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

............---
A.. mgt dm Wu of IL Ils • beeeMeMerY bone,
ereTainalb at the eielaadna all Intlet. no rem me.a.
via kart Wan tbs. pwaanden he amid
.....I"illirstrdthe lo
wawa be ato tosporary
"'idesat, r, at allinsolo, lia wail lel boa awassalady
„oldie gad *Wades sloe MAW he ihs IL
0.4 se the MOS strams ib• ileadasethedielsa.
..6.01.1aig,' b°ll,l he.
alur......dii. 'l'4
meta as _ 1844 g eweenselh
....." mos - the hoe. member be Warwick with meow view
"-- —.era Before hoseenter, the hones applied amm-
o.° tie,Ts remedy let thins considehr well what was the nature
snhe evil. Let them well w
ou in
e* to apply *Present reliefag to the dame. of the tryC
tho world not run the risk of aggravating that digress in a
He did not require a better descrip-
mat material degree. d
of
gof the condiuun of the country an the real nature
the immure upon it than had been given by
the temoursele member for Huntingdon. The honour-
sme gentleman stated that the eountry was suffering
from an estraonlivare scarcity of food. This will the
feet A calamity, foreseen by none, had ted us. The loss
despite! occasioned by the failure of the potato crop in Ire-
land, and of otht r crops for the subeistenc• of man in this
theory and in Ireland, had been estimated at no less than
16 mulleins sterling. It was difficult to calculate the effect,
seder any circumstance', of the abstraction from commerce,
a me leer, of 16 millions, more especially when that
sem...um was occasioned by a calamity such as the dearth
of food. But were tee alone suffering ? No. France was
theeriag as intensely as ourselves ; Holland was suffer-
* Belmum, Germany, the banks of the Rhine, the
mete of Europe, Denmark more especially, all were suffer-
the. , en, well nigh alike, were looking to the United States
of merica as the sourest of their common supply. Do not
talk of free trade having proved a failure, when it was clear
that we ourselves, common with all the countries und
es, were applying all aro
our means to the procuring the means
Of ataitteaa. The hon. member had assigned another
mast far the present distress ; he had pointed to the extent
of eulogy apeculatien in the past year, and spoken of the en or-
noas amount of capital locked up in these under-
takings, Here, then, was another explanation of the
want of capital applicable to the ordinary purposes
of commerce. There was another to be indicated in the
falling off, in the past eear, of the crop of cotton, that
e•rential materiel in oar most important manufactures,
whence had arisen, at once, an enormous defiteence in our
supply of the article, and • vent addition to ats cost.
Was it right then to throw all the blame on the act of 1844 ?
Whether they had had au inconvertible paper currency or a
metallic currency, depend upon it there was net a country
on the face of the earth which could have been exposed to
the treble opermiee of such calamities without feeling ate
amount of pressure which no issue of bank notes could
relieve. (Hear, hear ) At the same time he must state
that if he felt that the great interests of the country required
an alteration of the act of 1814, uo feeling of false shame
should index him to throw any ebstacle in the way of such
attention. (Home hear.) That act passed in the year 1844;
the Beek charter was then about to expire and certain alte-
rations were necessary. Those alterations, be it remembered,
were not &duetted without much pervious inquiry. For five
yesrsprevious to that period thesubjeet had been meet carefully
sated by Tereus committees. It could not therefore be said
Wham been a mere speculetive change in the currency.
The boa. member for Warwickshire said that he (Sir R.
Peel) had, in 1819, drawn a flattering picture of the state
and prospects of the country. He had done so, and why ?
To justify the government to fulfilling its engagements by •
return to cash payments. But was the hen. member aware
that, in 1815, with an inconvertible paper currency, several
<tithe private banks failed. Why ? 'Bemuse, on the return
Memos, there was that collapse which was sure to occur
after we had for a long time possessed the whole trade of the
world, and had been indulging in the luxury of inconvertible
paper. (Hear, hear.) Was it wished that we should return
to the state of things previous to 1844 ? Was the Bank to
have a power of issue according to its own discretion ? Was
that the state of things desired ? If they repealed the act of
1844 that would be tee state of thing,. How had it acted in
1838 ? Then the Bank was left with about 603,0001. in gold,
and every prospect that it would be unable to fulfil its en-
gseements. ( Ilt ar, hear.) If they restored that state of
things they hallnu security against the recurrence of similar
disasters. The object of the act of 1844 was to secure the
convertibility of paper into gold, and to prevent pressure in
times of danger and difficulty. It checked any issue of paper
made without reference to the exchanges such issue purchasing
merely a temporary ease, while it afterwards aggravated
commercial proaure by a panic which was sure to lead to a
demand for mild. It was in his opinion important that in
times of difficulty and dimmer they should not be induces! to
runt, the Bank from any doubt as to its solidity. The hon.
member for Huntingdon had said that there was not at the
present moment the least panic, but that there was severe
pressure, caused by undue apprehension. Well, but what
would be the state of things if there existed any doubt as to 1
the solvency of the Bank—if the act of 1844 heel not passed ?
(Hoar.) Suppose that on the part of every country bank
there had been during the riot of [peculation of last
year, the power of making as uncontrolled issue of paper,
would the state of things at present be aa good as it ware
severe a. undoubtedly was the pressure. (Hear, hear.) Was
it not probable that specu'ation of every kind would have so
increased as to have terminated in a run on the Bank.
(Hear, hear.) It had been said that the act of 1844 was ex-
pected to work en a measure requiring little or no direction.
That was true as far as issues were concerned ; and all he
regretted was that the issue department could not have been
wholly separated from the Bank. (Baer, hear.) The hon.
member for Shrewsbury said that they had no right 1
to criticise the conduct of the Bask of England,
but the honourable member for Huntingdon, who
was nearly as good an authority--(a laugh)—thought that
the conduct of the Bank was fairly open to criticism. That
boo. member disapproved of the conduct of the Bank in
August last in reducing the rate of demount. With regard
to any criticism on the conduct of the Bank in the month of
August, he must leave the hen. gentleman to settle his
account with the hon. member for Shrewsbury. He (Sir It.
Peel) had
said was that in the three months which fol-
lowed January, 1847, when there was a drain of
gold, he did venture to say, in the presence of the
Me. gentleman that, with respect to the conduct c f the Bank,
be doubted if a greet part of the pressure would not have
been obviated if the Bank, in the month of January, when
there was a full knowledge of the calamity which had fallen
en Ireland, had not continued to discount at 4 per cent. for
them months during the continuous drain of gold. The hon.
gentleman told them what had been done by the Bank in
1837, 1538, and 1839, and he ventured to give hlm an assu-
rance that if the act of 1844 had been in force in 1838 and
1839, no one of the difficulties of that time would have been
obviated, for the Bank had intimated power to issue
more notes than they did. It was difficult to say
what would have been the conduct of the Sank under an
set which pused five or six years after that time. But the
hoe. gentleman had omitted to state what was the condition
of the country circulation then. lie would tell him what it
was. In Novemh, r, 1823, the bullion in the Bank was
13,760,0001., and in November 1825 it was reduced to
3,012,0001. Between Nov. 1822 and Nov. 1825, while the
What in the Bank was so reduced to 3,( 00,0001., the amount
of tountey lia• k paper had increased from 4,000.0001. to
8,000,0001. From Jan. 1833 to Jan. 1834, the amount of
bullion was 9.949,0001., and in 1837 there was • decrease of
6,000,000/, the amount being only 4,000,000/. while the
Menery bank einsulation had increased in 1834 to 10,000,0001 e
aid in 1837 it was 11,000,0001. In 1836, at the verge of the
ass, the country bank circulation was actually 12,000,0001.
On the 27th of June, 1836, the bullion in the Bank was
9,642,000!. ; in 18.39 it was 4,344,0001. The country bank
eircaleton had increased to 11,740,0001., when the Bank
had in bullion 10,000,000/ ; and it was 12,725,0001. when
the Bank had only 4,300,000/. in gold. The hen. gentleman
omitted in his calculation the whole circulation of the
country banks, but when the doctrines of the Bank with
regard to the principle of imm and the state of the foreign
excbanges, although it was said that the Bank had no more
concern with the foreign exchanges than with the snow on
the mountain., were remembered, it must be admitteel that
the state of the country hank circulation was a material ele-
ment to be considered. The act of 1844 was intended for
the moves purpose of presenting the evil of the increase of
' country bank circulation, concurrently with decrease of the
precious metals ; end it proposed limitations for the purpose
of giving to the Bank greater control over paper eirenla.
elm. The Bank was a public institution possessing privi-
leftee, and, among others, the exclusive circulation 65
miles round London. The circulation of the country banks
*ea limited, in order that the Bank of England might
exercise centred over that circulation, although it was said
it had • perfect right to issue as well as discount, without re-
ference to the foreign exchanges. But the Bank would say
that it hail public duties! and could not regulate its affairs
oel with regard to the temporary interests elite proprietors;
asst the hon. member for Huntingdon was correct when he
said that it had great power in influencing the trade of the
country. Although the liras department might provide for
the variation of issue in conformity with the influx
and efllux of gold, and although the law had laid
down no rule fee the Bank on that respect, yet
parliament in pluming the act of 1844, did give righu to the
Bank, and it was felt that it bad the power to derange the
currency, bat there was every confidence that the Bank
would give up its privileges, and that the currency would
be regulated by the foreign exchanges. The memonal from
the Bank which the hon. gentleman read was before parlia-
ment in 1841. The hon. gentleman might have heard it
read and discussed, and he might have heard the
appeal which was made to the government to
profit by the suggestions contained in it, and to give the go-
vernment a discretionary power as to the issue of paper cur-
rency. This question was dismissed ; and it was ?Mesmer,
that if it was acceded to, there would be a constant demand
on the government to exereism that discretion. 'lle object
of the act was to encourage c ,Mioe in the Bank ; and on spe-
culators and traders, by enforcing that in time to come the
Bank should not give accommodation under certain pressure,
and that object would have been defeated if that discretion had I
been given. I suppose the government, in the exercise of
such a discretion, had issued three millions of notes. The
moment there was the slightest pressure they would have been
appealed to, and all confidence in the act, and all caution,
would have been removed. Therefore the government of the
day declined to accept that trust, because they felt that par-
liament only emeld relax the law to which its assent had
been given. After that memorial had Men presented to the
louse and discussed with almost entire coucurremeeparlia-
meet refused to give that discretion. A formal motion was
made by the hon. member for London.
Mr. MASTEItMAN : I assisted in preparing the memo-
rial, and I suggested that such a motion should he made, but
I did not make it.
Sir R. PEEL : It wee from • full conviction as to the
Principles of banking, and that in the United States the system
of convertibility load not secured the delivery of gold to the
bolder, from a conviction of the evils which it had caused in
that country, from the failure of the country banks and the
abuses of the joineeteck banks, that he felt it to be his duty
10 Propose the set of 1844. He entirely approved of the

_ .
ootanirpinsit&Wiltiiteltertsiait: bit still he could not.
Ml with her.gentlemen who had described the pressure
which was so sum, and the danger which was impending.
11111 rise la the priee of corn that day was calculated to muse
very painful helices. Hs was fully alive to this ; that the
pressure was not confined to this country, that it must be
exposed to matimee, sad than male ems be increased
pelf eve ea mesas! lithe dm in the elem. He was
sled is hear from the right bee. (the Chuncellor
et the Exchequer) that there wens pmeepeeleef haprovement.
He deeply lamented the preset none et affairs in
the money market, which caned esaltanenneast to trade and
maanfacturee. He deeply rercelled that they were suffering ;
and if be could be cenvineell that It resehsd hoes the mea-
sure of 1844, no rigid adlianimms to say principle should
prevent him hone applying 'the required remedy. If he
thought the fellation of dde MU would afford any cure of
those evils, he would offer tie km meat to any temporary
relaxation that might be prelomd by the government. But
it waa his firm belief, as est prima advised, and judging from
the means of information le had in his posseision, that a
mere temporary issue of some 2,000,0001. of paper without
the increase of that capital which in point of fact was the
real resource from which alone we could command
the produce of other countries—such a relaxation
of this measure, or the permission to hue upon
Exchequer bills, or by the Bank to issue notes to any given
amount on other aecuntes, would be but a temporary relief
from the pressure under which the country was suffering,
while it would greatly increase and aggravate the permanent
evils. Look at our present politica. In Europe the ex-
changes were already slightly in our favour. There was a
daily increase in the of coin, tonging to give increased
security to the Bank, and enabling it to give increased
accommodation he treated they
would continue to give as fax as they mould poseibly do so
with safety. But hewn that confidence—tarn the exchanges
against us, and tell the Bank that its position
would be engendered, and the convertibility of its
notes would be fettered. The Bank must in that
case look to the government aid against this in-
convertible paper, and consult not only their own
security (for that is subordinate), but the but interests of the
eountr, by securing the great object, the eonvertibility u.
paper into gold. There was aow about 10,000,0001. of bul-
lion in the bank—fortunately there were 30,000,0001. or
40,000,0001. of gold—it was difficult to estimate the exact
amount in circulation in the country and in private use. In
that gold circulation he believed was the foundation of the
security of the Scotch and Irish banks—that was, in the cer-
tain convertibility of Bank of England notes into gold. This
was an expensive process, he admitted—gold was capital, and
there it differed from bank paper. They had to
choose whether the present feeling of apprehension,
and the temporary pressure they would give up
the security of the present system, if they choose
to part with it they might command the produce of foreign
countries. But if the system was good for this, it WI!, good
for all other countries, and the hon. member fur liuntangdoa
had raid that France was not suffering, and that rte gold cir-
culation of France, as compared with its paper, was in the
proportion of 80 to 30. Supposing the case was reversed,
and the paper was 80, and the cons dO, would the government
of France have felt the same confidence in dealing with the
difficulty? No it was because of the existence of the pre-
sent expensive system of circulation (and expensive he ad-
mitted it to be), that they were secured against a demand for
gold as the consequence of internal famine. 11 a advice to them
was, not on account of any fancied immediate or temporary
advantages to issue one pound notes in the place of sovereigns.
He trusted they would be able to pass ever the present diffi-
culty; and without some great calamity or paramount in-
cesoty which should deprive them of all discretion, he im-
plored the house net to tamper with those principles which
it had the greatest difficulty in re-establishing after the long
experience from 1798 to 1819. If they obtained present re-
lief,
by endangering the convertibility of paper, his belief
was that they would inflict a levers blow on the prosperity
of this country, and do more to shake the confidence of pro-
perty, than by any other mune they could take. (Hear,
hear.) He trusted, however, they. would feel that it would
be wholly at variance with experience, and unworthy the
character of this country, that because of any temporary
pressure, they should relinquish an advantage watch he
firmly believed to be essential to the welfare of all classes
of the community, and, above all, of that clue which ought,
by the certainty and fixity of the circulating medium, to be
assured of the command over the necessaries of life. (Hear.)
He should eve his support to the government in their ad-
herence to the principles of the currency, trusting they
would take every step in their power to prevent the necessity
of embarrassing the Bank by calling on them for asaLtance.
(Cries of Adjourn.")
Lord J. RUSSELL hoped the hen. gentleme n would per.
mit the resolution to paw, as it was most desirable that the
government should have the power which it was proposed to
take without delay, and that the measure should pass through
before the holidays. Holm the resolution was reported to-
morrow, the measure would be delayed until after Whitsun-
tide. (Loud crio. of " Adjourn.")

The Marquis of GRANBY must press for an adjournment
of the debate.

After a short discussion, in the course of which it was ar-
ranged that the report should be brought up tc-murrow (this
day), when any further debate might be taken,
The resolution was then agreed to.
HEALTH OF TOWNS BILL.

Lord MORPETH, in postponing the second reading of
this bill to this day, said it was not the intention of the go-
vernment to proceed with the whole measure, as ho proposed
it to the hone, in the present session of palliatnent. After
having ninny interviews on the subject with members of the
Metropolitan Health of Towns Asysciation, they proposed to
confine the bill to these towns that had corporations—to
those, in fact, to which the Municipal Reform Act extended,
and which had regularly-constituted bodia, by whum the
powers proposed to be given by this bill might be applied.
They would drop that provision of the bill which enabled the
crown to nominate one-third of the commissioners. (Hear.)

It was not their intention to include the metropolii in the
bill, not that he did not think it less required it, but he
thought with the noble lord the member for Falkirk (the
Earl of Lincoln), that it was large enough to form the
subject of a separate bill. The bill would give the commis-
sioners the power of constructing gas and waterworks where
none existed, and of contracting with gas and water corn.
panics where they did exist. They proposed that the Talus
of the property should he estimated as is the Land COIIIOII-
- Clauses Act. These were the chief points of the bill
which excited opposition. He hoped that neat ses►ion they
would have more leisure to apply themselves to the bill for
the metropolis than they could devote to it at present, when
more pressing, though he could hardly say more important,
matters demanded their attention. (Hear, hear.)

Mr. MONAHAN obtained leave to introduce the two
following bill .—" Bill to continue certain Acts for regu-
lating Tsenpike Roads in Ireland, until the 31st day of July,
1848, and to the end of the then next Session of Parliament."
" Bill to continue, until the 31st day of July, 1848, and
thenceforth to the end of the then next Session of Paths,
meet, an act of the fifth and Math years of her present Ma
jesty, for amending the law relative to Private Lunatic
Asylums in Ireland."
The Home adjourned at a quarter-past one.