The Sun. — London, England, 1847-05-11 00:00:00

standing 1).?- opposed this bite one pro s to the Ist it should be the operation to the able' stood) to the should O ro osed .1 b: House; and Governmens to adopt 901 ,11 respect $0 at the Noblf he bad P rcr. ourse he wag se for him to &vent, ❑ disposed ( &M, and Bisr h e thoug ht Lord was to ay, an d the a lways ex - I of out-door e 3 because h that be Po' ingouta -door tenwe rarY Iyed i n the ) ,ving no new it. bt it n othing relief for the before the igree d to. e Nouse re rough"P °EI q uarter Pot V 10. Four befora ce at th, fi rt h r o rre n - d Gant te, Amb e . ion 1411"1 rtDl sir 'X l2 ' Strutt, 01,111. Wing °f lb° 3111. the the to -- ,,thing that e-- r • cited -e rwith• pan, rs er )Sbi es i w rit r i s I. t h e a l_ id ri s nc " P •d dolls Fortifies the da fr°l3i a wi de F tin nill i the sPr ro n a I ,l °_, lln e d ce i s telt o hms e sili ester . aid T . arges 01 &A 02 „,1ed .4 read a thl ow 1° ;sed, on the :ENT AND ding of thi. notice, tbsi plsorY P°l was with' osecl• brag" od Coat ',ado> Edmu nd'* , Baltic aY West Lon rit of West wsraith, and %away near Glusg °l/ on. No. 1---Ev 1 Docks). iVeannouth in Railwil I RaiiiVAY burgh and D a, and or' , s. L ather eon- ' t wat' (Sale rE ssioN It rUCtiOO to 1 e Extol!: f the Fie gain contain 01' word " s hould be I an d coo' ;omPlitT w e i e s ording "- ent goo ier' the 511°6 L lt ed, 13 it be eared of rt tit les h thr °ll4 a , e rule 1 1,', from, frog tiOns ,AitiOn fro m letitiODsll► [don from ber of e Poor-I ;ned by a Le Medical i B r isCOL ar of thP %1 pi' Ll. I Pet Itloo 52 other I by 340 rade and ion in the by Yari" , of O le. g cusses , a the r atesbead ly signed measur o, Inder it, • of this ,titioners petioo ri ted rash R moped o,,,,ttee I IN n of tb® Ind th' is be qo lugl 111- I •7 5 . • . ~.........................--......... creased ey 30s. a q .... 'pro babili t uarter, and th a t th ere was every y of a further increase. He wished, under inch circumstances, to know whether it was the inten tion of the Government to prohibit the use of grain in distilleries for a limited period? Lord J. RU SSELL said, that in the absence of any that n otice on this su bj ect ho was not prepared to answer question, and howev ehc shoul therefore take time to do farther t Hre might, r, s d tate that he should bring beforerbe th e H ouse on an early day a measure for the suspension of the duties on corn for three Incliths--(Cheers from both sides of the House). r ose to bring DISCOUNT ON LOANS. The CHANCELLOR o f t h e EXCHEQUER th en before the House the present monetary condition of the country. He said—Mr. Speaker, lam not aware that I need add much more- Mr. HUME—Speak up.—(Laughter). H The C HANCELLOR of the EXCHEQUER—I need Hot add much more to what I stated to the souse on Friday last as to the intention of the Government with regard to the present state of the til ,"eY Mark et i n this country. I stated on Friday n ight that I proposed to submit to this Committee a re solution enabling the Government to allow interest by l i , of discount on all sums of money made by the contractors or contributors to the loan, in ~_a ntici pation o f i nstalments due on a future day. What is the resolution which I propose, Sir, to put into Your hands. I stated then the allowance which the government is prepared to make, and I also proposed to state the amount of the discount which we are pre pared to allow. But perhaps it is necessary, for the satisfaction of the House, that I should make some additional statement by which all depressions and all P eres May b e avo id e d , and b y wh i c h t h e G overnment ecurities may be admitted as available in the market. lan " free to allow that I did not apprehend, and that I co u l d not be aware of the high price which corn would I,„ litt ' ai ut and the pressure which will necessarily felt in all commercial circles. The natural tonsequence of the high prices of corn is to create a con able pressure on the springs of commerce. By this aneasure I hope to prevent that pressure, and I feel cer tnia, that if rightly used, it will prevent any such result as that which many have anticipated. I am quite aware that by the measure which I am about to propose, that the 'tenth will be to impose a great additional burden upon the public. Hon. Members are aware that it has been Illecessary, from the high rate of interest in the commer cial market, to elevate the price of all securities, and the consequence has been that Exchequer-bills suffered a great depreciation, and it was necessary to raise their 'yalue in order to give a greater facility to trade. This is necessary, not only for the transactions of mercantile men, bat for the interest of those artisans whom they employ. Z believe, therefore, this measure is absolutely necessary fn t the credit of the Government. From representations ',__ . lll ttleh have b een ma k e to me , I fi n d t h at t h e tra d ers an d • ..L u ken of the country have been unable to obtain the ary supplies of money to enable them to carry on ,theit transactions. The bankers of the country la 1* li nable to discount bills as they could d o of Prosperous times, owing to the scarcity In tiney which at present prevails in all `s . brunches of trade. I have also been told that the in 44`;`1: .IcStment of large sums of money in railroads has had a r,.' cne s i d i,.. - ~. orable tendency to withdraw capital from the or l.-1 uillar Y sources of trade, as well as to render money •,•,,_ m ore scarce than it otherwise might have been. I have o . r, i heardh. that „, many parties in Lancashire who have invested -,.;" their `" °ll eY in railroads have preferred to sell their shares ~ 'at a discount rather than pay up the calls, and of course ', ~ that circu ~ • , a _ . Instance has naturally tended to increase the -.• scarc i ty of money. ' , its _ Mr. fitp,,,,, 5,. -,. .. also I , ite a h n ac d t lia la; I. ° speak with laughter. s t) back turned to the - -Speak up. It is not usual for a Member House.— (Hear, ;CELLOR of the EXCHEQUER —I find soon. _,. system has prevailed amongst the moneyed . ,___ cr London. of withdrawing their money from w'rernroent securities, and purchasing, with the - snouey ' share so withdrawn, goods, bills, and railway - 3 at - .:441111:ttarlz_bralerlYof Tory large discounts. At first this led to a great increase in the bills brought into the market, and when the , ... et or p an - Au came, the bankers, in whose hands the advanced placed, found it the more difficult to get money , :i ....,... , . toretaia.: : , : ti e l. h em e I• : seed upon them, except at very heavy discounts. . 4as further represented to us, from the unsaleability quer-bills, that many men were unable to ' -0 [W e ... 4) : 1 3 , money on those which they held, and conse ''' -14°141. / the effect of the measure lately passed will be ~ 4111/,:ilitate them in such efforts, and it will also en to dispense with calls upon the bill-broker, , . zilit;:urther, it tuust alleviate the pressure on the money lock ed t by bringing into circulation capital, until now `'Would 1 : 1 1 3 . Now, Sir, lam not prepared to say that it ex c. , t a le been possible for the Bank to have dune this, th e 1 1 ; With the concurrence of the last measure, enabling kteh e arik erS to pay their loans by advances with Ex . ine pt ; however the object of the Govern pae t va s t o put themselves in funds, by the a eh , nt : the money now lying in the banks. Sir, the ex ofii.,._' the demand upon the Bank has been exceedingly ',-oited. I made no more than the usual call. I bad forewarned the Bank what the amount would be. 110 t was there any reason for alleging that an *antra:ice or pledge was given at the passing of the Charter that such assistance would not be required. I can find no such promise; but I did observe, that in consequence of another measure, the equalization of • dividends, there would be less occasion for a large demand on the two quarters, when the larger amounts were paid, but on the other two quarters the demand must of necessity have been greater. I think, therefore, that it was an exceedingly wise measure. If I may be permitted to read an extract from a speech • which I myself made on that occasion, it will be seen that I then predicted the result of the measure. The 'sight Hon. Gentleman here read an extract to that ' effect from a speech he made in 1844, and continued— : Now. Sir, I quote this to show that the operation of the • • measure was foreseen, and that no expectation was held e at of an excessive demand being made. I h ave th oug ht `6 right to snake this statement for the purpose of cor • tooting a misapprehension which a great number of gen , tlem en have fallen i nto on this subject. It will be seen, ' therefore, that the time when advances would be required 'Was amply foreseen, and time given for preparation to pro 'tide for them. With regar d t o t h e contr ib utors to the loan, It has been my object to give every facility for the purpose of easing the money market, and my experience in public ad private life h as t aug ht me t h is, t h at dr i ving lt !lard bargain was ad v a n t ageous t o ne i t h er party . In n ' ao doubt tr ue , th a t w h en tra d e i s b a d , and the aZ i n cY market feverish, the revenue suffers. During th e tha t fortnight there has been a considerable reduction in fe w r eceipt s at the Custom House, yet within the last hop re a Yli. I am happy t o sa y, mat t ers h ave muc h ', and resumed th e i r usual eland course —( Hear, fori zi things ar e muc h eas i er than they stnh Y were. Th e f un d s h ave also fallen; but now I are -u Ppy to say, from the report of to-day, that they has arisen and there h as b een an easy day. This ad, from the reduction of the loans to be In the eXchanges with America. This is, therefore, I,l4°Jeti account, and I would have hoped for atutudreed _, prospects in the future, were it not , A n far u with a rise in the price of corn.—(Hear, hear.) is decide as London is concerned, the pressure for money 4,_edly relieved, and I hope that it may extend to e 'L . p.„,rovinces, so that a restoration of trade may be 14 „ - "`e". It is, however, impossible to deny but that -- ril had risen to a fearful price; but the Noble Lord Id the h ead of the Government has given Ootice of th e only course by which to prevent its therfur increase. No doubt to some extent this might nave arisen from the exportation of corn ; but l3 l 2 m o a o y o observe th a t w hil e th e ex p or t a ti o n ha s been o about quarters. t for h 3 narters, the quantity imported was 44.8 week the amount entered home consumption Was hi proportion to 17,000,000 quarters per annum. The entry for the week of bread stuffs was equal to 200,000 quarters. The entries for all kinds of grain are 33 3,273 quarters, or, at an ordinary calculation, at the rate of 17,000,000 quarters. Lord G. BENTINCK—For what time? The CHANCELLOR of the EXCHEQUER—In the Veu ,k- - (Laughter.) L ow G. BENTINCK—Is this the amount imported, br entered for home consumption ? The C HANCELLOR of the EXCHEQUER--It is the amount entered for home consumption. I have said that the entries for all kinds of food is 333,273 q tl arters. I cannot g i ve the i mpor t s o f a ll ki n d s t - e uro, but the imp or t o f b rea d stu ff s has on th e w h o l e 1 Pt on in a p ret ty equa l i ncrease , t h e differenc being l ess than 3,000 quarters per week. Ido not know . that Is r r i l ti e ed state anything further on this head. Since an,.' ll l night I observe a slight alteration in the pay sitille.tsroade into the Bank of England, and the autho. h ot, : there report to me that a good effect might result foe the extension of the period of payment. I there of 7 o P r opose to give to every contributor for every sum te „ ° ; r leY, in reg ar d o f th ese instalments, which shall ' 5 p si , - ` 14 on or b e f ore th e 18th d a y of June, interest at ev er cent,, and in like manner I propose to give to 18th, eentributor, for any sum of money paid from the e ef tat °f June to the 10th of September, interest at the A ras e ' e ,, Per cent. per annum . The Right Hon. Gentle. Whetherlr' On itchided by reading the resolution. 4. motion being put, Mr. SIE rose and said that ho was not aware th e t ?in making the explanation the Chancellor of tio n xoecooeuer had explained anything to the satisfac that • n 11 ° 11 . Members, but he meant to say naiadin the but h e xplanation he had not shown to his th e ea a o n ri Y e re ason for the pressure which had arisen in that the ' Y and commercial markets. He complained Inter est e had - of naoney had risen which had occurred. g l ren no reason for the changes to five per cent., Whi c h Re stated, as it seems, that these changes spinhad taken place had put the capitalists, who had see mo neyei neL of others in their hands, into great difficulty e its o e n t e neyate of interest had risen. Why he, speaking f o basherh had placed money in the hands o . would, under such circumstances, only be too to have it ready for a call. He, therefore, `. l gttt th tth reisinees ad e Right Hen. Gentleman had been much ail j„___:lethat he had assigned no reason why To ,. 44;re se 01 the d -4.0 1 4 ,1 tau , iscoluit should have taken place. - 11 Qtlung as a reason;for any AltentiQu P the , A + _ TELE SUN, LONDON, TUESDAY EVENING, MAY 11, 1847. interest, and had said nothing either that had to do with the currency of the country. He expected that the Right Hon. Baronet would hare assigned some reason for the changes which had taken place since 1844, which would have been an explanation of the extraordinary pressure which was now felt ; but he had not done so. He had taken the trouble to make a long extract from his own speech, certainly. In 1844 the Right Hon. Baronet the Member for Tamworth (Sir R. Peel) had ma► l e an alteration in the law, and had separated the banking from the issue department, he though& very wisely; but he was not prepared to say whether the reserve of fourteen millions was sufficient; but look ing at the large amount in the coffers of the Bank, he should say that was ample. The deposits which appeared to be in the coffers of the Bank were more than those of former occasions. Be that, hoWever, as it might; having provided a bank to settle or fix the amount of paper issue, it mattered not whether that bank were continued at the west or the east end. There was a bank estab lished for doing that, and that being done, what was the next great change that took place? It was to place the Bank of England,with all her resources, exactly in the same position as any other bank in any other part of the country, leaving her to limit the extent of her discounts at her own discretion. It was expected that such an arrangement would have the effect of preventing a pressure of the kind the country was now witnessing. In that respect it had failed. It might be owing to the conduct of the Bank authorities therwelves, but he did not possess sufficient information as to the contents of their papers and books to enable him to criticise their conduct. He had no hesitation though in stating that it was never held out by any body at the time the Currency Bill was passed that the Bank of England was to make the same advances as before upon good bills. He must say that such a proceeding as that just now stated was never contemplated ; as far as he could recollect the speeches of the Right Hon. Baronet, he never made any speech anticipating such an advance, On the contrary, he found that he provided cash in the Exchequer to render it unnecessary to have these calls. He believed that when the Right Hon. Baronet lett office there was money in it to pay any demands made upon it. They had been told that the Bank had timely notice. Yes, he knew the quarters were corning round ; but what notice had they of the present state of the money-market ? Could any man have believed that circumstances would have led to the present pressure ? He considered that it was not fair to tit e Bank of England to have given such an interpretation, which was decidedly incorrect. He would be free to ;ay that the publication of the Bank accounts, showing a deficiency, had spread an alarm in the country. He believed that more of this pressure arose from alarm than actual scarcity, and it only showed what a delicate thing credit is to a country like this. He might probably err in the views which he had taken. He had approved of the first step taken by the Right Honourable Baronet, but he objected to two measures ; the one was his placing the Bank of England in a different situa tion from the other banks. It was not fair to the Bank of England to require them to pay in bullion, while the others were permitted to pay in Bank of England notes, thus rendering it necessary for the Ba❑k of England to hold bullion for the greater portion of the other banks. He objected to this as extremely prejudical to the bank. The next error which he considered Goiernment committed was that they should have any con nexion whatever with the Bank. If they wished Government to stand upon an independent basis, they must not permit it to depend on the Bank for the payment of its dividends. One of the first and most important duties of the Chancellor of the Exchequer was to see that Government had the means to pay all the just de mands which might be made upon it. If this were the case there would be no embarrassment or difficulty felt in the money-market, and the Bank would be free to apply itself to the accommodation of the public. He believed, therefore, that this dependence on the Bank was a great error. There were other measures also to which he wished to direct attention. The currency of this country was gold. They had a gold currency based on paper. Hon. Members should bear in mind that the Bank had 14 millions of issue based on securities, and for any excess beyond that they must have gold in their coffers. Be this sum large or small, it must be paid in gold. He asked the Government why gold should be placed on a different footing to other articles, such as tea, coffee, and sugar, on which merchants were allowed to make issues ? He maintained that free trade should be al- lowed in banking as well as in other things, taking cave that the notes issued were to be redeemed in gold if required. If the Right Hon. Gentleman the Member for Tamworth could not give a better reason than had been given by the Chancellor of the Ex chequer, he (Mr. Hume) thought they ought to retrace their steps. At the present time it was wrong to maintain the issues, when corn was I2os. a quarter, at the same rate as it was when corn was only 50s. What hai been the case in Scotland for the last century? There they had a different system of banking, and he would ask them to give one instance (of error which had resulted therefrom. On these grounds he thought the Government ought . to retrace its step s , an d th at t h e H ouse s h ou ld reso lve itself into a Com m itt ee t o i nves ti gate th e w h o l e question, with the object of placing the currency on a new basis. Mr. MASTERMAN said that nothing in the proposi tion of the Chancellor of the Exchequer had been stated which was calculated to alleviate the feeling of uneasiness that exists in the commercial world. IN fact there ought to have been a joint consent between the Government and the Bank. The arrangement made by the Right Hon. Baronet the Chancalor of the Exchequer would simply be taking a sum out of the Bank, in order to place the Exchequer in the situation in which the Go vernment ought to be placed without such an effort. It was not to be expected that at these several quarterly periods of two or three millions of deficiency th a t th e B an k should advance the money without some Gov ernment surety, and he would there. fore propose some addition to the resolution which the C . hanceflor of the E xc h equer h ad proposed. It was his impression that the assistance in the present difficulty ought to be obtained by some other means, and he would therefore state that the effect of this addition would be that the Committee were of opinion that nothing would tend so much to relieve the present pressure on the money market as an assurance from the Chancellor of the Exchequer to Parliament that he had arranged with the Bank for an advance out of the issue department of the Bank, such advance to be repaid out of the public securities like the remainder of the loan. Mr. GREENE conceived that the Hon. Gentleman was not competent to move the amendment, inasmuch as the motion for going into the Committee of the whole House was for raising the interest on the loan in the future instalments. Mr. MASTERMAN said that he had shown that the amendment was part of the proceeding. Mr. BROWN was commencing his address to the House when loud cries of "Speak out " were heard from several sides of the House, and the Hon. Member stated that his voice was so weak that he could not exert him self more than he did, and then proceeded to say that one portion of the nation was not consistent with the other. They were aware that in the export and import trade there was at the present moment great distress. Much effort had been made in the provinces, and he be lieved that part of the object of the present motion was to relieve the depression of foreign trade. No confi dence whatever was felt in the United States, and though there were large orders at this time in Liverpool, there was no suffic'ent inducement to send out the goods. The case was the same in the interior among the manufac turers, and in Manchester there was the utmost uneasiness prevalent in the several houses with respect to the imports and the exports, and busi ness had indeed assumed a very serious aspect. The condition of the country was this. The business of the country was stopped, and day by day thousands of her manufacturing labourers were being thrown out of employment. It was a fallacy to tell him that there was not sufficient money to carry on the business. At pre • sent there wero from thirty to forty millions of sovereigns in circulation, end if a portion of that amount were called in, and one-pound notes substituted for it, there would be amply sufficient gold placed at the disposal of Government to enable it to relieve the country from the prevailing depression without touching upon the principle of the Bill of the Right Hon. Baronet opposite. Mr. NE WDEGATE felt it to be his duty to state that he had long predicted that the result of the mea sure of 1844 would be what it had been so graphically described. It was impossible that any other result could happen, for there was no practical man in the country who did not agree with him, that his anticipations would be fully justified. Let them, however, not incur greater future danger by their endeavours to escape from the past. He was of opinion that an issueootf be b maintained.ullion accord ing to the present standard could not On a fair calculation the issue was twice as much as the bullion remaining in the bank. In 1798, the standard of Elizabeth, which was silver, was altered to gold. He had the high authority of Lord Ashburton for such a state ment, and that silver standard was one of which the me mory of man did not run to the contrary. The Right Hon. Baronet was in error, therefore, when he said that the present standard was the one of Queen Elizabeth. He could not hell) feeling—when he saw the Right Hon. Baronet prepared to pass the mighty measure of free trade in the last year, and, at the same time, determined to maintain a system of currency adverse to that advo • cated by the advocates of free trade—that the people of this country were about to be exposed not only to a foreign competition, but a heavy pressure in their monetary difficulties. By their present system, accord ing to the words of the member for Lancashire, they must either send their gold abroad or starve the people. One of the greatest dangers that could befall the coun try was to permit to have any power over the Bank of England ; it would give the executive a despotic in fluence which they ought never to possess; it would give them a control over every man's propt-rty in England, which was a power which they should never permit either to be held or exercised. He hoped that the noble lord at the head of the Government would deeply consider this matter, and although he might be compromised by his former votes and although he may be anxious to retain the assistance of those who were stiil more deeply compromised, to act like home country u h ag o rhk n tee from t s a t ses na irs a tt t n ahhn , eec a nee s e:eei h eli he sts hsbieteryl pressing fier forov er from uut h hpp e eop nl w ie o ist u would, and save thhotheyenabroad,pressure lh eof they h t v e h e y e r were met by this Act of 1844. For years himself and friends had laboured against that policy, and it was with no exultation that they found their fears realised now. The Hon. Member proceeded to read extracts from speeches of Sir Robert Peel delivered in 1819 and 1844, to show that the effect contemplated by the measures had not been realised. With the fact before them of the Chancellor of the Exchequer advancing the discount on Government bills, with the mills and workshops standing idle, and yet at the same tim e nine millicuis of gold in the Bank, he thought it was high time to retrace their steps. Could they forget that in oc casion the Bank having only 600,000 /. in gold, and 1 1 v 8 0 3 n 3 1 d , wi havet h o u s t t e t h p p e e n d s si p s a t y a n m c e e n o t ; f t a h n e d B t a nl t : e o T f iFrance another they 420,0001. in silver, applied to Mr. Rothschild to change the silver, and by which he cleared, it was alleged, t l h o e o nl ,oo t o o l. trusted the t e h n e a s r e a e c i r t c h u e ni y stances h a d h e e n w o p u n l r d s u l i e n a g d . and place the currency on a better foundation in re gardedfuture. Scotland. In 1843 they were a contented people, reconsider He of 1844, they had Mr. FORBES wished to say a few words as it but ever since the passing of the suffered the greatest difficulties, arising from the ope ration of the measure, and he trusted it would be re pealed. He could not see how the law should be altered • in regard to corn and other produce, and gold be made an exception. He submitted that gold s h ou ld b e p l aced on the same footing as any other thing that was con tinually changing in value, and he called on the Chan cellor of the Exchequer and the Government to reconsi der the question, and have the subject fully investigated with the object of effecting a remedy. Mr. FINCH said it was no matter what a currency was made of, provided it fulfilled the function of distri bution. The best form of currency for this country was a properly restricted paper currency, because it would then protect the commercial interest of the country from such pressures as that under which it was now suffering, by affording the amplest facilities for the interchange of commodities. If, however, they continued the pre sent system, none of the speculators would venture to send out for corn, and the people would be starved. He did, therefore, hope that Government would take this matter into their serious consideration. Already ruin was impending over the manufacturing community, but still the pressure had not yet reached its height, and it was the opinion of all parties, that if Government were at once to take decisive steps, the commercial world might be restored to a healthy position. Lord GEORGE BENTINCK said it appeared to him that the proposal of the Right Hon. Gentleman the Chancellor of the Exchequer would go but a little way to improve the state of the country, though it might in some degree relieve the Chancellor of the Exchequer himself from immediate and pressing demands. Ihe Right Hon. Gentleman had not told them whether the contractors for the loan were prepared to accept the dis count he had named. It was certainly below the amount now required for goods bills, which had only 60 days to run, and whatever might be the anticipations of the Right Hon. Gentleman, he very much feared Govern ment must yet have further recourse to the coffers of the Bank of England. The Right Honourable Gen tleman had told them that the money market was easier now than it was a short time back, but when it was remembered that wheat had reached the high price of 120 s. per quarter ; that the stocks on hand were exceedingly low; that the importation of corn Gwo rvee r n n a m d o e t nt c ot e a w somes e e re for legislative anxious m and cott on was considerably, above the quantities im ported i n t h e corresponding period in former years, it was not u nnatural to suppose that the drain of bullion would e some ti m to time enactment.t prevento c om come tthe e I gf, o I t tdh r e e ir c nef ou nt r rh s ee e , country from being exported the present law must be continued, but, then, what must be the result of that continuance ? Why, it would have a tendency to keep up prices, reduce supplies, and still further depress trade. The exchanges with America were against Eng land, while the exports were falling off to an enormous extent, and unless something were done instantly the price of corn must rise and the drain of bullion become greater. The prospects of the supply of provisions from Ireland were very bad if not exhausted, for from a re turn which he held in his hand he perceived that in December last, 15,000 dead pigs were sold in the Cork market, as against 3,000 in the corresponding period of the previous two years. It was sufficiently plain, therefore, that the country must depend for its supplies upon foreign sources. Now this state of things had not been brought about, as in the year 1825, by over-speculation on the part of the people, but it was attributable to the system pursued by Government. Out of 161,000 mills in the manufacturing districts, 728 were either working short time, or not working at all, and as that circumstance alone would have a ten dency considerably to reduce the exports, he confessed he did not look for a speedy return of the gold which had gone out of the country. Money must, therefore, of necessity rise in price, and, in addition to the manu facturing labourers thrown out of employment, it was clear, that unless something were done, most of the new railway companies must reduce their operations, and throw an immense number of labourers out of work. Now this distressing state of affairs could not be attributed to want of money, because it was well known that the coffers of the Bank of England, although locked up, were full, and all that was wanted to restore , prosperity • was to set the credit of the Bank and the country _at liberty. The position of men of the highest credit was at the present time most perilous, and he was assured, on the highest authority, that be fore a month elapsed, many of them would be obliged to stop payment, in consequence of the present difficul ties. lie was informed, on the best authority, that one house in Lancashire, which had no less than 60,0001. in bullion, were unable to carry ou their business. Was not this, then, a monstrous state of things, that they were obliged to prevent the importation of food, and to starve the bellies of the people for the purpose of keeping up the Bank Restriction Act of 1844. Mr. O'Connell said in the course of last winter that rapidity in the supply of food was with regard to Ireland the essence of humanity and of political saga city. He fully agreed with him, and called upon the Government to have no longer recourse to temporary measures, but to proceed at once in a rapid and effective manner to procure food f r the people, otherwise far more disastrous results would take place than they had hitherto witnessed. The famine would visit their own shores, and he now called upon the Government to look to the great interests of this country—which were not limited to cotton speculators or to railway promoters. Those who were walking in the steadiest manner in the legi•iinate pursuits of trade, would be involved in the general ruin. Those who traded to the east, and those who traded to the west, had to suffer in the impending distress. From all the indica tion of the late elections in the United States, it would appear that the tariff of America would become more restrictive than it was at present, and he very much feared that America would not be disposed to adopt those free-trade measures which had brought this country to such a crisis. Russia, also, that formerly could not go to war, unless the Barings and Rothschild% came to her assistance, had shown no symptoms of meeting this country on free-trade principles. He trusted, therefore, that her Majesty's Government would imitate the example of the great Ministers of this country who had preceded them in power, and would come forward with measures to take off the present monetary restrictions; and would also make an advance of Exchequer-bills to meet the embarrassments of the country. He hoped they would not persevere with the Act of 1844, and he was highly gratified to hear the Right Hon. Gentleman (Sir R. Peel) say;that no feelings of pater nity would induce him to advocate its continuance if it reared to be mischievous in its o p erat i on. N ow he 1 ) • (Lord G. Bentinck) thought that this dangerous opera tion was discernible in the complicated embarrassments in which they were at present involved, and that all these indications were grounds, at any rate, for the suspension of the Act. The Noble Lord then cited some statistics to show that the Bill would become more restrictive in future than it was at present. With regard to the conduct of former Ministers, he found thst in 1793 Mr. Pitt came foward with 5,000,000 of Exchquer-bills to relieve the then monetary pressure of the country. In 1816, when there were 2,000 bankruptcies, cash payments were postponed; and in 1819 further relaxations were afforded. In like manner in 1825, and in 1826, Mr. Huskisson issued a number of bank notes to relieve the embarrass ments in which the country was then involved. Lately the Bank of Fiance was much in the same predicament as they were at present, and it got 800,0001. as a loan from this country, which greatly relieved the pressure under which they laboured. To show the effect of this credit to the Bank of France he would just state that 200,0001., the last instalment of the 800,0001, had never been called upon, as the pressure ceased to be felt. Now, if the same system of credit was applied to this country, he had no doubt that the same results would follow. They had now three years' experience of the Bank Charter Act, and they found that its influence was most injurious, and that, like the barren fig tree in the vine yard, it deserved no other fate than to be destroyed for its unproductiveness. Mr. CARDWELL said, he could not but coincide with the Hon. Gentleman who had addressed the House, that when an Act had been passed, and had been found to be impracticably inoperative that then the time for its repeal had arrived. The Noble Lori opposite, who had voted for the Bill when it was brought forward, would allow him to say, that those who heard his pre mises must have been most grievously disappointed at the conclusions to which he had arrived. He (Mr. Cardwell) had heard that Noble Lord make statements in which he concurred, though he totally differed from the results which ho drew from those statements. That Noble Lord had said that he saw no reason why the pre sent distress should be permanent. All his suggestions , had been directed to the circulation of the currency. He believed that those who directed their attention to this subject would find it to be the fact that they never would be able to extract any artificial advantages they might arrive a t.—(ldear, hear.) Adam Smith had likened the currency to a wheel, which in its course spun round anything that was placed upon it. They had a certain quantity of articles, and currency was the wheel that bore them round. What was the cause of the pressing under which they laboured ? Not long ago they had bad harvests. This country undertook, under an intoxication, to execute larger works than it or any other country was capable of performing at that time. The predictions of the time had been realised, and the country was labouring under the effects of that intoxication. He found that the Bank of England at the time had not contracted its issue at that time when the danger began, and when considerable as sistance was demanded. He thought, in the respect to currency, that in the first instance they should have truthfulness for their standard, and in the next instance economy in its application. With regard to the first they had adopted a measure which was merely a complement of a preceding measure, namely, that of 1839. A tetroation had been offered to individuals which was too great for individual pru dence, and circulation was increased at the very moment when it should have been diminished. But they were in great danger, therefore it was a mistake to say that there was any new principle in the Bill of 1844. The effect of that Bill was to drain the gold in the country, which went into the private coffers of the bankers of England and Ireland. That Bill had saturated the coun try with gold. It was now said that that Bill had done much _mischief because it contracted circulation. lie contended that it they send abroad gold they diminished the circulating medium of the country. He thought, therefore, that the effect of the Pleasure would be the direot reveres of what no asserted. After a few words from Mr. BROWN, 1 Gentleman r.BAlLlNG who said had just addressedthathecouldnotco thncure House withthe Hon. (Mr. Cardwell). Other countries wanted corn, other countries were importing corn; France wants corn, and is importing it, but in France there is not such a state of financial difficulty. It might be said, that it was the metallic circulation in France which effected this, true it was that there was a larger proportion of metallic currency there than in this country, they had eighty millions of gold for fifteen millions of paper, while we have thirty millions of paper to fifty millions of gold. With regard to railways, he was one of those who believed that railways had been carried to too great an extent. At the same time he did not underrate the great advantages of the economy of labour, and the develop ment of the resources of the country which were obtained from it.—(Hear, hear.) People had invested their money in securities, which were unavoidable, and there fore he was of opinion that railway enterprise had been carried too far; but there had been other times when there had been speculation twice as great, but there never has been such a want of power to meet the engagements of the day. It was not the Bank of England which had mismanaged the matter. He did not mean to say that the reduction of interest was not a wise measure ; he believed that it was. It there was any principle in the charter of 1844, it was this, that the bank should in crease its paper circulation in proportion to the bullion in its coffers. There may have been want of discretion, but it was not such a want which produced this monetary pressure ; he believed that the realcause of it sprung from the limitation of the powers of the bank. The very fact of a limitation, produced the evil. He did not take any part in the discussion which arose on the Bank charter, as he did not feel himself competent to enter upon the subject of what should be the currency of the country. He did not mean to set himself against high authorities, but he would state a fact, that for ten days there was an impossibility to obtain money under any pre tences, and all from the want of power in the Bank. Well, then, ought not these facts to be taken into consideration by those who were the advocates of this proposition. There were sixty thousand pounds of silver, and not one shilling could b e raised upon it; its owners sent to the bank to buy it, the bank refused; it dare not, in consequence of its limita tion. They might say then, why not send to Hamburgh or Paris? But bills of a fortnight were even refused to be discounted. Did they wish to keep an unnecessary amount of bullion in the bank, until they could see how far the screw had to be driven until the whole commercial interest of the country was shaken to its centre ? They wished by the charter to make trade secure and certain, why they would make it the greatest lottery in the world, if they made money bear three per cent. in April, and in August thirteen per cent.— (Hear, hear.) Ther e was un d ou b te dl y a grea t pressure , and they might make it a panic if they refused to grant facilities to commerce. The Bank of England should have power to borrow of other countries, and not borrow in our own market ; where, the very fact of it so doing, only increases the scarcity.—(Hear, hear.) He thought, under the present circumstances, that the Government ought to have the privilege of extending the issues upon securities, so as to admit of its granting larger accommodation to the trading classes. He did not blame the Government for the present difficulties which had arisen, only so far as the policy they had supported ~had contributed to this result. They had goae on step by step to take duties off a variety of arti cles, and so long as business was good all operated well; but now they found a falling revenue and a disordered market, with difficulties of such a character as to force the Chancellor of the Exchequer to take the course which he had that night proposed. He thought the Right Hon. Gentleman would have pursueda wisereourse if he had not taken the narrow view of a needy Chancellor with an empty Exchequer, but had taken the wide and com prehensive range of all the great interests of the country, in the proposal of some large measure to relieve the pressure which at present existed.—(Cheers.) Sir GEORGE CLERK could not agree with the Hon. Member that the present monetary difficulties of the country were attributable to the measure of 1844. Under such a system as would satisfy the Hon. Gentleman, there would be continual danger of over issues of paper as no test of any paper that might be issued would exist, but the alleged solvency of the issuer. The surplus ca pital of the country was not an unlimited quantity which could be increased to any extent by an issue of notes, but it was limited by the real produce in the country which was forthcoming for distribution. This regulated the disposable capital of the country. This year they had had a scarcity of food, perhaps to the. extent of twenty or thirty millions. Other nations were suffering from the same cause. There had also been large investments in railways. The effect of all these causes was to restrict the disposable fund for the pur poses of trade and the employment of the people. He could not see how this evil could be lessened by the relaxation of the present system, and allowing the banks to discount bills with their notes. Were this so, the bullion would be all driven from the country, and a general monetary crisis would take place like those of 1826 and 1839. Though the issue of one pound notes might induce a short period of prosperity, the day of reckoning would eventually come, and the distress then be far greater than it could be under the present system. The only safe founda tion for a currency was a metallic basis, and not one of paper. Certain ho was that the measure of 1844 was not the cause of the difficulties. Under these circumstances he very much regretted that a debate should have arisen on the Bank Charter Bill. The lion. Member for Huntingdon held a high position in the commercial world, and if it were true, as the Hon. Gentleman represented, that that measure had produced such distressing results, it was his duty to move that it be repeated, in order that Parliament and the country might have an opportunity of expressing an opinion on e relationsun w the subject.—(Hear, hear.) 'With regard to the question of the currency , the value of a pound had long been it would commercialb attempted to re -open settled, t a l ale up panthdeeictoiuvonutrlyd,einftitrheelyy distress was to be traced to one natural cause, namely, the country had undertaken too many heavy works, and, like an individual who attempt to do more than he had the means to is o n f a y t that question. The present ac complish, it had overreached itself. The fact was, the country had embarked in too many railways, and they must wait with patience till it had recovered its former flourishing condition. Tampering with the currency would only aggrevate the evil, and he therefore trusted the House would adopt none of the suggestions which had been thrown out upon the subject, but leave it for time and the natural course of things to restore the coun try to a state of prosperity. Mr. DISRAELI was glad the Hon. Member for Hun• tingdon had not made the motion of the Right Hon. Ba ronet the Member for Stamford, because such a motion could have n o thi ng to do with the question before the Committee, and therefore would not have been entitled to their consideration. The Hon. Gentleman, the Mem ber for Clitheroe, had touched upon all those subjects, which he seemed to think they ought not to treat of. en but whi c h certainly had no re The Hon. G ent l eman had laid down certain principles for the est a bli s h ment of a sound currency, which might he difficult t o challenge, ference wh a t ever to the circumstances with which they had to deal. Th e H on. Gentleman also passed a very warm panygeri c upon the Bill of 1844, which had it been discus se d wou ld have at once decided the question they were discussing. The Hon. Gentleman told them that the object of this Bill was to saturate England with gold. That might have been the object of the Bill, but the truth was, there was more gold in the country in Sep tember, 1844, than there had been subsequently to the pass ing of the Bill. The Hon. Gentleman then endeavoured to trace the present depression in the commercial world to the fact, of the alarm not having been earlier taken. Now he maintained that they had no right whatever to criticise the conduct of the Bank. The Act of 1844 de fined its functions. By that Act they invented for the regulation of the Bank a machinery that was almost as perfect as the sliding-scale itself. The regulations for the issuing department were enunciated by the Minister, matured by the House, and received by the country, and they had therefore no right to criticise the conduct of the Bank, because that conduct had been defined by themselves. Oh ! but the Hon Member for Clitheroe said the Bank did not take the alarm early enough. Well, it was true in the month of August last the Bank reduced the rate of interest, but he wanted to know what them was then in the country which should have made the bank look with any alarm to the future. It had almost an unprece dented amount of treasure in its possession—he believed perhaps the largest amount they possessed for the last two years or two years and a half before. It was in a position to command the precious metals throughout the land, and being placed in that position, the bank had a right to suppose that it was justified in assisting every well founded commercial movement. True, it might have heard of a Member of that House moving that the ports should be opened; but did the Right Hon. Baronet the Member fur Tamworth or the Government give the proposal their sanction. The bank, too, might have heard of other Hon. Members complaining of the coming scarcity, but their complaints were put down by the Government, and therefore the Bank had no cause to look with alarm to the future. Ho wanted to know whether that document, which no one could falsify, and which any ene could appeal to—he wanted to know whether it was not a sufficient justifica tion of the Bank of En g land ? Ther e , however, was the Act of 1844 in a state of distress, and, as a cry must The charge be found to come to the rescue, it was found to be the and cheers.) Bank of England.—(lfear , of imprudence on the Bank was first made by the Hon. Member for Tamworth, and was re-echoed by the Mem• ber for Clitheroe, and it was asserted on all sides that it did not take precaution in time. He denied, however, that these allegatio ns were true, for h ad it not been for , the foresight of that body in reducing the rate of interest in the course of last summer, they would not now be in a condition to meet the crisis in which the country was present at involved_their merchants would not have scoured all parts of the earth for supplies of food—they would not have been able to procure 6 ,000,000 quarters of wheat to meet their own deficiencies —they would not now be exporting large quantities of corn to France— nor would the exchanges in Europe be influenced in their favour.—(llear, hear.) And though that Act had been so political, so sagacious, and so beneficial in its opera tion, it appeared from the statements that had been made in that House that the Bank of England was the g eat criminal, and all u p on the authorit y of the Right lion. Gentleman the Member for Tamworth. He be lieved if the Act of 1844 was properly examined the House might be led to a result highly beneficial to the country. What appeared to him to be imputable to it was that it could not preventh any of the mischief that whic was previously in arose out out of the system ence, but it could and did prevent the benefits which from that system. It failed in every obect that sprung first 'place they were it held out. In thetold that it like the financial disturbance would •event ything wer e called by the name of panic. and disorders, thatconsequence of the embarrassment of Now, it was 11 House was led to past the 1836 nal 1839, that the measure; but he maintained, that if the Bill had been in troduced before 1836 or 1839, that the disturbances which then took place, would have really occurred; and he would show that by the records of their own House. The bullion in the Bank at the commencement of the difficulties in the former year, was 8,000,000/, which, in the course of one month, it fell to 3,900,0001. Now, if the Bank had been controled (that was the word) the same results would have followed. The Hon. Gentleman then read a statement of the amount of bullion and the amount of circulation of the Bank of England during those periods, which, he said, amply, completely, and indubitably proved, that had the Bank Act of 1844 been then in operation, it would have had no effect in preventing or mitigating the embarrassments which then occurred. Then with regard to controlling the exercise of the discretion of the Bank, this Act would not have prevented the evil of 1836. During the drain of 1839, the Bank was obliged to raise its discount to 6 per cent., and it was only by the agency of the Bank of , France that it was saved from stopping payment. Now, see what would have been the result if tho Act of 1844 had been then in operation. The circulation of the Bank would have been nearly the same as it really was. It appeared therefore perfectly clear that the Act of 1844 would have operated no sensible difference in 1836 or 1839. Now, with regard to the fluctuation of notes, with regard to the bullion in the Bank, that was another part of the office of that Act ; but it as ould appear from the facts ho had before him that this relative proportion had never been maintained. On the 21st of September, 1844, after the passing of the Act, the bullion in the Bank was 15,100,000/., and the circulation was 20,600,0001. But at the close of the year the bullion was 14,800,0001., and the circulation fell to 20,100,000/. In January of 1845, the bullion was 14,500,000/. and the circulation 20,600,0001., and three months after the bul lion rose to 16,200,0001., while the circulation remained exactly the same. So that while the bullion increased two millions the circulation remained the same as it was at the previous return. Now, he wanted to know, if this Act had no power to control the fluctuation? All must own that it had failed in the objects which it pro fessed ; then how could it be proposed to retain it any longer on the statute book ? They all knew the pre sent state of affairs, bordering, as they did, on bank ruptcy; and the way in which the Bank of England was fettered from giving relief in this emergency. With these facts, therefore, before them, ho wanted to know what plea could be argued for the continuance of this Act. It had failed in every respect ; it had failed in exercising any control in the discretionary power of the Bank of England; and it had equally failed in regulating the proportion between the fluctuation of notes and bullion. All he desired was, to convey to the House, that this subject was one upon which there could be no second opinion with sane and substantial men. He thought the Hon. Member for Birmingham should not mingle with this subject, matters which were not connected ; and, he would ask Hon. Members, generally, to look to Lombard-street. If the Bill had not produced the benefits it pretended to do, were they to endure the inconveniences it had pro duced? When they could not have a perfect metallic currency they must consider that they had a perfectly worthless currency, and they should not pretend to give the country what no Government could do. In conclu sion, he hoped that the House would not arrive at a crude opinion on this question. He had shown the House that the measure of 1844 was only a delusion. It was a reality only in respect to that treasure which was locked up in the department of issue of the Bank— it was a reality when the public wanted that treasure to embark in the ordinary operations of commerce; and it was ultimately for the House to decide—and he left it in the hands of the House to decide—whether or no that treasure should continue to be so locked up in the coffers of the Bank, as useless to the people as though it rusted in the bottom of the Thames.—(Hear, hear.) Sir ROBERT PEEL—I wish, Sir, that the phrase in the last sentence of the Hon. Gentleman—that he left the question in the hands of the House—l wish that that phrase were strictly correct. But, unfortunately, the Hon. Gentleman does no such thing, as it is utterly impossible that the House should pronounce any opinion on the matter. I think we are discussing the principle and practice of the currency question in the most incon venient manner that we can do. The Right Hon. Gen tleman the Chancellor of the Exchequer, makes a pro position of which, I must say, I cordially approve. An Hon. Friend of mine attempts an amendment, and he has not an opportunity of explaining himself before there is another proposal, therefore it is very improbable that the House can come to any satisfactory cenclusion. on the subject. Before the House forms any opinion on the propriety of taking some new course with respect to the currency, I hope we shall look at the matter on all sides on the present occasion. I wish the House to consider whether or no this is a small modification of the Bill of 1844, or whether those who press but for that small modification do not seek to open thedoor for some subver sion of that measure. My Honourable Friend near me proposes that the Chancellor of the Exchequer should give ihm an assurance that he will not draw upon the Bank in case of deficiency. But that is a very small measure. Supposing, however, the Right Hon. Gentleman able to give him the assurance that in July he will not require any assistance from the Bank—if he would give him that assurance, my Hon. Friend would be content to permit the Bill of 1844 to remain. My lion. Friend thinks that the Government would act wisely in taking the course most likely to enable them to dispense with the aid of the Bank when the next quar ter's dividend becomes due. That is the proposal of my lion. Friend. He who leads the City bankers has no other proposition to make than that the Chancellor of the Exchequer should give an assurance that he won't rak the Bank to lend him any assistance. My Hon. Friend desires that for this purpose the Bank of Eng land should be allowed to issue notes upon the amoui t of deficiency bills. Mr. MASTERMAN—Out of the issue department. Sir R. PEEL—Out of the issue department! That is a different proposal from what was submitted by my Hon. Friend. Mr. MASTERMAN wished to be allowed to exp'ain what his proposal really was. It was this, that the Chan cellor of the Exchequer should apply to Parliament for power to enable the Bank to take money out of the issue department, and allow it to be replaced by the growing revenue, leaving the banking department to manage it self.—(Hear, hear.) Sir R. PEEL-1 thought I heard something from my lion. Friend that it would be desirable that the Chan cellor of the Exchequer should give an as .0 -ante to the House that he would not borrow money from the Bank for the purpose of paying the dividends. Mr. MASTER MAN—From the banking department. Sir R. PEEL—Yes, the banking department; de cidedly so. There was nothing in the proposal of my Hon. Friend, whatever object he may have contemplated, with respect to issuing notes from the issue department. Then followed the Hon. Member for Montrose— Mr. MASTERMAN—I must say a word as to what I really did propose, for it does not seem to be properly understood. What I actually did say was, that I thought the proposal submitted by the Chancellor of the Exche quer would tend to alleviate the inconvenience now felt by the public. I did not say that it was the best mea sure that could be adopted, but I did conceive that a modified measure of that kind, going forth with the au thority of this House, would be extremely desirable under the pressure now existing. My object in the pro posal which I made was to remove any demand of the banking department upon the issue department, and to leave the Bank to act upon its own idea of what was right and proper for the national interest, for I conceived that the Bank had no power under this restricted Bill to grant accommodation to the Chancellor of the Exchequer without incommoding the public. Sir ROBERT PEEL—My Hon. Friend has con firmed my statement, that the proposal he made was, that the Chancellor of the Exchequer should give an as surance that he would not require money from the banking department to pay the July dividends. Then came the Hon. Member for Montrose (Mr. Hume). His proposal was this—that there should be unlimited cons , petition in respect to banking. Mr. lIUME—Free trade. Sir R. PEEL—That there should be free trade in banking, and that the country banks should be allowed to issue 5L notes to any amount, but that they should be required to pay their notes in gold. I beg to say, that I do not think the adoption of that proposal would have any tendency to diminish the present pressure. The Hon. Member is satisfied with the general principle of the currency; he only objects to the country banks be ing restricted in their accommodation, and not having imposed upon them the necessity of paying their notes in gold. There was next the proposal of the Hon. Member for South Lancashire (Mr. Brown). That Hon. Member proposed that the Bank of Englandshould be permitted for a limited period to issue 14 notes, and that they should hereafter be withdrawn. He might de pend upon it, that when permission is once given to the Bank of England to issue 1/. notes in lieu of gold, he would find it exceedingly difficult to persuade the House to retrace its steps, to recal the 1/. notes, and again to have a gold circulation distributed throughout the country.—(Hear.) The Hon. Gentlemen the Member for Rutland admitted that his object is an incon vertible paper currency. He says he would have a limitation of the amount, but that he is in fa vour of such a proposition. That was the third. Then there was the fourth—the member for Warwickshire (Mr. Newdegate.) The Hon. Gentleman said he must distinctly deprecate any palliative, or partial measure. (Hear, hear.) He said there was no more in repealing the act of 1844, as the act of 1844 was a natural conse quence of the act of 1819, which, he said, was a miser able failure. Mr. NEWDEGATE rose amid loud cries of " Order." He said—l distinctly stated that that was the answer which the Right Honourable Baronet gave me in answer to my question in 1844 ; and that as he admitted it was a failure, I thought I would take his authority on the subject, and I did so. Sir R. PEEL—Did not the Hon. Gentleman say that the repeal of the Act of 1844, alone would be merely delusive, and that an attempt to increase t he standard imposed by the Act of 1819, was utterly impossible ; that the countr y could not bear the s tandard of 1819, and that some entirely new plan must be introduced. Mr. NEWDEGATE rose again, and said—The Right Hon. in Gentleman has misu nderstood me this respect. I said that the proposition of the lion. Gentleman, the Member for Mont rose, for a strictly convertible bullion coin was incompatible with the standard at present adop ted. Sir R. PEEL — T hen did t a e lion. Member admit that the standard of 1819 could be managed ? Did he not say that he had often heard that it was a new thing to talk of the injury caused by the Bill of 1819 . Did he not ask me if the standard of 1819 had not added to the public burdens ? Did he not say that the evils caused by the measure in 1819 temained, and that it was not too late to bring consolation to the families of those who might b e no more—(laughter)—but who had b ee n injured, an d that we must reverse t h e standard of 1 819 ? (Laughter.) NEWDEGATE again" Order , ;" rose amidst loud cr i es o f M rb u t he proceeded to say—l stat e d th a t I heard it said that the injury inflicted upon the sufferers of temporary— a it fell with them. th t 1819- was merely I said that I did not believe that. (Laughter.) think w e are relic nearer approaching to Sir R. aiclear understanding than at the time I commenced.—(Re newed laughter)—and I must say that I rejoice that the ar guments which I thought fell upon my ear, were not intended to be understood by the Hon. Gentleman as he spoke them.— (Laughier.) I rejoice at the willingness that there seems on the part of the Hon. Gentlemen a admit them when they are no longer affected by subsequent events. I rejoice that he is in favour of the standard of 1819 —( Hear, hear, and laughter) —that the Hon. Gentleman occupied that intermediate posi tion between an unwillingness to adhere to the standard of 1819, and a readiness to alter it.—(Roars of laughter.) That was the proposition made by the Noble Lord ( George Bentinck ), and the Honourable Gentleman the Member for Shrewsbury, namely, an alteration of the Bill of 1819, they were in favour of a convertible paper currency, but they , thought that th e ev il s f rom w hi c h we are a t present suffering ' may be cured by the simple repeal of the Act of 1844 ; but be fore we repeal the Act of 1844, or before we make any modifi cation of it, let us well consider the evils under which this country is labouring ; let us well consider whether or no we desire to obtain some improvement of the present state of our finance —whether or no we are not incurring the risk of a sub sequent aggravation of the evil ? I don't want any better description of the present condition of the country, and the real nature of t he pressure with which we have to deal than that which I find in the able statement of the Hon. Gentleman the Member for Huntingdon. He says this country is suffering from unexpected scarcity of provi sions. Now that. is the fact, A calamity, of which none of us calculated has arisen. The Noble Lord (J. Russell) calculated that the loss of capital in this country, in conse quence of the failure of the potato crop, and of the failure of the crops on which we in this country depend, for instance, has been 16,000,000/. sterling.._( Hear.) What must be the effect of the abstraction of capital to the amount of 16,000,0000 but, above all, when it is caused by such a calamity as the scarcity of food. It is not merely the loss of capital, but it is the calamity which has caused it.—( Hear, hear.) Is it not a fact that this calamity has occurred in other countries in the northern parts of Europe ? How it was that so little calculation was made last year I know not. Whether the state of the atmospheric influence which caused the failure of the potato crop has affected some other descriptions of vege table produce I know not ; but what we all know is that in our own and other countries in Europe, after the harvest had been gathered in, there appeared no prescience of the calamity which followed ; not even in this country only, but in ether countries from which in scarce years we are accus tomed to draw supplies. France is suffering, and so is Holland and Belgium, and as 1 have said in other countries in the north of Europe—all along the banks of the Rhine a large portion of the crops have failed. Even the counties in the northern7parts of Europe have parted with their crops—particularly rye—and I am told that the pressure, in consequence, is extremely great upon them ; and that those countries who have supplied us with grain, are suffering severely themselves ; and, therefore, we are in this condition—not only are we suffering from the want of food, which has led to great distress, but we are informed by the Noble Lord, that the loss of money has amounted to 16,000,0001. ; but, concurrently with that, that a similar misfortune had visited other countries in the northern parts of Europe, and we are dependent upon the United States for our common supplies, Why, what an effect this must have upon commerce ! Do not talk of the failure of free trade. Has it as yet—could it have had as yet a fair trial ?—( Cheers ). Is 'it not quite clear that the ability of this country and of other countries to consume manufactured products must have been materially impaired by the superior necessity which has befallen us, by having to devote the whole of our available means to purchase food? Therefore the consumers here and in other countr i es of Europe have been compelled to devote their surplus revenues to the purchase of the means of ex istence. Then, says the Honourable Gentleman, there never was a year in which speculation ran so high as in 184.5. If men will speculate, and will run riot, depend upon it, whatever Legislative enactments must pass, they must suffer the consequences— (Hear, hear) —it is inevitable. But, says theHHono rable Gentleman, " I don't deny the gr ea t i mportance of railw ays. I admit b mit that railways may be the f oun d at i on of future pros perity ;" I say, that if the capit a l o f t h e country ordinari ly applied is in extravag an t quant i t i es locked up inrpailwayts then there would arise a severe pressure in consequence (Hear, hear;) and in addition to the failure in food, you have had speculations running riot so far as railways are concerned, and 1 think in the course of last year applications were made to Parliament which if they had been acceded to would have required capital amounting to 340,000,000 i. (as we understood) for their construction.—( Hear.) Is there no course concurrently with those to which I have referred, to add to our difficulties? There has been a failure in that most im portant material of manufacture, the cotton crop ; it has fallen short far beyond any reasonable calculations, and the conse quence of its failure has been an enormous increase in the price of that material, which is one of the most important ele ments of our manufacture ; and therefore we are at this mo ment suffering from an insufficient supply of food, and anenor mous amount of capital locked up in railways. You may think it advisable to throw the blame upon the Bank charter of 1844, but if you had an inconvertible currency, or any modification of paper and metal, depend upon it, there is no one country in the world, exposed to the triple operation of such calamities, which would not feel the greatest pressure, which no increase of bank-notes could remedy. 1 assure the Noble Lord that no consideration of personal consistency would induce me to throw any difficulties in the way of an alteration in the law, if my experience taught me that it was necessary, and for which after all Parliament was as responsible as myself. No, I as sure the Noble Lord that I claim the same privilege which I exercised upon the corn law, if experience convinces me that the interest of the country—in matters of this kind, where no political principle is involved—require a modification of a law which I myself have proposed, no personal feeling would sway me to offer any opposition to such a step, Now, Sir, with respect to the Act of 1844. The Bank Charter was about to expire, it was necessary to make some new regula tions ; those proposed by me were not adopted without five years of protracted inquiry. The Committee on joint-stock banks, which sat during the years 1836 and 1837, collected the evidence of some of the highest authorities in the country. and it was upon their testimony that this Act was constructed, and it was not one of a mere speculative character upon the currency of the country, without any experience of the past evils. On the close of the war in 1819, the Honourable Gentleman says, I dwelt upon the prosperity of the country, and the triumphs of our army, and our sta • bility of faith, but I did so as an inducement to the House of Parliament to sanction the fulfilment of the promise held out that on :he close of the war ;aid the return of peace, cash payments should be resumed. I did call on the people to fulfil those engagements. But did the Hon. Gen tleman, when preparing himself upon this subject, forget to read the history of the years fourteen, fifteen, and sixteen ? Is he aware that from the period of 1819, which followed the resumption of cash payments, no less than 240 private banks failed in this country, and why so? because on the return of peace they were unable to meet their engagements, and the altered position of the money market led to such a state, with which the present, grievous as it is, is nothing to be compared. Are we to restore the law of 1844, that is to say, shall there be an unlimited issue on the part of the Bank ? Shall there be, on the part of the Bank, a right to issue notes upon their own discretion. We have been told of what took place in 1837 and 1838; then the bullion was re duced to 600,000!. If you do consent to repeal this Act, and restore the old state of things, you have not the slightest se curity against a return of these disasters which took place in 1836 and 1839. The main object of that Act was to prevent, in times of difficulty, the temptation, which it is so easy to fall into, that of giving accommodation and purchasing temporary ease, and afterwards aggravating the commercial pres sure which led to the demand for gold in exchange for paper. It is of the utmost consequence that you should not be exposed to these other difficulties of a de mand for gold. At present there is not the least panic ; there is not the least doubt as to the solvency of the Bank. There is, to be sure, severe pressure, but that is all. But what would be the state of things if there was an apprehension as to the solvency of the Bank ? What would be the state of things supposing this Act had not passed, and it had been in the power of every country bank to foster the spirit of speculation which existed? It is said that the object of the Act of 1844 was to introduce a machine which would work itself. Why, that is perfectly trus with respect to the issue of the Bank. The issue is a machine which works itself. I almost regret that it has not been separated from the Bank altogether. It might have been so, and then we could not have heard anything more about these different departments of the Bank, which were wholly repealed, and had no reference to each other. But the reason it was not so, was on account of the expense which the erection of a good office would occasion. With regard to the Bank the Hon. Gentleman the Member for Montrose (Mr. Hume), said they had no right to criticise the connuct of the Bank. Is it pos sible that the House of Commons can maintain that doctrine? Not criticise the conduct of the Bank t You cannot deny the influence which the Bank must exercise over the currency and the circulation. With regard to the criticisms upon the con duct of the Bank in August, I never complained of the conduct of the Bank. What I said was, that for three months, from mitt eci. the Ist of January, 1847, there had been a continuous drain o gold ; and I ventured to express a serious doubt whether a great part of the subsequent pressure might not have been obviated, if the Bank had not, in January, when a full know ledge of the extent of the calamity in Ireland must have become known, continued to discount at four per cent. during those three months, when a continuous drain of gold was taking place. The night Hon. Baronet proceeded to say, that the Hon. Gentleman said he had told the House what the Bank had done in 1837, 1838, and 1839; and he did not actually venture to prophesy ; but he gave the House the assurance, that if the Act of 1844 had been in operation in these years-1837, 1838, and 1839—there would have been no amount of difficulty felt. Well, it would have been difficult to see what would have been the consequences of an Act which, five years afterwards came into operation. But one element, which the Hon. Gentleman had quite neglected in his calculation, was the country circulation. Let them take that as it existed about the year 1823. In November of 1823, i the amount of bullion in the Bank of England was 13,760,000/., and in November of 1825 it had fallen to 3,012,000/. ; but between the November of 1823 and the November of 1825, the country bank paper had increased from 4,000,0001. to 8,000,000/. Again, in the year 1834, the amount of bullion was 9,948,0001., and in 1837 it was fallen to 4,000,010/. ; but during the same period, when the amount of bullion had fallen from nine millions to four millions, the circulation of the country bank paper had increased :from 10,000,000/. to 11,000,0001. in 1837; and in the mouth of August, when the country was in the middle of the crisis, the country bank circulation bad actually in creased to 1 2,000,000/. In 1838, the amount of bullion was 9,732,000/. ; and in 1839, it was 4,344,000/. ; but the country banks circulation was at that time 11,740,0001. But the Hon. Gentleman omitted from his calculation the whole of the issue of country paper, and, moreover, he disregarded the very principle on which the whole rested—namely, the foreign exchanges. At least the Hon. Gentleman must admit that the country bank paper was a material element in his calculation. But what then was the object of the Act of 1844? The object of it was expressly to prevent this very evil by imp os i ng a li m it a ti o n on the issue of the cou ntry othe ban k paper ; b u t if th a t was it s purpose, if there was no r_ pur pose, then it gave the Bank of England a direc t control over the paper currency. The Bank of England not subject to 1 criticism! He could bear testimony to the high honour and strict integrity which influenced the directors, but the Bank was a national institution, it held great and exclusive monopolies ; it held an exclusive privilege within sixty-five miles of the metropolis, of issuing paper. It excluded all others entirely from competition with it. Such was its position, just that it might have a control over the paper circulation. The Batik of England would tell them that the country paper exercised a material influence. The Act of 184% contemlilated that in its provisions; it reposed confidence in the Bank directors, and they were proud both of the Act and the confidence re• posed in them. The Honourable Member for Huntingdon him self stated that the Bank of England exercised a material influence on the country circulation and exerted considerable control. But the Honourable Gent leman man had the m emor i a l w of the Bank dir ec t ors . W hy that before th e H ouse i n 1844. The Honourable Gentleman as ked why the House did ll not follow the s uggest i on made in thatdo cument The ? That sug gestion was discus se d. Th House discussed it, and thought right to giv e the Bank a discretionary power. But supposing that the Government had foreseen this pressure on the Bank, and that it could not give the accommodation which was required to the commercial interests of the country —supposing that the Government in that case gave the Bank the privilege of issuing three millions on additional securities, did they suppose, on the slightht apprehension" or appearance would overnmen , of pressure , the Gt be a pp ealed Ito for the exercise of such a privilege to the manifest in - jury and inconvenience of the trading interests of the country. He was, therefore, not inclined to take suel t a course because he felt that Parliament alone should decide the grounds on which any such a relaxation should be made. ( Hear, hear.) It was after the fullest consideration of • the question, and after the memorial which had been presented, he believed by the Hon. Member for the city of London (Ma'. Masterman) had been discussed, that he (Sir Robert Pecli recommended the House to take the matter into its hands- Parliament refused to give the Government the discretion sought, and he thought it was the Hon. Member for the city of London th at made the motion for e . power to be given to the Government founded on the memorial which he had pre sented. r. MASTERMAN said that he had had a good deal to do with preparing the memorial, and had suggested the idea, but he made no motion on it. Sir ROBERT PEEL—Wen, a ft erfro due consideration, the information which I had derivedvarious sources on this question,from what I had learned of banking in the United States, and the proceedings of the country banks, I felt it my duty to propose the Act or 1844. I entirely agree with the course which has been taken by th e present Government, and at the same time I cannot but feel that t hepressure is most: severe and the danger great. But the is not alone confined to this country, but h as extendedres t s e u roe other h nations, and it might be expected even to be still more severe. I am glad, however, to hear the Chancello r of the Ex chequer say, that there are prospects of improvement. I deeply lament the present state of the money market, and the consequent embarrassment to trade and commerce. I quite admit that no prudential adherence to principle should be allowed to interfere with the granting relief : and if the re laxation of the provisions of the Bill of 1844, would give that relief, I would have no objection to it. But it is my firm belief, with all the information I have gathered on the subject, that the temporary issue of two millions of paper, without in creasing the real capital of the country, would not be efficacious for relief. Whether by the issuing of more paper, or the in creasing of the rates of Exchequer-bills, I have great appre hension that the tendency would be only to increase still further the difficulty. At the present time there was a gradual in crease of the importation of gold, and he trusted the Bank would do everything in its power to extend its accom moda.ion. I think the Bank may he considered perfectly safe with ten millions of gold in its coffers. There is also at the present time from thirty to forty millions of gold cir culating in the country, a circulation which I maintain is the foundation of the Scottish and Irish Banks, and constituting at the same time the security of the Bank of England. That gold was capital, and if they choose they might under appre hension and dread of pressure, relax the system and part with this money. And this principle of action, if good for you, is also good for other countries. The Hon. Member for Huntingdon, has referred to the case of France as not suffering from this pressure; but he should bear in mind that the proportion of gold in circulation was as 80 to 30 millions. But supposing this was reversed ? Do you suppose that the Government, or the Bank of France, would be in such a po sition as they were now, or that the difficulty of a scarcity is provisions would have been so easily dealt with. Sir, Ido hope that we may be enabled to pass through the present diffi culty without a necessity for any measure which shall deprive us of all the advantages we at present possess. I do implore the House not to tamper now with prin ciples which have been, with great difficulty, re-established. After all the experience we have bad from the year r l7B7 to 1819 ; and, depend upon it, if you do purchase a present're lease by endangering the convertibility of paper, my belief is, that you will inflict a severe blow on the prosperity of this country, and do more to shake confidence in property and in the value of property than any other course that can be taken e you relinquish the advantages of past experience, on account of a mere temporary pressure, and forego the essential welfare of all classes of the empire, and more particu larly of that class to whom the fixity of your circulating medium ought to ensure a command of the necessaries of life. —(Cheers.) I cannot take any other course, because there is none other left open than that of adhering to the principles of the currency which have been sanctioned by past experience, and taking every step in my power to pre vent any necessity for altering the existing state of things.— (Cheers. ) The Marquis of GRANBY rose, but was interrupted by Lord J. RUSSELL, who trusted that the Noble Lord would permit them to close the discussion that evening, as it was very desirable that his Right Hon. Friend's resolution should be agreed to, for if it were postponed beyond that night it would not be passed before the Whitsuntide holidays. The Marquis of GRANBY was sorry that he could not ac cede to the proposition of the Noble Lord. After a few words from the CHANCELLOR of the EX CHEQUER, Lord G.EIENTINCK said there was a considerable degree of interest felt in this discussion throughout the country, and many Hon. Gentlemen wished to express their opinions upon it.. The resolution might be considered as virtually agreed to, and the Right Hon. Gentleman the Chancellor of the Exchequer might act upon the measure with respect to the arrangements to be made with the persons to advance the loan as though the measure were actually carried. The CHANCELLOR of the EXCHEQUER repeated the necessity of proceeding with the measure immediately. After a few words from Lord G. BENTINCK, The motion for the adjournment was withdrawn, and the original resolution was agreed to. The House then resumed, and the report was ordered to be brought up to-morrow. HEALTH OF TOWNS BILL. Mr. SPOONER wished to know what course was proposed to be adopted with respect to the Health of Towns Bill ? Lord MORPETH hoped that he would be able to proceed with his measure as soon as possible. The great pressure of the public business in the House had prevented that measure being brought forward. Several Gentlemen had proposed to him that some portion of the measure sliGuld be proceeded with. In accordance with those opinions, the Government had come to the conclusion to confine the operation of the measure to the country corporations formed under the municipal Corporations Act. The metropolis would be reserved for a 1 1 separate Bill. Power was proposed to be given to other cor porations to apply for the powers to be granted under this Act. Oxford and Cambridge would be included under the operation of the Act. Gas and water-works wuuld be en abled to be purchased by the authority of the Act. The Government proposed to waive the right of the Crown to the 'Ho appointment of any of the Commissioners. If the House would w him to read the Bill a second time, pro form o, in order ktat the altered Bill might be brought before the Hnuse, he would pledge himself not to bring the measure forward again until after the Whitsuntide holidays.—( Cries of " No, so. " The Service of Heirs (Scotland) Rill, the Heritable Secu rities (Scotland) Bill, and the Crown Estates (Scotland) Bill, went through Committee. The Naval Service of Boys Bill was read a third time. The report on the Poor Rclief Supervision (Ireland) Bill was brought up, and ordered to be read a third time on Friday. The Poor Removal (England and Scotland) Bill went through Committee. SUPPLY REPORT. The report of the Committee of Supply was brought up and agreed to. DRAINAGE OF LANDS BILL. This Bill was read a third time and passed. AGRICULTURAL STATISTICS BILL. The second reading of this Bill was postponed till Monday next. .OUSE OF COMMONS COSTS TAXATION BILL. This Bill was read a second time, and ordered to be co-n- The other orders of the day were then disposed of, and the House adjourned at a Quarter-past One. COURT CIRCULAR. The Queen and Prince Albert took their usual walk yes terday in the pleasure grounds and plantations of Osborne. Their Royal Highnesses the Prince of Wales and the Princess Royal went in a carriage to the sea beach yesterday forenoon, and took riding and walking exercise. Their Royal Ilighnesses Prince Alfred, the Princess Alice, and the Princess Ilelena, accompanied by the Dowager Laiy Lyttelton, left Buckingham Palace yesterday for a drive in an open carriage and four, . . _ We are authorised to state ',that ro tickets to view the Royal pictures by Winterhalter, in St. James's Palace, be issued from the Lord Chamberlain's Office after Thursday next, the 13th instant; and that on and after Monday next, the 17th instant, tickets may be obtained (in the same man ner as ordered to view the State Apartments in Windsor Castle) upon application to : Messrs. Paul and Dominie Colnaghi, printsellers, No. 14, Pall-mall East. Mr. Moon, printseller, No. 20, Threadneedle-street. Mr. Mitchell, librarian, No. 13, Old 139nd-street. Messrs. Ackermann and Co., printsellers, No. 96, Strand. Among the visitors to view the royal pictures on Saturday and yesterday were the Duke and Duchess of Bedford, the Marchioness of Exeter ' the Bishop of Winchester, the Countess of Zetland, the Earl of Cawdor, Earl and Countess Brownlow, Earl of Morley, Lord Alford, Lady Charlotte Copley, Colonel Hugh Bailtie, Lady Elizabeth Dawson, Lady Caroline Somers Cocks, Lady Charles Fitzroy, Lady Wil loughby Gordon, and Lord J. Fitzroy. Her Majesty the Queen Dowager, attended by the Viscountess Barrington, Lady in Waiting, took an airing yesterday in an open barouche and four. Iler Royal Highness the Duchess of Kent visited her Majesty the Queen Dowager yesterday, at Marlborough House. Her Royal Highness the Duchess of Kent left town yes terday morning, for her residence, Frogmore House, near Windsor. Her Royal Highness returned in the afternoon, at six o'clock, to Clarence House, St. James's. Colonel Mure, M P., had an interview with the Right Hon. Edward Strutt yesterday, at the office of the Commis sioners of Railways, in Great George-street. Dispatches were received yesterday, at the Colonial-office, from the Governors of the West India Colonies. Dispatches I were also received yesterday from the Governor of Malta. THE THREE COESINS.—A NOVEL. BY MRS. TROLLOPE. —ln this novel Mrs. Trollope maintains, with unabated spirit, her reputation for vigorous character draw ing. " The Three Cousins" represent the three states of womanhood; the first is a wife, the second a widow, the third a maid. Their ages climb the sc-Ale in the same way. Mrs. Cobhurst, the intriguing widow, is capital—a lady of thirty-four and upwards, who claps her hands joyously like a girl of sixteen, and looks into gentlemen's eyes as if her young soul within were melt in g with its first emotions. But the most perfect characters in the book are the gentlemanly dinner-giving Bishop of Solway and his wife, Mrs. Morrison. They stand out from all the rest. "The constitutional good nature of the lady showing itself through the conventions to of her position, the smoothness" of the Bishop, who loves live in good repute, and whose selfish pleasures take an out ward shape of social enjoyment that might almost be mis taken for geniality, are hit off with a knowledge of human nature which places them amongst the most successful of Mrs. Trollops's satirical creations.”—Ail as . FUNERAL OF LORD COWLEY. The mortal re mains of this lambnted nobleman reached the Custom-house stairs on Sunday night, having been conveyed from Boulogne by steamer. Lord Charles Wellesley and Mr. C. Culling Smith wereto o r n ece b h o ,e ar t d he as bo e d arly as eight o'clock yesterday morning, forthwith removed to the MarquisY Arlington-:trect. The - of the deceased, which was of Salisbury's residence in the Marchion !Marquis of Salisbury, accompanied by ess,canie to town from Walmer Castle shortly before eleven o'clock; and immediately after his Lordship had arrived, the Duke of Wellington, the Marquis of West meath, the Earl of Mornington, Lord Fitzroy Somerset, the lion. and Rev. G. Wellesley, and other members of the de ceased Lord's family, assembled to attend his remains to the tomb. Precisely at half-past eleven o'clock the funeral cor tege left Arlington-street fur South Audiev Chapel. On the arrival of the funeral at the chapel, the officiating clergyman received the body, as customary, at the entrance, the several mourners following in succession, when the Rev. Mr.Nepaine commenced the solemn and deeply impressive service for the burial of the dead. At the conclusion of the religious cote niony the body was deposited in a new catacomb in the rear of the chapel, where are the remains of Anne Countess of Morningt on , the f l a a m te il E y. arl T o h f e A D lo u rn k i e ng of to ‘ n v , e a li n io d g o t t o h n e , r t r h e o la A tiv ar e_s and Lord Charles Wellesley departed of A g u r l e e y ° 1 - N h rep o l u loes s u e iroe i , Y m immediately after th e funeereasle;yandeptahretelNdlaforr quis of Salisbury departed in the course of the afternoon for Weimer Castle, Kent. Lady Cowley continues in a very de licate state of health, at Paris, and has no intention apre . sent of rettuittug to this country. ; ,