The Express.
London, England, 1847-05-11 00:00:00

Kietnton-ercet:fhames Sera Tereermats; Melmehameessi Items;
Bills.
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t 2.2,2 of lands (Psvalead); Crown (Contra(lleseland), roar
moral ( 8*224 end Ziotland); Bills.
REPOirt—roor Relief -uperv22oo (Irdmid) (No. 2) MIL
Milan IthADLNGs.—Drausege of Lands; Naval *mimed Boys;
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USE OF GRAIN TN DISTILLERIES.—FURTHER
SUSPENSION OF THE CORN DUTIES.
Mr. H. BAILLIE whether there moony intention of pro-
hibiting the use of grain in distilleries?
Lord J. RUSSELL—I was not prepared for the question,
and, therefore, I will not undertake to-day to answer it. As
it k is been put, however, I may as well state that on an early
day it is my munition to propose the continuance of the sus-
pension of the duties upon the import of corn. (Loud cries
of - Hear, hear," from the ministerial side.
THE PRESENT CRISIS.
The order of the day tor the house to go into a committee
of supply having been read, and the Speaker having left
the chair,
The CHANCELLOR of the EXCHEQUER rose and
maid, that he had now to move the resolution of which he
had given notice oil Friday night, relative to the discount
upon the recent loan. He was not aware that he
need add much to what be bed stated oa Friday as
to the intestines of the government with regard to the
present state of the money market. On Friday he had
stated that he proposed to submit to the committee
a remlution enabling the government to allow interest
by way of discount on all the sums paid up by the contri-
butors to the leen in anticipation of the instalments which
would be due on a future day. He had then, he believed,
put the house in possession of all the views of the govern-
ment, except as to the precise amount of discount which he
proposed to allow. There was one point, however, upon
which ho ought perhaps to take an opportunity of
saying • few words. It had been represented
out of doors that the uovernment looked to this
rueseure as a specific which would put an end to
all pressure and panic, and which would produce
effects of great commercial and monetary magnitude.
Now, there was no one but was aware that from the high
price of corn and other necemaries of life, and the conse-
quent inability of the people to purchase article* that would
otherspi-e enter into consumption, considerable depression,
preeture, and difficulty had arisen. To relieve such • state of
things as that by any ouch measure* es the present would be
impossible. He (the Chaucellor of the Exchequer) hod
never anticipated any such result from the proposition;
and it was therefore. perhape, right that he should state more
explicitly what he did expect. (Hear, hear.) He was well
aware that this measure would neeesserly throw an addi-
tional burden on the public. At the same time he was not
prepared to admit, even though it had that effect, that it was
a bad bargain on behalf of the public. Nothing was eo de-
trimental to the publicos depreciation, and nothing, conse-
quently was better fur the public than to keep up their credit,
even at a small additional outlay. They were all aware of the
high rate which money bore at the present time. It was
notorious that the rate of interest upon exchequer bills had
been far from equal to that upon other neuritic', and come-
queatly that those bills had very recently been only saleable
at • discount, if at all, and that the negotiation of loans
upon them had been in many cases unsuccessful. He had
thought it wise, therefore, to put those bills upon a better
footing and this, together with the measures which the
Bank lied taken to negotiate loans upon this class of securities,
must no doubt have removed much of the inconvenience. He
said then, that bethought these mt asuree indispensably ne-
cessary for the public credit, end very desirable in order to
let loose money which had been kept out of circulation under
the pressure of alarm, and in order also to remove much of
that want of confidence which at present prevented people
from coming into the market and dealing bo'dly. The re-
presentations which had reached them stated that the public
were not able to obtain the ordinary rate of discount. It was
said that the country bankers were unable to afford that
amount of re-discount which they were in the habit of afford-
ing, contrary, indeed, as many maple thought, to sound prin-
ciples of banking. He was also informed, and on substantial
authority, that the large sums invested in railway shores had
absorbed to a great extent the money which was usually in
the market. In Lancashire, especially, he was told that so
much money had been locked up in this way, that trade
had, more than usual recently, been canied on upon the
principle of re-discount. [Mr. Hume here asked the right
hon. gentleman to speak louder, end address the house
rather than the chair exclusively. "It is not usual," said
the host. 'member. " for • speaker to turn his back upon
the members."] He was told thit pressure upon the monied
men in London was alto great, arising in a considerable de-
gree from the custom of hankers to piece their money at call
with the bill-broken. Of course, when a time of alarm '
came, the bankers called is their mace,' ; and the effect was,
that the whole pressure and alarm was concentrated upon
the erste= of discounts, where, of course, it told the most
rapidly and the most effectually. It was also represented to
him that those who held exchequer bills, being unable to
contract loans upon their bib, had felt an unusual pre..
sure. The tint thing, therefore, to be done was to place
those bills at a premium, and he anticipated, as he had said
before, that the aeons taken for that purpose, and the
loans upon such bills by the Bank, would have the effect
of petting much money free, and restoring confidence to a
considerable extent. It wu admitted on all hands, indeed,
that it was not so much the want of the circulating medium
with which they had to contend, as the want of that medium
being put into circulation. He was not prepared, however,
to say that the measure. which he had pointed to could be
effectually carried out, unless steps were taken to secure an
influx of money into the Bank, which could be meet readil.../ ,
he thought, secured, by offering a premium upon the a y
payment of the instalments of the recent loan. The o 'etc,
therefore, of his present resolution was, to put the govern-
ment in cash at the Bank. As he had before stated, the ex-
tent of the demand made upon the Bank by the government
during the last quarter, had been exceedingly concen-
trated. He had forewarned the Bank early in the quarter
of what would be the probable amount required by the go-
vernment, and, therefore,there was no extraordinary demand
upon the Bank for assistance by the government. But he
bad been told that when the Beak Charter Act was passed
an seaurance was given that no such aseidance would be
*gain required. He could tad no record of any such
assurance with reference to the Bank Charter Act. When
a meager* was in that year brought 41 for equalising the
payment of dividends at the different quarters of the year it
was said that that measure would have the effect of leaving'
the government less dependent upon Bank assistance; but so
far from the Bank Charter Bill causing any such effect he
had expressly stated the reverse. He stated this to show
that he bad then foreseen that assistance would Le ri cubed
by the government from the Bank, and that no expectation
had been held out that such requirement would not be
made. He thought it right to state so much to correct the
saisimmea. For his own part he saw no reason,
indeed, why the government, as one great customer of the
Bank, should not occasionally malt for accommodation as well
as any other great customer. He believed that on the whole
the government received each accommodation to a less extent
than others, and there was always this advantage to the
Bank, that what the government was likely to require was
uniformly foreseen. But, at the same time, tie thought it
very desirable to prevent as much as possible the occurrence
of this necessity for accommodation. and especially to pre-
vent it in the succeeding quarters. He proposed the present
resolution, therefore, to enable them to discharge the pay-
ment of the dividends in the next quarter without aid to any
considerable extent from the Bank. It was good policy
at the present time to ease the money market, and he
was glad also to have it in his power to accommodate
in any way the gentlemen who bad contracted for the
loan. They could not have foreseen what had since hap-
pened, and the bargain they had made was not a very
good one for them. (Hear.) Whilst the government,
therefore, stuck to their bargain, it was good policy on their
part to act liberally by those who had taken the loan from
them. The rule of private life in commercial dealing was
equally applicable to the dealings of a state, and he thought
it right to deal liberally by others, in order that on future
occasions they might deal liber.Uy in return. Any legitimate
facility which he could therefore offer to these gentlemen, he
was extremely glad to be able to afford. Neither, he was
bound to say, did he think that this measure need entail any
very eessaiderable loss. If trade W 24 stopped or checked, the
revenue necessarily suffered. During the fortnight the
panic had prevailed the customs' duties had fallen off. He
was glad to say, however, that affairs in that department
had new resumed their usual course. He was glad also to
say, that tee heard to-day that things in the city were much
better than they were, and that the demands upon the Bank
for loans even at 5 per cent. were less than could have been
anticipated. On Friday and Saturday they were less, and
to-day, in all respels, the market was easier. It was true
that funds had, to a small extent, declined, owing, possibly,
to • rise in the prim of exchequer bills,
upon the rise in the interest ; but the governor
Bank had that day informed him that, "on the whole,
they had pared an easy day. There had been a
very moderate demand for loans upon exchequer
bills, whilst there was an influx of Dutch gold to the
extent of 920,0001., and later advises from Amenca brought
the exchange at such rates as rendered a further export of
gold to that quarter exceedingly improbable." (Hear, hear.)
This was such an improved state of things that he (the
Chancellor of the Exchequer) should have felt the most san-
guine hope of immediate revival were It not for the state of
the corn-market. (Laud cries of " Hear, hear.") He should
have laved that no such cheeks to trade as bad been
Fognslied would have occurred; but it was im-
possible to deny that the price at which corn ruled
was most material. His noble friend beside his
(Lord J. Russell) had stated what was the measure
the government considered the readiest and beet to
take under the circumstances ; and be (the Chancellor of the
Exchequer) should hope that that measure, together with the
continued Imports, would afford • cheek to a further tile. A
return which he had before him showed that during .the
last week in April the import had been at a rata sufficient
to provide food for seventeen millions of people. There had
come in 200,000 quarters of what were known as " bread-
stuffs," and of " all kinds of grain" no lees than 333,273
quarters. Such an importation as that was at • rate sufficient
to feed 17,000,000 persons per annum and was an importa-
tion sufficient, one would have thought, to cheek the ten-
dency to rise in pries. [An hon. member here asked, bow'
much was for home consumption, and what was the decrease
last week of the quantity in stock 1] Only about 30,000
quarters of the entire quantity was entered for foreign
exportation, and the decrease of the quantity of corn in
the granaries was not, lest week, move than 3,000 eve. in
the whole. He would now only add that, since Friday
night, he had determined to make a slight alteration in the
terms of his proposition, relative to the discount. The con-
tractors of the loan, whom ha had saw that morning, repre-
sented to him that if they were obliged to pay up at onee,
the consequence might be • fell of steak, and he thought it

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