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

1

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andfor 11.
Mr. cit 21
,1(.
.anftAerietThe
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which the Chancellor of the Exchequer intended to pro be r.,-;
tied, he (31r. Cacrett) should propose an amendmeitt to tie, o
that the country batiken, should hove a concurrent power f
wnh 7:
Bank of England, and should not cease to issue until the tote'. ,r
October. He should reserve his proposition, however, until tit
Report was brought up.
The CHANCELLOR of the EXCHEQUERlitheetnhotrenigehttoofrniti
an amendment to the clause. lie expressed his gratitude to the
House fot sly readily listening and acting upon the appeal made by
hie Hight on. Friend (Mr. Canning), which enabled Inm
Chancellor of the Exchequer) to explain, in what he deemed tlie
most convenient manner, the amendment which he was about e;
propose, and would give him an opportunity,
moving the apprehensions which appeared to have prevailed OT the
subject. lie could not help thinking that the line of conduct white
I was pressed upon him by some lion. 31embere was a little ate
teary. fie was not bound to anticipate any amendment 'esk,
intended to make in e Committee before the House went eto
,Committee. Ile certainly did purposely abstain from etatinel.4
reasons for offering thin amendment to the consideration tete
!louse until the House had gone into Committee ; and he did so
think it quite fair to press him to take any other course. However,
lie did not pretend to complain of the course pursued by wine
lion. Members on that point ; but when the Hon. 31ember for Co.
ventry (Mr.Ellice) broke out with so much warmth, and abused his
Majesty's Ministers so vehemently about proposing something en.
Orel), at varianze with the principles laid down as the foundaeen of
the measure originally proposed, he (the Chancellor of the Ex.
chequer) whilst lie felt that the charge made against his Mejenty's
Ministers was unjust, could not help considering whether the Bore
Gentleman himself had upon all occasions furnished an exampled
that undeviating, unbending, and rigid adherence to principles
which he now deem. dso necessary. Ile could not help thinking
that the lion. Gentleman had not taken that course upon all mu.
sions. The lion. Gentleman was a strenuous advocate for the
principles of free trade ; he had acted and voted in support of these
principles; but the lion. Gentleman would net deny that he had
seen occasions where, either from conviction or the pressure of opi.
nion from other parties, lie wan induced to relax the rigour of those
principles which he believed to be just. The lion. Gentleman
was about to bring forward a proposition, he believed,in a tew dans.
Ir he succeeded in his motion, which he (the Chancellor of the Ex.
chequer) believed he would not, it would certainly be a departure
from principle ; but it would be one which, if agreed to br his
Majesty's Ministers, would not cause them to be covered with re.
proaches by the Honourable Gentleman ; on the contrary, he
would be sure to laud them to the skies as miracles of ere.
Bence and discretion. He did not mean to pursue this subject
further. He was sure it wax impossible, upon any ground of pm.
ciple, to regret the amendment. From what he had already
heard, it seemed clear that the object and effect of that amendment
was misunderstood. Ile should just explain what the amend.
ment did mean, and what it did not mean. It did not mean to .o
what was Imputed to it. It did not mean, nor would it have toe
effect of leaving the Bank of England the perpetual power of it.
suing I!. and 2/. notes when that power was withdrawn from all
other banking establishments. It did not give the Bank of leer.
land any power to return to the circulation of small notes one h,:t
, after the expiration of the three years, when the circulation of ,e
11 pound notes of the country banke should cease. It was evilleo
1 that the effect of the amendment wan misunderstoood. To go is
the extreme, what rid it propose ? That during three yearn, while
the circulation of small notes was permitted, Hank of England
notes may circulate although dated subsequent to the sth Febru.
ary, and prior to the 111th October, whilst the notes of country
, banks could not circulate unless dated prior to the sth February.
This was tile only object of the amendment, and the immediate
effect of it would be, to enable the Bank of England to supply. foe
a limited time, and to a limited extent, any sudden vacuum which
may occur in the coutry circulation during the earlier periods when
this measure was being carried into operation. If the effect of the
proposed measure should be to annihilate the country circulation,
t would be a great aggravation of the inconvenience which inty
arise in carrying the measure into effect. Did not the original pro.
position assume that a sudden and direct annihilation of the coun-
try . circulation would be a great evil, and occasion serious incen.
venience? To remedy that inconvenience it was proposed to tontine
the circulation to three years, so that a certain delay was considered
indisputably necessary to the safe execution of the measure. He
did not admit that there was any extraordinary difficulty or danger
in carrying the proposed measure into effect; but lie could not diet
his eyes upon the probable inconvenience which would result if the
circulation of the country banks was extinguished at one blow.
We had some experience during the last winter of the effect of a
sudden, genera, simultaneous, and he might say concurrent, rush
upon the country barks. In that season of embarrassment no one
said that it was wrong for the Bank of England to issue one pemmi
notes. No one said now that it was wrung rue a.. 11... k to have
issued them at that time ; not because the issue of one pound
notes was in itself good and advantageous, but because it was felt
that at that particular season it had met the direct pressure, and
effected a diannution of the evil. If the Bank at the print
alluded to had not been endued with a power of issuing small
notes, he believed it would be a great mischief instead of
an advantage; because that power enabled them to afford as.
siatance to many, who by such means weathered the
storm which otherwise would have overwhelmed them by
its fury. Having entertained the true nature of the amend-
ment, he could not cotuccive how it could be argued that a tempo-
rary, controlled, and limited issue of small notes by the Bank of
England was a departure from the principles of the Bill; or that
such an issue was calculated in any degree to impede its operation
or defeat its principle. He thought such an argument was preps-
teruus and untenable in every point of view. The principle of the
otiginal proposition was that a certain degree of delay was neces-
sary. In his opinion all who voted for the original measure were
pledged to that principle. One Hon. Gentleman said that two years
would be sufficient ; another thought four yetis little enough. This
difference of opinion was perfectly fair, and recoocilable
with an approbation of the general principle ; but any one
who was not prepared to say that what was proposed to
be done gradually should be done instantly, admitted the prin.
ciple of delay, and should vote for the amendment, unless ii
could be proved that that amendment was opposed to the principle
of the measure, or calculated to defeat its object. In judging of
' the effect of its operation, and the mode in which it was likely to
operate, it would be well to consider the spirit in which the amend-
ment was brought forward. In the month of December, 1123.
when the idea was first started of the Bank's availing itself of its
power to issue I i, and 21. notes, communications took place between
the Bank and the Government, and whilst the Government ex-
pressed its acquiescence in the measure suggested, it was dis.
unetly understtod, that it was to be only temporary, and it ass
stipulated that the Bank should so avail itself of the exchange'.
which were then favourable, as ultimately to bring about a more
complete metallic currency. That spirit was acceded to by the
Bank on the occasion referred to, and that spirit was now acted
upon by the Government. If the amendment tended to defeat
the ultimate measure, he protested he would rather the amendment
was rejected, and that the country should undergo the income-
nience which may possible result from the operation of the measure
without such a salutary provision. If he were now to propose an
amendment which was contrary to the principle which he had
lately advocated, Good God ! what delusion would he and his
colleagues be practising. Perhaps, he expressed himself with too
much warmth, but he felt he should riot dare to show his tire in
that House if he was guilty of the base sail scandalous impositions
with which he was charged. (Cheers.) It was said the Bank
of England would be admitted to deluge the country with small
otlbut he wished to sale, how the Bank of England was to get
e small notes ? The only mode in which the Bank mold
circulate their small notes, and as far as he could see, their only
object, would be to amble the country beakers to roost the
overwhelming pressure which they may possibly experience.
The Issues of the Bank of England must of necessity be limited
by the prroure to which the country was exposed, and if the
country banks did not want the assistance of such an issue. thee
would not get it. The Bank of England would not throw
their notes out of a window, the country bankers could net
get them for nothing, they must pay for them, and they would not
be dispmed to substitute Bank a England notes for their own, un-
less circumstances accidentally placed them In such a situation
that they required the aid of the Bank of England small note cit.
ciliation to meet their demands. All fean as to the Bank and the
Government coming together to defeat the principle of the measure
were entirely and utterly visionary. The subject was looked at by
the Government in a contrary way, and es to the Bank, it hadho ob-
ject. The Bank could derive no pecuniary advantage from such a
circulation which could in any degree compensate for the incon•
veniencies to which such a line of conduct, as was apprehaided,
would expose that establishment. The interest of the Beak would
be altogether opposed to an issue!of small paper to the extent spoken
of. Now we to the utility of the present proposal, the country
banks would either want this aid or theyswould not want it. If
they wanted it, it was most they would went it at the begin-
ning of the measure, or when it was first brought info operation-
To a limited degree, for that purpose, and to meet these weans, the
Bank, in such an event, would be enabled tta make a limited
issue. But suppose the country beaks wanted no each as-
sistance. Supplies, as had been stated, the other evening, by the
Honoitrable Member for Cirencester (Mr. Crippa) that Bank of
England notes were not liked in the country, that they were odious
there. then the country bankers would not want the mesa; they
would not endeavour to form them upon the country, and the
Sank would have no power to circulate them. In any case the
c•untry had a complete and direct check to secure It salon an
uncontrolled circulation. The antradment was nor, tinted:ire, in-
consistent with the principles of the bid, nor could the bed coma
minces halt from it which vers appeeb atty some Hoommiblo
Members. •He knew is was notped abroad that Goverment was
placed in such a difficult position that they know not bow to get
out of ft. He knew that dm circubalop of the country -s as
midable dlfikadiy of its kind; but it was rather hard dist
should be roprombed when they Andesto finfonn and "g"
rea if Ministers wow chorale web bavlog codas forware
onahlrell. and intriirt tic dear mosoures setiossauely. and
.with hao Hob gad." Wet Itad owns all 019041. cuts-
'lon. As so 'this, he sboa ably that Plifilwiff the
idlest distress procestei fruity kia ei ttlrsldiaet