The Northern Daily Times.
Liverpool, Merseyside, England, 1857-02-07 00:00:00

SUPPLY.

The house went into a committee of supply,
Mr, Fitzroy, the Chairman, read that part of the Queen's
Speech which referred to the estimates, and it was agreed—
" That supply be granted to her Majesty."
The house then resumed.

BANK CHARTER ACr.

The Chancellor of the Exchequer moved for a select
committee to inquire into th'! operation of the Bank Act of
1344 (7 and 8 Vic., c. 32), and of the Bank Acts for Ire-
land and Scotland of 1815 (8 and 9 Vic , c. 37 and 38) ;
also to inquire into the law reliting to Joint Stock Banks,
He commenced by referring to the Bank Act of Sir R.
Peel, passed in 1819, which recognises the principle of
the convertibility of the bank note for gold at a cer-
tain fixed price, and he trusted the time would never
come when the principle involved in that settlement
and on that Act of Parliament wo ild be called in
question in the :house or in the country. (Hear, hear.)
The convertibility of the Bank note was a plain q tee-
tion of contract, resting on the principle of honesty, the t
should be rec)gnised, not only by every speculator and
every political economist, but by every man of sense
and understanding. He could not believe that any per-
son either in that house or out of it would contest the
validity of that principle. Although the act of 18 19
established an important principle, it did not in
all cases provide effectual securities for the en-
forcement of that principl,, and excessive issues
of paper were made by the Bank of England and
by the County Banks, and although the note was converti-
ble by law, it happened, in many cases, by the failures of
county banks, that the note was not convertible in cash.
The credit of the Bank of England had never been im-
peached, bat it was thought the issue was excessive by it,
and that the reserve was not sufficient. In 1814, therefore,
Sir R. Peel passed the present act, by which he sought
to continue the convertibility of the note for gold, and also
by imposing certain conditions on the issue to provide
effectual securities against over issue, and the depreci-
lion of paper money. The right hon. gentleman then
referred to the working of the act in reference to the
security against over issue by the Bank of England. In the
10 years previous to the pa-sing of the act the bullion in
the bank was, in 1834, eight millions; 1835 and 1836, six
millions; 1837, five millions ; 1838, nine millions; 1839,
1840, and 1811, four millions; 1842. eight millions; and
1843, eleven millions; the highest during that time being
in 1813, when it was eleven millions. In 1841 and 1845,
er the pasiing of the act, it was fifteen millions; in 1 817
eight millions; in 1818, it ruse to 14 millions ; 1849. 15
millions : 1850, 16 millions ; 1851, 14 millions ; 1352, 20
millions ; 185:3, seventeen millions ; 1851 and 1855, four.
teen millions. The minimum was £8,313,000, and the
maximum £14,951,000. The currency, under the opera-
tion of the act of 1844 hal had no ordinary difficulties to
contend with, yet it had remained in a sound state, and the
credit of the bank had never for a moment been questioned,
nor had it experienced any real or pressing difficulty to
maintain the large reserve of bullion he had stated. The
hank directors had no wish to alter th e principles of the
Act of 1844, being unable to suggest any improvement.
A prolonged discussion enmed, in which Mr. Glyn, Mr.
Tite, Mr. Matins, Mr. Henley, Mr. Laing, Mr. Juba
M'Gregor, and others, took part, in the course of which
objections were taken to Sir Robert Peel's act being con-
sidered as a final measure, and to the issue of notes being
limited to fouresen millions. It was also contended that
the question of limited liability, as applicable to joint stock
banks, should be considered by a committee.

Mr. Munta contended that no case had been made out
for the appointment of a select committee and to enquire
into the working of the Bank Act, and that the only result
would be to remove the responsibility from the Govern-
ment to the hotrie. He did not think a case had been made
out for an investigalion into Joint Stock Banks.

The motion was ultimately agreed to, the part relating to
joint stock bulks having been, by the consent of the
Chancellor of the Exchequer, omitted.

PASSING TOLLS.

Mr. Lowe moved for leave to bring in a bill for the abo-
lition of passing tolls. These tolls were levied at four
points, namely, Dover, Ramsgate, Whitby, and Burlington,
for harbours of refuge, but none of those places were suited
for harbours of refuge. It was proposed to pay off the
debt upon the Dover, Whitby, and Burlington harbours,
and abolish the tolls. With regard to Ramsgate it was
proposed to take it into the hanCA of government at an
expense of £7,500,000 per annum, which amount would be
provided by passenger and salvage tolls.
The House then went into committee. Leave was given
to bring in the bill.

Subsequently the bill was brought in.
The house adjourned at twelve o'clock.