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London, England, 1826-02-14 00:00:00

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had not yet seen the r termination--and yet further, he believed that
it wax difficult to judge at to where they might eventually terminate.
it was therefore that he felt an anxious desire that the House should
assent to me measure proposed by his Ht. Hon. Friend (the Chancel-
lor of the Exchequer. It ass nm then the time to inquire as to what
individual might be responsible for sonic part of the distresses which
had been so Mien reverted to; for it was absolutely necessary that
it should turn its attention to the present state of the currency.
((Hear, hear.) In tact, nothing should prevent the House from pay-
ing that immediate attention to the tooting upon which the car-
rency of the country stood, which the importance of the subject so
imperiously demanded. (Hear, hear.) He would ask if it wits
prudent any longer to permit the circulation of the country to re-
main in its pre- ent uncertain, unsatisfactory, and precarious shoe-
tiou ? He would ask the House to lesol; back for a period of thirty
years, during which the present system of private banking had been
gradually growing upon the country. He was aware of the respect.
ability of the persons conducting banking establishments in the
kingdom. He was aware of their extreme sensibility, which might.
he effected by what had been said, did lie not take the opportunity
of declaring that In all that had been said by the projectors and
supporters of the measure before the House, the characters of those
individuals who are conducting those private banks had never been
called in question. The system It was which had been attacked—
the ',ltem it was which had been cnridenmed—but the character or
respectability of the individuals hail never been impugned. If, in-
stead of stating, as lie did, that the spirit of speculation had been
fostered by die country benkers, he had said that it had been lose
tered banks, then should I entirely concur with the Hon.3lember;
but if I understood him rightly. the whole course of his speech was
directed towards blackening the characters of the country hankers,
and not towards attacking the syment upon which they acted.
He ( Mr. Secretary Peel) for one had a great respect for those
individuals. They were ma honourable men, in his opinion,
as any clam of the community ; hut still he claimed for
the privilege of discussing freely die system upon which they acted
—rat public funetionnt lee its some measure ; but at all events so tar
connected with the public as to render it necessary that the sprem
upon which they acted should be made the subject of a parlianten
discussion. There were at present eight hundred banking-muses
is thie country. In Mscietereon's History of Commerce it wan
stated, that in 1713 there were dild, and in another part of the same
work they were stated as high in number Its 400 ' • but at the present
day they west no lees in number than he had before stated, namely,
800. And to these banks was mainly confided the task of issuing
parer to supply the circulation of the country. It would nor he
diffi:ult for him (Mr. Peel) to hind arguments to prove the imper.
(region of the present system, even from the arguments of the op-
prawn of the measure then under the consideration of the House.
One Hon. Member (Mr. Alderman Heygate) had said that a
country banker had no means of regulating his buttes according to
the enlarged or ctremonteribed state of the circulation of the country,
because he had no means of ascertaining the issues of the bank int.
niediately in his neighbouthootl, much less those throughout the
kingdom, Surely this was decrying the system. That very cir-
cumstance, he would contend, strongly supported his position that
the system wes bad, and required amendment. (Hear, hear.)
What had been said by the Honourable, Member for Staf-
fordshire (Sir John Ne rottesley)? Why—that although he
would not impute it .to the country bankers, yet there was
always a tendency to the increased issue of notes coincident with
the increase of prices, and nice veesa. Now, if lie (31r. Peel)
wanted a proof in support of all the arguments advanced by the
supporters of the propheed treasure, he had it in teat one admission.
Could any proof be snore conclusive than that the issue of country
noes Invariably quickened with the state of excitement, and re.
hired when that excitement hail abated. It contradicted that
beautiful system of pneumatics by which the expansion of one
part operates towards the contraction of the other, and the contrac-
tion again in like manner operating so as to preserve the wattle union. ,
paired. It was very clear that those very arguments which vindi.
cated the characters of the individuals concerned in those establish-
melts applied most forcibly in cuinlemnation of die system upon
which they acted. It was a poor argument to advance in the con.
sideration of a question of such magnitude, that a labourer should
carry his one pound note to a savings bank. Ought such an an-
swer, he would ask, be given to a poor men whit lied the mistier.
tune to hold a note upon a country bank which bad failed. (Hear,
bear.) He wished to confine himself as closely as possible to the
%Were, but perhaps it might he worth while to examine what
effects the system or country banking had produced in die history
of the kingdom. The question before the (louse was not that of
providing against the recurrence of speculation, or against any
other came in particular, but whether a measure should be adopted
for establishing upon a sound basis the circulation of the country.
The lion. Member for Taunton (Mr. Baring), to whom he had
listened with great attention, had supposed the case of a home on
fire, and he (Mr. Peel) could assure him that all could nut escape
through the garret ; so neither could the measure of making 'elver
a standard of currency remedy the evils which pressed upon the
country. Ile did not mean to deny that it was a must important
question, and well worthy of the most serious consideration of
Parliament ; but it was one which he felt thoroughly con-
vinced woud never proves efficient to the extent presumed
by those who premeel it on the attention of the House.—
He said it not with the slightest view of intimating the least reflec-
tion on any class of persune, but he was convinced that it would be
necessary, if the measure proposed by the Ikon. Member should be
admitted, to accompany It with such other measures as would, for
the titue to come, place the currency of the country in a condition
so as to prevent its being liable to he reviewed front time to time;
and it would also be necessary that sonic provisions should be made
to prevent a man who cone/acted his obligations in gold from hav-
ing the opportunity of discharging them in silver. But he was
going to view the situation in which this country had been placed
at various periods in consequence of the country banks, namely,
by the issue of country bank notes to the total abstraction of the
metallic currency, and the consequent evils that followed such a
course. This eyetem had not been existing for litany years; and
yet from time to time had the country experienced every degree of
distress by its operation. He could not help thinking that if, in
the year 1793, when considerable failures took place, and the state
of the curie fey was fearfully agitated—lie could not help thinking
that if at that time the system that was pursued in Scotland with
such superior advantage had been introduced into this country,
the number of banks that had been established since then would
have been much less than now existed. An Ilen. Member (Mr.
Wilson, had recommended the House to adhere to the prudent
maxims of their ancestors, and not to deviate from systems which
were founded on experience, for the purpose of embracing new. '
laughed ones, that had nothing but theoretifal reasoning fur their
bases. Ile wondered In what part of the history of our ancestors
it was that the Hon. Member found the system that vindicated the
production of a species of currency by individuals that totally sub-
' vent d and destroyed the real and only metallic coin of the country?
It appeared to hint that to restore a gold currency. and to put the
issues of country bookers tinder such salutary limitations and
teetrictions as would prevent the recurrence of the evils that ensued
from the present defective system, would in fact be returning to the
maxims of our ancestors; for the unlimitei power possessed by
country bankers in extending their issues had only existed shire
the year 1797. In 1793 what were the failures :mime: the country
bankers ? He believed that in that single year not less titan a
hundred country betties failed. There were twelve in Yorkshire,
seven in Northamptonshire, six in Sussex, four in Somerset. and
various in other counties, amounting together to no less than 100 in
the whole. In later years the number of Commissions issued
against bankers, as far as he could ascertain—for he had not any
returns of the number—had not been, it was M.. so great ; but
they were mill of a serious magnitude when the consequences of
those failures were taken into consideration ; anti it would be seen
' they had almost yearly progressed—
In the year 1810 there were issued 28 Commissions.
4
11112 17
1813 18
1814 -
1814 - 26
11118 . . 37
_ _

and lb the hat eventful crisis there had not been less than seventy.
six failures of country bankers ; and it was to be observed that the
number of commissions which were issued gave but a very imper-
fect view of the number of failures that actually took place,
(hear, hear) for he had ascertained that in the year 1793 there were
not more than twenty-five commissions issued, while there were •
no lets than one hundred failures ; so that if the same propotthni
were to be assumed in ascertaining the number of failures by
the number of commissions, they must multiply by four all that
had been gazetted for the series of years he had mentioned, which
which would present a total of the most alarming nature. Could
any system be worse than that which should admit for such a num-
ber of years such enormous failures ? Hui what had been the
case in Scotland during the same period of time? He would an-
swer this question by referring to the evidence of the Hon. Member
for Callington (Mr. Attwoad) who was examiner( before a Com-
mittee in rue year 11119. Oo that occasion the Hon. Member was
asked this question—Within your memory has there been any
and what number of failures of Scottish Banks? And what
was the Hon. Member's answer? Yes, there has been one failure
within my memory ; and is that instance the Bank paid a divi.
lend of 14s. its the pound, almost immediately, and during the
winding up of the concern, a further dividend of six shilings was
• paid to all the creditors. (Hear, hear.) Now; if diming the year
17113 there were no less than 100 failures, and during the subse.
quent series of years of 11110, 1811, and so on, dime had been
sometimes 37, at others :1i and 2(1 failures of banks in England,
while in all that period of time there had been only one single
failure of a bank in Scotland, was not that circumstance as strung
and as presumptive a pronf as any they could hare that there was
something detective its our system, or that the system of Scotland
was at least preferable to the one that prevailed in this country ?
Now, let the House for one mentent consider what must have been
the (mass of distress occasioned by these extensive failures ; he
would not nay among mercantile and commercial men, and persons
of property, but among the lowest classes of people of this country,
who he would contend were the most material sufferers, by the
operation of a system which gave to thz country bankers power ex-
clusively to monopolize the circulation of this country ? He con.
seientloualy believed that the influence which this power gave to
country hankers over the condition of the socking classes was one
of the most serious consequences that flowed from the system, and
[het the close connexion that 'this subject had with the payment of
wages to the labouring population, was a topic of as important
a cinsideouion as any belonging to it. (Hear, hear, hear.) ,
It appeared to him that the end of this system was to produce the
most alembic consequences. Exmrience must show that it was
productive of the most serious evils, and that for such labouring
classes it would be far better that there shoirli he a permanent sy..
tern fronded upon a more solid and aubs!anrial baste. In the time
of great mercantile prosperity, when the issues of the country
banks were so extensive that wages experienced a considerable ad.
ranee, the benefit resulting to the labourer wee of a very doubtful

nature, for he believed it wochl be found that the greater propor-
tion of those who received the very large smite of Its. and 9s.a.day,
did not, in point of fact, lay any portion of it by as a proaistion
an evil day, but oftener it contriinited to induce bad habits by the
men spending two or three days of the wt ek in idleness, timing upon
the excess of money they had received. Tide was one of the evils
that resulted front the individual authority possessed by the country
hankers to increase the quantity of the circulation of the country at
their pleasure. How far also this subject was connected with an-
other branch of Miltony he was not prepared to say, but that It had'
an influence over the wages of agricultural labourers he thought
could not he denied. Ile must, however, declare, that the very
existence of the distress that wait now to be witnessed satisli:il hint
that the system of wages to the agricultural labourer stood, in some
way or the other, upon an insecure and unsatisfactory basis. What
were the causes he would not pretend to explain, but It was ob-
vious that there must be some defect somewhere, when a man in
the litH exercise of his entire strength. could not by possibility save
a sufficient sum to support himself and his houtly. Which of the
causes was the immediate one he knew not, but he could not hot
think that the payment of wages in coin which WAS the standard
of the country would in some degree renter!y the evil. He con-
ceived that the principal sufferings tesulting from the recent failures
were among the labouring classes, whose whole property became
wrecked by the breaking up of the country banks. Those who
were creditors to any batik to a very large amount, could possibly
wait the winding up of such a concern. Those who owed a sums
.500/. or 1,0001. could wait without anyi very serf us inconvenience
for his dividend ; but what was the situation of bun who was the
holder of the smell notes, who was perhaps s creditor for 51. or 2/. ?
He would venture to say that such a person 'Odom 4m ever obtained
a farthing ; for what with the expenses of proving his debt and
going to obtain his dividend, lie seldom had any thing coining
to hint ; so that he would venture to say that in tune
case:: out of ten the parties who received the most in-
adequate compensation were just those who were the most
distressed. He bud himself, perhaps, had a deeper impression
made on his mind than any Hon. Member present, fro n the cir.
cunistance of having personally witnessed the distressing ethtets
that were occasioned by the failures of country banks, lie be-
lieved that the history of no country could produce scenes of a
more aggravated and appalling description than those which ex-
isted in the province of Connaught during his residence en Ireland,
all of which were the result of the failure of the bankers there ; the
crimes and miseries that arose from those distresses were of the
most revolting kind. He therefore would say that any measure
which gave them a mi
ile of getting rid of. this most mperfect roe.
vies of crurency might not to be dismissed from that House with-
out the most serious consideration. But nothing could convince
him that that House would dispose of a measure which was calcu-
lated to remedy so great a mass of evil, and winch would
.inevitably
place the currency of the realm upon a foundation so fixed and
lasting, that a similar result of disastrous events could not, lie
thought, by possibility occur again. Having thus attempted to
show that there was great reason to believe that the system of the
currency now in operation was radically defective, and that
its tendency, when the country was in an unnatural s ate of
y, and speculation was at its height, was to in-
crease the on the other fiend, to make them,
when in a slate of languor, slia more debilitated,—the
next question far censidcretion was, whether the measure
which had been promised by his Right Honourable Friend
(the Chancellor of the Exchequer) was likely
.to here the effect
cmitemplated by him, to cure the evils that existed, and prevent
their ce.urreece for the future P and if so, the third question to
be considered was, whether this was the proper time for adopting
such a remedy ? For he thought the proper course to be pur-
sued was, first to consider whether there was any evil existing
which ought in be remedied ; and next, whether the remedy pro.
posed was likely to be effectual ; and finally, whether this
was the proper time for applying it. Now, he had very
sanguine hopes upon the subject. Some had indeed said that
the measure proposed by his Right •Honourable Friend would
be entirely nugatory—that there would be no banking firms
established ; but be bad the most sanguine hopes that there
would be banking houses established in consequence of the other
measure that was intended to be brought forward. It did
appear to him that there would be gentlemen seen come forward,
not actuated by the mere desire of profit, but from an anxious wish
to see established a more firm system of banking in their own im-
mediate neighbourhood than at present was the case, in order to
avoid those many evils that they were now compelled to witness,
and often times very largely participate in, notwithstanding the
absence of a charter, which, according to the present determination
of the Bank of England, would be denied to diem. He, however,
sincerely wished that that obstacle to a firmer and more subetantisl
system were remnved ; and he did wish that the Directors, for
whom he entertained the highest opinion, would seriously consider
whether any great advantage to them could possibly be derived
from their 'insisting upon the absence of a charter to those firms
that might he formed it, consequence of their having liberally given
up the privilege they possessed hi confining all barking establish-
ments to a number not exceeding six 'persons,. and to consider;
whether the granting the charters could by movability affect their
own interests. For hie own part lie could not COSMIC what single
vantage the Bank of England could derive from the absetice of the
charters to the provincial banking establishments. although heat the
same time most readily admitted that they bed a right to oppose their
being granted ; and now that he was mentioning the Bank of Eng.
land, he meet say that in all the intercourse which lie hat ever had
with that body, he had experienced the most liberal and upright con-
duct, and that during the late extreme panic, when the country was
in a most feverish and alarming state, their conduct had been
throughout highly honourable. The Bank were placed in a very
critical situation ; they had not only the welfare of the empire to
consider, but as a body of men trading on their own responsibi•
lily, they had also their own interests to consult; and he must say
that.he could net conceive it possible that any men could have re-
conciled those interests with greater judgment. greater liberality,
and greater justice; and he wished they would only increase his
admiration of them for their liberality by consenting to wave their
objections to a charter being granted to the banking companies
that might hereetter be formed. With regarti to the argument
which had been advanced against the probability of any such
batiks being formed, because there were already tou great a number
of banks in the !tame district, he could not but conceive that it was
the most delusive reasoning that could be advanced. Let there be
a company once established, with proper directors, similar to the
Bank of England, and lie believed they wunid find that there
were gentlemen of fortune who would readily come forward
to follow the example. What wee the ease in Scot-
land ? Exclusively of the chattered banks in that country,
how did their numbers stand ? There were altogether about 100
banks in that country; but the whole number of banks which were
not chartered did not exceed 30. Now in England there were up-
ward. of IMO banks all unchartered, while in Scotland there were
not mote, as he had just said, than 30. The inference, and the fair
and legitimate inference. then was, that let but the same system be
adopted in the country es in Scotland, anti they would find persona
come forward with alacrity to avail themselves of it. Wliat had
been the case In Ireland ? He believed that since the passing of
the Provincial Banks' Act. in the last Session, two banks had been
already formed, besides a provincial bank, not with a limited reopen-
sibility. It therefore did appear to him that with the experience of
Scotland and of Ireland to direct them, they had every reason to
hope fora similar result taking place in Engiand, so soon as a cor-
responding system should be introduced. )tile confessed that after
the fullest consideration he hail been able to bestow upon the sub-
ject, he had come to this conclusion with his Rt. Hon. Friend (the
Chancellor of the Exchequer). that they could not in this country
maintain a circulation of bank notes of the same denomination
with the gold coin of the realm. concurrently and together. (Hear,
hear.) While there existed a power on the part of any persons
to issue a paper currency of a denomination with the metallic
currency, the latter would evidently be driven out of circa:
!talon. He did not mean to cast blame upon any one for this;
it was in the nature of things while the system sanctioned it, and
no imputation was to be thrown on individuals who sought
to substitute paper Mr the gold circulation. So long as the
system lasted they had a right to do it, and the consequence
was that they would do it so tsar as they could. !'here
would ever be an immense number of notes in circulation
while, the law placed no restraint upon those who issued them.
When the Batik of England purchased bullion and paid dividends
with it, and issued their notes in exchange hur those they had be-
fore issurd, the dividends were immediately returned and the Bank
of England notes were taken instead. But those notes would net
circulate in the country, in consequence of the country barkers,
who had entirely a monopoly in the circulation of the contort,. sn
that it wee toeless to attempt to establish a gold c rcalation while a
paper circulatioe existed. But, in discussing this gutstion, it ap-
peered to hint that they should not have any reference to the past
for the purpose of criniinaiing one another, but whit the view only
of enabling themselves to arrive at that knowledge which experi-
ence would give them. that should lead to x better state of things.
It they hail been wrong, let them not persevere in error; there was
nothing improper in a change of opinion. He thought that Mr.
Ricardo greatly over-rated that plan which he proposed for dia.
pensmg with a gold circulation, for lie (Mr. Peel) did not think it
ioNu I;abTeh 81:1.1e:h:;ceirlielnitti.rnh.naa
practicable to maintain gold in bullion with so small a circulation,
in case of a bad harvest, or in the event of a war, he apprehended
the country would be exposed to the constant chance of a stoppage'
of cash payments; in point of fact he thought (to use an expreesion o
his lit. Hon. Friend's) there ought to be a saturation of the country
with gold ; he thought also the amount of the currency of the country
had been over-rated when it was stated to amount to 30 or 40 nil-
!tons. He thought it was not so m ich, and he should notehespair see-
ing all that would be abstracted front the circulation by the with-
drawal of the small none, supplied very readily in gold. There
appeared to him to be no great difficulty in getting to this country
bullion of sufficient amount to give it a gold circulation. M'hat
was the probable amount of the circulation of this country ? The
111;:incuatt
Honourable Gentleman (Mr. John Smith) said that the probable
amount that had. been estimated teas entirely fallacious, and that
countryohl iwo
ownnbe.aysnisiet
ent
noose
otiff)eicilerirste 1
imatvery
daietmateriallydenomina-
tions
examine;rbefore
tes
there was no possible means of nscerlaining the real sum in circuit!.
t
s
haenylip;
ttn°lnllienlpitetreieodinftlirtilw9h.chW
I .
were in circidation, lie said that the average period of time
the notes remained in circulation was three years. Five and ten
pound notes, he observed, remained four or five years, but then
the
.ernell notes did not circulate for more titan two years and a
halt, so that the average was about three years: the estimate
therefore of the probable amount of notes in circulation at one
!uealaat 101 on, nt
shhoefo
issuesutlhde
bceooutfiat
ktsrenytila; l
small
away,
on
Ise could be easily mode. Ni one proposed at all to limit the cir-
ng
culation
tdshei
et hwseaytsmtermi the monopolytpe mtitetnl natohwflarnena, ter°-r
basis. Only let the sovereigns he set in circulation throughout the
country, not by tiny oper use transmission from London to the
bankers, but by a tlistnbution from lice country bankctp them-

atter+, by making them feel that 'bey were liable to pay in gold,
and the measure proposed would, by a very simple process, bon
that effect. Now what was the maximum of the issues (wont anti
two pound notes in circulation at one time ? According to the opinion of every gentleman connected with Jim! balding buts,
nos, who was examined in the Committee of the ye ,
ifiln, and also according •to the evidence of the "enL„
graver of the Bank, in the last three years there were stamped
for country bank notes 7.600,0001. Now assuming that a country
C',
bank note could not remain in circulation more than three yenta
and taking the years 1823, 1824, and 1825, there appeared to be
it:
the year 1823 very nearly two millions, being 1.988.0001. • is the
year 11124, 2.L00,000/. ; and in 1025, 2,l32.oooL—inaking a l
t ota amount Or 7,600,0021. If any reliance could be given to the nest,
lion that country bank notes did not remainin circulation mote t map
three years, they then had the remit from the above Nictitation,
ihat. the maximum of the circulation min be 7,roknow. is „at:
log this he had made no deductions, which, according to the
nL
dence of the lion. Member ler Mitlhurst, might very polybe made. For it was stated by him before the ommute
that it very often happened that nearly half the notes were in too
possession of the bankers. It wan clear that a portion aught to ba
deducted from the amount of small notes, and there ought el% to
be a deduction on account of the notes or other country hanker,
which were retained in the posiesaion of each banker. Tak
also into account the reduction which had recently thS'en place
cnnaequence of the contraction of tames, and the withdrawing of
others by the unfortunate failures that had occurred, he could not help thinking that the extent of the circulation was at ox „J.
He thought that there would be no difficulty in reply,
ing the whole of this sum in the course of three years b
the issuing of sovereigns. Above all, when lie considered' thio
most Important fact, that since the year 1819 (and there mild
be no Tektite in the calculation) there had been coined at the Mint
no less than 25,000.0010. and if they were to decoct from this the
number of sovereigns that had been exported out of the cmntry at
seven, or even say eight millions (which he considered to be an ex.
trayagant calculation ) there would remain on !eye than 17,000.0 all.
of gold coin in this country. He also believed that' the proh h:.
don of country bink notes would have the effect of intrudur a:.
those sovereigns into circulation which had not been either raper el
or melted down, but which were retained in the coffers of the bank re,
partly for the Tommie of meeting the demands teat might be m de
upon them, and partly tram admire to see their dwn notes in eirettla.
Lion. If, then, biases correct in the position as to the amount of
mitre in circulation, he could not refrain from blieving that In the
courseof three years sufficient geld would be called into eitadatimma
to supply the, vacuum that the abstraction of the Country honk
notes would occasion. For these reasons he thought the remedy
proposed by his Right lion. Friend was fully equal to the evil,
and such we ought to be adopted. And now he would state why he
conceived this to be the proper time for the adoption ofirsthatf t
remedy. The argument of his Hon. Friend who spoke in
this night's debate was one which he (Mr. Peel) could not
admit to be well founded. His lionourehle Friend teemed
to think that there was the same right on the part of the
country banks to issue small notes as there was on the part of the
Rank of England to retain its exclusive privileges. (Hear, hear.)
He must most broadly and unequivocally dissent from that prate.
sitioo. The charter of the Bank was given for a t a.u.ibleconbraders.
Lion ; there was a payment made upon the charter being grant;
but what remuneration was ever made for any grant by the country
bankers, for the right to issue one ar two pound notes? lie he.
lieved it was impossible for the Parliament of this 'country to rmeng.
Mee any such right. With regard to the question of rime
her adopting this measure, the only pronosition he had
heed was that the House should postpone the considera-
tion of it for a ' month. To postpone the consideration of
such a qnestion as this would be holding out to the coon.
try that it was the intention of his aliejeety's Government,
in the course of one mouth, to adopt some measures reopen':
Mg the most vital interests of the public, but leaving than to
conjecture what those measures might be, and thus occasion all
the agitation of suspense and apprehension. It appeared to him
that if there was anything likely to create embarrassment and
confusion throughout the commercial world, it would be the course
which was thus recommended to be pursued. Every argurneat
that he had heard convinced him that this was precisely the time far
carrying on thia measure. He wall perfectly satisfied that the ques.
don was neither mote nor less than this—were they prepared to
deny applying a remedy to the distresses that existed, or were they
nut? (Hear, hear.) If they were to abandon the question, let
' them abandon it ; but let it be distinctly understood that they did
indefinitely. If Hon. Members would only refer to what took
place in 1818, when a proposition was made by Government to the
country bankers that security should be given by them, and which
they had by a successful opposition defeated, they would see what
they had to cx met would be the disposition on the part of dmtt
gentlemen to accede at any future time to the proposa;,ma
which they now oppose. He thought that on that aces.
lion he heard insertions made, that were calculated to male
them feel, that this House was not always to expect in the time of
prosperity, a compliant acquiesence from that quarter, to the teem.
sures that Government might propose. If it was true as hail been
stated, dint gold was flowing into the country day by day, and that
the amount of country bank notes was nut so great as mermaid,
then he would say, that a great deal of that observation would go
to strengthen hie own side of the question, and would effect the
restoration of the currency so much the more teadily. In polo: of
fact, the time was now reached when this measure aught to
he adopted, and diet if, as the Hon. Member hail staid, that thee
were these streams open, and time current were flowing in to noutish
and cherish the country, he would do his utmost to keep it open,
Inibre4

quern super now alluere ripas
Ferret."
He Mould continue making the passage now while it *as ec.,aable,
but if pustnottement ace to take place, he must abandon his hops'
of opening that passuge for ever.
Alderman 11 EVGA'f E explained.
Mr. 31. Arf it 001) rose arnidet loud cries for Mr. Gurney. and
it was a long time before we could catch a word of the lion. Gar..
tleman, and when we did they were uttered in so low a tone of
voice that we could not collect the tenure of the Hon. 31ember's
observation. We understood the Han. Gentleman to my. that
Whatever good or ill had been produced by the paper circulation
was to be ascribe] to the increased circulation of the Bank of En.-
land. All those enterprises and overtradings which were the sal,-
ject of the Right Honcurable Gentleman's observations were to t e
ascribed to the measures of Government. The paper circulation
was forced by Mr. Peel's Bill, and from that arose all the cats-
lmities which followed. Further confusion and wider calamities
were likely to arise from it which the proposed measures would
tend only to facilitate. The session of 1822 commenced with
Ministerial projects for increasing the Bank circulation. It was
first proposed to increase the Bank circulation by borrowing money
it was then prouosed to lend money for the purpose of increasing
the Bank circulation, and out of all these projects arose the ore tor
raising money upon a dead weight, and borrowing principal
pay intereq. There were 21 millions of Bank notes in circulation,
and it was as clear as that the sun would rise to-morrow that o e
rice of gold would rise in proportion to the quantity of runes oat.
fhe change in circulation produced by the measures of Government
effectually altered the value of property. It was worth while to see
how the ptice of gtain hallowed that alteration. In 1821, the
average price of grain was 435. a quarter, and lie should be "lad tr
know that was not as high a price as could ever be ob.:lined for it
with a metallic currency. A. to the change of seasons in a country
like this, the argument deduced from that was perfects nugatory.
The question was not uto quantitk„ but as to price. Vhen corn.
matinee were at a high price gold amppeared, and was at a high
England
until the value of comniodities was teduced. The Bank of
England was the hurt and foundation it the money system of this
country. When commodities were high; the demand was greater,
and when the price of commodirint was reduced by the measures of
Government,' the demand decreased. The precious metals, like
other thinks, were subject to this s.andard. Out of the high prices
other things, besides speculations, arose. Rents had arisen from
high prices. (Hear.) The population of the country, too. was
changed' from a population he might say 6f rebels, into one of the
most contented, tranquil, and prosperous populalons In the soda--
a population fullt of content and prosperity. (Hear, hear.) The'
Chancellor of the Exchequer bad observed orlon tub favourable state
of the revenue; but wax not the favourable state of the revenue
founded upon a paper circulation ? The Government should be
cautious how it proceeded. Deeper events, whether they were in.
cierstood or not, may arise from the fate measure of 1819. e
vote of that year passed, as the Chancellor hid stated, with unard.
mity, but he (Mr. Attwood) thought that tumult and reekies
levity had endangered the security of the empire. 'the proceed-
ings which followed that pressure had debased Parliament In ti e
eyes of the people. Alinisters should recollect what had past,sand
if these recollections did not impart caution nod& g could. Bs the!
did not teach them alarm, when everistep was be, et with diffeuis
ties and dangers. the country had little to hope. When the notes
come to he withdrawn the money engagements of individuals were
necessarily Cut down to that on which they were founded. By soli
meats, either by slow reduction or by sadden resolution, all es-
gagetnedts were /reduced to the level of norm of the Bank of En;
land. But the Bank could issue largely with Mr. Peel's MI
pressing on it. The Bank paper was foreid back by the measure*
of Government, and distress was the necessary consequence. The
Honourable Gentleman concluded amidst loud cheers. but the con-
eluding sentences which tell from hint were very indistinctly head
in the gallery.
Mr. H. GURNEY next rose to address the House but was let
the most part Inaudible in the gallery. We understood him to esl
that in the proper place he intended to move an amendm rat
to the resolutions proposed by the Chancellor of the he'
chequer. He Intended to move the omission of the words WO
of the Bank of England, in order that the prohibition should not
apply to them as to country bankers' notes. I f lie understood the
Chancellor of the Exchequer's project, the Bight Honouralle
Gentleman intended the same prohibition to street notes of the
Hank ofEngland and country bankers' notes ; but he thought the
plan would be much lessobjectionable, if Bank of Engiandnmes were
substituted for the country hall k ers'tnes which should be wi +drawn-
Though It may be inexpedient that country hanker, should have the
power of issuing small bank notes, this ptivilege would rot be
'expedient when placed in the hands of the BankofEngland. There
were two entirely different subjects of discussion before the House
—the present distresses and the state of the currency. Within
short time, during the last year, there were no less than 114 hub-
Wes or projects afloat perfectly impree'le.ible, and at the end oi a
South-sea year, was it to be wondered at if we were placed in a se
motion of great embarrassmanal Ile I Mr. Gurpey) laid all the
errors which were committed at the dotir of the Bullion t'ern'
mime. Mr. Homer came front Scotland, and brought all
ter
depths of Scotch metaphysics to embarrass the currency question.
In lOU, when he had first the honour of a seat in that limo,,
:
the depreciation of tile currency was stated to be 33 per cent.

n,:.: ~n the difficulties; which pressed upon ua 1821 and 1822
ted.erom the principles of the Bullion Committee.
Jet:. Secrets', CANNING said, that before he proceeded to dies.
cues the very Important question which was the subject of this
rifle's detente, and which he meant to do within • short compels,
• bit eil leave to wet himself right with some lion. Gentlemen at
err aeer ode of the Houce, by apattring them that in what he had
' of he del not Intend eny disparagement to the mode in which
theitetent system of banking was cadet' un what he had to Nay
proposed measure orierating upon a
„toe to the cannon of the
▪ by no means perfect. lie d:d not mean to Impute blame
"Oa to insinuate simpleton wailed that respectable betty of men,
tateed
it inew stood.n the mature and %needles of administrators of the cur.
o Ile believed that theism men had done much
wine • , the country, and were entitled to its dank, Ile be-
bevel that they had given a erlsom orne stimulus to industry ; that
tee, had been the instrumeras of openieg new channels to coin.
'' and successful enterprise, and that if they hail done amiss
it was from the nature of Ihe %roan, and from the power neon.
rely lodged in their hands. lie had thought it necessary to make
epee preliminary obeervatioes, herniae, in the ardour of
decimate, he trieht unintentionally use expressions of any
equirccd character, which, although intended only to apply
nistienatuay be applied to persona. He now said to the wintry
honkers what he had betere taken the liberty to Pay to the Bank
vir.ctols, a eat, mrafeett. as they were. end deserving of con&
&ewe. they were not tit I. eternise the prerogatives of he Crown.
(lime.) Taal en not disparaging to any body of men ; it related
only to the testae : ane..o hatever the House thought it its ditty to
canes into effect may now be tarried on and brought into practice'
operation with less difTi late and has danger than at any other
onie. It was a Gar and reaeonable inference, founded on cape-
TIMM that there were miry banking estaidishments through.
cut the country startling en steady, solid, and unquestionable
inundations. They had stout, the violence of the storm when
aCJLef fibrin had fallen to the earth, and this was the beet
'edema of their debility. He believed the di...Years of many
talking establishment* were excessively esageerated, but the
molt had proved that those mine whom the country I litters Wen
I kely to fall, and those who eere likely to fall upon them. would
argue most inconsequently. nod produce a vast deal of contusion
without any omeomitant ativantage, if on the one hand the banker
seed harsbnees towards his debtor, ter if on the other the hank cre.
akar was precipitant in exchanging his notes for gold. The time
/Mowed by the proposed Resolutions of ha Right Honourable
Friend was ample. without justifying a bomb appeal on the put
of the banker, or justifying in the holder a precipitate application
for gold in return for notes. Ile had said thus much upon clear
"and., to avoid being charged with invidious imputations, be.
fine he prepared to meet the subject now under discussion. The
Gentlemau (Mr. Gurney) had most accurately divided
the queeten into two parts, and his speech was the best answer to
ma the imputation's thrown upon the measures recommended by his
Right lion. Friend. By wins lion. Members the measures were de-
signated as inefficient, as mere niite.an... tater measures, whilst by
whoa they were accused of beirg Maly to produce a pressure
which the country was at present unable to bear. Both these
accusations were untrue—both may be and were unfounded. His
Honourable Friend had proved how fallacious was the reasoning
spun which the burlier accusation was founded; and, as to the
letter, it was based spun a gratuitous easereltemion of the effect
of the proposed measure., on that with which it was not intended
they should meddle. The causes of the present distress came fairly
within the point now under discussion. One of those causes car.
tainly was the extravagant spirit of adventure and maculation which
rows to such a height during the last year. That extravagant
spirit was alluded to by ninny Honourable Member's, but by
none better than by the Honourable Member for Northampton
( Mr. Maberiy), who had described ingeniouely and eloquently
the true character of those wed speculations. ll'hert the Speech
from the Throne at the opening or the last Seaton of Parliament,
alluded to evils with which Parliament could not deal, to what
else (lid that expression refer, but to those extravagant speculations
which then were the objets of the public gaze, and excited an ap-
petency which he would not stay WWI disgraceful to the national
character, but which ceeainly made us ridiculous in the estimation
of thinking people? Many of those speculations appeared with
the tieing son, but its satin); beheld them nat. They were
things rising like %veers, which the puncture of a pin brought to I
the earth. But it did not do to meddle with thaw springs of
human avarice, lest, by checking them, we should also cheek the
springs of fair adventure and eueceeeftal enterprise, and by so doing
produce more '(jiry than could counterbalance any good we might
effect by redressing those extravagancies. But although that feel-
ing had run riot, it could not he fairly stated as the cause of the
present distresaes. It was natural that the state of our circulation
shroud have influenced, if it did not produce those embarrassments.
We were mimeo to discover the causes of the present distress; we
found that distress in some degree derivable from the state of the
circulation, and our purpose now was to have that current dammed
up, leaving opportunity and experience to suggest other courses
which it may be hereafter expedient to pursue. The objectionable
character of our circulation was now clearly within our view—it
unquestionably had some share in producing the distress,
sal if we wished to curt that tell, the present time wee the bed ;
if we missed this opportunity we may not ready meet with another.
There was loather prejudice which was very much in fashion, and
which the Hen. :limber seemed to entertain, he meant that habit
el imputing theories to those who attempted to, legislate on cam-
mereted sub:pats, end Of charging such persona with wishing to &p-
-eg), their pruselpla of philosophy to the emeetiey alpha country Is
tad to the dearest interests of the community. Without intend'u%
env disrespect, he must say It was most unfair in the Hon. Member
to ix that particular Act (the Bullion Act) upon him. If it were the
act of the moment, he could excuse it, but when out of this error, an
unfavourable inference was drawn, and an appeal was made to
these who acted with him, and they were charged with follow-
ing a blind guide, in attemptieg to change from the solid scheme
of a paper standard to a metallic currency—la laugh)—when lie
said this, he could not say the error wee unintentional.
Mr. BARING complained of the charge made by the Right
Hen. Secretary, but was inaudible in the gallery.
Mr. CANNING made some observations in reply to Mr. Ba-
ring, but we could not catch their purport ; after which the Right
Hon. Secretary proceeded to state the part which he took on the
bullion question. At that time he though: it necessary to differ
enmewhat from the Bullion Committee ; he was not prepared, in
the middle of war, to adopt the system of the Committee, anti to '
throw open the Bank at a day's notice. The only proposition
which he then made was the very reverse of theory, because he was
satisfied the circulation could not continue with a metallic currency.
Much had been said about the wisdom of our ancestors, but he
would appeal to that House, and ask what had been the currency '
of the country op to 1797? In support of his opinions he would
quote emu a book, which was no mein nor doubtful authority—he
meant Mr. Burke—who, in describing the paper system of the
French Revolution, contrasts it with our currency in 1793. He
sail the French thought our prosperity artiste out of our currency.
whereat our currency was the dret of our prosperity; and that
gnat authority concluded his observations by saying that never was
a scarcity of cash and a snperabundance of paper a cause of com-
plant. He would now come to the complaint which had been made
he the Honourable 31 ember for Taunton, and by other Gentlemen
who b d opposed the peewit measure. It was complained that the
Bank had been choked ter by its advances to Government, and that
the various sums which II advanced for she use of the State crippled '
its resources; various items had been stated, amounting altogether
to 24.000.0011/. The error was not so much in the amount as in the
ate witteb the Hon. Member made of those figures. The fact was.
that the amount of eccomniodation to Government was s source of
great einalument to the Bank ; but, whether they were or net, was
no more the concern of the Government than of the Hon. Gentle-
man. It was true the Bank had made advances to Government,
b i: the lima. bleinLer could not perceive how the Rank was to be-
netit by such arrangements, although he professed to have made
aryy attempt to uoderstand it. Now he (Mr. Canning) must eon.
fns that the attempt to uedentand did not always arrive at the
knowledge. (A laugh.) No person, after many an attempt. cludil
unierennd what the Hon. Member meant by dead weig' t.
(A laugh.) Dot he most again observe thet the traneactions of the
Bank were not the affairs of Governmet t , whether they acted wisely
or not was for their own consideratton. It was Meir business to
consider whether they were making prudent or imprudent bargains.
The Goverument sold the Bank certain securities, the Bank might
Lave said them the next day, but they did not think it their into.
rest to soa If the Hon. Member had purchased a loan, and pre.
fond retaining it to a disposal of it, who could he blame but him.
sell ref any unfavourable result from such retention? If the wise.
acres of .1 loan are net always fortunate In their speculations, they
mutt thine their own calculations; and at, was it with the Bank ;
but the ram which it was stated the Bank had advanced to lie-
vernment was, upon examination, reduced to a small amount, anti
even this small amount could scarcely be called an advance. As the
Bank hid oftener a huge surplus belonging to the Government in
their hands open which they paid no interest, would the Honour-
able 31ember ron.ider this mode of Yammering business untayour.
able to the Beek, or would he consider himself ant of pie ket in
keeping such an account? lie (Mr. Canning) would further illus.
time Ma segment, by supposing a private Individual to want ten
thousaid pounds; he offers a sufficient security, and snips pro.
• for that purpose: he says to the lender, if ever on are in
advance fir me charge me interest—bufir you have any balance of
wine in your hands I shall ask no Interest. Is it not too meek
to say that this would be to the disadvantage of the lender ?--
The way in which it worked was advantageous to the Bank. On
tee sth of January, 1821. they were in advance 1,5(0,0a)1. ; but all
that would be cleared off next year. The amount of the ad.
vans on the part of the Bank on the 4th of April, wits
cleated off on the 25di May following, and the advance and
the amount of the advance in May was cleared off in July.
The next advance of the Bank, which Irlinlin'ed tit
i.exku. was cleared off in Oesober, and the 1,400.0001.
olticli was the amount of the advance the Bank then mule,
by the Internet they were allowed, yielded a clear profit to the
Bank. By the quarterly payments which were made, the gross
amount of the advances made by the Batik were reduced to
6 5001.0001. which was afterweds 2,499.01101. If the manner in
al; eh thin worked was ennsidered„ it would appear that the ad-
rues of the Back were all cleared off. and were no impediment or
obstacle to that establishment, anti if 'Government had it in their
putt to witheiraw,theflank mud have incurred a tangible lows. In
as reporlor the Bullion Committee it was recommended to the
note to demand too high a rate of interest ; there was thee :6
..see' of 7.09.000/., but that was to gain an advantage to the
Reek. Se that the 24,090,0001. which it was said choked up the re-
!mai of the Peak, and closed all those avenues which could havo
atreden alai'. was reduced to nothing. There certainly remained
*s m 7.00,0001, of permanent exclierpiet bills, bet that Imin w is
coeval with the Bank, and was the hula and foundation of its sup.
tr. The Beek was enabled, by profits accruing out of a series
bonuses, to pay a dividend of 8 per eve. mem that 7.0110.001 W.
vitae they paid at interest of 7 per cent. on the origival 12,gry9,0001.

The traamminne which the Government had with the Plank were j
throughout favourable to that estaelishittent. The Hon. 3lenaber
(31r. A. Baring) who spoke so strongly in favour of a paper cur.
reney, and decried every idea of coining to melt payments, pro-
bably lead a viewao anon other measure. Whatever that might be,
whether wise or not, he. for his part, felt that the Batik should he
in full possession of all its rights; but it appeared that Gentleman
thought that if the Bank was disencumbered from any connexion
with Government, every difficulty would disappear; hut there was
nothing In the memory or retrospection of the House to justify a
cote-literati of that kind. Much had been said relative to country
bulk., and ruin and confusion was corgi Indy predicted should
Government interfere with the circulation of their notes. Was this
view of the ease supported by public opinion ? The mode proposed
to withdraw those small notes from circulation was to accomplish it
by degrees, His Right Hon. Friend's (the Chancellor of the Exche-
quer) proposition was to allow three years for those notes to be re-
called. Now taking the estimate of the amount in circulation
at the highest rate to be 6-000.000/. and 4,000,0001. at the lowest,
and allowing three rears to withdraw this six or four millions from
circulation, it would not be found so very dangerous or difficult
an undertaking. There were 0011 country bankers, which in con.
sequence of the unfortunate pressure of the times were reduced to
about 7110; if the anitnint of the one pound notes in circulation was
divided among these 1100 hankers, or allowing for those that had
ceased payment, among 7011, the bankers could in the course of 3
years withdraw the entire mermen of one pound notes in circulation
at the rate of 2.1100!. or 3,0100/. each per annum. Is it to be said
then that such an arrangement as that must inevitably bring with
it rein and confusion ? (Hear, hear, hear) If those funds were
properly calculated, and guaged by arithmetic, those loose and un-
fair obit:orations would be found totally groundless which were
applied to it in the beginnine of the debate. Ile had already re-
ferred to the authority of an eminent man upon the subject of the
paper currency. It was net his good fortune to enjoy to any great
extent the acquaintance of that grant and truly distinguished indi-
vidual (Mr. Burke); tile date of his Parliamentary life precluded
throe associations with that highly.gifted statesman, which it
would have been his ambition to have cultivated ; though kis ac.
misintance was brief it was dear to his tecollection. lie had ot,e
relic of departed greatness, which fixed upon his mind sentiments
of gratitude towards hint who wrote it—it was a communiattion
from 31r. Burke, written from that bed of sickqess from which he
never arose, which concluded in these words--“ Ill you allow one.
pound notes once to get into circulation, you will never see the face
of a guinea again." (Cheese.) The effect he predicted has come
re pees, and they have lived long enough to see its truth—they
saw various expedient% resorted to to conceal it. When the report
of the Bullion Committee was made, the lion. Gentleman and
himself bore arms togethet in the debate that took place on the sub-
, j 'et of that report, and he did expect such a result from the asses-
-1 elation. lie could not refer to the arguments which had been used
westing these resolutions, without endearesurrag to justify his
Noble Friend f bard Braley) front allusions which had been made
to the resolutions of which he was the godfather. and for the sins
of which he was answerable. It was doing his Noble Friend but
tardy justice to say that the resolutions which he proposed were
in his (Mr. Caoning's) opinion calculated to produce great bene-
fit, and had his entire approbation. An opinion had gone abroad and
prevailed very generally in certain districts, that one pound notes
were not convertible into money. There was an instance on record
of • banker who had refused to pay • one pound note which had
been preeentel. He thought that there was something in the law
which protected him in making such a refusal. It was the object
of Government to remove such impressions, by doing away
with the use of those notes altogether. Nothing could
be said to extenuate a species of circulation which
could give rise • to such a mistake ; for himself, he never
thought fro a moment that the withdrawing of those notes
could be attended with any injury. It was said that those resolu-
tions were vapouring productions and were oppressive as they con.
cerned the Bank. lie thought the affairs of the Bank perfratiy
secure, bat if the Bank was in a situation to excite alarm, and was
on the verge of ruin, a thing which he looked upon as the most
improbable thing possible, and of which he could not entertain the
most remote apprehension, yet he would not even in such a ease
atop the circulation of the country to prevent such a misfortune.
(Cheers.) The circulation of those notes was not as popular as
gentlemen would intimate ; mine time ago an attempt was
made at 31anchester to circulate small noes, the omnipotence
of which was so vaunted ; but that effoft failed, though
the persons who originated the project were men of great
wealth and credit ; and he believed the Boum would go with
him in that *pinion, when he said that Messrs. Lloyd and
Heywood were at the head of It. It could not therefore be
from any diffidence in the persons who tried the experiment
at llancheeter that it did not succeed, but because public
opinion was decidedly hostile to the measure. He would ask,
was Lancashire of no importance? Was the opinion of such
a trailing district of no value in the consideration of the question.
Were they to draw a circle round those Resolutions, and to describe
another circle, the radius of which should not extend loyend the li-
mits of the metropolis, and say that those boundaries were to decide
when there were districts into which a pound-note had not found
its way, was It not inconsistent to say, that if the circulation of
those notes was checked society would be disorganized. (Cheers.)
There was another case which proved the inconvenience of the pre-
sent system at Portsmouth—they hare not money to pay the men
employed in tine works, the bankers had failed, and the circuit tie
was stopped. He would not argue from a particular instance to a
general conclusion, fur he confessed he was anxious to remedy •
recurrence of such inconveniences. ft was impossible to
traduce a metallic on a paper circulation ; such an effo t would
choke up the circulation, and when it endeavoured to flow it would
be checked by the obstructions of the system itself. The inter_
course which took place between this and foreign nations
might still be carded on by bills of exchange; they might
pile them up as high as mottntainl, if they only took care
to irrigate their bases with gold. The large note was a pro-
mise to pay the amount in tho metallic coin of the country ; but
the one.pound note was the test. It was circulated among the lower
closes, and it Was necessary that they should have confidence in it.
Among those who opposed this measure there were some who ob.
jeered to the mode, time, and degree of its operation, cavilling
strenuously on each detail. In those he could discover, he thought,
a rooted and unalterable aversion to any other currency than such
• one as we had during the war. To such persona it would be tun.
availing to offer arguments and useless to give explanation. They
would be satisfied with nothing but the laxity of unbounded ere.
dia and a medium equivalent to promises made to the eye, but not
designed for the understanding. At the same time it would be tin-
candid to deny that among the opponents of this are some who well
understand both in theory and practice the principles of currency ;
but the objections made by those persons did not go to the essence of
the measure. if the lion. Gentleman (Mr. Bating) would say
that this measure ought to have been adopted long ago, he agreed
entirely with him ; it would have been much better if they had ; it
might perhaps have saved them the trouble of the present discus-
sion ; but since the difficulties had arisen which provoked
this diseussioa lie confessed he saw no time more appropri-
ate and less attended with difficulties than the present. For
how stands the law at present ? bet those who oppose the
resolution reflect that the law will extinguish the one pound
notes at the same time with the expiration of the Bank charter t
will that be a more convenient time or litter opportunity to contract
the circulating meliam ? Ile presumed nobody would propose to
amend the resolution by lengthening the period of time. His Right
Honourable Friend had left ample tune, a apace of three years, to
make the necessary preparations. So vague and unsettled were the
objections on this head, that no Gentleman had as yet given a
reason for a prolongation of the period. The Honourable Gentle.
man, the Member for 'Taunton; had asked for W yeses grace, while
another Honourable Gentleman thought a month's would be suf-
ficient, but neither assigned a reason. Now his objection to delay
was thie—with whatever explanations it were accompanied, or with
whatever circumstances it were coupled, the delay of the measure
would be inevitably looked upon as its defeat. Nay, would they,
who mist sincerely and ingenuously prayed an intern!, undertake
to tell how it would be employed? It a longer interval were
allowed in order to withdraw aniall notes from circulation, would
not the Honourable Gentleman (Mr. Baring, we believe) admit,
nay to judee 'tom his smiles, would he not confess, that he had at
that moment schemes in contemplation which would render tm-
posaible this discussion in a similar situation? (Cheers and
Laughter.) But with respect to the general principles which
governed Ministers, it ought to be remembered that for years they
had been assailed with reproaches and overpowered with arguments
from the opposite side of the House, in older that they might Five
free play to commercial activity, loose trade from all restricttuns,
and throw open our ports to all the winds of heaven. If any par-
ticular point was singled out, it was the silk trade; this was the
great source of example and entreaty to the advocates of commer-
cial freedom—that point was carried. Government threw open the
trade, and time was granted to our manufacturers; hut how had it
been employe I? Has it been to prepare for the forthcoming changes?
), it wee employed to raise every possible impediment and objection.
Every exertion was made to conunue the trade under the old sys-
tem t the Importation of the raw material was pushed to a greater
extent than it had been before, and yet those manufacturers now
threaten to petition and appeal for further prolongation. (Cheers.)
Thiblatary of this buitiness would hold out no encouragement to
us to grant time—to yield time would be, in truth, to give up the
measure, to fall twice into di:. same error, would be to stultify our-1
gavot, nor could we permit mindre' to imagine that such a con.
cession would be attended with the wished-for results. It was, it
might easily be conceived, peculiarly disagreeabic to him (Mr.
Canning), it was unpleasant foe any Minister, or even for any
Mernher of Parliament, to contemplate the present situation of the
commercial world. However he might differ from some lion. Gen.
denten in opinion, he was bound to say that he had found in all
that manliness and generosity of feeling, which avoided every topic
that might hive embittered a question sufficiently disagreeable in
itself. The manner in which the question had been argued reflected
honour on the House ; freed from party feeling, rancour, and ani.
meshy. But why was it necessary in an assembly pf Englishmen
to say that alt felt sincerely for the public distress, or that they all
sympathised with the sufferings of that humblir class, with which
all were connected, and on which all reposed I that class on whose
wellbeing anti content depended principally the prosperity and
happiness of the couanunity. The benefit of this portion of society
was the direct aim of that resolution, it was not calculated exclu-
sively for the advantage of the commercial world, hat was
adopted in the first instance, to secure to the poor man the fruits
of his industry, and to increaae his comforts. This was the aim
of the resolution, and if it were adopted, he trusted the time would
;dimly come when the peasant, instead of being harassed by the
insecurity of paper money, would carry with him a solid and sub-
stantial substrate in the form of a piece of gold.—( Cheers. )
Mr. LOCK HART rose, but was fur a long time inaudable.
We understood him to deny any attempts of the Bank to alter
the rate of exchange. Notwithstanding the disavowal of hostile
feelings, statements, he said, lia; been wade there which were

! calculated to leave unfuntimble impression. It had been
said that the Bank was blameable for aceeptiog the responsi-
bility of the dead weight, and also for felting mortgagee.
but ft ought to be considered that the Rank could lint always
exercise their own discretion with respect to the large amount of
public money which they held, and the auppnsed large profit;
accruing from that source. Ile could show that the profit was
as often on the aide of the public as of the Batik. Ile depree
Cated any violation of the Bank charter. A rival bank, he thought
would only emulate it in its exertions to 'wow paper, anti would
subvert that power which the present eatablielinient—it hal been
arknowlelged on all hawk—had wisely and beneficially employed.
The 'late digress he ascribed wholly to a spirit of adventure pe.
either to thin country, and which the slightest encouragement
suffices to develop. Ile could mention one hanker who at one
time 'held ditto:motet bills to the amount of three millions Tine
was the false capital which exposed the country to commercial
shocks, and not the Bank paper circulation.
Mr. BARING said he did not intend to (weepy much of the
time of the House. He would briefly proceed to move an amend.
sent to the motion. Ile wet quite tonvinced that if they went on
diactotaing this question from day. to day, they would greatly ag.
gravate the evil. if the Howie were to go Into a (ommittee, they
would' continue talking on a subject in itself endless, while the
country would be kept in a stare of feverish anxiety witl, regard to the
I mpending measures,and general con flderwe would remain ',impended.
It was his duty, therefore, to take the sense of the House
canon an amendment to the following effect "it is the opinion
of this House that in the present diatressed state of public credit
it is not fitting to enter on the consideration of the currency of the
country." 'Before taking the sense of the House upon this amend-
ment. he (Mr. Baring) would apologize for taking up a very few
moments oty WS time. Ile must refer the House to the peculiar
simation of the country. which he (Mr. Baring) could not but
crinaider as a most extraordinary one. No person who hail known
the country for however long a period, ewer saw such a want of
cprifidence as existed at that moment. The House stood in a cu.
nom predicament—own of business said beware: but whether
banker or merchant, of wbaever party, or to .Mich side of the
House he might belong, not one had told the House that the pm.
pnaed meastire would be of benefit to the country. His Hon.
Friend. the Member for 311(11101st (Mr. J. Smith) was the only
practical man, who, knowing the state of the trade and of the coun-
try, had felt himself called upon to say that he felt compelled from
the arguments he had heard, to coincide with his Majesty's Govern-
'neat on this question. The lion. Gentlemen on the opposite vile o'
the !louse had availed theme iyea of the assistance of gentlemen of
Lincoln.* Inn and the Temple, which gentlemen had the greatest
contempt for the opinions of practical men; bin there was not one
man who would say this yneasure could be taken with safety, and
that was the state of the question at present. The Home had
heed a ereech from the Rallon.Seciatary for Foreign Affairs, and
no one could admire the brilliant talents which he possessed more
than he ( Mr. Baring) did: but he was bound to say, that on s ques-
tion of this nature he would rather take the opinion of his Right
lion. Friend the President of the Board of Trade. The speech
of the Right lion. Gentleman reminded him of an anecdote men.
tinned byttord Chesterfield in one of his letters, where a Nobleman
got up in the House of Peers and made a very augmentative but
dull speech, to which Lord Chesterfield replied in a most brilliant
manner. without at all understanding the merits of the question
on which he had been speaking, and the consequence was that
land Chesterfield carried away all the honours of the day, whiJe
the more laboured, but certainly the more profound speech of his
opponent, was regarded with coldness and contempt. The question
Was entirely a question of time, and men of business must he
aware that such was the ease. The speech of the Right Hon.
'Gentleman (Mr. Robinson) went to throw all the blame on the
one-pound notes, while, in fact, they were perfectly harmless. The
fact was, that the comae originated in London—London bubbles
made the country boody the dupe of London sharpers; the Lon-
doners were the men who had done the mischief; it was the trading
in cotton, at Liverpool, Glasgow, and London ; and it was, there-
fore, a total mistake to lay the blame on the one-pound note.
The Right Hon. Gentleman (Mr. Canning) had talked of the
privilege of the Crown in respect to this question of small notes.
There was no doubt that the issuing of all money came under that
privilege, but that was no reason why one and two pound notes
should be violated. That the notes were nuisances that should
be abated he (Mr. Baring) agreed ; and that principally, and in-
deed if there were no other reason that would be sufficent, on ac-
count of the misery they hail occesionetito the lower classes. There
was no doubt here was sufficient room fur an increase of metals,
and when the country is full of paper, security Would be greatly
improved by taking some of it away. And here he (Mr. Baring).
was compelled to return to his objection as to the time, which,
indeed, was the only question between the Right Hon. Gentleman
(the Chancellor of the Exchequer) and himself. It had been
argued that if the House did not do it now it would never be done.
This he (Mr. Baring) could not hut consider as a childish objec-
tion, for there was little doubt if the nuisance was to be abated, the
House would do its duty. From such observations as those it
might be supposed that it was a rfttisance that had grown up in de-
Bance.of Parliament and the Government, whereas the House had
prolonged the issues of paper, and now when a panic took place
they came to a new theory, not considering the consequences to re-
sult from it. if any country 'banker would get up and say
that the alteration could be made without danger, then he (Mr.
Baring) w itild at once yield the point, but he would not yield to
theorists that which alone was due to oractlral experience. The
President of the Board of Trade would find that Switzerland and
I'Vanee would beat WW isthe signefactute ni silk and cotton, and
why therefore should he preps this alteration in the silk trade in
the same rear with the question of the currency ? It was impos-
sible that the Right Hon. Geutleman (the President of the Board
of Trade) could be aware of the state of the trade, or what it would
be if the measure in question should be carried: the consequence of
which would be to throw three or four hundred thousand people out
of employ, and this at the same time when the currency clues.
lien was unnecessarily agitated. The question was certainly
one of novelte ; and suppose a mistake was made, what would be
the conecquence ?.—Why, that half a million of people would be
brought to distress and ruin. There was Mao great objection to
its taking place on the eve of a general election, when everybody
would be thrown into confusion ; the black banner of the party
would he hoisted, but the people would not be satisfied unless they
had food to eat. Ile (11r. Bating) moat be allowed to say a few
words In explanation of what he had :said when the discussion was
opened, that at the end of the American war, and in 171)7, the
Bank of England stopped payment, and eke cause assigned was
their cmnexion with the Government. He (Mr. Baring) might
say now, in the words of the Right lion. Gentleman (Mr. Can.
ning) that the Bank has had the power of expansion to the skies,
and were now contracting in a ratio equal to its expansion.—
Ile (31r. Bating) had made a statement that the dead weight was
24 millions and a half. He would not go over the Exchequer bills,
because, upon that point, the Right lion. Gentleman (the Chan-
cellor of the Exehequer) and himself were agreed; the deficiency
bills he (Mr. Baring) had stated at eight millions, while the Right
lion. Gentleman said they were only five millions and a half; the
fact was, the debt stood at 6.917,0001. in 1810, and a payment had
been made in January of the present year of 1.100,0001., which
brought it up to the eight millions; and it world be recollected that
interest was paid on these advances,—the difference, added to the
44 years principal, must be taken as capital. There was a differ-
ence in the statement as to the dissentient 4i per cents., he (31r.
Baring) havin stated them at only one million and a half, while
the Right iron. Gentleman made them two millions and a
half. The question as to the deficiency bills was the only one
between the Right lion. Gentleman and himself; they were con.
sidered as money paid for the dividends, and only rsn at one period
of the quarter to any amount; but he was prepared to show that at
the time of the late panic the Bank were in advance 24 millions and
a half. There were also other accounts with the Bank of 6,000,000,
bed they were public accounts at the disposition of Parliament.
He had no apprehension, under proper management, that anything
like what had been so glowingly parted by the advocates for the
immediate annihilation of small notes would miff, or that the
country was not able to carry on all its commercial and financial
operations with its present debt and incumbrances, and with its
present currency. With minority on the part of the Government,
and perseverance and forbearance on the part of the people, in re-
lieving the debt by sacrifices that he thought all would be willing
to make, if a just view of the question was laid before them, the
present system might proceed satisfactorily, until a more fit oppor-
tunity should offer for putting into practice the Right Hon. Gen.
demaribt proposition. The )ion. Member for Callington had said
that Exchequer bills were evadable. lie (Mr. B.) would admit
that they were to his Hon. Friend and himself, but not to the Bank
of England. In case of difficulty the Bank could not sell ul.
(Cries of "Question" and other symptoms of impatience were
manifested.) The Hon. Member assured the House that he would
only treatises a few minutes longer on its patience ; but he could
not conclude without adverting to the resolutions put on their./ our.
nab when this question was agitated before. lie was sorry that
the author could not be found—that great unknown—who moved
that notable resolution that now so eminently graced their Journals.
Lord Bexley had disclaimed it altogether; but he hoped the Noble
Lord would not disclaim the famous speech that was previously
made. With regard to the resolutions, to find out the author of
which so much pains had been taken, he would only observe, that
he whaled some gentleman would take equal pains to move them off
the Journals. In conclusion, he would only take the liberty of
offering one word of advice to the House, which. the more lie hail
considered the subject to which it referred, the more he was con-
winced of ha being sound advice, which was, leave the question
alone for the present, because he was convinced that extensive mis.
chief most arum by now interferbig with it.
The original question and 3lr. Baring.* amendment being put
from the Chair,
Isle. P. GRENFELL observed diet, ins a practical man, he
would assert that the present was not only a measure that could be
adopted with safety, but it was one without which no safety could
be looked for. He had had communication with all parties in the
City, and not one man with whom he had conversed did not
think that the one and two pound notes had caused the pressure.
(Hear, hear.)
Mr. BROUGHAM rose amidst repeated calls upon him and
cries of "Question." As soon as the confusion had subsided, the
lion. and Learned Gentlemen Was observing that he (lid not think
it would be fair, when he considered the part that he had taken on
several questions, to give a silent vote on the
shtheorptrley aaesntpois.
He denudes
offer his remarks, however, as concisely
differed in opinion from his lion and Learned Friend the Member
for Taunton (Mr. Bating) more as to the time for the adoption of
the measure than in the principles he advocated. The commence.
fluent of the operation of the metallic currency, and the getting rid
of the ore and two pound notes. was in ('act a mere question of
time; and his first reason fur believinz this to be Cie fittest time.
and as a practical ma. , a pined that he in his conscience oonaidere I
to be as free from them fanciful. or speculative Apinjom as re_
carded this subject, as any that could be pointal out. With tetirsno

DRURY-LANE THEATRE.
Thie Evening. TUESDAY. Feb. le. will be getfortned the new
NationAlyttiimt t)pers of

~M
.ILVIN.R.~

The principal Pharaeters by blessrs.Vl allack, Sinclair, Hem. Redford,
Harley, and ; Misses Stephens. Poi ey, and Keay.
To conclude With the Pantomime of
HARLEQUIN, J%CK OF ALI. TRki)Es.
Narleontn, Mr. Howen;ll ;
coP antalooe, Mini n, Mr. T. Blanchard; Clown. Me.
innutibln Barnett.