The British Press; or, Morning Literary Advertiser.
London, England, 1826-02-21 00:00:00

Jen,m9,e2si

Ile was anxious, however, to do justice by stating to the House the
exact amount of the repayments which had been made to this
country; for although 'all the money which he had mentioned
had been capital actually employed in foreign countries, yet there
had been certain payments made which would reduce that amount.
Those re-payments had been calculated at sixty-eight or seventy
millions, which would leave a balance of no less than ninety mil-
lions sterling, held by Englishmen, vested In funds and other pro.
poly belonging to foreign states. Taking the interest to be regu.
tarty received, and deducting the amounts of the loans contracted
in tit: years 19'24 and 11125. for which securities were held ; from
this ninety millions it would leave a balance of no less than ten or
fiftea millions against this country. But the securities held for
that immense amount had become, in consequence of the existing
wan: of confidence in the country, not negotiable, and some of
which were depreciated in value to a degree beyond all calculation.
and others were altogether worthless. If, then, they considered
the amount of capital which had been thus carried away, and also
bor: in mind the inability of persons to convert the securities held
by them into available cash, they would arrive at a very obvious
me ins of accounting for the disasters that afflicted the country far
more rationally than by attributing them to the paltry issue of two
or three millions of country bank-notes. It had been stated by a
Noble Earl (Liverpool) in another plate, that the increased import-
;Lion of wool during the last year over the average of the three pre-
ceding years was upwards of 90 per cent. By a statement which he
(Mr. flume) had obtained, it appeared that there were 220,000
bales of cotton, and 1.600,0001 b. of silk, with a proportionate in-
crease of timber, k..e. imported last year, amounting in all to no less
than six millions sterling. He need not say that the greatest portion
of all these various articles were now lying locked up in the ware-
houses, unproductive of the least return—so that there were thus
six millions more to be added to the fourteen millions of money al-
ready out of the country, and otherwise unemployed, which, toge-
ther with the extra imports of last year, would I mount to twenty-
six millions of money abstracted from eirculati in, to that if the
Chancellor of the Exchequer should succeea in his present
measure, they might with perfect safety add five millions more,
which, being added to twenty-six millions, would make upwards
of thirty millions of money abstracted from this country. There
was another feature to be observed upon, which was that many
merchants had entirely altered their mode of doing business, parti.
cularly in Lancashire, and had become exporters of goods to a
great amount upon epeculation, to the most distant parts of the
globe; and formerly, when confidence existed between man and
man, these merchants could obtain money upon the credit of the
returns that would be made upon these exports ; but now since the
change had taken place in the commercial world, the extreme
want of confidence had prevented these exports being available.
Here then it appeared that they had between twenty-eight and
thirty millions of circulation abstracted from the country, which
he contended was far more likely to be the cause of the distresses
that prevailed than the paltry issues of a few one and two pound
country bank notes, which the Right Hon. Gentleman (the Chan.
cellor of the Exchequer) had assigned as the cause. It was quite
impossible that such important results should be produced by a
cause so trifling and inadequate. having stated what he conceived
to be the cause of the evil, he would now state why he objected to
the measure proposed by the Chancellor of the Lxchequer. The
inevitable consequence of the proposition for withdrawing the circu-
lation of one and two pound Bank notes, would be to take away
from circulation from six to twelve millions more of money, to
addition to the thirty millions already abstracted ; so that in fact
there would be nearly forty millions of money locked up and
rendered useless, as compared with the state of the circulation in
the year 1021. He altogether objected to a species of metallic
currency limited in any degree. He was satisfied that the issues
of Hank notes, founded upon a metallic currency, would remedy
the immediate evils tasteful of adding to them. , With regard to
the speculations that had taken place in this country, he had a
statement in his hand showing that the whole amount of joint-
stock companies could not deprive the country of • single pound of
capital. The changes that took plate were all between man and
man, sad the whole were transactions between individuals In this
country, and he thought it wee not at all unlikely that if those who
were engaged in them would come to a balance of their accounts
they would find themselves where they were; therefore the amount en-
' gaged in those companies ought not to be brought into this account
orate abstract iOn o currency. Built was uoden iabl e that t he immense
amount of the shares in circulation tendedlo inflate the market to a
great degree. (Hear, hear.) The variations that had taken place
in these speculations were quite incredible. It appeared by a state-
ment that he had before him, that at one time some of the shares
had arrived at no less than and. and 8001. per cent premium,
which .were now below par. There had been between 14 and IS
millions of factitious property created by these shares ell selling
above par, and this state of things lasting during a paiod of 14
months. That fact would scronnt for the increased activity of
speculation much more satisfactorily than anything that could be
deduced from a small issue of paper currency. Taking the
whole of the Anglo-hlexicius, the Chaim. the Peruvian, and the
other principal Companies into account, he would maintain that
the whole account of money paid up on them did not exceed
3,097,0000. and of that amount perhaps pot two-thirds had been
sent out of the country in the shape of maebinery, Bs. Conse-
quently, as regarded the abstraction of property, these could have
had very little to do with it, but in blowing up the bubble they en-
tainly had a great deal to do with it. Dunng this period prices rase
to an extravagant degree; facilities took plate in accontmodation
papa; so that any prices were offered for almost any article. To
thin, then, he would not add time 'Additional evil of abstracting_a
paper, and substituting a metallic currency at this moment. lie
thought the Government, by the measure they proposed were
coming into the principles of sir. Cobbett, as recommended by the
petition presented by him to the House this night. They were
becoming his disciples ; he had been sounding the alarm far some
time, and the Ministers were yielding to his suggestions. and were
doing mere harm than ever he was capable of doing. (Hew, hear.)
By persevering
.in a measure that most tend to increase the em-
barrassments *Justine for want of Circulation, the Minims' were
doing inealeubible mischief to the country. Let them look to tht
situation into which they had placed the country ; there was no less
than ta millions of taxes to earry on their civil establisluneros.
It was Impossible. then, not to agree to the petition of Mr. Cobbett,
which he pooped ford reduction of the taxes. The whole amount
et taxes wan not less then de mglioss he asked, therefore, the
Chancellor of the Exchequer how he geoid think it enrenaotableto
reduce the taxation, when he was withdrawing the capital out of
whirls was to be paid P Another objection he had to this mea-
nies woe, that it was by a large eirerlatien of 0104 alone that
day amid emphoy the Mowers of this futon,. Let, thin, the
Mouse retrace its steps...let them go into en ImPlfri of din Mont
olf ,dle /vii—ned let tisint remiis some reel miasma as a
Onnidf. and sot fusee a emus wltiob was calculated to 4
liggrarete instead of lases the evil • But torch was Over
remit of all undigested mositiots itldlOuliS which IMO the present
vats founded ea petty oases whit* had.no real Abet. He would
*pool the the ovum meow was lII* el he_Altigtit .wth more
Mischief than it us.pialeildu se Noma Ho tiwrofarO not
must to go imp • 'Orli lt. ArePoohisk of
kind should be Itrougbe Ws the ,/its. Wirdelen
wed matured, And not amble Woe smw &wt. ea lb* Petoi
shad been. be
lever pad Aplitlift !Feint present diWesldee
asibraeiltone by, wore • twoodis "hir Mt _sad_ Aft .11M0
ions*,Mtge/r NIONOPei nalatetall

to the consideratiothef that subjoin calmly and inapprehensive of
any ill consequences from discussion, dam such a proposition
might be entertained. But to bring it forward at this juncture,
while the labouring population were almost destitute of employ-
ment, would only he aggravating the evils which the country now
suffered under. Ile therefore roomed against any fustier ab-
straction of capital multi such circumstances. Having proved that
the canoes assigned for the existing evils were not the real causes,
that on the contrary the speculations of the country had tended to
, produce them; having also shown that a century ago, and even half
I a century ago, the same effects had been produced by similar
causes, when no Bank notes existed ; and having, as he believed,
proved that the measure proposed would not operate as a remedy ;
he would, if lie thought the House would support him, propose a
resolution to enter fully into the question, in order that an efficient
measure might he adopted. The country was under difficul-
ties by which millions would suffer, and the House ought not
to add to their distress by going further in a measure the re-
sult of which must be disastrous. When they saw the Bank
rrsio, against all experience and all knowledge, in the issue
of their notes whenever they NNW they could be employed, re-
gardless of the colsequences, he felt that the system now proposed
of allowing the Dank of England to extend its issues to a period
beyond those of the country banks, must expose the country to till
the evils that had ensued at the period when the suspension of cash
payments existed. If, however, his Majesty's Ministers were re-
solved to return to this system, he trusted that a clause would be
inserted in the Rill, providing that every forged hank note should
he paid by the Dank of England. (near, hear.) If the Bank
'would not make notes upon a better plan (and which was very prac-
ticable), it was a direct robbery for them to be allowed to reject any
note that was presented. on the ground of its being a forgery.
(Hear, hear.) The measure proposed not being adequate to the
evil—the causes assigned by the Chancellor of the Exchequer not
being the r. al causes—and the measure being, as he (Mr. Home)
would maintain, calculated to aggravate the real cause, he should
move, as an amendment, " That a select Committee be appointed
to consider the best means for placing the banking establishments
of the United Kingdom upon a better footing; for securing the
holders of bank notes against loss; and for insuring a metallic cir-
ciliation in the'country, commensurate with the wants of commerce
and the security of the country at all times."
Colonel DAVIES rose, but on being asked by the SPEAKER
whether lie seconded the motion, the Honourable and Gallant Co.
lone! replied that it was not his intention to second the motion, but
he was anxious to address the House before it went into a Corn.
mit tee. _ .

.....
Jr.ll ELLICE said he would second the motion of his Honour.
able Friend (Mr. Home) with the greatest pleasure; not because
he altogether approved of the terms of the amendment, but in order
that the proposition of his Hon. Friend might come fairly before
the House; became he considered that, before the House as-
sented to the proposition of the Chancellor of the Exchequer, they
'4llntild direct their attention to the whole facts that bore upon the
question.
Colonel DAVIES was anxious to state his opinion very shortly
upon the question before the House, but previously to doing so lie
would make one observation on some remarks that had fallen from
his Hon. Friend (Mr. Hume). His lion. Friend, who was a strict
adherent to the Ricardo system. was of opinion that a paper cur-
rency, convertible into gold. would secure the country from all evils.
Now, they had that state of currency, and yet they were labouring
under a pressure which no nation ever endured before. His lion.
Friend bad also said that the bankers should make deposits, and
that there would be no difficulty in obtaining them. Now he (Col.
Davies) had had conversations with a great number of hankers, and
there was only one feeling existed among them, namely, a disin.
clination to make any such deposits. With regard to the measure
before the House, he confessed with the deepest regret that he
thought it likely to do more harm than good. He felt it to he a
departure from the principle of paring in metallic currency : it was,
In fact, plunging the country again into a paper currency. It
showed extraordinary vacillation on the part of the Government,
that they found themselves at the outset met by difficulties which
they could not overcome, but from which they were obliged to turn
sable and adopt a new mode. If such were their course he could only
say they would find themselves surrounded by a labyrinth of diffi-
culties, and the result would be .that they mug return again to
the old track of a paper currency. Did the Right Honour.
able Gentlemen (the Chancellor of the Exchequer) suppose that
in the distant pans of the country, where Bank of England notes
were scarcely current, the people would suddenly fall in love with
them as soon as the country circulation was withdrawn ? If the
people of the country had any disinclination at all to paper money,
they had a greater disinclination to the Bank of England than to
country bank notes. Then what did the Right Hon. Gentleman
propose to attain by the system he sought to establish ? But great
inconvenience would ensue from this exclusive power on the part
of the Bank to issue small notes. Even when the circulation of the
Bank was confined to the metropolis, their issues were to an enor-
mous extent : how much moreiikely was it. then, that those issues
would extend when the flank should have no check upon them by
the issues of country bankers ? A forged note might, under such
a system, with tolerable skill, pass for years without detection ; so
that if the Bark of England should succeed in getting their notes
at all in circulation, the country would be exposed to extreme risk,
not only from the facilities afforded to forgery, but from the inabi-
lity of persons at a great distance from London to get notes con-
verted into cash ; Ito that it would be nominally a convertible Cu-.
rency, put practically one quite the reverse, for the country bankers
would not give him gold for them. If therefore this were so, the
Bank might extend its issues to almost any amount, and depre-
ciate the eurreficy as much as they pleased. Then what was to be
done when these notes were withdrawn ; and how were they to be
withdrawn ? Hew were the holders of them to get their money
unless the Bank of England sent persons about the country to pur-
chase them up ; and if they did not; these notes might remain in
circulation for years after the period assigned by the Bill. That
circumstance alone was sufficient to induce him to give his most
decided opposition to the proposed amendment of the Right lion.
Gentleman. But another and a greater pbjection was, that it would
give an increased influence to the Bank of England, where power is
already too great. When he considered that the Bank had it in its
power to enlarge or contract its issues, and thereby to increase or
depreciate the value of every man's property in the kingdom, he
looked with alarm at any accession to that power. lie totally die.
agreed with those who thought that the Issue of paper money had
had no influence whatever in producing the recent distresses of the
country. It was. in his opinion, the over-issues principally of the
Bank of England that led to them, although he agreed that over-
trading and speculation had had some effect. The Hon. and Gal-
lant Colonel then entered into a review of the conduct of the
Bank with regard to its issues from the year 11114 up to the present
time, and observed that it invariably happened that an extension of
issues was followed by high prices, and that a sudden contraction
of issues produced an immediate revulsion and involved the country
in the greatest distress. The consequences of such conduct were
felt orer every !gawks of property. It was not the country banks,
then, that were to blame; and Ministers did the greatest possible
injustice to the country banks, by saying that those banks had en-
couraged, fostered, and supported the recent speculations. He
would maintain that it was the Bank of England who did so.
' The lion. and Gallant Colonel proceeded in his observations, but
'the noise that took place in the body of the House prevented our
catching a single consecutive sentence in the gallery.
Mr. Secretary CANNING rose, not for the purpose of entering
into any discussion, but to remind Hon. Gentlemen opposite of
the state into which the businen of the night was brought by the
course that had been taken. They must see that his Right Ho-
pourable Friend (the Chancellor of the Exchequer) was now
placed in a position in which it was impossible he could, agree-
ably with the forms of the House, give any answer what-
ever to the appeals and observations that had now been mak-
ing to him for the last three hours. His Hon. Friend (Mr.
Maberly) had given notice of his intention to oppose the Committee,
and which he had a full nght to do, but he had withdrawn his
motion in order that hie Right Hon. Friend might not be
peded; but the lion. Gentleman opposite (Mr. Hume) had thought
it more convenient, or rather, as it would seem„as a personal corn.'
pliment to the Speaker (a laugh), that the question should be dis-
cussed before Mr. Speaker left the Chair. But if the Hon. Gentle.
man would allow Mr. Speaker to leave the Chair (laughter) no
doubt a very full account of the whole proceedings would come be.
fore him. He (Mr. Canning) knew that Gentlemen had an opi-
nion that they might pursue this course ; but surely the forms of
Parliament were instituted for general convenience ; and it would
be contrary to those forms if his Right Hon. Friend (the Chan.
cellor of the Exchequer) were to rise to answer the observations ,
that had been directed to him, and yet it was impossible
that threw observations should be allowed to pass unnoticed.
His Right Honourable Friend had pledged himself to pro.
pose the amendment in the Committee; the Honourable Mem.
bee would then have a full opportunity of taking the Kappa.
dal into consideration in that stage, and he earhestly toped that
his Right Hon. Friend would not let anything that had fallen from
Hon. Members opposite induce him to anucipite his'proposition
at • period so ineoovenient as the present. Then was nothing
which should prevent Gentlemen from entering into the principle
as well as the details of the measure in the Committee, and he
therefore hoped that the House would now permit the details to be
proceeded with.
The amendment was then negatived, and the original proposition
put and carried without a division.

PROMISSORY NOTES BILL.
On the motion of the CHANCELLOR of the EXCHE..
QUER, tho House then resolved into a Committee of the whole,
upon the Promissory Notes Bill.
The CHANCELLOR of the EXCHEQT'ER observed that
the amendment which he intended to propose would come in at the
2d page, 19th line ; the insertion of the words, " at any time before
the 10th of October 1f1,N," in the blank, would effect the object he
had in view. There were one or two verbal amendments which he
should pmpnse before they came to the part of the ninth) which
he had alluded; and he took leave to suggest that the Committee
should proceed regularly with the clauses of the Bill, until they
carne to the particular point to which he had referred, and which
he should then proceed to discuss
The first clause having been read by the Chairman, a short dis-
cussion arose upon it.
Lord FOLKSTONE thought that the clause, as mit pretent
.corded, would have the effect of producing a manifest injustice.
The present measure repealed the Act of the 37th of the late King,
the consequence of which was that the Act of the 17th cf the late
King was also repealed. Now, in his view, when the subsequent
clauses of the present Bill, pfohibiting circulation, came into ope-
ration, any unfortunate persons haiing notes In their possession
could no recover if payment of those notes was not demanded
within a certain time.
The CHANCELLOR of the rxcriF,QUER thought the No-
ble Lord Miantiderstoocl the effect of the clause. The words pro.
hibiting the circulation of certain notes would not prevent Futons
possessing those nom (torn obtaining payment for them.