The Express.
London, England, 1847-12-01 00:00:00

'HE EXPRESS, WEDNESDA

rethr ea allure of threth, sad a third waopethea
thet Othilwee of orta esterst gessawarat would
II"-
Idea* tee =l6abilmr66llB 1. wet lit
Wass la a way width they Vali gm woo he
gill:Mred
•MA therefor* hares pi ` da,
la that maim whisk apperoa
rhea adorer, they believed word be as 'Minn
(Hoer, hear.) He met she irks that ft able-
poZiPsa the prim who had applied te the roverammt to
samelisa theism Of err blies tray,
_it woe dated it ward
ha wastriellicaierery hied aim Bath sherd be pat upon
Is air the ithiesdem was that a
bereethe &daudte amount of
amen &rid third with em of erest.
To airlift there was, ,he thought, a dollar rdtintug 00.
joellem—aarely, that there word have bees a swerable for
the Air mad mond million, sad that r suraithat was OM
the SION Nate of things would have marred again. But
If they were not to limit the arum of notes,
the other, and he thought the whew, esdea wea, that a
Beth sherd be put cm the rate el Werth This WOW had
bra ailagisa, awl he the rosarreedatisa rade to the Bank
of Imaismi the a With rata of torseth brew if a high
' rate of tamest had not bra aired they word have done
that veld* would have bra meet mievomi--namely, to
check the famptetallon of capital and bullion into this coon-
ley. (Her, hoar.) At the same time, he (the Chancellor
of the ilmagsgeer) had bum as anxious as anybody not to
farm • •••• a Merest higher than wad necessary, and
tliarelheeleelead of edopreg a minimum rate of 10 per
they cent.,
th led eilepted II cent., the lowest amount suggested
le the presaesal by the applicants being 7 per cent.
The sub of 7. 4 oast clearly. wod not have
pessem the weer which wee in view, for when
the isle hod bra Axed by the Bank of England on the
direeres of the govenuesat at 8 per cent., what was
the Me airliner or of dear? At that time the rate of
lathart at Harabeari wee 7 par osat He held in his hand
a War he. the sewed at Hamburg, dated the 22nd of
Nether, width Mir that them the dssoounta there were at
the rate re sled 7 per seat. per annum, and it was not leas
ino.:27part of Barr. At New York, on the 30th of
, before the intelligence of what had happened here
had seethed that weary, money was in active demand
them at *errs of 7 per rot, and in some cases higher
rare bed bra paid. Agate, though the Bank of England
bed thesestatedi a small amount of bill at 50 per cent., yet
at the tire the letter of his noble friend and himself
had bra thersed to the Bank, the average rate charged
by the Beak was 71 per cent., so that the real
sabot to width that letter roiled the rate was
use more Ilea Wiper cont. upon the rate then charged at
the Beek of Begland, and one per cent. upon the rates on
the .attend sal in America. It W.J. desirable that capi-
tal sad hellion should be attracted to this country, and it
was may by the attraction of a high rate of interest that
this desideratum could be accomplished. (Hear, hear.)
He coseeived, therefore, that the mode in which the;govern-
meat had acted was the one best calculated to attain the
end they had in view—namely, the influx of capital and the
importation of bullion, and thereby the removal of the
penis . But it had been said that the government ought to
have left it to the Bank of England to fix the rate of inte-
rest ; but he thought it was much fairer, both to the public
and to the Bank, that they (the government) should take
that responsibility from which neither he nor his
noble friend were disposed to shrink. It had also
been remarked that the government ought to have made
the increase rate to apply only to such portions of the *d-
rain:ea al were mask by the Bank in consequence of the let.
ter. He, however, contended that it would have been ut-
terly impossible for the Bank to have acted in a different
spirit after the receipt of that letter, and to have drawn a
distinction between the advances made in consequence of
the government letter and those which without the letter
would have been made. Again an exception had been taken
to that paragraph in the letter which referred to the extra
profit being carried to the account of the public, but that
was inserted for the purpose of protecting thu Bank, in con-
formity with the 6th clause of the act of 1844
a clause inserted at the instance of the Bank itself.
He thought that the purpose for which the letter
had been issued—not to create capital—not to support
credit, which had no security to offer, but to release
the circulation which had been closed by fear and alarm,
had been answered, and he believed that those engaged in
the commerce and trade of the country would admit that the
effect intended had been completely realised. (Hear, hear.)
He did not mean to say that parties mg not have been dis-
appointed that they were not released from the position in
which they had placed themselves, or that others might not
have expected that something would have been done that
would enable them to put money In their pockets and to
carry on concerns which they had not means to support ; but
he believed that the great bulk of the commercial world, by
means of the confidence created by the letter in question, had
been enabled to use those means which, when alarm
had been allayed, had been found to be perfectly
adequate. No doubt the pressure had remained,
because it had been caused by the stances
to which he had alluded at the commencement of his
. .

Observation,: No doubt failures bad taken place, and might
still take place (for, after the assurances given in the sum-
mer of the sound state of trade had been so signally falsified
by remits, he could not say he had any great confidence in
any particular house), yet the government bad succeeded in
preventing a general failure, which at once would have been
fatal to the country. He was happy to be enabled to state
that orders from abroad were coming in, and, from a circu-
lar sent to him by an eminent cotton broker in Liverpool, he
learned that a decided improvement had taken place in the
demand for cotton ,• that the state of the manufacturing die-
bias was improved; that an increased number of mills were
now working full time ; that others would more or less
follow the example; that the number of operatives
employed had increased, and there was, consequently, good
reason to hope that distress in the approaching winter would
be averted. This circular was dated the 26th November,
and from it it was moat satisfactory to find that exports to
the United States were considerably on the increase, and he
observed that to-day a considerable amount of bullion had
been returned from the United States, and be hoped that
goods would be taken in exchamge, He trusted that this
showed s state of things very different from that Ode of
shame, bankruptcy, and disgrace which had been pictured to
the house a few evenings ago. He believed that the trader
was now enabled to meet the demands upon him, for an
enormous amount of bills had been punctually paid in the
course of the last month; and he believed that the general
trade of the country was at the present moment healthy
and sound, and that they might hope it would
steadily and slowly, but surely improve, and survive,
and that supremacy of British commerce would again be
maintained. (Hear.) His belief was that an earlier tater-
femme as le part of the goveriumme weld not have at-
tained tho aid they wanted. It would he reseeded to tb
Ltrirthat it was no light matter for them to overleap
v"hilislhad
been eimed by an overwhelming ma-
jority in pealhonent—that it was not a light matter that they
should be firmly convinced of the necessity of the step, and
they should have good MOMS to believe that the represents-
hone made to them were bred upon a solid leondatioa. In
April lad a pods had pansided, and the nevernment hod
then bar ten that hem 4000,0001. to 3,0,0001. most be
sent to Limpet ia maw to saw the eteaseethe of that
town. Sown, en advisees had bees wide, as Idhwee had
then takes pin" dae alma passed off, sad it was dear that
if the govertumat had then yielded, they would have
theelded without resaaa. Hear, hear.) The main mute of
prewar, was the want of capital, whieh the government
could eat asawnhe to supply ; but when they bad been
nonvineed that the was beyond all human calcula-
tion, they bad AM Oaeclvea justified in sedan; and he
ba dhows they had acted mooresfully. (Hoar,
traeir nit lid lea urged that they ought to have acted
tsar OWN lent sad that it was the duty of the Bank of
nigleral Is nessoMd every bill that came to them.
They dld 110_ bet Shea podia said it was usury to charge
awe then id sr d per Nest. If each demands were con-
ceded, it wee maim to talk of the convertibility of paper.
There wadi Utilise, early or late, when the Bank amid
have been meandiell to take some stringent stop ; but it was
said that oath a step wee unnememry when the Bank
MA 11,000,0001. of pill in is coffers Why it was the pow
swim of that cam a11i,000,0001. that gave eddy to the
else which woe Mita (Hear, hear.) The poverwasat
hal feltany assured that with exchanges in &mar of tide
m, 8,000,11101. of gold in the Beak, that them
would be alliwa d hanks into this soontri harts any
drain esaldinaMeasthepoliiin the Bank. Awl limbs: were
they heffebtaali le the isthowisa of that 8,000,00 n, but to the
apstallea ad sink& (Heir, bear.) If the Bank
UM IMO Si deillthy the mouth di counting at 44 or 6 per
old, what dials weld have bum gives to over trading Ina
Obleowrisa at i I If railroads odd have aipa ea
tad 6 per that by as tudismild Wee
of WWI, they skate would have swept away more
than the whole gilealadon. (Seer, hear.) If by
a drain of henna the amount had been dim-
skied to 2,0001101, or 3,000,0001., mold=
doubt but that, Isaac the alarm and want of
whisk aided st the there would have bola a nth apt
the Hoak 4phi I Wastes lamina* had them that
ask wadi lave been the use, sod, lades& &tells( the
they bed, fie presumed would have beta in
imminent doge of Wag essepelled to suspend awl pay-
mosta, emit to Youslidlationt for a bill of indemnity.
If the, bad imam sbas r, it was to the operation of
the ad el 11M ASS di17•11/4. ndebted. (Hear, hear.) He
was ad prepared to say that he thought all the difficulties
and all the proems wee ant He had said last year, that,
, from the changes which bad. taken place, this country had
a hard time to go through. He was of the same
. opinion still. He did not, like some, attribute the
present pressure entirely to the adiption of free-
, trade principles. There had been the pressure of a panic in
1826 and 1837, under a protectivesystem. Now there was
a mows sod a panic in the state ef chaege from protection
to free trade, through which the country was now going
His belief was, that when the system of free nude was fairly
agalained, the prospect of the country would be fixed on a
Imre belle than ever; but at the same time he never had
i sapsead that the change would take place without being so-
. oompundad by some evil, Neither ought the present stare
daisy to be attributed exclusively to the act of 1844. Why
after the passing of the act of 1819 there was hardly a cala-
mity which affected the agricultural, the oommarte or the
manufacturing interests, which had not in las' man-
ner been attributed to that manure. But now
the majority of the world considered that the act
of 1819 had operated most beneficially to this
country; and in like manner he satin that whoa
the premium of the preprint time had over, and people
looked back at the events of the last few months, they would
he inclined to entertain similar opinions of the act of 1844.
• complaint had been made that the operation of that
~mere had not saved this country from commercial rend-
, doss and distress. He for one had certainly never held out
any expectations that it would do so. All he had said was
that it would prevent over speculation, by the absence of ea
ill-nnethsted currency. Mr. Jones Loyd, in the pamphlet he
had already quoted, mid that to guard against commercial
; turtalsions wee not the object of the bill. That was so : the