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

G, DECIMBER 1, 1847.

Awn was to oesaWne a paper with a metallic currency.
T wan otendiens to a mistallie currency, inasmuch as
it simian the steepest or soar ONlTgeliait, but it was the
Mos dattetur_eM of the twaser:mumeraiel own.
billarepe—end mad And yet thou
• rrbad met has Iles reenhiona
, 'that, under sec:ai=a, inmeadon of the currency
was prevented, was by dmovents of the summer
of 1848, when • amount of seta was issued. He
had nem et thought that operation of this
spasm rwY be MAW than it woad be ander a metallic
canna* Whatever wilt might happen under a metallic
currency might ander this; whatever advantages
might be attainedatra ms4ltlo sameasy might be attained
by this, with the certain addition of economy and mare-
name. It was perfectly clear that the amount of reserve in
the Bank of Eagland, in the summer of 1848, had prevented
any *aloft on the notes in the hands of the public for some
considerable time. (Hear, hear.) It was perfectly con-
sistent, he admitted, with the provisions of the act that no
such action on the public should take place; and there was,
tthitewblukould
ttkoeir:tfooreth,erwino legalth. onbqaetiyoilLupodonneth• direction
thoonuicohf
hare been wiser and better if they bad given timely warn-
ing, and had taken longer precaution. (Hear, hear.) But the
obligation to do so rested simply upon the discretion of the
directors of the Bank; and he was far from saying that that
discretion had not been wisely exercised. It sou
utterly impossible that an establishment which pos-
sessed so large a capital should not be meet power-
ful, either for good or evil, upon the commer-
cial interests of this country ; and it was a matter
of vital importance, that the management of that banking
etablishment should be conducted soundly and discreetly.
(Hear, hear.) He feared that recent events had somewhat
shaken the confidence of the public in the direction of that
establishment. (Rear, hear.) It might be difficult to ang-
gen a mode of improving that direction ; but he was certain
that this was a subject well worthy consideration, and might
be a fit subject for inquiry in the committee he was about to
more. Though the bank charter did not expire for some
year,, he believed the bank parlour would be fully disposed
to concur in any measure which the wisdom of parliament
might suggest. (Hear, hear.) He believed they found
some difficulty in inducing persons to undertake the heavy
resnonvibility of the office of governor of the Bank of Eng-
land—(hear, hear)--and he was assured that it was a subject
to which the bank parlour would most willingly direct their
attention, and that they would gladly co-operate with par-
liament in anything that might be considered an improve-
ment in its management. (Hear.) He was anxious not to
go further at present into those controverted subjects con-
nected with the currency; he had referred to them, as he
promised and intended, no further than was necessary to
illustrate the view which the government took of the pre-
sent state of affairs, and the view which had induced
them to pursue the course they had pursued. He
was not ignorant that many men of greet au-
thority, great experience, and great practical acquaintance
with banner, differed from the views he had ventured to
state. He believed they differed also in no inconsiderable
manner among themselves as to the course that ought to be
pursued. (Hear.) In the opinion of government, it was most
desirable that all these views, differing as they did from each
other upon a subject of vital importance to the country,
should be well and carefully weighed. (Hear, hear.) They
had thought it unadvisable that, so soon after events which
bed excited so strong a feeling, any attempt at legislation
should b., made; because on no subject was the exercise of
calm deliberation and impartial judgment more urgently
required. (Hear.) But the government did think it expe-
dient that an inquiry should take place when all these events
were fresh in men's minds, as they were at present. (Hear,
hear.) He thought no one would deny that, in the course of
the last year and a half, phenomena had occurred well cal-
culated to throw light on the subject, and to illustrate any
opinion which gentlemen might have entertained on the
'nation. Few of us could say we had not learnt something
by the experience of the last 18 months. (Hear, hear, and a
laugh.) And, for his own part, he thought it most desirable
that a committee, oomposed of persona of various opinions,
tiklag different views of the subject, should inquire into the
natter, and that, by the collision of their opinions, and the
result of the evidence that might be laid before them, they
might be able to throw additional light upon this complicated
and difficult subject. Many of those gentlemen who had taken
I a salt decided part against the act of 1844 in the course of
the last session, had voted for that aet three years ago.
w those, were one of the hon. members for Lincoln-
e7 t
is hon. friend the member for Oxfordshire. (Mr.
Henley), and one of the hon. members for the city of
London.
Mr. HENLEY said he had not voted for the bill of 1844,
but for Mr. Munta's amendment.
The CHANCELLOR of the EXCHEQUER said there
were several hon. members whe hod voted for that hill at
the time, but who had since seen reason, sad doubtless good
reason, as it appeared to them, to change their opinions. All
he wished to say was he trusted this inquiry would not be
ocitisidersd in any party spirit. (Hear, hear.) He did not
deny that he should go iato committee with an opinion
certainly biassed one way by the result of the inquiry made
in a former committee, of which he had had the honour to
be chairman ; and he certainly should go into that com-
mittee, as he trusted and believed every other hon. gentle.
man would do, with the fullest determination to weigh im-
partially the whole of the evidence that might be presented,
the whole of the considerations that might be laid before
them. He believed that such an investigation, conducted
before &committee fairly and impartially constituted, would,
in the end, tend to promote the best interests of the country.
He would now conclude by moving the resolution of which
he bad given notice, for the appointment of a committee.
The 13r mange having read the resolution from the chair,
The CHANCELLOR of the EXCHEQUER again rose,
and said en hon. friend had reminded him that he had
omitted to state that, as to taking any noun immediately,
it was not the intention of the government to propose any
measure at present. They believed that there was not the
slightest probability of any such measure being required.
The state of the Bank was such that no person could enter-
tain the slightest apprehension as to its power of meeting
any demands that might be made upon it. The amount of
the Bank's reserve, last night, was 6,800,0001., and of bul-
lion 10,800,0001. (Hear, hear.) The mere statement of
these sums was a sufficient warrant to the house that there
was little probabiliq of any occasion for alarm. The bullion
in reserve amounted to six millions and a half in round num-
bers. It should also be remembered that parliament was
assembled ; and if any emergency, the possibility of which
he certainly could not contemplate, should arise, govern-
ment would have the power of immediately applying to par-
liament to sanction any measure which in their opinion
might appear to be necesaary. (Hear.)
Mr. J. WILSON claimed the indulgence of the house, on
amount of his addressin.g it for the first time. He most cor-
dially agreed with the Chancellor of the Exchequer as to
the necessity of appointing • committee, but thought the ob-
ject of its inquiry had been left too wide ; and he should
therefore move an amendment. Any member of the com-
mittee might introduce topics quite foreign to thenect to
be discussed, unless their inquiries were mores ' c and
confined. Though the recent interference of e govern-
ment with the act of 1844 might have bees necessary--and
he was far from disapproving of it—yet it had produced a
distrait in the public mild as to that law, which a marching
inquiry as to its operation only could remove. Every one
was cognniirrtioogg whether that law was to be continued, modi-
fied, or • ed; and, until this question was answered,
public confidence meld not be restored. There were other
reasons for confining the committee's attention to the ques-
tion of banking and- currency. In ;1841, a committee had
inquired into the Bank Charter; their labours were inter-
rupted by a dissolution of parliament iand they re-
ported the evidence to the house without any re-
mark. Parliament had, however, legislated without
further inquiry, by pawing the act of 1844; but
It win evMmt from the voluminous evidence take
baits the esnunittee to which he had referred, that further
inquiry was needed. Such an inquiry was peculiarly ogled
foe at the present moment, when many new questions had
been tdmd ley the operation of the act of 1844, which mile
prop* hem subjects of investigation.
up is the sountry of late—why there a
eASi 04=? And this was a question white merited
meld net be a more foolish thieg hen for
the legidelnee le aliemp to ex the price either el gold or
W sew sommaility. The het was they did sat the
pies el geld at all bat simply deMothid that sae mace of
geld shield be divided into m may pines, and amid
411.1 X. 17e. 10td. in value. This wee eat MI: the pies
Iy. mgore than
uarter w it weuld
consist oihe ex*. Fin r ear
eight hschth .
heuby
Beam might say the legislature did fix the prise el gold,
linamose rims sou this /Lint pries of SI. 17a 1004 wed the
Beek ides ef 111. but this was not thdag he prise
in dr sew aversi el pries. Another Ina y Ins r
to the emirs at the eery tows ; and he revile the an-
alogues egpedsleiwadeta te math apsat shad*
that coq vormet el the eery laws had his hit to
herr. Lullesdri, Nerdy, great LOONIVINieIISO bed
bra or mbar& sad reruns lad bees bed le IR MANI
et dr kr, by the erase of heritable sea shies
than he abeam at ea interest of 10 re art Vary
betreed Ids assume ward reeetareed Met ao pat of
the laws *mid be blt ea the elehreber. Tomera
hear,) advocated the eileldidame et a
if mine ; and he was eauldeed to lad a ferrules
of peat ageteurcial and hankies_ espedare Maw
dview. Hsi re Beak Begird the tree et th
notes in NW Ws WA* them wad
complaint, as the obeyed sesta wash, rows% be %-
variably resorted to, and notes which had bombard whet
gold, when that metal was cheap,M sedesmial
silver, when that was cheaper say
popular in the City,
was to 'Orr the Drelitlere aro
upon its stock of silver Wilton. This he =blamer-
jectionable ; and he eensidered it was a to
allow the Bank to held part of its mune in ewe in all.
It was no convenience to the Bank ; the whole es well
have been held in gold. Whatever bunko the Ma held,
it was so much eberection of capital • and is, might,
therefore, as well be in gold. The Beak me* le
hold as reserve nothing but the bullion in
WAS compelled reqate notes. The silver bees whisk
came into the was mare Adak ht the barb of
private aradrate it wield be to the Made of the
Bank. haerat aLuks which hand mai herr to re
City wee, that hie Bank eight to hold a parties et fordo
sacluitim. Thins weals abe extensively hell by neseshonle
sad wens he dot ire scot oat of the away, slim the
pike of the.. censusesha bat% throb, indite te Wham
exdrasea The bre the Beak ese reds a ratartial
trablibreet ths reee shirr doiliest would be itsnassegement. Bak* them pints elimmdry, the operation
of the ar el 11144 wear be very reur. kid ea-
teinly= the rade earebihr • he, dough
theme be arairmilia, die Tight kat.
baronet, its peepamm% emtehaly had est that it wall
materially lora graselailso, Obi the theme
of distren. woollep bee kr tile light hsel.
and the right haa. the Chamseilse el the isabegartisilin,.
materially =died these wilier, es bed dee Ile sairat

writer to whom the Chancellor of the Exchequer had referred.
Though a different course had been pursued since 1844, a
more aggravated crisis had come upon as ; it could not
therefore be said that that act had abated the tendency to
excessive speculation, or given greater security to commer-
cial transactions. Whatever was the prevailing opinion In
the house in 1844, the public generellyhad believed that
there was a greater security in that act. Merchaate had con-
soled themselves with the supposition that the self-soting
principle of that bill afforded them considerable protection,
end they had, consequently, exercised leas vigilante them-
selves. The act had done harm, by leading the public to
tiling too much reliance on it, in the seine way as had been
dose by all the acts professing to protect commerce and to
segue the public against reverses. All tech acts professing
to regulate currency and banking were injurious. What
was the fundamental principle of the act under which the
currency was now regulated / Why, that the circulation of
notes should be regulated by the foreign exchanges. But he
thought there had been no evidence to show that it was wise
er prudent to adopt such a principle. He did not mean to
say that the foreign exchanges should not be watched, for
they were evidence ef the increase or scarcity of the capital
in which the banker dealt. Whatever the currency might
be, whether metallic or mixed—namely, metal and paper,
it could not be based on sound principles unless in
all its fluctuations and changes it conformed with
what a metallic currency would conform te. The
object of every banking regulation should be to throw a
pressure over a longer period, so as to make the pressure of
scarcity felt earlier. What was the theory upon which the
bill of 1844 was framed / That as the exchanges fall, they
should contract the circulation, that with a contraction of
the circulation prices would ill and that with a fall of
prime the exportation of commodities would take place, and
the importation of commodities would be suspended, and
thereby the adverse foreign exchanges would be rectified.
This implied a power on the part ef the Bank to contract or
expand the circulation of its notes at pleasure ; but that was
a power on the part of the Bank which he denied. He
denied that it could do so at any specific moment, unless it
were by the substitution of coin for notes; and he was at a
lass to know how it could contract its circulation, if it were
obliged to do so by as iwue of sovereigns from its coffers.
The circulation must mean the notes in the hands of the
public, and Bank post-bills, and therefore, in considering the
question, he did not allude to the notes which remained
quiescent in the hands of the Bank. The Bank could
not contract or expand its circulation at pleasure as
long as we had convertibility with a convertible
currency—the operation of convertibi:ity itself was
the measure of the quantity which the public would
hold. The theory also assumed that convertibility on
demand was not a sufficient guarantee against depreciation.
He had yet to see in this country, or any other, evidence
that where a note that was perfectly convertible at all times
at the pleasure of the holder had ever been depreciated.
(Hear, hear.) If, then, he proved that the bank note, heir
convertible, it could not be depreciated, he thought he had
done enough to show that bank notes could not be issued in
excess. The hon. gentleman then combated some of the
reasons which had been adduced, to show that convertibility
was not a sufficient check against depression, and proceeded
to say that the anomaly complained of so much by those who
advocated the currency theory, that the currency had pre.
viously been observed to be increased instead of contracted
in the early part of the drain, was one of the necessary con.
sequences arising from the internal character of the circula
Lion, which was that the wants of the public must
be supplied to an amount equal to the price of coin-
modiues which they had to exchange at any given
time. Another reason why the Bank of England
could not contract its circulation was, that if it
were to take notes out of the circulation, the vacuum would
be immediately supplied by cheques drawn on the deposits
of the Bank; and therefore, while it was a bank of issue aid
deposit, it was impossible that it could withdraw its notes
from circulation as long as there was a large amount of de-
posits upon which the public had the power of acting, by
drawing a cheque. As a proof of the impotence of the Bank
in this respect, the hon. gentleman went into details to show
that this had been the case from August, 1845, to March,
1846, when the foreign exchanges were against us, and an
extraordinary drain took place on the bullion of the Bank;
the circulation during that period did not decline., but the
discount of bills greatly increased. The circulation instead
of having followed the decrease of bullion, under the opera-
tion of the bill of 1844 remained nearly stationary during
the whole period, while the reduction of bullion was repre-
sented only by the increase of the discount of bills.
(Hear, hear.) He believed the fundamental error
in the bill of 1844, was that those who framed
the bill, as well as those who professed the prin-
ciples upon which it was framed, confused circulation
and capital and currency with bullion ; they regarded the
amount of circulation and not the amount of capital in the
hands of the public by means of discounts and advances in
various ways. He would now endeavour to show wherein
the bill was deficient, and to which the banking community
should alone devote their attention, in order to conduct their
business more safely in future and prevent a recurrence of
the evils under which the country had recently raffered. The
attention of the legislature had never been sufficiently called
to the deposits in the banks. The Bank committee of 1840 ,
bed collected some important and useful documents, and he I
would take from them the deposits in the Bank of England '
la the last quarters of 1838 and 1839, a period of prosperity
end a period of distress. He had taken the average weekly
deposits of the whole of each of those quarters, and he found
the deposits of the London bankers in 1838 to have been
Iii:11,011. ; and in 1839, under the pressure they had
618,0001. The private and other deposits.
(isoludiqf the deposits of merchants and others
engaged in commercial affairs) in 1838, was 3,020,0001.
and in 1839, under the pressure, they had sunk to 2,122,000/.
The deposits of the hearten banks in 1838 were 592,0001., and
in 1839, 431,0001. In the Bank of Ireland the private de-
pante is the last quarter of 1838 were 2,234,0001. ' • whilst in
1839 they were only 1t834,0001.; and the agent deposits in
the same bank were, in the last quarter of 1838, 486,0001.,
and in the corresponding period of the following year only
391,0001. There was therefore a reduction of more than
twenty-five per sent. in the deposits of those two periods.
He was naturally led to ask what was the character of the
banking trade ? Merchants obtained accommodation ; but
during periods of pressure, such as those which have recently
occurred, it was found their bills could not be discounted at
all, or, if they happened to he discounted, no matter how
undeniable their security, it was at an enormously high rate
of interest. Now, there were three classes of bankers—drat,
the banker who has hie own capital; secondly, if it be a bank
of issue, the banker has his own circulation : and thirdly,
the banker who has his deposits. The two last-named
claret were very nearly alike, but it was quite clear that the
exclusive power of any banker to give accommodation to his
customers arose from the state of his deposits. If it was
found that within one quarter of a year the amount of
private deposits had been reduced from 7,144,0001. to
5,413,0001., as he had already stated, he would ask the house
to consider what must have been the extent of reduction in
the whole of the banks throughout this country. (Hear.)
In the banks of Scotland the private deposits amounted to
30,000,0001 a—the redaction amontated to 7,000,0001. There
were 400 banks in Scotland and 1,600 in the united kingdom,
so that, considering the extent of the reduction of private de-
posits within the period he had mentioned, the intensity of
the preemie which has lately occurred might be wily
imagined. If such an effect was produced in 18111 by slily
one cause. namely, a bad harvest, what must have boa the
reduction which has taken place in the present yaw when
several ceases—the drain on the country for the imponetlen
of foreign corn—the large sums invested in the enestneelien
of railways—and two successive bad hornets—Mk as it
were, conspired to produce the late unhappy stale efti=
Reckoning the number of banks and their braaress
out the kingdom, he apprehended that the egingehisesount
of the decline of the deposits in the present year weal rage
between 200,000,0001. and 250,000,0001. Tke meant of
private deposits in Scotch banks was much more then in any
other banks Ia the United Kingdom, beanie there is
caeter enothregeneat given in Beavid to depositors.
the Anis are authorised by the aerie to re-
solve trait noway, and a fair amain el interest
is allowed. The week is, private
la the banks t all the
dizsohoaure much
larger in go them
other pens et the %Med Kingdom. He not believe
that the avenge emsset of deprave was greeter fa each of
the 400 Benda di..k the aggregate Leo! night
be,and it It wee, greater thaw lei else Parglith
banks. He the peel error into whisk they had
fallen was, that they Ind eisinod themselves almost exclu-
sively to the oinefieration el the subject of cireeletioa, and
not to the Armee hegereent question of .. eepital." He
had stated whet his opinion was with ramose to the
necessity of bankers keeping a continuous of Ilex
upon the Ago 44 the foreign a:changes. He night
be asked With nee he wield aspen to derive trent reivehtsg
Wilmot* Os es. lie enewer to sea a quietism would be,
that it eked& be ask sad stringen doatleaulisselbr theasees
ef
alithig beeline to anticipate to
eases a drain on their deposits, and to mak them ts fressees
tho drops which night take plea sadsedaas that effect.
Ulnae= ailed sa piaaiple,endkeptWeir sow whoa
that rasa Miaow it was agent to benne ewes.
sethidrouselessee, if theygnthellythwersedtheir
sake iltintieset, it wockl bs preduetnief sentes le thinselne
mod to the commercial Morena inanity.
_HIM,. had done
se la time, this very year ft would have bad a alit bensiliski
abet. (Hear.) By /nig the rate el knierist when. in
August last, the mornt, lead was sinking, end instead of
Ones et bar per nat a fth rate of interest was
mask dike late coseasenial difficulties night have TI
welded. If the rate of interest on dimwits had ben in-
lensed nally in time, and had gone on nonesing in
,L,..d
to the drain in this canon,, le bad not the
doubt that it never would have keen n idgit es that
was afterwards head is be neassasy to assent end
enure the credit sad eendines of the sennertal theorem
of the country. (Hear.) He believed the thaselties sus-
tained, if not altogether avoided, by sdapting sulk amiss
as that to which he had alluded, would have been Vis
mitigated. He should, however, acknowledgeta '
bolist, that anything that a oommittest or that
tunes could do, could not prevent a etherranse
tithe late panic :—as long as we have varialiens aid slings,
in our harvests, and are tabled to the *Mind= from
which we never can expost to be altogether congited,
periods of panic and demonise nest be waled. He was
not so nagnme as to hope thin they wouldhe always avoided,
ht!..eament, by furWaidng iabranatke whisk they had
write...al
writ obalamg,..l
ow theolgtdmajzawiaki...::„idalinia
ii. "mi. fit flawralms; sleek penis eg penis smut lever
its eat if thillgalng Oath alien. • pond all if diet
theallplien II wee the theW et pdlatheth to etheA int the
wareemilliewesmosigy druid eheseree• eat their own
graded sethewillen. The ealthisedthery engenthilenefthe LA
tw=esuld int be Ithgthiee. The Ma ialesessed • few
ago lry the dght has. lase net (Se Chew
Wier of the liwilarrter), for the eniganisa et ens
'thin pahlio wadi% mat thaw out of eimienerat I
a thew nude et perms; the gesesal menus
lthithi was All wen the Manny peeled that a

reaction was yet to come, and that they should
the indiscretions of which the country bad been guile, g""
believed the next year should be looked forward to ri.dt.7
prehension, and he regretted to be obliged to expesa
belief that it is very possible it may likewise prove to be;
of
fhYoshronnusealiactouldedrtsliudep.i, w'masbletol: obhbyetaiwonhiplancyhdthmaffienanogrds hainwmdeuvbeeyrb,
dada
111 ndid
efforts the country would soon gradually restore itself
that state of prosperity and independence, which, 1.1
sure, they need not lire many years to see inuett B,e-
than in any former period of its history. (Chun.)
gentleman, in conclusion, moved as an amenili
upon the Chancellor of the Exchequer's motion for ‘-1
select committee to inquire into the causes of comme,.
distress, &c.," that all the words after the word " itte"
be omitted, for the purpose of inserting the (0110,111 g
" how far the recent commercial distress has bean aget-Q
by the laws for regulating the issue of bank notes pmtis
on demand."
Mr. W. BROWNE having seconded the amendment,
Mr. T. BARING acknowledged that many errors ked
been committed by all parties • but ho could not admitty,
the pressure was entirely attributable to over.,
want of capital. Blunders had been imputed to theadt Ilea;
England, but, like all other large establishments, he emici
ask where was there a mercantile house in which a variuy4
errors might not be pointed out ? The right bon. genti,eo
(the Chancellor of the Exchequer) had stated that the g,.k
of England had been guilty of blunders ; but the right bee.
gentleman should net have forgotten that be had
overtraded with the interest of the country by leav4,
large amount of Exchequer Bills in the market withontir
mind for them, and at a disgraceful rate of discount. Ths
right hon. baronet had committed so many blunder, Mud
he had been a small trader his conduct world have been mg.
cient to warrant his name being put into the ;Gawk
(Laughter.) He had neglected to make any provision ke
the large amount of Exchequer-bills due last March, ti.
though he should have known the demand for batiks tbet
must follow from the state in which the country was than in.
There were various intimations made to the right hon. Mee.,
net as to the state in which the monetary affairs of the mar
try were, but he had totally neglected to make any mew,
against its consequences. The want of foresight did not exist
alone amongst the traders of the country or the Bank of Eng.
land, but in the right hon. gentleman himself. The prelim
was attributed to overtrading in corn. There was
doubtedly overtrading and great speculation in
.eark
but that was not the sole cause—her Meowe
government were not free from blame. An UKII4
was not the remedy for the blunders committed—they dung
have donne of different opinions. The result would be, the
evidence would be published without a report, and the right
hon baronet would take the recess to consider what was best
for him to do next—(hear, hear)—thus leaving the Many
in the same state for the next Tear • hell that it is mat
present. (Hear, hear.) Nomore could be unsetlifee.
tory than such a proposition as that made by the gum-
ment—a committee of inquiry! Why, the country bed
been sitting as a committee ; their pressures and their suffer-
ings had been a committee, and from them the stated
the country, and the operation of the act of 1844,
which the right hon. gentleman himself had supported.
The right hon. gentleman might know from experience that
the Bank of England would not fix too low a rate of in-
tercet. The effect of fixing 8 per cent. as the minimum
rate of interest wan, to alarm a great portion of the inn's-
trial community, and if money could not be procured at a
lower rate, it could not be expected that the manufactures
of the country would be able to execute foreign ordsra
(Hear, hear.) They could never carry on a profitable ex-
port trade with a rate of interest so high as 8 per cent, sad
if such a rate of interest was to rule, they must expect to
see a great diminution of that export trade on which they
must rely, not merely to pay for gold, but also for the in-
crease in the foreign debt which had arisen Gem the facili-
ties; given by then recent legislation to foreign importa
(Hear, hear.) They had afforded the foreigner many advan-
tages of late, and if by any measure they prevented the
manufacturers of this country from obtaining money at a
cheaper rate of interest than the foreigner, he be-
lieved they would sacrifice one of the great advan-
tages which the manufacturing interest lately ob-
tained. He would not go into committee without
obtaining some assurance from her Majesty's government
as to what they intended to do in case a similar crisis oc.
caned again, or to what extent they would suffer it to pro.
cud before they would afford relief. (Hear, hear.) He
should desire to accompany the resolution with this ap-
pendage—" that that portion of the act of 1844 which re-
stricted the issue of holes to one-fourth on silver, and
14,000,0001. on securities, should be suspended, and left to
the discretion of the Bank and government united, till the
committee ihttesopemaof
a redethpoT,
earlyrepot.r.."oug(Hh
on
ear,
which to f
hear.) Theore.d could
ban
immediate measure, and the operations of the commercial
world would remain uncertain unless some such measure as
he had suggested were adopted, or some declaration were
made by the government as to the course they would pursue
in case s similar crisis arose again. The hon gentleman who
spoke last said that a double standard was not compatible
with security. He (Mr. Baring) denied that ; for there ex-
isted such a double standard in the United States, and in
Holland, both commercial countries. (Hear, hear.) They
might have a double standard in this country, and, though
It might be attended with some inconvenience and expense,
differences
which
huld
had taken
ukligehnt
pilleecottimparti:;nwn with the
the value of capital and money, which were enough
to ruin the commercial world. (Hear, hear.) He did not
think the measureof 1844 could be said to be satisfactory to
its promoters; it was not satisfactory to the country, and
under these CirCUMIIIIIICeI it could not be satisfactory to the
house. (Hear, hear.) He trusted, therefore, that the house
would not think it shelved from consideration by the ap-
pointment of this committee. (Cheers.)
Mr. ROBINSON said that the motion of the right hon.
gentleman the Chancellor of the Exchequer was a tacit ad-
mission that the law respecting the currency required revi-
sion, and that the system of free trade proved a complete
failure. He agreed with his bon. friend who just addressed
the house that an inquiry of this kind, without restriction or
limitation, could load to no practical result.

Sir W. MOLESWORTH said, hie honourable friend
the member for Poole (Mr. Robinson) attributed the
commercial embarrassments of the country pardv to free
trade and partly to • restricted currency. He (Sir W. Moles
worth) thought with the Chancellor of the Exchequer, that
those embarrassment, were attributable not to • deficiency of
currency, but to a deficiency of capital. Tbat deficiency arose
pertly from cause over which we had no control, and partly
fram-our own folly and imprudence. The national loesgrom
the potato disease had been estimated that night at upward
ef 33 millions, ands the whole of that sum came out of the
Rational income, it was evident that the pressure produced
must have been far more intense than if it came out of apt-
tel. Again, the expenditure in railways had greatly dimi-
nished the floating capital of the oenntry, and the labour ex-
pended upon them had not been employed in providing
Boating, but in producing fixed, capital. The country by
these canoes was placed in the position of a man who in an
attempt to improve his estate had vent, not only all his pare
cub, but all that he required to provide himself and his
family with the fit necessaries of life, and who con-
sequently was obliged to borrow money at • high
rate of interest in order to supply the deficiency.
We had in fact expended our floating capital in railways,
and what we had now to do was to redeem our position, first
by diminishing our expenditure, and secondly by tempting
=IL' capital from other countries, by selling our fixed
and articles of production at diminished prices. He
krw that there were sonic people who attributed what had
owned to the operation of free trade and the repeal of the
seen law, but it wee evident that those political cirmunstancee
had nothing to do with the antecedent events of the potato
failure and the railway speculation. Neither, if the recent
=barroom:tient was attributable to those combined muses,
could they in any way call to question the operation of the
Bank Charter Act. In his opinion the embarrassment was
as little attributable to that act am to free trade, er the potato
failure, ee deficiency of capitol. It arms, sit he said before,
partly from natural causes, partly from overtrading. Now,
what woe the came of this °manage ? It wee an event,
le repalleil la say, el periodical 1111111111•01. Capital in this
poi alameosial esseary inuenued owe rapidly than it wee
pain le lama te. The rata of atria consequently fell,
whit the plea of provisions rose. People, in order to ob-
i& the
Ar tisk mousy, aelarked eagerly, and
ova realyfeessarr edema dat ore projected, A
ire ellkaa wee tip; but the sevitoltY fuloar
end end swesiedeL Atat • WIN Sr arm poet
u.r, het emineepieseseseisd. IS the spe-
wham pole taderlook to ot mire thee OPAL •
pais arias& Did the BankM of legiiid ti sealed
se teal orpsvate that panic Oahe
de sot tar he
the Meek wold have done wiser kode2deti7siiiseliall
a ibis
halo eltemen Thee One dee as to the ma-
Oa at the gevermiaL It ma the mos paned
by attaMw was ennesonsery.altated abed prondest, end
wee sokeiatid to innellie SIB whale onency qualm
Their might be ermadder to their eagensals, but the tem
W append to him lebe, ea which Ole wee the basso ef
rearie piesteat, et to take the step the SOWS-
Ent load tritee t It was anteinly nay much in their favor
that despest neednale of the City wee of opinion than
=eshr perseed the wisest and most judicious coo.
there wee sane difirsaes of arnica es to
whither or not asp had dlesse_ • prow dma.
If the Bask had hem the fed pas ca Mereesft the rate
Omit easerSeg to* nernie of the MOW peon, sad
the senestresat irmand areey, he whether the
peals would ever have ahem Pace. It wee gaieties, how-
seer whether that None would have been the beet to the
peerniery interest titbit perrioxs, to whom it was always
ea
anemia to mike the imp semi of ismity arising from
the peals tease which reoadasil to their heeds lent for a
littetaL,.=..,ll,,tarereoatuninterest. In
Yes try had .
eel I.d=ad this s, le moss over win* parliament had
no coded. As it on be borne, and we
must tart to." do, are, led ormany, te retrieve our posi-
tion. (
CFIATeseLEY ahwid have thought, if the hoe. boot
had sot been sudder • womb, that he was reading, this Mi-
ens which bad moues& .1.11 dine to tine daring the bet
6w moths to a nediag Paned el 66 eseetry,
to white pan* the WWI orgasm% and sheet
is the sans L- 111 as bed boa sawed by
the lea. boast.- hid hem put OEM. Until he
bead is has. based he tbseght no man bet the writer
el the bang snide to whisk he referred wee bill aisegit
to mope 64 the est MUM hit sot in say way oretelltated
Is we sammeisl tussles. Me &sob' haw tem giad if
dram. lessest or ow oder boa swabs, bed
I• Mown the 'Medea Whisk bet ham gime *re=
fat miediente in London, the lam mataless ININ
tea Is (Mr. Colley) MI est *0 Set eat
biesesalls feud the C 1608116, et the lizabsssor
had deal its lees alieSo d the Pronsio. He "ii-
siberei and
the ponted ilia%hriell ma mak man asserstsly
NA le =IO to the t by
the beano of Mee we son, and Mind itself

inte the restriction impeded upon the Bank. He felt that it
gee the bounden duty of the house not to go into committee
without giN mg some mamma to the commercial world, that
sub a paralysis of credit as that which had lately befallen
as, should not main occur. It was perfectly clear that while
8 per sent. was charged for interest, no foreign trade could be
earned on.
On the motion of Mr. BLEWITT, the debate was then
adjourned.
Oe the motion of Lord J. RUSSELL it was ordered that
the hones itself, on its
IRISH rising, shouIISTRESd adjourn until Thursday.
DS.
Major BLACKALL moved for a return of the amount
einady wended oat of the 8,000,0001. rained by loan during
this year far the relief of Irish distress, and the manner in
which it had been
The CHANCE OR the EXCHEQUER said that,
se he had directed a full account to be preparedpi the whole of
thempeaditumjwith WWI intention of laying it onthetable
alba home, and as he had reason to believe it would be
ready on Thursday next, he hoped the hon. member would
think it convenient to withdraw his present motion.
Major BLA.CKAI.L acquielood in the suggestion, and the
motion was by leave withdrawn.
COMMITTEE ON PRINTING, &c.
On the motion of Mr. PARKER, the following members
were appointed a select committee to assist Mr. Speaker in
all matters which relate to the printing executed by order
of this house. and for the purpose of selecting and arranging
for printing returns and papers presented in pursuance of
motions made by members of this house :—Mr. Parker, Sir
Robert Harry highs, Mr. Putty, Mr. Vernon Smith, Mr.
John Young, Viscount Mahon, Mr. Hume, Mr. Cardwell,
sad Mr. Loch.
MEDICAL EDUCATION.
Mr. WAK LEY, in moving that a select committee be
appointed to inquire into the registration of legally qualified
practitioners in medicine and surgery, and into the laws and
charters relating to the practice of medicine and surgery in
Great Britain snd Ireland ; and to report the evidence, with
their opinion thereupon, to the house, observed that this was
amen reneges' of the committee of last segaion. He regretted
to say that the late general election had made iad hasoc
amongst the members of the last committee, for of 15 who
bad sat last year only 7 had been returned to the present
parliament. He had also lost the invaluable aid of the chair-
man of the late committee (Mr. Macaulay), but iu the hope
that that right hon. gentleman would shortly have a seat in
the house. be (Mr. Wakley) should, in the event of the
hum agreeing to his present motion, postpone the nomina-
tion of the committee for some days. Hear, hear.)
The motion was then put and to.
RAILROAD ILLS.
On the motion of the CHANCELLOR of the EXCHE-
QUER, the • following members were appointed a select
committee or railroad bills :—The Chancellor of the Exche-
quer, Sir J. Graham, Mr. Hudson, Mr. Hume, Marquis of
Graeby, Sir G. Clerk, Mr. Scrum Mr. Moore, Mr. Glyn,
Mr. Ellice (Coventry), Mr. Labouchem, Viscount Barring-
ton, Mr. W. Browne, end Mr. Brainston.
The house then (quarter-past 12 o'clock) adjourned to
Thursday next.