The Express.
London, England, 1848-02-18 00:00:00

NOV-A SCOTIA.

Mr. HUME said that a general elution having taken
place in Nova Scotia, he wished to ask whether it was the
intention of her Majesty's ministers that, in this colony, a
responsible government abould be carried out in the terms
of Lord J. Russell's letter, for the colonists were somewhat
apprehensive of being _treated as the Canadians had been.
Mr. LABOUCHBRE said that the best answer he could
give would be a very brief statement of the facts which bad
lately occurred in Nova Scotia. In August last the general
election took place, the result being that what was called
the liberal party, which before was the minority, became
the majority. The new House of Assembly met on the
72n1 January. The first thing they did wee to pus a vote
of want of confidence in the executive council, an expres-
sion of opinion which was then embodied in an address to
the governor. Sir J. Harvey replied that no time should
be lost in adopting the measure which should seem to him
most expedient. Hereupon the executive council tendered
their resignation, and, on the lit February, Sir J. Harvey
wrote to the General Amiably, intimating the fact, and that
he would forthwith apply himself to the new measures
which circumstance, had thus rendered necessary.
WEST INDIA ADVANCES.
Mr. BARELY begged to ask the Chancellor of the Ex-
chequer whether the sum of 200,0001. proposed to be granted
to certain of the Went India colonies, in aid of immigration,
was to be applied to the liquidation of liabilities for Cooly
immigration already incurred by her Majesty's government
(but which those colonies are unable to discharge), or
whether it was to be employed in procuring from the coast
of Africa an effective addition to their labouring popula-
tion ?
The CHANCELLOR of the EXCHEQUER had already
stated to the house that the two colonies of Guiana and
Trinidad had by legislative acts, authorised their agents
here to negotiate loans for the purpose of facilitating immi-
gration into those colonies, in consequence of which audio-
risation, immigration was put in coune of arrangement.
The agents having failed to obtain the loans they sought,

Ms sir aid, and lending them the of discount at three per cent. from August, 1846, to fearing that the Bank would not be able to meet every
thou/lupe& reasonable terms, government had felt itself did cause them. The Bank continued to maintain the rate them he did not think there existed the slightest ground kir
oug e m. 0..
very coasidenbly in the meantime. In January, war taking place very slowly, yet that trade and commsm-'''
them- to raise. January, 1847. The stock of bullion fluctuated Me demand. He need hardly say that dth h the -
iger, an action upon the gold took place and were revinng, and that there was no possibility of sesli-..
been already expended.
tilteladery. BwAinhßiciaLthinlr-But of the money has
nitessiety Exchequer)
even temporan eii. s ng
i:t :
Precautionary measures, and raised the hon. gentleman had been quite right in anticipating o,
fmetto-
The CHANCELLOR of the EXCHEQUER-No doubt the stock of bullion fee from 16,000,0001. to 13,947,0001. The demand as the Bank would not he able to meet. Tke right
the government advanced the money in anticipation of the Bank again adopted
_p would argue that there em
loan.
per cent. certainly mould do so. On the 18th • ' THE BANK ACT. taraitedofthdise ;oaulunet
of money
fmourocelrucentnnt.:haet
swwhaialt.iprbiuctonit
n(thotethEe"nsliegenhteesete
December, istmaite
mien of the Bank Act, but the right hon. gentle- Now, be must contend that the facts stated-oaniely, that ately preceding the separation of parliament, the Beak to.
Mr. BERRIES then nee to bring forward his motion on 9,887,00010 when the discounts were raised to five
the suspe the rise and fall of the Bank rate of discount, accordine to serve amounted to 8,5W,0001. He should then have .
man was lo extremely indistinct in his delivery, that • very of
considerable portion of hie address reached us in too ineom- the stock of bullion in its coffees, would suce to provethat a motion_ for _ suspensioe,_and much mere so now, when it
plate a form to enable us to report it. The proposition the Bank of England was most careful in its traneactions, amounted to 9,686,0001. If parliament did not think it fit%
he was about to make comprehended two motions, which and watched sethdously ever the money market: It had been entrust some power to the government, then the rig me,
might indeed be separately nested., but whfeat gentleman m bit move a condemnatory resolution, ---
it more advantageous, in every point of view, to take in con- of securing the convertibility of the
.in circulation. (the Chancellor of the Exchequer) did not think ' butt,
paperi drt the I' h t i for
junction. They both referred to the events wi11.% occurred Now, he must deny that proposo on, an ease on seg tea peace' ty even temporary ausimiiion. Bat
last year ,
and which arose out of the Bank Act of 1844 ; the contrary that the act had done nothing tow the right hon. gentleman had cated something
mom
vents
of the moot calemitous character, which excited more accomplishing any such remit. Before the act messed than temporary suspension. He proposed to impend uom
slam, more distress, more misery, than any commercial he had shown the Bank to have had the miser- parliament should otherwise determine. Why, that' ~,mti
crisis within living memory ; or, he might say, within his- tune to have 16,000,0001. in bullion stored in its cellars ; amount to a virtual repeal of the act. (Hear, hear.) If tin
Cory, (Hear, hear.) The commercial failures which cm and, since the events to which he had referred, more than ect warto be repealed until parliament provided otherwise
media the latter end of 1847, were in point both of number half of that amount had been withdrawn. What was there it would be in point of fact a repeal of the act. He melt
and of magnitude beyond all precedent in this country. to prove that the act of 1844 had acted beneficially in re- not imagine any course of proceeding more minima,'
(Hem, hear.) A document of high authority enumerated ammo the financial interests of the community ? (The to stultify the house. To move for the repeal of as act
no fewer than 220 failures, select from a host of minor right hon, gentleman here
of ecame totally unintelligible, wbenge committee had just been appointed to inqem
cataatrophos, 85 of which alone represented property to the partly ening to his practice turning round to the benches whether it could be amended or altered, would, in les
extent of 12,000,0001., the aggregate looses of t,he 220 houses behind him, mod partly to his dropping his voice at opinion, be an act of stultification. It would realise the ski
amounting to no less than 30,000,0001. (Hear, hear.) Such each period of his speech.) He felt alma( overwhelmed saying, " Hang feral and try after." (Hear, hear.) mem
a Mate of things as this ought not to be palled over without at the contemplation of the opinions which he had to en- gentlemen were of opinion that alteration might be inn‘
the most anxious solicitude, at least oa the part of those who counter on the other side of the question. But it was one duced with advantage. Various courses had been
suggatedr
bad the charge of public affairs, to ascertain what had been which ought to be submitted to parliament, and be had felt but it was not true that government had received numerots
the mum of such calamities, and what remedies could best it to be his duty to bring it under the notice of the house. deputations with suggestions. They had received only ten
be applied to prevent their recurrence. (Hear, hem.) The Supposing that the Bank had been free to act under the old deputations, one from Liverpool and one from Birmingkm.
motion he was about to submit to the house sufficiently system, what would have been the course of events during But various suggestions had been made, and surely mum
explained what, in his humble opinion, the causes of these the late crisis? The Bank-looking at the causes of men should agree in what they proposed to substitute before
diameters had been. The second resolution, to which he the drain of bullion during the year 1847-looking they repealed the act. He remembered that the hon.
would first advert, expressed his judgment that the govern- also at its means, at the amount of geld in its coffers, bee for Birmingham had conceded that the act of 1844 we;
meet, In suspending the act of 1844, had taken • judicious which was fully equal to meet all the demands likely to be the complement of that of 1819, and that to era no.
step, • judgment corroborated by the fact that the Tenth had made upon it ; looking also at the exchanges during the mantis' good both acts must be dealt with. A commit.
been to stay the evil. At the very commencement of the mouths of January and April, 1847, and finding them fa- tee had been appointed affording various shades of opinioe,
anion, her Majesty had informed them that her ministers vounble-would have been able to take measures to avert and he hoped that much valuable information would be
had found it necemary to authorise the violation of a recent the crisis that occurred during that period. And during obtained. If the right hon. gentleman succeeded is kis
i• statute of • most stringent character, the vital principle of the second period, foom April to November, 1847, if there resolution he would of course follow it up by rescinding tes
which was the very feature against which the government were no alarm excited from demands for internal purposes- committee, because after the repeal of the act the labours of
measure was directed. Up to the present period, however, for in that case gold would have been sent into the country that committee would be all labour thrown away. (limo
the only notice taken of this most important communication to meet them-the Bank might with safety have ventured The right hon. gentleman; had said ia a former debate
had been the formal acknowledgment of its receipt, no step its own coedit in alleviating the general depression of com- that it would be essential to know the whole state if the Bak
whatever having been taken by the house to express melee. (The right hoe. gentleman still continued in- of England, and had asked for correspondence which**
an opinion on the subject. (Hear. hear.) It was audible.) He did not believe the government contemplated not be given to him simply because it was not in existent,
said, indeed, that this v' lion in question was not an the maintenance of the act in its present state. It had, He quite agreed with the right hon gentleman, that sack
act which rendered it necessary for the government to apply however, been thought, more probably, that the tedious and information should be before the house, and the committee
for • bill of indemnity : it might be so-though he had circuitale proem of an ingairy, before a committee was re- was likely to obtain it for them. The governor and deputy
doubts on the point-and so far the second resolution he quintet in order to enable =misters to assent to a mo- governor of the Bank of England were to be examined, sea,
held in his hand showed his opinion that government was dification of the measure. He hoped the house would no doubt they would give a full and complete amount dem
justified in the course it had taken. But he was also of in the meantime consent to his motion. The country was conduct of the Bank of England. He confessed that he
opinion that the conduct of government on the subject, in in a position of great danger as regarded its commerce and looked forward with great interest to their evidence ; bet
relation to parliament, had been marked be an extreme beano's. There was a possibility of the recurrence of that if they were first to repeal the act, of what we getiiog
want of franknea and Mraighttorwardnem. (Hear, hear.) calamity which had already taken place. The act of 1844 all this important information? The right hon. Fentleam
There bad been a manifest purpose on the part of ministers was now operating as a drag upon the springs of commerce. had expressed his wish to avoid a general discussion en the
to shun discussion of the metier by the home. (Hear. There was no reason to doubt that the commercial and currency. He (the Chancellor of the Exchequer) entirely
hear.) The eery first government step of the session lad manufacturing activity of the country would rise to the same agreed with him, seeing the serious delay that ouch a discus.
been a kind of rush, on the part of the Chancellor of the height as formerly, if the impediment to their free action non must create to the business of the country. They bee
Exchequer, to get a committee, the clear object of which was removed. He believed that the representatives of the now arrived at a period of the session when the public boa.
wee to supersede • discussion of the question. (Hear, hear.) manufacturing towns of Scotland were able to confirm the ness must be necessarily gone into. To-morrow (this) night
That committee's instructions did not at all touch the point opinions he had expressed, for in that country great depres- his noble friend the first Lord of the Treasury would make
which he now purposed to bring under the attention of the loon had resulted from the recent monetary en*. He did his financial statement; and then would come the estimates,
house, or call upon them to report as to the conduct of not think the arbitrary regulations respecting bullion had which it was not to be expected would pass as quietly se
government in the matter. The committee, in • word, was tended to increase the amount of gold in the country. It they had done in formes years. Under these circumstances
• clear case of evasion. He therefore deemed it his duty, ee was mach to be deplored that owing to the Bank acts of he approved of the right hon. gentleman's discretion, and
a member of the house, to call upon the house to Pronounce 1844 and 1845, the Scotch and Irish banks were compelled to earnestly hoped that the house was not about to plunge into
their judgment upon the conduct of the government in sum have from 2,000,0001. to 3,000,0001. ofgold in theirceffen which the interminable ocean of a currency debate. (Hear, beam
pending the act of 1844. Before he could expect the house might with more advantage be added to the bullion in the There were, however, one or two points in the nett
to adopt his first resolution, he must pees to the ascend nem Bank of England.. All he asked for was that the government hon. gentleman's speech which he must refer to, far
lotion, for on his power te satisfy the house that this second would consent to repeal so much of the act as restricted the the purpose of correcting misapprehension. The right hos.
tesolutioninla•jillit one, depended in greatmeasure the fitness issue of bank paper, in relation to the amount of bullion in gentleman had mid that the promoters of the act blamed the
of the find for their adoption •. if the act of 1844 had the coffers of that establishment. The remedy he salted for Bank for reducing the rate of disco to 21 per cent, in
not been productive of there difficulties, and emblems- was only ad interim, and until the legislature should have 1844. He did not know who were the promoters to whoa
meta, and dangers, which lie attributed to its operation-if bad time fully and carefully to examine into the working of the right hon. gentleman referred, but he did not remember
it had not been the main cause of our late commercial die- the act of 11344, and to devise some new measure. It might be that the actual promoters had blamed the Bank. The ban.
masa, then the conduct of the government in suspending it necessary for him to observe, with reference to the first part member for Paisley had blamed the Bent ; but he was m
was not justifiable. He believed, however, he could show of his motion, that many persons had expressed an nate- opponent of the WU.
that the 00¢190 erea: not only justifiable, but so absolutely m- vourable opinion respeetieg the conduct of the government Mr. HASTIE.-I merely said they had done so.
amid, that, had it not been adopted, within another week in regard to the Bank during the month of October last. The CHANCELLOR of the EXCHEQUER.-Many
the trade and commerceof London would have been utterly It had been said that the ministers ought to have taken the gentlemen held that the Bank should, under all rimer
prostrated. (Hear, hair.) What was the position of the step which they then adopted sooner, if they wished to avert stances, charge • uniform rate of discount ; but the blame
Bank at that period ? Why its position was this,-that it the mischief that had happened. He (Mr. licence) was of should be put on the right shoulders. lie (the Chancel*
could not have met a sudden demand for but 1,500,0001. in opinion that bad the act been set aside at an earlier period of the Exchequer) had been one of the promoters of the IRA
gold upon the cashier's department. The alarm upon this than in October much of the distress and ruin that hid but he had never blamed the conduct of the Bank. On the
state of things, made known to the whole community by the occurred would have been avoided. But putting himself contrary, he believed it was the supporters of the right hoe.
weekly returns, at once prostrated all credit and all con& in the position of the government, and looking at the enor- gentleman who had cast censure on the Bank. The right
dence, every man locking up in his own coffers what he moos responsibility resting upon them from doing what hon. gentleman had also accused him of saying that the
had ; and it therefore became essential for the government might be deemed an uneogistitetional act, which was only to country Irish and Scotch banks should increase their circa
te take the step it had adopted. It was said that this Mate be ranted to in the last extremity, he was of opinion that lation three or four millions. He had said no such thing. la
of things war not occasioned by the bill of 1844, but was the ministers ought to be held entirely blameless on the England, the country had not increased their cineuL•
owing to the mismanagement and improvidence of the Bank ground of censure alleged. (Hear hem.) Another obeer- one single pound ; and in Ireland the wants of the country
directors. He, on the oonnary, regarded the whole of the Nation he would make-namely, that if any person expected were one million under the authorised circulation. la
evil as inherent in that set, whieb, on two occasions within that the committee sitting en the monetary question would Scotland there had been an excess of half a million ; but
the WIZ" year, had produced exactly the same difficulties. do anything to relieve the country from the calamities what was the increase of circulation from the three coon-
He was convinced that no management, no skill on the part which Impended he war quite mistaken. It might also be tries ? The right hon. gentleman had also noticed a differ
of the Bank directors, could, in times of difficulty suet as urged against his motion that as the parliament was sitting ence of opinion between him (the Chancellor of the Bloke-
those in question, avert the evils which the act of 1844 was and the government had already mmle one step towards re- quer) as to the diminution of the circulation at a certain
fraught with. (Hear, hear.) The right hon. gentleman lieving the house from the discussion of the money question, period ; but there was no real difference, as his right hon.
I then adverted to the circumstances attending the drain of it would be unnecessary to agree in his proposal. But he friend had alluded to different periods of the year. lie
gold from this country in the early part of 1847, to purchase could not consider these objections to possess any weight in thought that the right hon. gentleman had made out no case
corn and repeated his conviction that the course then compareeen with the urgent reasons he had advanced. He for his resolutions,that their effect would he to prejudge
adopted by the directors to check the drain, however they begged therefore to move : the question, and therefore he must oppose the motion
might have weighed with most serious effect on the comae- Tent, looking teem state of Matron which has for sometime pre- before the house.
dal community, were forced upon them by the act of 1844, vaned amaze On coonnere_tet elesseaehn to the
_re.end hfarehite2 Alderman THOMPSON, who supported the resolutions,
and were in no way the result of their prior mismanagement. distruet_._aandthinnthr
o"mm t,,-thcrxz.—ru. .1,1,,,, have said that the Chancellor of the Exchequer opposed them on
The whole fault lay in the machinery which they had to :teell:,',7,7,eit. ',licit*, the mom. or pertiemeut. In reeematemmat to three grounds-the present position of the Bank of Eng-
work, ard to would continue to produce the same write the leak of for the purpose of restoring confidence, a land as being so improved as to preclude the potability of
from time to time, until it was superseded. (lieu, hear.) course of at variance with the redriettena imposed by the danger; the fact of the parliament being sitting; and,
The author of the 'cheme had decisively announced it as a Act 7 ands Vic., e. 32. That this bowie will realm Itself boos von. thirdly, the committee having been appointed. As to the
measure which would render the contraction of the note cir- mittee of the whole house nem theend act-tegolutiun to be moved
~., first-the improved position of the Bank of England-he
,elation identical, both in time and amount, with the 1,,,c-Tfizainit,,,i° e,...„ttedtLent thm
Beak oirplifiglittrustrifectt'fi entirely concurred with the right bon. gentlemen. (Hear,
diminution of bullion in the cheat, an alum aitate vie., o. 48 ink 37.1.°4rettoit te the Irmo of „„io mom, on hear.) But was the state of Italy and France such uto pre-
tion which, _in common with all the other assunim &maim, be suspended, subject to such conditions en may be provided elude the probability of a drain on its resources? (Hear,
lions on which the particular assumption was founded, by my an to be paged for that pupae. hear.) As to the mond, the conduct of the late parliament
experience had shown to be utterly fallacious. (Hear.) Mr. A. HASTIE felt no ordinary satisfaction in seconding with reference to the merchants' petition, did not give him
A difference in opinion existed between the Chancellor of the motion of the right hon. gentleman, for he had never be- much confidence in the present. Then as to the committee,
the Exchequer and the hon. member for Portsmouth upon fore heard the subject so ably and dearly treated as had been he should only say that they had been appointed on the 4th
that point. It was certainly true that the circulation of done by that right hon. member. (Hear.) It was clear to February; it was now the 17th, and theytad only examined
bank notes within the period taken had not corresponded to him that it the Bank Acts of 1844-5 were continued two witnesses, (Hear, hear.) He feared that if such te-
tte amount of bullion in the Bank coffers, and the right Ikon. in their present force, the moment any such disturbing other pressure was to come on the country as that of last
the Chancellor of the Exchequer had stated, with reference causes as those that had Lamle arisen, again presented year, its consequences would be ruinous. The Right lion.
to the distrees and disorder that had prevailed, that if the themselves-for instance a short inevest-a anis rimihn to the Chancellor of the Excbequer had said that much of the
house looked at the returns there would be found to hare that of October would again arise, and the government pressure had resulted from the failure of certain billbrokers
existed very little variation, but that the bullion returns would be again cempelled to violate the law. upon whom merchants had been in the habit of depending
daring the year 1847 were rather in advance of those of the The CHANCELLOR of the EXCHEQUER said that for discounts ; but, in October last, the alarm was so UM-
circulation. The hon. member for Portsmouth, on the con• the right hon. member for Stamford had in the outset of his venal that the panic had extended to the banks, and, in
Mary, said that in the same period of time the bullion in the observations truly stated, that although he thought it more point of fact, there was no house, however high its station,
Bpi had suffered a diminution of 8,000,0001. or 9,000,000 e, convenient to blend the matter of his two resolutions into whose credit was not labouring under some degree of sumi-
whilst there hacebeeOlone whatever in thgeeirculation. What one speech, yet that they were totally distinct in their cion. And this was not all-the difficulty of procuring
could be a better proof of the difficulty in which the Beak nature. Of the truth of that observation no one who had Bank notes was so great, that it was next to impos-
was placed, than the facts which were familiar to all who mad the resolutions could entertain the slightest doubt. Bible to negotiate a bill* any foreign country against ship-
' had looked at the question ? The circulation of notes was One expressed approval of the steps which had been taken meats made. This he knew of his own knowledge.
under the control of the Bank, and supposing it to have been by the government in October last, while the other pledged The whole country was in a state approaching to bank-
reduced in exact proportion to the decrease of bullion in the the house to the opinion that the acts of 1844 and 1845, ming, But for the interference of Mr. Grote, who deserved
Bank coffers, in what situation, let him ask, would the should from henceforth be 'upended. The right hon. gentle- immortal honour for it-(hear, hear)-wages could not
country have been ? The theory upon which the Bank Act man complained that on a former occasion, discussion on have been paid in the coal districts around Newavele, and
had been framed was, that for every million of notes in cir- this point had been evaded. He did not know what the considering the immense population employed in those this-
cute** above the dead weight there must be a correspond- right hon. gentleman meant. He tthe Chancellor of the trims, it was very doubtful if but for that timely assistance
ing million of gold lodged in the Bank cellars. Now the Exchequer) had certainly on the occasion alluded to, stated the public peace could have been preserved. Then with re-
Bank at the period of which he was speaking had only at great length the views of the government on the whole geed to the town of Liverpool-the hon. member opposite
9,000,0001. in its coffers ; and what, let him ask, would question. For three nights the question was discussed, could beer testimony to the lamentable condition to which
have been the consequence, if it had been possible twenty two gentlemen addressed the home, and the debate that great commercial depot had been reduced. When the
-which it fortunately was not-for the circulation died out because no more were anxious to speak• deputation from the north waited upon the Chancellor of the
to have been reduced from 20,000,0001. to 9,000,0001. Now as to the resolution approving of the con- Exchequer in Sept. last, they were told that there was
or, in other words, to have abstracted 11,000,0001. from the duct of the government, of course he was plenty of Bank notes to be had en good bills on really solvent
circulating paper medium of the country ? That very eir- not going to my that they were wrong in what they had houses, and that the difficulty complained of had resulted
cumstance showed the inherent and incurable error which done, His opinion was that the conduct they had pursued from undue speculation and miscalculation. The right hon.
was embodied in the Bank Act, and proved how mistaken was right for the time, but when the right hon. gentleman gentleman bad since discovered that the miscalculation was
was the theory upon which it was founded. In the second implied censure on the government for not having expressed with himself, Benet removing in Sept. the fetters from the
of the periods of distrem-namely, from April to October, approval of their own conduct, his reply was, that nobody Bank, the removal of which in Dec., he was pre-
-1847, the Bank of England was brought to the absurd and had blamed them. He might exclaim -gun eitimerneif f pared to prove, put a stop to the panic. (Hear,
ridiculous,-he might even say the lamentable catastrophe. They were content to rest with the general and tacit appro- hear.) What was the fact at this moment ?
that with 8,000,000 of bullion in its coffers, it might but bation of the house ; but if the right hon. gentleman and Though there were two millions less of Bank of England
for the timely interference of the government, have been the house insisted on a formal vote of thanks, he should oer- notes now in circulation than there were on the 25th of
reduced to the painful step of stopping payment. When tainly not feel bound to oppose their resolution. (" Hear," October last, money could now be had on good securities on
people talked of the security which the Bank possessed, and a laugh.) With regard to the second resolution he easy terms, while at that time it could scarcely be obtained
in what manner, let him ask, could the dead weight could not express the same approbation, as he thought it an on any terms. It was the monstrous rate of discount con-
have been made available ? The securities held by IL-timed and, in many respect', a mischievous resolution. eminent upon the restriction on the Bank. which created that
the Bank were utterly unsaleable at the period He thought it shout,' not have been brought forward; and if alarm that had resulted in ruin to so many commercial
he referred to. There were no buyers in the market for the the right hon. gentleman would consent to withdraw it, her houses. As the difficulty of obtaining Bank notes increased
stock poreised by the Bank ; and as for Exchequer Bills, he Majeate's government would rest content with the first the price of produce fell, as that the merchant was doubly
(Mr. Herrin) believed that if they had been thrown upon resolution. (Laughter.) The right bon. gentleman pro crippled with regard to the spirit of speculation, which, ac-
the pavement there would have hardly been found any one posed to suspend the acts of 1844 and 184,5, that was, to sus- corfing to the right hon. gentleman, had been the cause of
willing to take them up. What he was therefore entitled, peed the laws under which the issue of bank netts through- the difficulty. Except in the articles of sugar and con, he
from all the facts which he had recited, to aatert, was, that out the United Kingdom was regulated. (Hear, hear.) The did not think that there had been any excess over the oral-
the Millisulties and distress of September and October last suspension might be either temporary or permanent, as the nary transactions of commerce. And, with respect to sugar,
ondiset bekttributed to the carelessness °Mite Batik of Eng- right hon. gentleman had left the matter to doubt, but to that excess had been brought about by the Chancellor of
bail He would now proceed to advert to the charge brought him (the Chancellor of the Exchequer) it did not seem that the Exchequer himself, who, when he reduced the mem
ret the Bank as having been the authors of the recent the slightest case had been made out for even temporary duties in 1846, stated that the consumption in this couatry
It was asserted that the Bank, hastily reducing the suspension. The right hon. gentleman had stated truly that must enormously increase in consequence. And, as to corn,go-
discount to 24 per ant., had sinned against the spirit end the alarm in April and October hat had been calmed by the vernment were themselves importers in the early part of 1847.
principle of the act of 1844. In so far as the interests of the low state of the Bank nerve. He agreed that such was and certainly, looking at the then circumstances of the coun-
public at large were concerned, it perhaps might be said the cause, together with the measures of restriction which try, no blame attachedto them on that account ; and the eneee-
truly that the Beak ought not to have done so. But the the Bank had found it necessary to take. The excessive regiment given by them, together with the high price which
act of 1844 had restricted the Bank in its operations, and failures in August had added tothe alarm, but they had arisen in consequence of the famine that article reached, induced
they therefore acted as the unman of their constituents de- from causes wholly imespeMve of the &Mena of the Bank. He the merchants to ransack the world to obtain it, But ito fax
' Blended ; and looking at the matter in that point of view, believed there could be very little doubt but that the from deserving to be abused and stigmatised on that account,
he considered the Bank was justified in following the game commercial distress had been caused by a want of the usual he held that they were entitled to commiseration for their
I coulee as other banking and discounting estab • erns. accommodation. He:believed that there had been a great she misfortunes, and to the thanks of the country. The promoters
The discount was reduced to two-and-half per cent. inner sorption of capital, partly arising from the extensive purchases of the bill of 1844 had told the house and the country that
diately after the Bank Act of 1844 was passed, never hay- of food, and partly from the investments in railroads, and though it would not perhaps prevent the recurrence of com-
ing discounted paper previously to that period at a lower consequently a diminution of the amount available for ge- merciel panics, it would mitigate their evils; but on the very
rote than fear per cent. The framer' of the Bank Act had nerd commercial purposes. Of course the instrument* used first occasion when its operation was felt, instead of mitigating
no right to complain of this proceeding. _ When that act in such investments were Bank notes, and the more there it had ',retested those evils, and added to the difficulties
was agreed to then was 16,300,0001. of bullion in the coffers were required for railways and corn the less there were left under which the country laboured. When foreign exchan-
ge( the Bank of England ; and front June 1844 to 1845, for the purposes of the billbrokers. In the course of gee were favourable, and gold was coming in in abundance,
there was no diminution in the amount et gold. In June, August last it was notorious that more than one biUbroker no doubt it would be exceedingly easy to go on under this
1845, the bullion in the Bank coffers rose to 18,600,000 e stopped payment, and that the demand for Bank of England bill-but whim foreign exchanges were adverse, and (*that
-
the t amount ever known to have been notes was unprecedented, the discountsdiscountshaving increasied credit and panic prevailed, it was altogether impossible
there. lChw facts °mutilated the psapt allaWer le lbw enormously, and the Bank mane having decreased it could mond. (Hear, hear.) It had been said,
who accused the Bank of imProaidemt Maseedows, wader to an extent to alarm the beaten, who feared only raise the rate of interest and you stop the de-
the act of 1844, and sufficiently proved also that the fall to that the Bank would cease discounting. His be- mend for Bank notes ; but the fact was, the higher the
21 per cent. discount was a reasonable step. Some time lief was, that this had been the cause of the rate of interest, the greater the demand, andld be the
after the period to which he referred, the right boa. baronet, panic. (Hear, hear.) No doubt the panic was owing greater the dismay and discredit, the greater wou
the member for Tamworth, expressed his satisfaction with to the low state of the reserve, and the red effect of the the desire of every man to mime his honour and credit, by
the state of the Bank affairs, and even said that he con- government letter was to place the Bank in the same pod- providing Bank notes eon before ho required them.
sidered them to be prosperous. Now, what other instance tion as if it had a large reserve. Parties were then restored It was important that this question should be put *elle at
of improvidence had been alleged against the Bank of Eng- to the belief that they could get assistance from the Bank rest. He was convinced, and the experience we had had of
land? If any no looked at the returns of the amount of if they required it, and in consequence confidense was re- it proved, that the bill of 1844 never could be succeedul. The
bullion it would be found that the Bank did increase the rate stand. It was not that there had been previously an in Right Hon. the Chancellor of the Exchequer had eared
of discount as its stock of bullion decreased. In November, adequate supply of notes, or a Feiner demand for assistance whether the object of those who supported the motion war
1845, there was a decrease of bullion in the Bank coffers, after, as the increase of circulation consequent on the letter to repeal the whole bill ? He did not mean to say that was
owing to its having been notified that there had been a did not exceed 400,0001. (Hear, hear.) He did not ay what hen ciCtired, though he should not object to it; but
failure in one of the mainstays food for the people-he this for the purpose of blaming the Bank for reducing its re- be was anelous they should go into committee, end if they
meant the potato crop. A rum was withdrawn serve, ea hew ithed to avoid controverted positions. What did so he should 'propose to strike out of the act that pert
from the country to supply the cod rendered nommary_to was the state of the reserve at the present moment ? Ac- which limits the Beak to the 14,000,0001. as issues on soca-
import, and the bullion fell from 14,600,0001. to 13,700,0001. cording to the statement which had appeared in the cities, and also that which limited the issues on silver to One'
The Bank then increased the rate of discount to 31 per cent. Gazette, on the previous Friday, the reserve in fourth of those upon gold (Hear, home
The price of money at the Bank remained in this state. notes and coin amounted to 8,185,0001. He had re- Mr. W. BROWN-, who was very indistinctly heard'
until the month of August, 1846, when the amount of the ceived, just before entering the house, the account which having adverted to the causes of the late commercial diei-
bullion in the Bank rote to 18,366,0001. The Bank put would appear in the Gazette to-morrow (this day), and it culties, observed that the bill of 1844 was • dead letter until
back the rate of discount, and reduced it to the* per cent., stated the reserve on Saturday het to be* notes and coin the panic came, and then, so far from doing what its pro-
following the course indicated by the act, step b step as it 9,686,0001. moon had promised-prevent fluctuation of prices and a-
ware. He was fearful of fatiguing the house with these de- Mr. PATTISON-It is greater now, cure confidence-it had aggravated the evil. There had been
tails--(hem, hear)-but he was anxious to show that the The CHANCELLOR of the EXCHEQUER -He greater oscillation in the price of money under this bill during
Bank was not to blame for the monster; disarrangements thought it better to confine himself to documents whit* the late crisis than in any former period of financial difficulty
that had occurred, and likewise to chow that the act of 1844 would speedlly be ia the bands of the peblic, and looking to during the last2s yean. In 1825 the rate of discounts was-the
..

lowest 31, the bighted 41; in 1832 the lowest was 21, the
highest 4 ; in 1837 the lowest was 31, the highest 51; in 1839
the lowest was 31, the highest 61, being • difference of 21;
god in 1847 the lowest rate was 21, and the highest moan-
ally was 61; but with monist= it was in fact from Id to
20 per cent., and even at that rate in numerous instances
solvent houses could not obtain advances. The bill bad also
osessioned hoarding. In Liverpool alone he believed he
Muld show that a million and • half bad been hoarded to
meet contingencies, and to enable merchants to meet their
te, and to take up such bills as might come
dishonoured, especially such as might be in the
brads of the Bank of England when the protesting of any
bin wee attended with some discredit upon the house&
when names it bore. He was an advocate for freedom in
deg, perfect security being taken for convertibility.
The question was not now, however, whether they were to
maintain or abolish the monopoly of the Bank of England;
but be eontauded that they should make it efficient for the
public good. So far as the act of 1844 carried out the prin-
ciple of convertibility embodied in the act of 1819, and oe-
guired payments to be made in metallic currency, based on •
lilted price for gold, he concurred is it. He was aware that
many argued that as the national debt was contacted in
a paper currency it was unjust to require its re-
payment in gold ; but when the contracts for the loans were
entered into it was stipulated by act of parliament that six '
months after the restoration of peace payments in specie
should be resumed ; and had it been supposed that payment
would be made in a depreciated currency, government would
never have obtained the loans on the terms they did—per.
baps not at all—and had that been the case this country
would now probably be a French colony. He saw no great
advantage that could result from a mixed standard of silver
and gold. Silver would always buy gold, and gold was
mach the more easy and portable medium for commercial
transactions than silver. He thought there was extreme
danger in allowing the growing commerce of this country to
net se an issue of 14,000,0001. based on securities. It would
be desirable, he thought, not to amend, but at once to repeal
the act. (Hear, hear.)
Mr. HUDSON regretted that this subject had not been
brought forward at an earlier period. Nothing was more
calculated to disappoint the country than the course pursued
by the government in referring this important question to a
committee. They had been asked if they were prepared to
repeal the bill of 1819. That, however, was not the ques-
tion at issue. They were told by another meeker
that railways caused the dimreseed state of thing&
But the fact was, that the railway calls in Ja-
nuary, 1848, were larger than in January, 1847, and
yet money now wee only at 3 per cent. If railways, then, had
anything to do with it, why was not money as much in de-
mand now as it was last year? (Hear, bear.) They were
told they were consuming the capital of the cottony ; but if
they looked at the coffers of the Bank of Eogland now, they
found them full even to repletion. The truth was, the im-
portation of corn wee entirely the cause of the crisis. That
importation had now ceased, and therefore our stock of
money remained undrained. No doubt the country had
been in a desperate state last October. In Newcastle, for
example, if something had not been done to prop up the
10=111'111u, it would have been necessary to introduce mili-
tary into the town. What they had principally to som_plain
of was, that solvency at that time was not protected. lf the
reason of their not affording such protection was the
opera-
tion of this act, then, he said, repeal it. (Cheers.)
defended the bill ? What commercial men in that home
would get up and argue in its favour? Common ecia-
sent condemned it. No member of the government
said that it was necessary. (Hear.) He hoped
when the government next wanted money, the Bask
would* only let them have so mach as they could alked
in justice to other customers. It was notorious that the Beak
kt the Chancellor of the Exchequer sweep away in one day
a great part of their reserve, which obliged them to Mak
the amount of their discounts afterwards. This was a very
blameable measure. But he thought this was about the
only act of the Bank to be complained oL The Chancellor
of the Exchequer, on the other hand, had decidedly made
very great mistakes, and it was now quite time that he made
up his mind as to what he meant to do, and as to the princi-
ples en which he would act in future. For his own part, be
(Mr. Hudson) thought the Bank ought to have almost un-
limited power of issue, always, of course, petunias the eco-
rertilrility of the note.
Mr. MACGREGOR, representing a large and most im-
portant constituency, felt it to be his duty not to give • silent
vote. He was compelled to consider that the Bank Chester
Aet of 1944 was not an act adapted to the wants of • great
commercial country. He believed it was as impossible
for parliament to regulate the price of money as to
regulate the expansion or contraction of the mercury
in the barometer. He knew no parts of the world
for which the act was calculated, except a village in Holland,
where the population had not increased for the last 600yean,
and where no young couples married until their fathers
and mothers died. (Laughter.) It was necessary that parlia-
ment should speedily settle the subject. He believed
the act of 1844 was one in which the country had no confi-
dence. For some time to come it might be of very little
consequence whether the operation of that act was limited
er not; but, at some future time, the measure would be
assuredly of the greatest national importance. So much
with regard to England. With respect to Scotland, he
thought the operation of the act of 184.5 was universally
complained of in that country. If it had not been for the
Scotch Banking system the 4 prosperity of the British Idea
would never hare risen to it present height. He condemned
the alteration in foto.
Mr. MASTERMAN trusted that the house world
his right hon. friend's motion. He nett, in 1644, a
insisted upon the government retaining a discretionary
power, Ind experience had sines demonstrated the necessity
of such a provision.
Mr. HUME considered it essential that some distinct in-
quiry should be made es to the reason why these monetary
panne were constantly recurring in this costany, in &manner
quite unknown elsewhere. He had objected to the govern-
mast committee, because be foresaw that its appotntenent
would be made the excuse for such an answer as that of the
right hon. baronet to such • proposition as that now before
the house. (Hear, hear.) The right hon. baronet had
telkedof a foolish judge who first decided and then inquired.
It appeared to him that the government, in the matter of
the Bank Act suspension letter, had been precisely this
foolish judge, for it was admitted that it had acted without
any previous inquiry. lie had said on a former occasion that
150 millions had been lost by the recent operation of the Bank
Act; but in point of fact, the actual loss sustained was quite
incalculable. (Hear.) The conduct of the government in seek-
ing to evade a discussion of its measures in relation to the act
of 1844, by referring the matter to • select committee, was
most reprehensible. (Hear, hear.) The feeling of the house
on the subject, however, seemed pretty clesr. Every gen-
tleman who had spoken that night on the subject, with the
sole exception of the right hon. hart., had declared that the
measure of 1844 had wholly failed in its professed objects.
(Hear, hear.) There seemed to be, in the house as well as
out of it, a decided conviction that the act ought to be re-
pealed. It was out of the question to suppose that the country
would submit to continue exposed to such jeopardy as that to
which the act of '44 subjected it. (Hear.)
Col. THOMPSON supported the motion. The act of
1844 was a measure for fending off all such demands for
aid from traders as should pass beyond a certain rule which
government considered to mark the limit of discretion. The
question wee, whether this rule had been established as
proving the preconceived discretion, or whether it was a
rule which, as being indiscreet, should be set aside. He
bad heard it said that the concoction made by the govern-
ment in October was • virtual concession of the fallacy of
the set. He did not adopt this proposition as a necessary
consequence, for the government might have been induced
by other motives.
Mr. MUNTZ reminded the house that there had been
psalm before the one of last year, and that they could not be
attributed to the Bank Act of 1844. In fact, when the oc-
currences of October 1847 were ascribed to the operation of
the right hon. bart.'s (Sir IL Peel's) Banking Act, those who
did so committed a gross blunder. The government certainly
had no right to meddle with banks, either public or private;
and as long as that interference existed he feared he should
see continual crashes in the money market. The whole of the
Cause, and the only cause, of the monetary panics was that
the theory upon which the Chancellor of the Exchequer and
the right honourable baronet opposite based their system
was wrong. The theory to which he referred was
that which supposed there was such a thing as a standard of
value. There was no such standard ; and the sooner that
false and erroneous system was abolished the better. If the
bill of 1844 was repealed the evil would still remain in full
force.
Mr. LABOUCHEILE said that the right hon. gentleman
Opposite had urged on the house not to allow itself to be
drawn into • general argument upon the subject of his motion,
as there was much danger, owing to the nature of the subject,
that hon. members would stray from the immediate ques•
ton before the hewer. He should endeavour to follow the
right hon. gentleman's injunction in offering his reasons to
the house for not giving its assent to the proposal. One
thing had been universally admitted by nearly all the
en—namely, that if the motion were agreed to, the
ecision would reverse that which appointed • committee to
inquire into the monetary question. (No, no.) He heard it
doubted that such would be the virtual effect of the motion
being carried, but he must again affirm that the fact had
been candidly admitted by all who had spoken on the ma
that evening. By the appointment of the committee
the government had entered into an agreement with the
monetary interests to consider maturely the laws which af-
fected the whole question, and he was not .prepared to say
that after the subject had been fully examined the law might
not be relaxed. The only effect which the motion would
bare would be to lunette the public mind as to the results
of the committee. Some hon. member had said that the
law stood condemned by all, and by. the government in par-
ticular, by whom some of its provisions had been suspended.
He must beg to deny the truth of that proposition. He denied
that the suspension of the act for a temporary piupcse was con-
demnatory of the measure. There must exist a power of
relaxing the laws upon great emergencies, but that did not
teed to prove the law to be a bad one. He did not mesa to
sty that it might not be found necessary to modify the law,
but he must affirm that suspending it was not condemnation.
He could not speak of the late panic without feeling great
commiseration for those who bad suffered by it. But the
act of 1814 was not accessory to that panic. Boatiog bad
been raid about over.speculation having been ONO dee prin-
cipal causes, and blame had been cast upon these who said
to ; but he must observe that he should feel torsi
if, upon examining into the circumstances attaadloglV:i.
cells, those engaged in the importing trade were
of having entered into rash speculations, wnlelled
calmed much of the late distress. (Cries of Divide.")
Mr. BERRIES would only offer • few words in reply to
the observations of the right hon. gentleman. He had
never before witnessed • debate the speakers on which,
with some exceptions, were all on one side of the question.
Amongst all parties there was a growing feeling that the aet
of 1844 ought to be repealed. The only objection of any
weight against his motion was that there was a committee sit-
ting on the subject up stairs, and that that house ought not to

prejudge the question. Bat there were many topics which
were not to come under the consideration of that committee ;
and besides, he did not seek for the repeal of the net mf 1844
but for its suspension. (Near, hear)
The first resotution was then agreed to. On the nand,
that the house resolve itself into committee.
The house divided—For the resolution that a committee
of the whole house be appointed 122
Against it lB3-41
GROWTH OF COTTON IN INDIA.
On the motion of Mr. BRIGHT, the following select
committee was nominated on the growth of cotton in India,
—Mr. Bright, Mr. C. Villiers, Viscount Jocelyn, Sir B.
Colebroke, Viscount Mahon, Mr. 0. Thompson. Sir J. W.
Hogg, Mr. J. B. Smith, Mr. W. Patten, Sir W. Clay, Mr.
Lewis, Mr. Mowatt, Mr. elowden, Mr. M'Gregor, and Mr.
Bolling.
The house adjourned at a quarter to twelve o'clock.

ELECTION COMMITTEES.
LYME Rame.—The committee met at 2 o'clock.
Daniel Channon, collector of the harbour dues at Lyme
Regis, stated that he had always voted on the conservative
side, and did so at the last election. He remembered speak-
ing to Mr. Wearing, the solicitor, a few days before the
election. Mr. Wearing was acting for Mr. Abdy, and at his
request he came to townust before the election, and sought
out an elector named Upjohn. He solicited Upjohn's vote
for Mr. Abdy, but Upjohn refined to vote for Mr. Abdy
unless Mr. Abdy procured him a situation as letter-carrier.
He communicated this to Mr. Wearing, and at that gentle-
man's request he wrote to Upjohn. informing him that his
wishes would be complied with.—The committee adjourned
at 4 o'clock to this day.
KINSALE. -The committee met at 11 o'clock, Mr.
Bouverie in the chair.—Ann Ryan, daughter of Pat Ryan,
barber, Kinsale, was the first witness called for the petitioner.
She said she was in the habit of operating upon the chin ;
and on tie morning of the election was sent for, between
4 and 5 o'clock in the morning, to go to Mr. Sisk's public-
houte, to shave some gentlemen. She proceeded there,
when she " operated " upon the chins of no less than thirty-
five persons, not one of whom could sit or stand. Some
were lying on straw in the yard, quite drunk, with bottles
and drinking materials placed on boxes by their side, ethers
were reposing on the kitchen floor, and a few on the drawing-
room carpet. " The gentlemen" were held by others while she
shaved them ;but Dr. M'Lellan, a voter, was so drunk that it
was utterly impossible " to hold him up, sitting, standing, or
lying," so that he could be shaved ; and during the opera-
tion she could not avoid cutting him near the throat and
cutting her own finger at the same time. A clergyman
named Ryder was one of the 35, cad was as drank as any of
them. Mr. Guinness, the sitting member, and Dr. Jago, his
friend, were present, and assisted in bolding up the " gen-
tlemen "to be shaved. She was occupied from between four
and Ave o'clock till nine in the morning, is the agreeable
occupation of shaving the 36 electors who were to go up to
the poll The examination of the witness excited soars of
laughter. Other witnesses were called, who deposed to having
been promised sums as high as 504 for their votes. The
committee adjourned tabs day.