bank ob tained. He did not think that any Bill, or any plan, would put an end to all speculation and over-trading, and rashness in commercial matters. But because he could not 'do that, It was no reason" he - should not try to do all in his power to check it, which could only' be done by a proper regulation of the airculation of the country. Experienee proved that the convertibility of notes alone was not sufficient to check this over-specu lation ; their systein of currency must; from time to. time, be regulated in its amount. Such an operation, and such an operation alone, would provide for their' Permanent security ; and as far as the measure of the Right Hon. Hoh. Gentleman was. based on this principle, he should, as approving that principle, give it his un qualified support. Sir W.. CLAY said that he should have thought the monetary con-dition of the country, as well as the state' of public opinion, might have justified the Right Hon. Gentleman in carrying out his principles more boldly,. by extending the measure to Scotland and Ireland, and applying regulations there with regard to the small notes.. But he was willing , "to admit that the. Right Hon. Gentleman was better qualified to form an opinion on this point than himself. He agreed with the Right Hon. Gentleman in thinking that if they left the country banks without control, their circulation would expand as the Bank of England contracted, which was formerly the case. The measure of 1819 established as a basis of the monetary system the principle of the constant and unvarying convertibi lity of the paper currency. The proposed measure re cognised the same principle, but enforced the necessity of the issues being placed under strict control, and not to be entrusted to those who might profit by its 'abuse. The Hon. Member then 'quoted extracts from the letter of the Secretary of the Treasury of thp United States to Congress in 1836, showing how great the circulation of paper was immediately before the great stoppage of cash payments-in that country. In 1830. the notes in, circu lation amounted to 60,000, 000 . of dollars ; in` 1834 to 75,000,000; in 1835. to . 87,000,000; in 1836 to m lo o 6 u ,o s o e o , , , O te o r ( l ) t o d t o 11 1 a 2 r o s ;oo a o n , d OO l o n d l o B ll 3 a 7 rs it reached The .th m e e e m n b o e r r also read an extract from the President's 'Message, in which he noticed the over-action in every department of., trade—the excessive speculation and the increased issue of paper money—which latter the President assigned as j the cause of the two fermer results, saying that in . America, as in England, the excessive issue of Bank paper had been the cause of the great monetary embar rassments Which had' at—different: periods happened in both countries. He (Sir William Clay) did not think it necessary that one of them of the amount circulated by the country banks should be held in bullion at pre sent. The security a g ainst over-convertibility must rest upon other grounds. ile would suggest that it be al- lowable to the bank of issue to give bullion at something less than 3L 17s. lOid. To the merchants who wished to export gold in ingots, this would he very desirable; be , sides, some allowance should . be made for 'the expenses of coining, which were considerable. He did not agree, with some lion. Gentlemen in thinking that any addi tional power would be conferred on the Bank of Eng land by the present measure, which he thought would rather diminish than augment the power it at present possessed. At a certain appropriate time he intended to introduce a resolution for the consideration of the House—that it be permitted to create and charter country banks, on condition of their paying up three fourths of the Capital they : proposed to commence upon; and that there be an annual or semi-an nual publications of the accounts of such Bank. He would only repeat what he had already stated, that this plan had, generally, his cordial approbation. Mr. S. WORTLEY expresSed his almost entire con currence in the plan proposed by the Right Hon. Baronet, the object of which was, as stated by his Hon. Friend. the Member for Halifax (Mr. C. Wood), to in troduce additional security for the amount of the invariable standard. He was strongly of opinion that of all the measures which had been proposed, that of the Right Hon. Gentleman was, on the whole; the best that could be adopted. The great feature in this plan was the separation of the Bank.of England into two departments. This was the more necessary, as it was sometimes difficult for the management at the Bank to decide between its duty to the public and' its private - interests.' It was impossible to invest, the Bank of Eng 'land With the power _ which this measure gave it, unless it was rendered independent of those influences to which it might besubjected as an ordinary banking establish ment. He alluded to the separation of the issue depart ment from the banking department; and ren dering the farmer a self-acting institution, by which the amount of exchanges would be `regulated. His Honourable 'Friend, the Member for Halifax, had very properly observed that the amount of circulation would be increased apparently by this plan, becaus'e the whole of that amount of' treasure in reserve by the Bank, which exceeded the present amount of eir culatien, would ,be transferred to the issue department from the deposit department, so as to be exchanged into notes, The Right Hon. Baronet alluded to the subject of branch banks, with regard to which he (Mr. S. Wort ley) put a question to him on a former occasion. He was sorry to find that the Right Hon, Baronet . did not 111init proper to interfere to prevent 'the extension .of branches. 'Ho knew no greater source - of risk than the extension of 'branch banks, and not only Of branch banks, but what were called agencies," which were in many cases 'tit a great dis- Wipe from the central issuiog bank. The Right HO. litaTopef proposed that there should be a r. paymPnOf'3o/. Jon' the estatit4 rant - ef every branch nk: He did 'not think that woulitbe '4113'. eftlettial checlr, and he thought that some more PaYErfUi ehe t clt aught to be and inigh't he devised. Ife wished to call the attention of the Government to another point; viz” - thqt thOught they' ought to hold vutsome greater id: to establish, sooner or later, one bank of issue through out the country. There was also a report out of &ors that the outline of this meu sure had - been drawn by the late Govern ! ment, and that it had been completed by the pre sent Government, and he confessed that he was con firmed in that impression from the manner in which it had been received in the House. This measure was an experiment and nothing better; it was a new doctrine in the country, and was not propounded by those great names to which they were accustomed to adhere, so that they should regulate the circulation by one branch of issue. The Bullion - Committee propounded no such doctrine ; it was a doctrine of the modern 'school, which like many others required to be well watched. His 'proposition was based on the opinions of those who were. called the philosophers amongst the witnesses who were examined,while all the practical men and bankers who gave evider.ce before the Committee stated that one bank of issue would be most inexpedient. At a meeting which was held the other day, and was attended even by bankers who issued Bank of England notes, a resolution was come to, adopting the lan guage of the general meeting which was held in 1840. that such a measure would be inexpedient. There was one expression made use of by the Right Hon. Baronet that night which put the matter beyond doubt in his mind. It was, to reduce the circulation to One . syStem. But it was evident that the same dangers which threatened us befiire 1825 were impending upon us now.—(Hear, hear.) He would not occupy the House at that tijne of the night in going into a discussion of the details of the question. It seemed to him that the plan of the Right Honourable Gentleman was compounded of the plan 'of 1819 and that most objectionable plan of 1837. All that he wished to impress upon the' House and the Government was, that they should not lake such measures as would prevent them from return.- ing to the present system if they should find it necessary. The proposition which was made to the Government by the country and provincial bankerswas, that they should raise the issues to a larger amount for the country banks than was allowed by this project. The average of the circulation of the last two years ought not to have been taken as the maximum of the future circulation; but as the average. It was absurd to look to the foreign exchanges as the test for regulating the cir culation of the country. But the Right Hon. Baronet had argued against the principles which he had himself propounded.—(Hear, hear.) He (Mr. Stewart) inferred that it was the intention of the Minister to extinguish altogether the . present country circulation ; but they would greatly inconvenience the public by stopping that circulation. ' An Hox. MEMBER—The circulation of jointJstock banks. Mr. P. M. STEWART—But, in interfering with them, you would interfere with the general circulation hear)—of the banks beyond sixty-fiye miles out of London.—(A conversation, then took ,place across the table respecting the effect of the re striction, which was not- clearly beard in the gallery.)— If restrictions had not existed_, there would not have been those - evils which had been complainect of. He offered his sincere acknowledgments to the Right Hon. Baronet for the straightforward manner in which he had met the claims of the joint-stock banks. He offered his ac knowledgments, not for whii. the Pv igb,‘ Hon. _Baronet had done, but for for the manneria which he did it. The whole body "of . joist-stock .bankers whom he (Mr. P. Stewart) so unworthily represented, felt it very much. In the points which he had stated he knew he was open to correction, and he foresaw he would meet with that. correction, but then he had thrown out his ob- servations for the purpose of rendering the application of the Right Hon. Baronet's plan more readily practical, and in making the propOSittens which he had sub mitted, fie considered he was only doing his duty. The Right Hon. Baronet's was a bold patriotic plan, but like all human propositions, it had its faults, and it was their duty who thought :they could amend it, to propose, whatever they thought would be effective for that pur pose. It was froth such a sense of duty that he had made his suggestions. • Mr: M. GORE referred to the years from 1825 to 1827 inclusive, to' show the evil effects of an excessive paper issue. With respect to the measure of the Right Hon. Baronet, it bacillus most cordial support, because he thought it proceeded upon the just principle - that. money was a commodit y which, like all other commodi ties, was influenced in its value by supply, and demand. It had been said that this measure would depreciate prices, but he doubted whether the depreciation of prices was an • evil. Much discussion had taken place with respect to bullion, but upon that point he thought no • great danger- was to be apprehended. He believed that the Right• Hon. Baronet at the head of the Government had acted most wisely in not attempting to lower the stand ar d o f value. Many of the charges now ' brought forward against the Right lion. Baronet were brought against the Ministry of 1796, when it was at tempted to place the curren c y of the country upon a proper footin g . H e should support the proposition or the Right lion. Baronet at the head of the Government. Mr. GISBORNE knew that any person who came fc;rward as the advocate of free trade in money was the subject of great animadversion. He adhered to the pound as prescribed by the Right Hon. _Gentleman. That the amount of currency operated upon the price of commo dities had never been satisfactorily established in his mind. He believed that what was currency had never been properly defined except in the Latin—quod semper —quod übique—quod into' comes. He would reserve to himself the right 'of objecting to this measure in the other stages. He would say- at once that his objection to this meesure arose from his belief that it would have a tendency to lower the range of prices in this country, and that it would have a tendency to supersede bullion for paper to a greater extent than now existed in circu lalion. He did not believe that the Bill of the Right Hon. - Gentleman of 1819 had fixed a right standard, but he did not impute to that measure the destitution and misery . which had since resulted to the country, so much as to other measures which acc om panied it ; The Bank of . Englayd had at the p resent t i me a most convenient amount . of gold lying in its coffers. Why did it not employ that geld ? Because it could not force upon the country a currency which it did not want. This was a time of great speculation, yet the Bank of England could not expand the currency, and he believed it would never be able to do so without increasing its security. A great pail 'of what they called circulation was nothing more than capital. The Bank would now he relieved of all responsibility with regard to the issues—that was a responsibility which he , thought they ought never to have had. He did not give implicit confidence to the names that had been quoted. They were to be judged of with some reserve. When the time came he should be prepared to oppose the plan. ,Mr. NEWDBGATE said, he rose to call the atten tion of the Right Hon. Baronet to one point on which he should wish him to give an opinion. He believed that there was something in the pl an th a t m i g ht prove Injurious• to the productive capital of the country. • He believed_ that the , amount of the cir culation or the country materially affected prices. The point he wished to submit to the atten tion of the Right Honourable Baronet was this --how far the extension of the principle of the Bill of 1819, as carried out by the alteration of the sys tem of issue and the alteration of the banking establish-; Meat, as propoSed by the Gevbrntrient, will, by limiting the amount of the circulating meditiin to the average of the last two years, without reference to the production of this country, affect prices ? F or , if th e quant i ty of produce increased, and the amount of money remained • the same, would not prices fall in proportion to the in crease of that production ? This point he could assure the Right Hon. Baronet was - well worthy his con sideration. •. _ Mr. F. BARING expressed his satisfaction that the Government had followed up the principles on which • the late Government was prepared to have legislated on this subject. Those gentlemen who had opposed the plan all seemed inclined to slip out of the consideration of the position in which the country was at present placed. He should be happy to learn from them on what principles they thought the issues of the 'country 'ought to be carried on in the present state of things. In the last arrangement of the Bank Charter by his Noble Friend, Earl Spencer, two principl es were l a id d own . There was in the arrangement a regulation by which it ; was supposed that the Governor and Directors of the . L Bank would in future conduct their issues, and at - the • same time' (and for the- first time) it was provided •, that the averages of these issues and of the amount of the bullion in the Bank shotild be published, in order that the private . hanks, - might a &bi.ai ng , xn thOsecratirmi, reguhite ''their 'lsgues. Btit as :far as 'legislation was concerned, they' 'had no vowel . - o f qtif,;reibg -that publicatton by the Then it was said that the phrpose of the publication'cif ccollllts was to, guide the privite baulteis TEN'INeII MAY 21, a 44. - z ..4 - 4 iiittbankers 1 cßo r."l .dneement to-Joint-stock-banks to-accept: thr cirouhttiopi the' private er not compe e • lisLet . of Bank of England notes than the payment of one perkthePi eiceptas malter . of eirriosity. - - H - e - might he told cent., which' he thought was to o - small. .to • induce' those ' that - it was better to 'leave ibis without regulation :; but banks to suppress their own circulation and adopt that the evils of an over-is Su e -were just the, same, whether of the Bank of England. He via§:glad that the Govern- ther ; arose from the Bank of England or. frem the pri meat had taken this opportunivy of . proposiag . this plan vato banks. He contended that it was the system they: to Parliament, and he should be sorry if they allowed ought to amend; and they ought to endeavour to-place to pass by without making an ,attempt to place the env. the circulation of the country under preper, regulation, rency on a sounderfootifig. The greatest credit was due If there was a tendency in the plan towards establishing to the Right' Hon. Baronet for the-manner-in which, in one bank of issue, he thought the principle on conformity with his character as a stateBman, he proposed , which they were proceeding ought not to be concealed': this- measure * which would secure great. kivaatPLge to, the ::He concerted in the opinion that thesefest course was to country without disturbing these habitual arrangeinents have only a 'single:bank of issue, and thought: nothing. hiCh subsisted: in many parts•of the country. He must could be more unsafe than unrestricted competition, say he thought it was perfeetly tight:, that in consenting which had already ; been the means .of a great crash in to allow private issuers who existed at preSent to on the monetary affairs of this country. He admitted that tinue their issues, a necessary limitation was imposed the Right Hon. Gentleman could not carry his principle apon them"- of, confining their issues within a: certain to the•fell extent,• but he thought the principle, on the amount ; ' but it was- also-right that those on whom these whole, a right one, and hoped the Right Hon. Baronet privileges were coriferred,Abould be treated with ten- would persevere in it. For .the details of the measure derness,`and that there should be no risk of shaking the' lie Would reserve further remarks, but could not sit down 'public credit or publiC enterprise and industry,'-which without Saving-that lie would give the Government plan their suppression would give rise to. He was glad that his honest support.—(Cheers.) 'this opportunity of making a change was not passed by, Mr. FLXIMVTRE said there were some principles because the time was not far distant when its principle propounded in the measure in which •he • concurred, but would be tested. ,In many parts of the country' he'fcared 'the plan would cause a contraction of the cur-• those same causes which had produced the crisis culation, and lead to the .reduction of , prices. If that they had seen before were coming int) operation, and would be the effect, he was,sure the Right lion. Baronet it would be matter of great interest to observe the effect would be the first to withdraw it. which an alteration of this kind would have on such 31i. MUgTZ, said 'he would not have made any re; transactions as-those he alluded to. It the plan sue-' mark, but that' he had - been alluded to •by the Hon. ceeded and had the effect of mitigating those fluctuations Member for Halifax. . 'He never said what he did not and changes which they befUre experienced, he would believe, and never wrote anything he was ashamed to have the' comfort of performing a benefit towards the put his . name to. He had, ho*ever, been misquoted on country which would do him the utmost credit, and for this stibjeot. 'had - given- the ' greatest atteir which he would receive, sooner or later, the thanks of tion 'to the matter; ' and had read every. the cduntry. . . _ _ authority -worth reading on the currency ques- Mr. P. M. - STEWART said that, while he was will- lion—Locke, Smith,,, Harris, MiCtilloch, and RiL ing to pay homage'to the general plan proposed by the cardo—and read them, too, before the Right Honourable Right Hon..Baronct, yet he felt it his duty at this early Baronet, had done so.—(Laughter.) Yes, when the stage to call attention to one or two points which, if 'Right Hon. Baronet was Secretary: for, Ireland. The adopted, would, he thought, have the effect of making it Right Hon, Baronet would not, he believed, carry out his more *complete. He thought the Right lion. Baronet principles. He (Mr. Muniz) would agree in them pro bed acted wisely in. not- interfering with the one-pound vide& the Right Hon. Baronet would make the prices note circulation of Scotland and Ireland, which would of land and its produce the same as before the change of only have •brought a hornet's nest abont his ears—he currency had. taken place. It: was very natural.that thought he had acted better in limiting the measure to Hon. Members on that side of the House should support England and Wales in the first instance. There was a ge- the Goveininent propesitien, because it would lower neral rumour that it was the intention of the Government prices, and :lend to accelerate the repeal of the corn _ _ laws ; but how was it that Hon. Members opposite could support' the Government plan? He professsed he was at a loss to understand the motive upon which they acted. —(hear, hear.) . Why those Hon. Gentlemen wished tn have cora 50 per cent. higher in this country than on the Continent. The Right Hon. Gentleman had been very pleasant npon some remarks he (Mr. Muntz) had addressed to his constituents in Birminghith, but he had not advocated those principles Which ' the Right Honourable Baronet represented as - his. If the Right Honburable Baronet fully carried .out the principles he now propounded, there could be little rent paid and less taxes, . for a general depreciation of the produce of land, and of land itself, would be the result. • It was said the country banks - were regulated by exchanges. . This was a• great mistake—he did not believe one in fifty of these country banks understood anything about foreign exchanges. • How could they regulate the issues by foreign exchanges? He thought the Right Hon. Barones had.encumbered the measure by unnecessary ..machinery. If the country banks were allowed to manage their affairs without the interference of her Majesty's GoVernment, or her Majesty, both of which were unnecessary, .the whole would be regulated without any other assistance. He asked the Right Hon. Baronet to consider this minutely. - He did not think it was right that the banks .of issue and* the banks of . business should be under the same roof and direction. He thought that both should be kept,entirely separate, and tbat the Bank of England ought to be a bank of business. There were two other points to which he wished shortly to allude. In all instances of panic, he never knew any instance in which the Bank took early measures to contract their issues, and it was not fair to control the country banks when the Bank had not taken ilie - Proper mfisures to preserve themselves and the other banks. Then the Right Hon.- Gentleman -talked of persons ruining themselves by unwise-speculations, and instanced -a case of a person who had been ruined by speculating in Spanish Bonds. How could the Right Hon. Baronet prevent persons from speculating as they Wished ? He thought the Right Hon. Baronet was bound to carry out his principle - completely, and not say he, would do so. They would then see whether the measure was sound or unsound. If Hon. Gentlemen opposite, who were landlords, supported the Bill, no other person had any reason to complain. Mr. C. BULLER said he would briefly state the rea sons which made :him reluctant to admit the merits of the Bill. His opinion was, that the measure would not have the effect of placing the commercial transactions of the country on a sounder footing, which was the object of it, but would substitute more unsafe forms of credit than .existed at present. There seemed to be a great con fusion between sound principles of banking and sound principles of currency ; and the machinery . of the mea- sure was directed to regulating the circulating medium. The Right Hon. Baronet said it was necessary to con trol the issues of private banks ; but when he came to say what were banks of issue, and what were not, it seemed to him that his argument tended more against the system of banking, and that the mischief to which he referred arose from a "different cause than the issue of notes by private banks. All the arguments which he had heard had not convinced him that the question had been fully considered. He thought that the public ought to have the privilege of investing their money in what bank they pleas d. Sir.ROBERT PEEL said that it would be for the Public to consider in what institution it would place its confidence. Although the Hon. Member for Birming ham was not pleased with the measure of the Govern ment, he was glad to see that he had no strong measure 'o propose against it. -In answer to the Hon. Gentle. question, how-far the extension of the principle of the Act of 1819 was carried out by the system of issue, he (Sir R. Peel) did not admit that this was an exten sion of the principle of the Act:of 1819. It-was a comple ment of that Act—it was a measure fulfilling that Act; but it was not an extension of the principle of it. The Act of 1819 recognised the principle that there should be a. standard of value in this coun try, and that that standard should be golf" that he who issued .his paper should be obliged to fulfil his engagements, and pay his paper in gold. The mea sure which he (Sir R. Peel) now proposed did not carry that principle further. His answer to the question of his Hon. Friend (Mr. Newdegate) was, that there was a standard of value, and that that standard was a definite quantity of gold of a certain finenes—that it was intended that that should be the measure of all worth. The per son who issued paper promised to pay, on the face of that paper, a certain amount of gold. That paper, there- ' fore, ought to conform to the gold. He admitted to his Hon. Friend that there might be, for a time, by that measure, a limitatiOn in prices ; but all increase in prices that arose from an excess of paper was illegitimate, and could not be permanent. There was no advantage from' 'any increase of price that arose from an issue of paper beyond the value of the metal they represented. He brought it to this simple issue : supposing they depre ciated their paper, and their paper was still convertible into gold, would not every man who had a right to insist on .5 sovereigns for a 5/. note, exercise that right; the moment he found the gold more valuable than the paper ? The moment Mr. Rothschild found that 500,000 sovereigns were more valuable than 500,000 L in notes, would he not immediately convert his notes into gold, and would not every man act in like manner ? Among a competition of issues there might for a time be an increase of price, but all experience showed that a re-action would ensue, and that by a sudden contraction of the currency, prices were again reduced. His answer then was that no increase of prices caused by an issue of paper beyond its value in gold could be of the slightest advantage to the country. The effect of this measure would be to compel an early contraction, to prevent sudden rises and sudden falls. He cortended that equality of price was a much greater advantage than any sudden rise or fall. The moment they removed the convertibi lity they found the number of private banks increased. In the year 1797 there were only 240 private banks, whereas when all convertibility was removed, they in creased to 800, so much importance did they attach to inconvertibility. Lord WORSLEY said that there had been great fluctuations of the issues in the rural districts, particu larly in Lincolnshire, and he thought, therefore, it would be only fair, that instead of taking the last two years as the period within which the circulation of notes should be the criterion of the future issue of the country banks, it should be extended to five or six years. He thought that the banks in the country ought .to be enabled to issue notes to as great an extent as they had ever done. Mr. DARBY agreed with all the Right Hon. Baronet had said as to a metallic currency; but the question with him was, whether what was proposed would not so far contract the issues .as to lead to the reduction of prices? In answer to a question from Mr. T. BARING, Sir R. PEEL said he thought they might assume that the Bank of England would hare an interest and desire Co prevent fluctuations in the amount of their notes, and they would desire, unless accompanied by a sacrifice to themselves, - to extend their own circulation. Supposing the Bank of England had a surplus of notes in its coffers for which it had no means of profitable employment, the Bank of England in that case would employ with profit a portion of its notes in taking a substitution for coun try bank paper. Supposing that six millions of Bank notes werelying in the Bank of England Without profit, clearly it would be advantageous to the Bank of England to substitute two millions - of country bank paper for two millions of Bank of England- paper lying in their coffers, without profit. Supposing, on the other hand, that there was no surplus of Bank notes in the banking department of the Bank , of England, it would not be obligatory on the Bank of England to substitute their notes for country bank paper. Supposing again, that the Bank of England wished to gain a control over the circulation and desired to extend its issue, and could not extend its issue by applying the notes of the banking• department, in that case it would make. application to the Government to substitute its own notes for country bank paper, 'and'thus they would he able to increase their notes on security, The Privy Council might, if they thought fit, sanction that measure,' but there would clearly be a profit to the Bank of 'England in making those notes on securities. The resolutions were then agreed to. Sir W. CLAY gave notice, that he would, in a future stage of the measure, propose an amendment on the last resolution relating to joint-stock banks. ' In answer to a question from anHort.-MmupEn, .'tllat 0.6 ;,,A1 should take _ .Sir B. PEEL said . he hoped the Goveva.+ - exit would be able to introduce the Bill before the Whitsu tide holidays, and he gropps4 nta: The Direct Ors were rfet as , r . nkt' as' it`- pdssiae.to ' ina l, q the required se- Oration in the two'ilepartnr' ' orcupie4 in takitig every neceve t ro— t ;f p n - c ` w , . ;s'epartgioij, , • The House then•resnmeccaud: the report was ordered • • o be '1;0%14 up to-mo;•rQwi .: • • Meesengere from the Lord. brought up soTerel Billy. -------GOLD •WARES BILL-- --- .T 4 House vvel4 ipto Qopgnittee, on this . • Several elidses had been agreed to without discussion, . . when . - . beotlan—li;the, piGrt of - A.Uerlaiia that UN' 4cli s "fiftih . knowing the. advantages of temperance principled, 14 determined; at the outset; to introduce them on beard tho vessel Tin which they were embarked; At: first ho exps." rienced some difficulty, but lang.befure they arrived at the equator, he had succeeded in winning - h the support of the whple. ship' s crew, as well as the etnigrants who bad been entrust e d to his care. On board they f4merd a soft pf,societyt I after war d s. i ntroduced into the island; , aril( so good had ft Wbrkeel aniongstthe inhabitants, that previous to his _returning home,.he had the honour of- receiving the thank's - of:the Government; He was now' about to go to establish a British hospital and school of . medicince in the ''Holy Land—in the city of Damitseus-and he hoped to be able to introduce prin .ciples• of temperance under that tropical climate. ,He had great pleasure in seconding theresoiution which .kad PrevionSly be'eti Submitiod to them. • 7 Professor Arntillir; . of ' , Philadelphi a , supporte d the; re solution, and -gave - similar gratifying details of tem perance in that vast republic. - The resoliitionivas then mianiniously agreed to. . - The- second resolution was moved - by J, - 8. Bncictiva- HAM, Esq., in ayery appropriate address, wluch was very much 'cheered: He concluded by reading. it :—" That the crime, ignorance, poverty, and dit-ease of the land, being chiefly 'attributable to intoxicating _chinks, this ineeting'wmild rejoice to find the pliblic and the Legis lature7prepared to refuse a legal sanction to the immo rality arising frOm the milking and sale of these liqu4rs." The ieSolnii(in was aCebnded by Mr. 1.1.661, who at . tributed the prevalenee'of crime throughout the country to the dissolute and intemperate habits` of the people ; and thought that Government ought to suppress the licensing of houses for-the sale of :spirituous liquors. This resolution; having been put by the CLIAIRMA-Y, was carried amid acclamation. _., . . . Mi:' . WAIII3fURTON said -there were great 'objections to the Bill ;.'it : gave a. jurisdiction : to the Goldsmith's gOmpany in country districts which it did not before possese. Mr. GLADSTONE'Etated that the - objections alluded to hacfbeen'removed froth the Bill in its present form. After. a-f4w.wobis. from, Mr. WARBURTON; • The Bill went through Committee; report on Friday, CUSTOMS' . DUTIES' BILL.. On the Order .'orthe 'Dij• for the farther dthsicleration of the Report:on the'Customs' Duties Bill being read, Mr. T. -D - UNCOMBE said there was one , principle introduced into the Bill which was so objectionable that, _tnilesl. it waS struck out; he could not consent to the progress of the'Bill at that hour. It was proposed to make the proprietors of _wharfs responsible for. any smuggling that might occur on them.. This was business of - the Custom-house ,o eery .themselveft. Unless the 13ill-Wa s d e layed , he mUitake - the - sense of the House upon the-clause. - •• • : Mr. GLADSTONE then Postponed the consideration. of the repoFt till this day; • • On 'the motion fOr the ECclesigstical Courts! Bill going into Committee,. Colonel SIBTHORP Wished to hirve - the, • day fixed on,w,hich- this Bill would be.. again brought under the consideration of the House. . . Sir J. GRAHAM fixed it, with the consent of the House, for Friday next. ' ' The West India Relief 'Bill was - then read a third time and passed. - It was then moved that a new writ be issued for Chi chester in the' room`' of 'Lord Arthur Lennox, who hal become one of the Lords of the Treasury. ' Lord JOHN MANNERS moved for the nomination of a Scle,ct Committee,on Mortmain:—Lord John Man-. ners, , Mr. Shaw, Mr. Nichol!, MT. Charles Buller, Viscount Clive; Mr. Sniythe, Mr.BrOtherton,.Sir George Grey, Mr: Eliot Yorke, Mr; James- WOrtl e y, the Earl of Arundel and Surrey,: Sir John Yarde huller, Mr. Milnes Mr. Sotheron, and Mr.'Dickinson, The CoMmittee was appointed accordingly. HOLDING OP VESTRIES IN CHURCHES. Mr. S. O'BRIEN obtaiiied le6ve•to biing in a Bill to prevent the holding of vestries in churches, which was read a first time. The Rev. Mr..Srovrix,' in a very able and energetic address, in which he denounced the use of wines of every description. amongst -the clergy, thought that they, as pastors, ought.to lead the way in every act Of refiirma don •• he, therefore, with grea t p l easure , proposed the third , resolution :—" That, considering the inde scribable evils' produced by the use of intoxicating drinks, this meeting calls upon all who love their fellow creatures to renounce even the moderate use of them as dangerous in practice and destructive in example." The resolution having been seconded by Mr. S. now- LET, was Carried unanimously. J: GtitazErmoved - the last resolution, which ,was as follows .:--" That accurate statistical returns of the•extent and evils of intemperance in any part of the kingdom are absolutely neuessary to make out a complete case for the purpose of Parliamentary application. and thii meeting pledges itself to use every effort and influ ence to obtain sfieh returns. It.was seconded by Mr. P R I CE , an d supported by Mr. MARTIN, of Cork, who gave a very animated description of his own labours as the founder of the temperance movement in Ireland. . _ The other Orders of the . Day were then disposed of, and the House adjourned O,l:kW-past One"o'Clock. THE NATIONAL TEMPERANCE SOCIETY. • Yesterday evening the annual general meeting of the friends and supporters of this Society. was held at Exeter Hall. George W. Alexander, Esq., TreaSurer of the SoCiety, in the chair. . AMong the gentlemen on the platform we observed Dr. Lovell, . Dr. Oxley, Mr. Mitchell, Mr. Juliiis Jeffreys, F.R.S., W. Janson, Esq., W. Cash, Esq., Jas. Day, Esq., and John Hill, Esq. The CIi:URMAN said, that feeling his inadequacy to fill the important office of Chairman so worthily as many:of the gentlemen there present, he rejoiced that his duties would he comparatively light, a s th e o bj ect o f the Society would be eloquently explained by the speakers'who would follow him. It would be needless for him to explain the vast importance of that Society. Its.. object was to remove intemperance from every land on the face of the earth. It was _notorious that England,noiwithstanding its many noble institutions, and the strong hold which • religion. had upon the minds of its people, was yet degraded by its intemperance ; nor has that intemperance been- confined to herself; she his disseminated the same in every part of 'the globe to which her ships haie sailed. • Till within the last four years there was no immedi a t e c h ec k ,upon this great evil. It was a cheering fact, hoWever, that at length some light had dawned upon- the darkness which had so long enveloped our country, for that Society had in some measure succeeded in removing evils which hitherto had appeared to be incredible. It was a cheering circumstance that, in the United States of America, which contained a population of 16,000,000, above 4,000,000 were connected with tem perance societies, while another fourth acted partly, if not wholly, upon temperance principles. That reforma tion had scarcely a parallel in modern times. However, he hoped the country would flourish in another respect, and ere long sweep away the stain of slavery. He hoped_ that they would copy the example of England in libe rating those persons whom they at present kept and sold as chattels. But he would not wander from the subject. He'believed that there. was no place in which a tempe rance society had been established, where it had not been the Means of producing great improyements in the general character and habits of the people, and reducing the number of idle and profligate drunkards. Those were objects well worth the support and consideration of every enlightened Christian. Before sitting down he might be permitted to state that while he earnestly re commended that Society to the fostering care of every Christian, he would by no means wish to be understood as placing it on a level with the Gospel. Religion was necessary to the welfare of a future state, but tempe rance tended to benefit their physical condition, and led them seriously to consider their duty to God and their fellow-men. He would not .enlarge further upon the subject, but call upon the Secretary to read extracts from the report. The SECRETARY; before reading the report, begged to inform them that he had received letters of apology from the Lord Bishop of Norwich, Lord Ashley, the Rev. Pye Smith, and the Venerable Thomas Clarkson, the latter of whom had written a long letter . from his bed-room, expatiating at considerable length on the advantages derivable from habits of abstemiousness. This letter the Secretary read to the meeting. The report stated that the charm of novelty first attracted the curious and the opposition of individuals to that Society, and then proceeded to give a brief review of the state of the temperance cause in different parts of the world. The United States of America were making steady progress in the work of reformation. It was computed that one in four of the population, or above 4.000,000, abstained from all intoxicating drinks, while another fourth had nearly eschewed them. The im portation of spirituous'and other liquors had decreased in a similar ratio ; but it was not all ascribed to the temperance reformation, part of it being supposed to arise from commercial thanes and tariff regulations. The num ber of distillers in the-United States in 1810 was some what more than 40,000, but in 1840 the number had fallen to 10,906, and in a few more years, it was hoped, they would be entirely extinct. In Montreal. the prin cipal merchants were coming forward in the temperance cause, iecoinmending temperance marine insurance, and giving preference to vessels not carrying spirits. The Committee were glad to state that the principal inhabit ants of Montreal had petitioned the Governor of Ca nada Sir Charles • T. Metcalfe, K.C.8., p ra yi ng hi s Excellency to refuse all applications for licenses to sell intoxicating - liquors, and respectfully requesting him to take such steps as might appear best calculated to suppress the - unlicensed and • consequently illegal traffic in these drinks. His Excellency, in reply, expressed himself fully sensible of the great blessing conkfred on the inhabitants of any country by abtaining from the use_ of intoxicating drinks, and pro mised to encourage the adoption of any measure calcu lated to effect so very desirable an object. In St. John's, Newfoundland, the temperance cause was progressing, While in the Bahamas in the West Indies, temperance societies had been formed of large numbers of the in habitants. In Berbice and Bermuda the returns exhibited a falling .off in the consumption of spirituous liquors, which was attributable to the growing habits of temperance exhibited by the inhabitants. At St. Kitt'S a society bad been formed which already numbered 4,000. Similar results were reported of Jamaica, the Mauritius, Montsurat, Antigua, Anguilla, Tobago, &c. In the Sandwich Islands, New. Zealand,. China, India, Afric a , Sierra Leone, Norway, - Sweden, Denmark, Bavaria, Germany, the cause of temperance had greatly triumphed. In Ireland Father Mathew was still en gaged in his patriotie efforts among the dissipated per-" tion of his countrymen, while in Scotland and Wales, large sums of money were subscribed' tow ards advanc ing habits of temperance amongst the people. In Eng land the consumption of spirituous liquors had decreased, while the number of persons who had joined temperance societies amounted to upwards of 1,000,000. The receipts of the past year had been 1,098/, 9s. 3d., while the expenditure had amounted to 645/. 9s. 11d., leaving a balance in the bands of the treasurer of 492/. 19s. 4d. The Rev. JAMES SHERMAN in moving the following resolution—" That whilst this meeting regards with thankfulness the gratifying progress of the -temperance cause, both at home and abroad, as detailed in the re port now read ; it at the same time feels bound to ex press the conviction, that the efforts hitherto made, have exposed a' ass of evil yet remaining, which calls loudly for renewed and increased exertions on the part of Bri tish philanthropists"—said, that he had spoken so many timesin that Hall daring that month, that he thought he might have been excused from appearing before them again. His friends, however, thought otherwise, and he did not qUite regret the having the opportunity of stat ing before the meeting that his heart was still warmly attached to the good cause.—(Cheers,) He hoped to live and die a teetotaller.—(Cheers.) Public men, occu pying stations such as he had the happiness to cl i l n, might and expect to have a great many things said of ttettl, some of them not very . true. It had been reported Of him, from one end of the kingdom to the other, that he occa sionally took a little drop.—(Laughter.) But whoey e t h ad undertaken to state that, he would tell them that for the last eight years he had not taken this smallest quantity of liquor of any description excepting when' he was QUQe deceivedhy his medical attendant, who brou g ht in a plik sic bottle some alcohol disecilowd, s h tolead him t o believe it • was medi c i ne . • H e most distinatly.to his f r i en d s t h at his hea s rt ea wag t:s vo :itua•mtu as it had.ever been in favour of teetotallam„ and as un ' deviating as ever was hesinabataini.ng fro m - mioxicati ng drinks. He was anxier that a large porti on of 'the time of that Meeting should be occupied by gentlemen whose faces they had :seldom the opportunity of seeing—gen • tlemen from the country.- , gentlerneh from distant parts Rme, he understOocl, from New Zealand and the United States of Americ.a. He should have , desired that the whole of :the report should have been read to the • .meeting, but atili he must. say the Secreta r y had displayed much good sense in not taxing the liatienco of the meeting with it all. .To him its details -were most gratifying. They stimulated him 'to further exertions, and he should-- again enter the haunts of Ow ,destitute,:tke 4Auses of the irreligious, and the retreats of the Itie4Qus, to exhibit the beneAta and advantages of total abstine9o .pr -- iuclplea.(Cheers.) He would not detain thenk4raier, but simply request the ntecAng to give their serious 'attention to the gentlemen who would succeed him, and, atlppt., the .resolution - which had been entrusted to his clAre.--(cAwers.) ' Dr. TnoatisoN, in seconding the "leac i latioat, gave a d'et.ftiAdAceetint of the progress - 4 abstemious habits araoegstrthe .inhab;tants Of New Zealand.' He had, been sent atilt in the year 1842, in care pr 409 emi g r an t s from This resolution, like the others, was unanimously car ried;_and a vote having been accorded to the Chairman, who briefly acknowledged it, the meeting, which was numerous, and highly respectable, then separated. ' MR. BRAHAM'S CONCERT. Mr., Witham gave a monster concert at Covent-garden Theatre last evening. The programme contained a list of no less than thirty-nine different pieces of music. The vocal performers were the Brahams, father and sons, Staudigl, Madame • Dorus Gras, Mrs, Alexander New ton, Miss Alleyne, and the Misses Williams, while the solo instrumental performers were Lindley on the vio lincello, and Blagrove on the violin. While the quan tity, therefore, was sufficient to satisfy the most inordi nate appetite, the quality was such as could not fail to gratify the most fastidious tastes. No wonder, there- ' fore, that the house was filled almost immediately after the doors were open. The first part consisted entirely of sacred music, and the gem of this part was Handel's " Gentle Airs," beautifully sung. by Braham, and deli- ' ciously accompanied by Lindley on the violincello. It was delightful to hear these the two last representa tives of the old school thus once more coming forward and fairly distancing all their junior competitors. There is a delicious sweetness about Lindley's perform ance on the violencello, which seems unattainable by any other artist. In the inere,trickery of execution he may be surpassed ; but in the pureness of his intona tion, in the richness of his melody, in taste and expres sion, no one can come near him ; and as for Braham, he stands as he ever has stood, alone—the prince of singers. In the second part Lindley gave us a delightful con certo, played in his own rich flowing style. The audience were enraptured into the breathless silence of delight while listening to the 'delicious tones " in linked sweetness long drawn out," and at the conclusion there was a burst of real hearty genuine applause, such as has not been heard within the walls of a theatre since " the good old days when George the Third was King." Mr. Blagrove performed a concerto on the violin with much taste, and exhibited mar vellous powers of execution. He reminded us not • unfrequently of poor Kieswelter, and to say • this is, as . Mr. Blagrove is well aware, to award him no small amount of praise. Staudigl was eneored in Benedict's song, "Rage on thou angry storm," which he sang magnificently, and Braham's own beautiful duet, " When thy bosom," was delightfully sung by himself and Madame Dorus Gras. We cannot close this notice without congratulating Mr. Charles Braham on the marked improvement which has taken place in his style of singing within the last few months ; his voice seems to have acquired not only greater accuracy of intonation, but greater power and greater compass. He sung Ros sini's bravura, " The trump of fame," last evening in manner worthy of the name lie bears. • LYCEUM THEATRE. The White Feather is the title of an amusing trifle which was produced at this theatre last evening, with complete success. The scene is laid in France, -where Colonel Previllo (Mr. Craven) is about to join a regi ment, to which he has been recently appointed, but Love, who from the days of Jupiter downwards has de lighted in disguising his votaries, causes Amy' (Miss 1Voolgar), the sister of Madame Preville, to assume the disguise of the Colonel, and accompanies her sister in the character of her husband, in order to ascertain the true state.of the affections of a, certain Captain Duval (Mr. F. Vining). Her adventures among the officers may be easily imagined. Penades and champagne break fasts follow each other with such rapidity that. poor Amy's head is fairly in a whirl, when the arrival of the real Colonel, after nearly involving her in a duel, brings about the catastrophe, and holdieg up a " pretty white feather," while to the audience she speaks the tag, and the curtain falls. Miss Woolgar looked:exceedingly fascinating in her male costume, and acted with the most bewitching espieglierie, and we have no doubt but that she will show " the white feather " for many nights to come. The house was very well attended. COURT CIRCULAR. The Queen and Prince Albert walked yesterday in the Royal Gardens of Buckingham Palace. His Royal Highness Prince Albert afterwards rode outon horse back, attended by Col. Wylde, Equerry in Waiting. Their Royal Highnesses the Prince of Wales an the Princess Royal, were taken their accustomed daily airings yesterday in the Royal Ga - rdens. The Royal dinner party at Buckingham Palace yes terday evening included the Duke of Devonshire, the Earl and Countess of Granville, Viscount and Viscoun tess Emlyn, and Sir Arthur and the Hon. Lady Brooke. His Rolfe' Highness the Duke of Cambridge, at tended by * Baron litiesebeek, honoured Mr. Mills with his company at dinner yesterday evening at Camelford House. His Royal Highness afterwards honoured the COuniess de Salis with his company at her residence in Carlton-gardens. Her Royal Highness the • Duchess of Gloucester visited her Majesty the Queen Dowager yesterday, at Marlborough House. Her Royal Highness the Duchess of Cambridge honoured the performance of the French Plays with her presence yesterday evening. Baron de Thile, Prussian Charg6 d'Affaires, transacted business yesterday, at the Foreign-office. The Governor of the Bank of England and the Deputy Govoinor had an interview with Sir R, Peel yesterday. Mr. Wickham, Chairinan of the Stamps and Taxes, had an interview with the Chancellor of the Exchequer yesterday, at his official residence, in Downing -street. The Right Hon. Henry Ellis transacted business ye terday at the Foreign- office. Dispatches were received yesterday at the Colonial office, from the Governor of Gibraltar. The Governor of the Bank of England and the De puty Governor had an interview with the Chancellor of the Exchequer yesterday. Lord Granville Somerset had an interview with Mr. Gladstone yesterday, at the office of the Board of Trade. The Judicial Committee of her Majesty's Most Ho nourable Privy Council sat yesterday. The Lords pre sent were the Lord President, Lord Brougham, the Vice- Chancellor Knight Bruce, and the Judge of the Admi ralty Court. The Vice Chancellor Knight Bruce gave judgment on an appeal from the Prerogative Court of Canterbury, " Mackenzie u. Yeo," relative to the validity of a codicil to the , will of Mr. Barber, who died in 1839, of the amount of 5,0001. Their Lordships pronounced against the validity of the instrument propounded, and affirmed the judgment of the Court b e l ow , w i t h costs. The Solicitor -General was heard, on Derosne's patent fbr refining sugar • applying for an ex t ens i on o f t h e term of the pat en t, Witnesses on the part of the patentee were examined before the Court. Lord Brougham, on the part of their Lordships, granted an extension of the patent for the term of six years, The Court then rose. Bell's Life in London of Sunday, May 26, will give the most correct account of the !bur days' sport at Epsom, with a portrait .of the winner of the Derby. Contents of Bent- ',tie of last Sunday, May 19 ;—Fifteen columns of Sporting. events, including Paris Races, and a peep at the French Derby (Chantilly), an epitome of the week's mis cellaneous news, and 100 advertisements, chiefly connected with Sporting matters. The insertion of a single advertise ment in Bell's Lifi may be equally beneficial to that of half a dozen in some journals. A sixpence, or six penny sta mps, jto Mr. Clement, jun., l'7o, Strand, will at all times in eupe a copy of Bell's Lift iy return of posh isTrbegeull'erlek.lpyttbesietishedof Belts" Lire exceeds 20,000 copies, in time ibr the Saturday afternoon railways. _Belts Lire of June 2 will contain an engraving of the Ascot Cup. THE NATt ROYAL ExcHAN(ail AND THE WEL LINATpif SrATUE.:-For soma days past several' men have bean employed in lvinaa fOundation _and basement, in which great progWie has been made, in front of the New Royal FAchange,.ftm the reception of the Wellington statue. The spot selected for the erec ti on of it is about the extreme end westward of the Bauloildi/ and opbsite the Globe Assurance-office, l A <7...• vAy strong fo u ndatio n of concrete has been '44 1 1 . 0 N DA to a depth of above twelve feet, and on that will be raised a solid block of brickwork, which, it is expected, will be finished in a few d a y s. O ppos i te th e western front or the New Royal Exchange a lofty scaftblding is now raised, o a level with the pediment, for the purpose of having ced "there the fig ures ,f rom t h e d es i g fi a and execution of 8.4. West ulacott and his assistants. .• - • s _ -- 17419°1181* far Adak Jig717ti1 777 r remlttitiees to 1 tuneqhlirreliavie,-,apdin-1840-the - nephew committed a li ' L l i a and Mina,- and other places,; which he , - suicide: when the frands . were about to be disco - mare( - . I must be given' up if they rigorously' pere,l aered : ~ In , the eighth case; .. a: 'batik • failed With ste I . • ( an. - confine their ':issrteit-qtr gold, 'and 'gold I liabilities to the' amcurk of - 157,9501.—n0 dividends. aro - h . ne. He would now proceed to other parts ' ofl How. much did the assets amount to ? Just - 20/.- 15 explanation, which referred to joint 7 stock banks (Laughter, and cries of " Hear, hear.") And yet there and private b'k an 3.- He proposed that. every hank i were-persons to he found who would stand up and s 4 this system was perfect, and required no change. Now Whic h had, .On the 6th of May last, the . privilege tit might be thought that it wasimpossible to exceed this, , of is e suin_g notes should continue to exercise'that privie :but he. would give them one case more. In the ninth ie , stamp-ice lung as it IhOiight taro per. He proposed that stance, the fiat was made out on - the 12th of JulylB42 ; f,.. of aMp-office should make out iminediately an estie. no dividend had yet been made s but the creditors had in ii! , ? e. the amount which : ach bank of issue had issued: --this consolation, that 7501. had . been made by race ever tli wo years last preceding the . 6th of May, and that horses. e --(Great laughter.) 'New he- proposed to 'take y banking-establishment having this privilege should - some steps to purify this system: - He did not wish t• . . continue in ossession of it to a limited amount till Par- Injure existing interests ; but if .safety and welfare of lianient should otherwisedeterrnine. He proposed, also, the community . required .a change, he thought the that every bank s hO u ld make a d aily return • to the peesent proprietors of private. banks, would have no Government of the amount - of its 'issues, froth which tust right to . .protest against the establishment of daily return the vytich n, ed r 4 tur to b S e publish tamp-officeshourd'Araw up a .weekly Joint-stock banks on a safe and sure foundation on paid 'in the .- Gazette,or some journal •up capital. He had shown the , House tha t it was im- • make should ensure equ a l p u bli c i ty . He proposed to possible to allow the present system of. unlimited com - a modification of his plan . , wi th res p ec t t o th e spetiti . on to go 'on.- He- did not. - object to increased cern ., . instead of. the . daily circulation of such banks. Thus, petition, but to the principle of coining mere credit' into ...eau or taking the circulation of each day, he pro- money 'without depositing security.-=(llear, hear.) Posed,' to avoid penalties, to take the average , of the Such a system' he believed was net in anywise inter tt-hear. its maximum . if a bank ssued on one day 501. more - woven with the prosperity of this country. It was sa id pro bank its miil a aiik issued on one day 501. more' woven with the prosperity of this country. It was said I %nk sho leximum, and on another day 50/. less, that that great inconvenience would be suffered from the pro thba . the u d not be subjected to penalties. He proposed posed. restriction—perhaps' there might be some, , but lai c 'the follovv . should also fix. • the- day - that would be but a slight argument against any chapge. taginwP-4ffikeoen which it would be most con- 'lt was further urged that-the people were not habituated .werieikentrteo publish the circulation of distant banks in the to the. Bank of England; that there would be a great by.thepdicednig. This would in all eases .be --regelated objection' to take Bank . of England notes; and that agri had been stance ofeach bank from the metropolis: There cultural prices would fall if aecommodation could not be banks. i som e eases in which there had , beense union of obtained from the country banks. He apprehended that such w n these cases the. rettuktroinishMBe4stlade in these fears , were merely visionary. Now at present be'enn away as to cause the least inconvenience. He, had the • Bank of England had a nienoptsfy of circula branch . b t it3lnks. d what he intended to do. with joint-stock tier . and issue - within. irixty-fiie. miles of : the bwaeilrkes..o ler allowed He had been asked if joint-stock banks metropolis. Now this radius included most of, the , hp wed to add to the'number of their branch pedant agricultural districts, either all or a portion. of were not is answer was that they might ; but that they the folios ing agricultural districts:--Essex, bent, Suf sa. „ lit to increase the average maxim= of their issue felk, Norfolk,. Hampshire, Oxfordshire, Northampton- Vn e .osecount. , It was bajust that there should be.no shire, Buckinghamshire,. and Bedfordshire.. Now: the husineesti should to this consolidation of the banks,. and that the . total amount of issue within this district, by banks, other banks, Vd ainsiunt to the, aggregate amount of both, than theßanksof England, . wee 1,000,329/., which showed thought theith regard to the number of branches, he that no great advantage had been taken ofprivate banks. , (Reese k 5 . law required amendment in this respect.— He had now laid. down the principles on-which her; it s th e e aok T ,t r h l s.. l - 1e theught iewculd be fur the interest of jesty's Government had determined to act. . The time bra nc h es, esseiy es beta that there should not be so many was now come when some check must be placed to pre present the 1: 43.e it was a source of great . expense. At vent . the recurrence of those evils. The proposed on four branches,wrequired for the, payment of duty only. measures would. be adopted with a- perfect regard to this lishtnent of .He w ou ld not object to' the estab- convenience of. the subject, and a perfect consistency with bann.:_. of n e w branches ; but he would require a - liberal s treatment •to existing interests, but s - above If e l b:,',", 3O/, on every new branch established.. all,• to prevent . those shocks - upon - the commerce t b e. so 7 been asked if he would permit substitution of and aviculture of the. country which had . hitherto Placer ',°r the father, and allow him to take the father's proved . so ruinous, HO - trusted . that the sense tk _ , -Certain he would. All he . wished was that and Aeling of the House would be entirely with , hitn in - P a nha should g i ve gua rantees for the continuance, of making a just compromise, and in placing this check . their _Privilege s , but should not attempt vexatious inter- ,upon the .recurrence of--those evils which, he trusted s ss .''atse in private transactions.- a (Hear, hear.) He had -would tend Ultimately to the establishment of sound an, altskeil i if be would interfere if there were five- new just legislation.—(Cheers.) - . , . Pa r tners amongst six. ,It was like the old stocking that ' - -Mr. C. :WOOD said that, as he had been chairman of 1 2 1 . darned, 'of which nothing- of the old stocking re, , the Committee of Banks of Issue, he would say a few • t 'natls His answer was, that he - could, not interfere Wet* tothe•Hethie. He 'thought 'it was of the highest wi ththe sale and transfer of.banki. .If he made a law on importance that ..a principle should be - laid'- down the- 5 .,. 4 • ..., ... -eject-It would be evaded.: _He had been.also asked by • which the monetary, ~ system ' should; be .7r . i , -their' he would allow those bankers who' now &cu.. - guided.---(Hear, hear.) The last time -an - attempt .. i a_tettllank of England notes to - substitute their own' had . been made, to regulate the currency was in 1819. 17Ps_ r - for the Bank of - England paper, and take the By .that . measure a return was made .to a metallic . .. st er sge of the twnyears; He did - not propose to permit standard, ami be hoped, it, would continue.. None of the ink Of arrangement: 2 But then he proposed that the metals was so unchangeable as gold, . and - that alone was t i os n 't of England should grant those banks accommoda: •ft reason .with hini why he preferred a gold standard 'to 1. ,..u5r the mosafavourahle terms. The Bank of Eng- any other. He believed those who were anxious : for a :2 1 !? ta r adtransactiona with those banks of a double dm- silver standard were so with a view to deprecietion, fois ; 11 7;%. It permitted them, in some cases, .to . open silver had fallen more in proportion than gold: At the. -;,.. ni c punt account at a . rate of three per eerie _present moment there was reason to believe the .. sepplY I<n ,other cases the banks have given one per 'of • geld - was increasing faster . than the supply of 'Es on the • amount of bank notes in circulation. silver, • and if that were so, those who were anxious. The as. st allieproposed to:put an end to the three per cent._ for a depreciation -ought to be cautious how': they_ 0 1 r— um, and to substitute the one one per cent. for the changed the standard from gold to silver, . :The ounce -- " Per cent., and the Bank of England were quite of gold was:at present valued at 3/ % 175. 100., and the: ses. pereto. enter into engagements with the, banks . pound in gold contained. 123 grains and a fraction, and .... Lungits paper for, this purpose. He- thought it right by. that he hoped they would abide. The Hon. Gentles _ '"' make this public declaration on this subject. He did man referred to some•evidence which had been given. pot think there was any. other point of importance which before - the Bank Committee,' of which- he was chairman:- r?_ eeired explanation; and here- he might terminate his . and . said that the system of free trade in banking hatl' n a s ,n rvations, and permit the-Houie to resume the dis- beets fbllowed by the most' disastrous consequences in: ~,,,s s .s . l Otil , but that he had been told his chain of argil- America. In 1830 there were 329 banks in the United. •; . ,,72 1 . on the former occasion was incomplete-that, there , States, with e capital of . 145,000,000 dollars, - and air. w i' l l e l2o necessary . connexion between his premises, issue 'of 61,000,000 dollars. In 1837 it had in- - th u. n , Some readily admitted, and his . conclusion--e creased .., to, .677, : being more „ than , doeble T . .., o ,_ be did n o t show • a necess ity for interfering with the capital was 378,000,000 dollars, and the circulation: bmaq-nketreulation of country banks and of -joint-stock:' . .had more than trebled, being 186,000,000. But in the • issue s, or of . :establishing a , central . ,bank • of May of ;that year cash payments had been -suspended: er uct ' i . and giving increased control to the i Bank through the. Union. All the ,evils against which they. i n . th nkhtild. •He w as not conscious' that , any link were anxious to proVide had desolated that country from ' te lt e chain was --wanting, - ' because he had at- one.extremity to the other. But if they looked to what 40te p s ted to sh ow t h at co m pe titi o n among the issuers of had taken plaCe in this country in. 1839 it would show i s ot .was a bad principle, that the same ' arguments did they were not quite so far off frOm suck . a state of things • e t h e a PPlY to that branch of com m e rce which applied to 'themselves, and it was only by adopting .the unusual i sm :- He had shown- that unlimited.Competitionin the course of applying for foreign credit ae a. course not very If t h s el „ f .notes .was bad, from 'the example of America: henourable to the character of the- ountry-s-that thes_ for w - f s ,'"uld let bins go.to the colonies he could . bring were able to avert those evils which took place in America. d ),--. greater Proof that the principlebad one; This-was owing to the unlimited - circulation of paper ; fr o ''' would now trY to bring it to their conviction, and it was worthy of remark that, previous to this time, •e a rx,i e the experience furnished 'both by: England and the circulatien was greater 'than at any former period. 0 42 , that if they were wise they .would , take lie did . not mean to deny that - the-circulation of ,paper tb e - ,: tt 7. again s t - un li m ited, competition -in issue; was a great benefit, but, in order to render it safe, proper ha ti V"llltl increase .the control of the superintending securities should be taken. Those , precautions, were ; si c i ss ! , and . thus prevnt those terrrible alternations 'and Such as subject give paper as much as ,pessible the value - yelu e ' lt ,, u f dea in that medium which was to - regulate the of gold, byng it to the same regulations: There oush; r e very thing, and from which . they had so'griev- should be as much paper as was just necessary, and no , ii er i,',..auffered. Now-, fie would take the five great - more, and previous deposits of , bullion equal to the • a„,,,--- , when -this principle of convertibility had been in . einoent -of. paper required sleuld, be. mad.e. , Tha danger; and he would attempt to show them;that that would ensure convertibility ; but something more than t sne ger nod arisen from the unwillingness , or. .hicompes. 'convertibility was-required. That would -provide means _.„)!..Qf count bankers—he excluded joint-stock banks of circulation, but it .. was inadequate to check paper be asst,i's s contrect their issue.- There were, in Met, five great, ing put into circulation. , There were other checks, no her r's--. 1825, 1832, 1g35, 1836, and 1839. Itt "Novena- -donbt, such • as . the fear of consequences ;' but, there, of , 82 A, the Bank was possessed of bullion to theamouet were not the same checks as existed in a metallic circu- t o ' 3, ;.60,000/. In November, 1925; it was reduced lation, for bullion had to be taken to the Mint, end if etteb 3,o l2,ooo/ Now, it was quite cleai . that there they applied the same Check to paper,.. they . took all the en - s - ,, t •to have . been a, great reduction - in - the - security that could be 'required. The most proper courst , b, l b „ —n t Of circulation.: He knew some persona thought they could adopt was in his opinion, to require deposits . P es ,"ss enterite , into a, useless conflict by attempting to of bullion previous to the' increase of the paper circulation, s't, — ?..n,strate that ; but pamphlets, - based on the oppo- Tip to 1833, all that the Bank of England required was. p l e Viliciple, were issued every clay. , There was one to have good commercial securities ; but, in :Is33,;ft new ri,:tsbed that very dayes" A Metallic Currency e Bar- rule was adopted; which wink a nearer approach to) sound e - to . the Progress of Civilisation, and the Primary principle, and it was, in point of fact, that which the Se-usle of Restrictions, en International Intercourse, with Right HOn. Baronet adopted. - Beginning from the year n .° lstions for placing the Currency. of Britain 'on a 1832, during the eight years in_ which thet. rule was in 1::: :I s is." That basis was a .paper currency, which, operation, the difference between the highest and lowest . le,. said to be adequate to the growing' denianda of the amount of security was 10,804,0001., and that between- - iss ', 'ere was the old doctrine that. the State' might the highest and lowest amount of bullion was 8,178,004, tree whatever it pleased. But he assumed, that the and the difference between the highest and I::kweat . ata,, - ,i majority of that House were in favour of one amount of circulation was 3,334,000/. That which pagard, and that standard a metallic • one. If that ought to vary; varied to the amount of three millions . ; . . 4 4 ne epl were right, there ought in 1825 . to hale been a - and that w hi c h ought not to vary, . varied to , the 14,4 t iiin in . the - 'amount of circulation' ; but, in- amount of 10,800,000/. • The: rule, 'which was suited to . had I?_f , diminishing, the notes of the country' banks ordinary circumstances, was fotind to be broken through In i to za areased from four , millions to eight. ,when a pressure came. He was convinced of the • in -9,849 000 the bullion in the Bank of England :undiluted to justice of the attacks which had been made. against the 4,0 0 '",,2 0 /., in 1837 it" . had diminished more than Bank directors. . Whatever they did, it was from a con tlee "'" 0 /. Did.the circulation of the country banks viction that it was the best for the-public, uninfluenced is ease during the latter period.? : No,.it increased—in by any consideration of private interest. Still less did la e o s tne cireulation' of the country banks was about he . blame the issuers of country banks. They acted 1 4.4 'Mot, in 183 Z it had increased to 11,310,0001. upon no rule. They did not profess to regulate their a e r i: l ig-a..st) 1836, .when the country :Was on the verge of - issue by any particular yule. , Mr. Hobhouse, in his 1 11 , 134 4 In monetary affairs, the circulation of the coun- evidence, stated of the country bankers that they never WI at ni h was more than - 1 0 ;000,0001.--(Hear, hear.) pretended. to . excreta!: any power over the circulation. of r ,„ '''' ‘ e "anted to show' was that during these periods. The .consequence was, . that while_ the - aggregate itylei s tt ,Lenibtirrasiment, the ;coUntry, banks, so far from circulation increased largely only from . March, ing h;' 4lm ing in the embarrassment, were daily increas- 1838, to - September in the same year, the th, 26 circulation, and_ thus aggravating ,the evil. On country issues increased largely from the former period - gland ~..t h of June, 1838, the bullion in .the Bank of Eng- up to June 1839: They were at a minimum, when - Ma l s " s as 9 ,722,0001., in June,-1829,. it was reduced to bullion was at a 'maximum, and they were at a maximum inst esa " . " 4 /e whilst the circulation' f the . country banks when bullion decreased six per cent. He believed that tae re 7„, of decreasing had increased from 11,740,000/. the principles laid down by the Right Hon. Gentleman ?ale s ' s a s li 12,000,000/. when the Bank of England had were sound as far they went, and the question really 'or i - '' . " 0 ,000/. in its coffers. Making every allowance was by what means they could introduce principles still (aealProvidence o n th e part of the Bank 'of • Englund sounder. lie believed. that the power of the public over va let . e did not w i sh for a mom e n t to,defend that bank a papr circulation would be just what it was over a that the was liable to the 'charge), it was. quite - clear metallic circulation. But he was bound to say the Right giffa u e country banks were, even in times of monetary Hon. Gentleman was • entitled to the credit of having eiceui s it t l i c o lreg . ulated by. prices, and . that their increased _brought forward an eminently practical plan. There „sal ts -e s ; Only -,added fuel ao•the fire. The. country were other considerations. connected with the matter, s ._'"cir a"'" 110 doubtrendered great. service, but he asked but taking the plan as far as it went, he was ar a ;Pc_ates to remember that when such disasters bound •to say it was eminently practical.—(Hear.) 4 • 4 4 e, r d . ' " must be now fresh in the mind of every It was impossible - that a drain should happen when the thr e entice:tan who listened to hire, and occurred too bullion was so . low, although the knowledge that it was Tankgli . f . s the want • sympathy between the country so might tend to . incre'a'se the draie. On the whole, `', s ear and the Bank, of England, it - . must be taking'all the circumstances of the case into -coasidera ' ",.. I s r.,'" caution was requisite, that they had Lion, he felt bound' to say that althOugh at first he felt tt . " . k ti '.., 1410 not against the , use but the abuse some doubts upon the subject, he was not all prepared • . . ,''' %hi '" cr Y -banks - and that ; legislation. •on to quarrel with the amount of security. It was exceed itee.seattZett in some shape .or other, was i.Mperativvly ingly . desirable that persOns should be aware what was 4 tles 'Y , in ord er to p u t . a stop to improvident circe 7 ._ -the first 4ppaient drain in the returns of the circulation, „, t4 s r y o'i s- ,., (Hear, hear.) When he looked back to the his- least any alarm should be excited in the public mind, •i'''Y su Private banks for the last thirty years, he was He believed there.were about twenty-one millions of notes ‘B4a -r Prised that „l IT would take . it tins resery . Q - first 'returns _fort-he issuing department would - show an ~- ' ''Prisa t, real to the House, from a return, the number apparent increase of.bank notes to the amount of nine 'ery s h, — nanks which had become' bankrupt - Within a *millions. That . amount would rather ,startle the public t nllte . 41 time. In , s. . les fss , . , .1840 . there were twenty-feni batik . - .unless they . yere apprised . that the increase Would* ate ban, Private banks—twenty - four bankruptciesof pm- more in appearance than` in reality. ' What each , depara- , listsits -.42f In cite year !In 1841 there were tvi , entpsix; ; ment•did with these notes would, of course, appear in °l' th e Ati""tidin.lB43;eleyen.; And as an illustration the returns ;.he was only anxious. hat the public should .. 'tis - sYst ' . etitlass. ern, he would infOrm thern..tbat out of the be apprised that there would be an . increase, of, •'-itte n ti out c ' . t r . ' b anks,•ieventee a paid -nd dividends—seven nine millions in the Bank circulation.--(Hear.) 1 i,, t twenty-four d - ..tensit, - hanks paid no dividend% ! What He now came to the_ exceptional power of increasing that b Y of - individual suffering -mast have been pro- the issue upon 'depositing security, and he was willing . . seat t b_ Y these failures..---(Hear, hear.) It was said that this should take place in the cases . stated by the taut ~•hapeopie might have refused to take 'their notes, Right Han. Gentleman. The House was willing that, so • gha t e h t oi Wtta the poor farmer or retail , dealer - to, ,de ? long ai'theßightllon. Gentleman was Prime Minister a s ??._ , opti on : s e had he Y . This . descriptibn of 'persona had of this 'country, ' This - peaver should remain with him 1 ett 7 t i t 'e to let the occasion hear._) l t. . I,vas impossible for the --(Hear,.heer)s--but before he hid got out of doors, - tie. Right Hon. Gentleman's propoSal, had Y against the ca 'st" Pass without, .o.ving _some - se!. after listening to ankt made as bee n ., recurrence of these: evils. A return he. as told that this was considered in the Bank parlour We 1 n PtcY C ' ' of the number of bankruptcies from the an exceedingly convenient mode of increasing the issue a d read 'lnn from Ari 1,1839" to 1844, . and he whenever' he Bank might desire. He thought that was ord,,,.testhe House extracts- from this return;lP : a malt aeriotts objection to the proposal,' and' the objec s le • t° sho ' the f i w the nature and cause of tbeSebankruptcies. tion was stronger when the power was in - the hands' of ‘ )/! r's r " in stance th esnt Pecul at i on , e: cause of bankruptcy . Wes , the Government than when it was in the hands of the , min town inn Spanish bonds. . A bank in a : flank. Let them only imagine a weak Government pro. tg on e which everything 'appeared to' be: teeding to exercise the power,- and he . felt sure they rice . - well, and in which the titmost confi- I would cOnoltide that must be most dangerous ; in factot enga. e d 7" reposed, was s . it the same , time to • iht take away the - Very essence of- the' present . .plan, 11° 1 cuss 1 a most hazardous speculation in Sanish wh i ch was itself .. a .. check to issue. However, he it -' and When , could „ sit . the sudden crash came u - on the bank thelight , the alteration . proposed by the . ..on. . 'Right 'TT r OttA ter 48Yane. dividend. - In the second inSianee the Gentintllen tended ',materially to remove this objection, , fhe-necessity oarCh an a aPtee ss sptrit-merchant,.and the cause of his bank- ,He confessed he d. 41. no.t e ( :' tilt pa, alle_ged to have been paying his father's arrangement. It was'quite clear that so lone• substi, caesreeitwaB h 13 k b ' - Id ' „.,..." third no dividend irethis case either. In : tuition was made out of the reserVe t 0 on wou gam . 1-..ll,e,_ioned b Inahe fourth in ' and dividend, was bad speculationstoo s and there was , the whole profit of the transaction, but if it was obliged instance the bankruptcy lira§ . to obtain notes by depositing a larger amount of security Wereaitrupt s is l' 1 , ( .'" on railway speculations. These the. - withle profit would 'go •to the Government. • The ' into not ti:,4lits.PilE.'4 the medium of exchange—they B a nk had no inducement to come to. the - Government apee,mon_, and in capital—d in their own they were conveitieg Ciedit to obtain that power so long as they had es Cadets :a !: ~_a_d then entering into; great - railway hands a 'sufficient supply of notes to enable them to make "tied to eo .'" , the twat case the bankrupt; bad sue t.h, v batitution; He quite agreed with the Right :Hon, est ate, a nsinisrable propert he hd ' tai-asor and overdrawn ass • y. . a mortgageds. Gentietaass as to t..p , P WhOie - oWn interests so r b ing rnotes to the Auntiprivate moonlit*, issued pro- communicating will.; tOsp. parties . . the whole of 14,0001., and, after 4.17, ' were:more iinnlediatelY-concepled, 9,1- E.l he thought ' , a ..17z . able to niakeprefit of the bank, failed, without. stable. to the _Right, Hon. ta t s 14 1 4 4 471 'tour h ea " the bank, an y retire to his creditors. In. he colialguit4" tiAtt'aitov".bad shown .every 0 1 .V9sitig's .t° it i s lLl Y , had been • though apparmtly going ;I n- fa-: amend. the law as fax as own-4,mv4 wag fennirecl. "Hp arue insolvent for Many yeaea • La length: • thou ht it "exceedingly 444-14111141 sh.mo renninbankrupt from hay' lost . v .g was 'desirous 13 , erite - ( . 40s e , I' and 66,000/. I- t ing large smile - CR itale,i - know what.was the amount, of the notes' in s . ft . the unclothe seventh ca a commercial house in Giese tits. ef England. ; There . was an, lestneese money 100 and th _ e the bank was conducted by power ,in .Vise . 144. - . .ctit. o-if:hatcsalgi.Perit,; if it ,0004, e nephew, a in 1838 -the uncle di , and the nephew dissipated had . in_ reserve nine millions a „ TAPIWY .in notes, e died leaving a largo fo There might be immense mug 9032 , nney w . 144, 4 VacT II `~ 1 1 I , a I