The British Press; or, Morning Literary Advertiser.
London, England, 1826-02-11 00:00:00

NATIONAL DEBT.
Mr. MAIIERLY moved for Aecnunp of Annuities. Exchequer
Bills, Atc. ; showing the total amount of unredeemed debt, with the
interne from the 111th January, 1819, to the 4th January, 1826.--
Ordered. _

Mr. DIMWIT moved for a Return of the Amount of Exchequer
Btils issued since 1793, under a Commission for the Relief of Cont.
mercial Distress, with the number of persons who applied for relief,
and the amount of loss incurred.
COMMITTEE OF SUPPLY.
The CHANCELLOR of the EXCHEQUER mid, that pre-
vioui to entering upt the more important busbies, of the eveniryi
he should make a motion for the House to go into a Committee or
Supply, for the purpose of granting a sum to his Majesty towards
paying off the Exchequer bills outstanding, which would not give
rise to any question as to the mode in which those Exchequer hills
had been disposed of, and therefore could not lead to any discussion
so as to protract the debate on the other subject that formed the
order of the day ; nor would any resolution that might now be
pained, pledge any gentleman to any approval of the appropriation
of those bills, while it would undoubtedly be a great coovenience
to the public service. He should therefore move the order of the
day for the House to go into a Committee of Supply.
Loud FOLKSTONE wished to know, before the question Was
put, whether the Committee now moved for was to have submitted
to it any propositions relating to the Bank and Promissory Note
Acts?
The CHANCELLOR of the EXCHEQUER—CertainIy not;
that will be a distinct Committee.
The !louse then resolved itself into a Committee of Supply.
Mr. A. DARIN° (as we uodmstood him) said, that tame doubts
were impressed upon his mind, when this Committee was moved
for, whether these Exchequer hills had not something
.10 do with
_
the subsequent Comm' • wished
to know shethrr to-

The CHANT
Geutieman that .
aubeequent trieamans
Haim.
The CHANCT
the stun ut 3,000,,

the Exchequer years 1826, . rem.aioing
unpaid and unprorided for:
Also that the sum of 271,650/. should be granted for discharging
certain Exchequer Bills issued by his Majesty for carrying on the
public works at the fisheries and other public work,:
And likewise that the sum of 3,500.0(101. in Exchequer Bills be
granted to supply the like amount that were granted in the years
18:3, 1824, and 1825, and now outstanding.
The Resolutions were severally agreed to, the House resumed,
and the Report of the Committee was ordered to oe (nought up on
Monday next.
BANK CHARTER AND PROMISSORY NOTE ACTS.
The C lIA NCEI,LOR of the EXCHEQUER then moved the
Order of the Day for the House to resolve keel( into a Commiuott
on the Bank Charter and Promissory Notes Acts.
Lord FOI.KSTONE wished to ask the Right Hon. Gentleman
(the Chancellor of the Exchequer) whether it was intended to gis
into the Committee, and then te have the propused measures of his
Majesty's Government fully ectered upon ; or whether it was not
the Right Rem. Gentleman's intention first to state to the House
the reasons which had led him and his colleagues to determine upon
the adoption of that course which the Right Hon. Gentleman pur-
posed to bring forward to-night, in order that the House might
know what it was they had to deliberate upon ? This was a ques-
tion of some importance, and worthy of mature Consideration, be-
fore the House should go Into a Committee upon it.
The CHANCELLOR of the EXCHEQUER replied that it
was certainly his intention to consider the question in a Committee.
Lord FOLKSTONE made some observations in reply, but to
a tone of voice very indistinctly audible in the gallery. We under-
stood his Lordship to object to the House going into a Committee,
and to say that on the first day of the Session the Chancellor of
the Exchequer gave notice that he should bring forward some pro.
positions upon the subject about to be discussed ; and sonic nights
subsequent, in consequence of the notice being very inexplicit,
the Right Hon. Gentleman more fully explained his intentions, aid
stated that his motion related to the Bank and Promissory Note
Acts, which motion remained for this day. On Monday, the Right
Hon. Gentleman came down to the House, and moved that those
Acts referred to in the Notice should be read ; they were accord-
ingly read, and it was ordered that the House should go into a
Committee upon them this day. The objection he therefore made
to the House going into that Committee will not merely technical,
but one of some importance; because, by the /louse going into a
Committee it would be an admission on their part that they were
In possession of facts sufficient to enable them to determine on the
propriety of reconsidering these Bank aed Promissory Note Acts.
Ile, for one, was far Nom being prepared, and he thought the
Rouse was not prepared to go into that Committee. It' the Right
lion. Gentleman would introduce a motion to the House, in the
course of which he might explain the measures that were contem-
plated by his Majesty's Government on the subject of those Acts,
then his object would be obviated. But If the House went into a
Committee before they obtained such information, he thought they
world be pledging themselves to the necessity of considering that
Acts, without having any thing before them to convince them that
the necessity existed. This was one of the result+ that arose from
that absurd practice of the House pledging themselves on the
first day of Session to some unexplained measure, before they knew
what they were doing. Every year the same thing occurred. At
the opening of the Session the House were called upon to assent to
some such resolution, upon the assurance that by doing so they
were not pledging themselves to anything that might be dd.
mud), proposed. When this notice for a Committee was given,
it was protested against by several Honourable Gentlemen, and by
himself, because he should not be considered as having pledged
himself to any doctrine introduced into that notice. This was not
a technical nor a frivolous objection, but one deser ring the serious
consideration of the House ; because, by going into this Cocn-
mittee, they so far admitted that there was not only good grounds
for doing so, but they were also supposed to sanction what was to
be proposed in that Committee.
The CIIANCELLOR of the EXCHEQUER did not conceive
that, by adopting the course which he had taken, he had been doing
anything but what was entirely consistent with the practice of the
House in matters of this kind. With regard to the notice which he
had given, as soon as he observed the words of it were misunder-
stood, he explained to the House what it was his intention to do.
It was perfectly true that on a subsequent day (and lie did not feel
that he was doing anything to be complained of) he moved that the
House should on Friday go into a Committee on the Bank Aet,
and also the Act relating to the issuing of promissory notes. He
apprehended, though he might be wrong in supposing it, that it
was not indispensably necessary that the subject should be explained
fully to the House previously to going into a Committee ; he did
not believe that it was absolutely necessary that such a course
should be taken. In appointing the order of the day for a Com-
mittee, he had not the smallest idea or the least reason to suppose
that anybody was prepared to say that they would subsequently pro.
pose to atop the measure t but the course which the Noble Lord pro-
posed would have that effect. It would be impossible for any Hon.
.Member, ever hereafter, to have any subject fairly discussed
with such an objection in /imine. It did not, however, appear to
him that the Noble Lord was right in his objection, but that the
course he (the Chancellor of the Exchequer) bad followed was not
only regular, but the beat that could be pursued on so urgent an
occasion. (Hear, hear.) Ile would beg the Noble Lord to recollect
that he (the Chancellor of the Exchequer) might upon a question
of such importance be called upon to answer any objection that
might arise, or explain any misconceptions, or whether any fur.,
then measures were contemplated, in the course of the debate;
but If he were compelled by the forms-of the House to make his
statement in the House before going into a. Committee, he wig
precluded from answering any questions or giving any explanations
that might be required of him: therefore he could not be blamed
for the course he watt pursuing. (Hear, hear.)
Mr. A. BARING raid that it appeared to him the Awe&
then of his Noble Friend (Lord Folkstone), was that the Right
Honourable Gentleman (the Chancellor of the Exchequer) wee
going into a Committee, in order that he might propose to than
sonic measure on a subject which was of greater Importance to the
welfare of this country than, perhaps, was ever submitted
that House, and that they were called spots to do so without eel
sufficient information or grounds for so acting, but go the
contrary, upon the most unsatisfactory and insufficient grounds,.
If it were the most trifling subject it could not be proceeded
in with a greater degree of levity. It was his opinion that
the Committee could not fairly enter upon a discussion of
the subject without first having the fullest explanation of the
objects contemplated by the Right Honourable Gentleman
but as he was sensible that the subject was one so urgent
and so pressing, he hoped his Noble Friend would withdraw his
objection from going into the Committee. If after all it should
appear to the Committee that they were not in a state to proceed
upon the question for want of fuller information, it would be corn.
petent for his Noble Friend to move that the House should re-
sume, and that the Committee should have leave to sit again.
(Hear, hear.) Inadequate as they might be to discuss the subject,
vet he thought the case was so pressing, and that It was so cape.
client to hear what the Chancellor of the Exchequer had to propose,
that he trusted his Noble Friend would accede to the motion for
going into a Committee.
Lord FOLKSTONE said that the objection he had stated was
only this, that the House should be made acquainted with the sub.
ject upon which they were to deliberate, before they were called
upon to discuss it. Ile would not, however, persist in his
opposition to the Committee, and should therefore withdraw his
motion.

Mr. CA !CRAFT made an observation, which we undenitobd to
be, that he should not consider himself at all pledged to anything
that might be proposed in the Committee, by acceding to the mo-
tion of the Chancellor of the Exchequer for the more convenient
purpose of bearing what it was his Majesty's Ministers had to pro-
pose; at the same time protesting against any alterations in those
Acts, until he had heard and considered the propositions that were
to be curate.
The CHANCELLOR of the EXCHEQUER then rose, and
spoke to the following effect :—" If, Sir, I did not think that I was
acting in the discharge of a great public trust. however unworthily,
and however unfortunately I may be called upon in do so, I err.
tainly should feel perhaps a degree of reluctance and embarrassment
in entering upoa the subject upon which I ant about to propose

certain propositions for the adoption of this Committee. lam well
aware of the nature of the objections which may he made, either In
principle or in ahape, to the measures wl.irh I am about to submit
to your consideration. lam well aware, Sir. notwkhatanding the
different impreitalon which was produced upon my mind at rho
commencement of the Measion ; still I am well aware that these pro.
positions will have to encounter considerable opponition, and I am
slim fully aware of the n.tture of that opposition by which they will
be met. I can even collect what is the natures,'" those feelings by
which the public may he induced to press these objections, and,
from the observations which have been made by scree ft Honourable
Gentlemen in the coarse of the dieetossintis that have already taken
place on the subject during the present Session. I am not unpre-
pared to meet no tonsil opposition to the principles and to the
grounds upon which I purpose to rest these propositions which I
feel it my duty to make. I shall, however, proceed to the illachsrgo
of that duty at least with a good conscience; and I hope I may
venture to ask the Committee to extend towards me a fill, a fair,
and a patient hearing (Hear, heal: because the subject is such
that I fear I cannot compress what I have to say upon it within
those limits to which the (louse may wish Gentlemen to confine
themselvest upon ordinary occasion*. (Hear, hear.) I must therefore
entreat that the patience and indolgenee of the Committee may he
afforded me, not that I have the least disposition to deprecate any
expression of the feelings and opinions on the part of any Hon.
Gemleman who may be inimical to the measures I am about to
so the, but because I think that the importance of the subject in
a t if the individual whose duty it is to bring it under the
consideration of the Committee may not be allowed to presume to
bring It on with that reception, it is impossible for him to
deal with it in that way which it deserves. But before I proceed to
state the views which his Majesty's Government entertain as to the
grounda of those measures which the best interests, if not the safety
andsalvation.of the country requires most positively to be adopted,
liberty to make a few observations upon one pull.
which has been most forcibly urged, -not in jass
-• out of floors, against the *pure that ham ISO
. _

widch k

have been mote prudent on our parts, and more con.
.n usage, if, in the earlier part of the Session, we had al-
abstained from expressing any opinion on the subject. and
thereby have avoided that strong excitement which exists in the
country. I ahall request those persons who make that objection to
consider for a moment the situation in which we should have been
at this moment placed, not only as regarded ourselves as his Ma-
jesty's Ministers, but, what is of infinitely more importance, as
would have affected the country at large, had we followed that
course. But although we might have beet) silent, and might have
abstained from making any allusion whatever in the Speech from
the Throne either to the distresses of the country or to those causes
to which we attributed those distres,m, and to the measures
which, as it seemed to tta, were the proper remedy for them;
yet if we had not taken the course which we ditl, Root the fullest
conviction of its propriety, I should have been glad to know where
would have been the silence in the other parts of this House? Is
it possible to Co meive that ypon a subject so deeply affecting the
feelings and interests, and pressing upon the consideration of all
classes of the community, we could have been suffered to have
passed on In the usual course, which on ordinary occasions is pur-
sued, without being immediately called upon to state distinctly to
the House whether we meant to do any thing, and if any thing
what that something was ? I say it would have been the first ob.
servation from all sides of the House within an hour alter his Ma
jetty's speech had been delivered, that by our silence as to the'
great and all-important subject of the distresses of the country, we
had blinked the question. had degraded ourselves, had lowered his
Majesty's Government in the eyes of the people, by suffering ruin
to spread among them without any exertions on our parts to
• render them the least assistance, or to effect the least remedy.
Good Gnd ! Sir, what answer could have been made to this?
Had we declared that we had no views nor intentions, had we nqt
declared that we had views aml intentions, we should have done
nothing to diminish the alarm which prevailed. Mad we neglected
to declare ours Ives, we should have aggravated the state of feverish
agitation which already existed, and have produced much greater
evils than any which could arise from the discussion of the question.
In short, considering the then existing cinumatances, it was alt.
aolutely impossible for his Majesty's Miuisters to have pursued
any other course than that which they have taken. I have said,
thus much, with an intention to clear us front any blame which
may be cast on us for a premature or unnecessary agitation of the
question, and I titink I have proved that such a charge would be
Altogether unfounded. Now, Sir, the House will be enabled to
come to the consideration, fiat, whether any thine, of any descrip-
don, ought to be done under the present circumstances; and,,,
secondly, whether the thing we propose is the fit thing to he done.
Before coming to this consideration, however, it will be Oft for us
to satisfy our minds as to the cause of the evil. (Hear.) And when
we apply a remedy, wnmust take care not to delude ourselves, and
delude the country into a belief, that we can by legislating
apply any complete and effectual remedy to that which in in
fact beyond our power. It is an utter delusion to think that any
legislative enactments can prevent fluctuations. What legislative
measure ran be applied to the fluctuations of prices, of wades sod
of confidence ? Theme fluctuations are consequences of principles
wbich operate more or less upon all societies, but which necessarily
operate with peculiar force in a society constituted jike ours, teem-
ing as it is with activity and enterprise. In short, periodical flue-
tuations, Sir, cart never be prevented by legislative enactments. I
understand how this argument may be turned against myself. It
may be said, if the origin of those evils is beyond the control of
Parliament, is it not better to leave things in their present state
than to legislate upon what may be improper assumptions. Cer-
tainly, in all countries where commerce and civilization have made
progress, whatever may be the nature of the currency, whether it
be purely metallic, or partly metallic and partly paper, convertible
into coin, these species of fluctuations exist. Suppose a succession
of unfavourable seasons prevailed, or suppose the supplies ordi-
narily derivable from the produce of the soil of other countries en-
tirely fail, or are diminished by national laws, or any other impedi.
ments--suppose this failure or diminution to continue for a series
of years, a thing quite within the reach of probability, and the con-
sequence necestowily is, that those who grow the produce of the soil
derive a greater profit from that pursuit. This tends to i.
the quantities of capital applied to the cultivation of the soil. old
this again tends to augment the price. The increase of the value
of produce grown upon the superior land' regulates the price of the
inferior lands, and tends to place those in the hands of persons who
are engaged in the prosecution of agricultural enterprise, and who
thereupon extend their speculations. Agricultural capitalists ob-
taining a great return for their money, and living much at their
ease by the successful application of capital, has the effect of ex-
tending speculation, not only in that particular branch, but also in
all other branches of business. Thus arises the natural tendency
to spectnntion, and to over-speculation. (Cheers.) But if it hap-
pen in any year that a bad season occurs, or that any unexpected
revolution takes place in the price of agricultural produce,
It is seen how suddenly the price of that produce becomes
depressed, and what difficulty is found in obtaining any profit
on the capital applied to the cultivation of tine soil. This prevents
persons engaged in agricultural speculations from keeping their
engagements, which necessarily affects those who depended on
them for the fulfilment of those engagements, and whose confi-
dence was founded on their apparent prosperity before the depres-
sion. Those are fluctuations which may occur in any country, but
of such fluctuations in this country we have had more than an
ordinary share. But if such fluctuations happen in a country
where the currency is metallic, it is still more likely to happen in a
country where there is a metallic mod paper currency convertible
into coin. Where there is a circulation of this kind, there is al-
ways a facility to accelerate the rise et[ prices and to precipitate their
downfall. A eountry so situated is at all times open to the
chance of this species of fluctuation. If that evil, for such it must
be considered on account of the distress which it produces, and the
serious results that arise from it—if that evil, I repeat, Sir, is eon.
sequential from the constitution of our society, and the ruined
nature of the currency, it appears to me likely to be infinitely ag-
gravated, though not caused—l make that distinction—by the state
of the circulation which exists in this country. It appears that
whenever the circulation is not confined to the larger denomination
of notes, whenever difficulties arise from an over-issue or from
any other cause, the existence of this species of small notes
actually endangers the security of those very bodies from whom
that circulation issues, and not only of those but of other
bodies. It is true we are told that the bankers did not con-
sider the circulation of small notes was of any importance to them.
One Honourable Member said that the bankers considered them a
nuisance, and would be glad to get rid of them. He dwelt very
ferclbly indeed on the difficulty of getting rid of them, but he dis-
tinctly expressed his conviction that they were an evil, and that
there was not the smallest profit derivalde from such a species of
circulation. He thoteht no country bankers could curry on busi-
ness without them. From the necessary effect of competition, he
said they must follow the example of others, and issue small notes
if they intended to issue paper at all. But to extend the argument
beyond this point, there are others to which it is likely to reach.
This issue of small notes is what drisea gold out of the country,
and renders it so difficult for the Bank of England and other banks
to pay their Wines in gold, which they were bound to do by the
very terms of their paper issues. (in the discussion of the regulation
of 1819, which was one of the most important measures ever intro-
duced to the attention of this House, and a measure which was
universally approved of through the country as well as in this
House, it was asked how many years longer we were to remain
dependent on a paper currency, or how we could meet Cumin
dangers if we were not ready to alter that currency ? The
force of those questions was indisputable ; but the issue of
one pound notes is calculated to counteract the winciple then
contended for. This was no new theory ; it was not an
idea which had just sprung up; it should not be considered an
innovation, for the establishment of a metallic currency is running
more than a restoration to that state in which this country had
flourished for ages. Let me not be told that this is a new principle,
or that we area new set of political economists, who want to °veiny%
every thing and pull down a house about our own cars. I mount to
God, Sir, such a change is more applicable to those who oppose us,
for they forget that the system we desire is nothing more than that
under which we had so long lived, that the present system is nothing
n
but • departure from the sound principle, a departure too which
awlaswanyesytelirsljikue‘
stibectiedaueoxcenpot oannethkows where the ure, or more pro_
plea of necessity, a plea which I
perly, the abuse of it may end. The removal of small notes from
circulation would be the best security front the country bankers.

There it no measure between driving all their notes out of drank.
timi and getting reasonable activity for their !set es. Good solid
hoifiestan have no objection to such a security. No men can sty
that it will be prejudicial to the currency to get 'aunty for these
issues. And it is well to consider who they are that first occasion
as well as feel the difficulties. where difficulties arise. They sow
the very poorest classes of society ; persons living on their !thou,
and having nothing but what is earned by their oats skill and in.
dustry. Those perselns with great difficulty contrive to seem, three
or four one pound notes. and if deprived of those what becomes
them ? Their situation is really heart-breaking. having lost that
little something which they retied upon. and had laid up and clung
to as a relief to their distress. As long no the lower classes are left
in possession of nothing but this species of paper, when any
circumstances arise in the country front over-issue Of from
any other estate, to produce a panic, they are sure to be the
firm who feel tnat panic. (Hew, hear.) And that who begins the
run, which is always contagious! Why, this poor man. He sees
his neighbour going to get a sovereign for his one-pound note, and
good Ood ! whet should prevent him from going ? Then the puss
P4.7411Jf of 51, and 101. notes, though he may sot have began the nen.
say* to himself, " There may he something roue.," and it h
possible for hint to resin following the example vet him, especially
SA the run upon the bank placed his property in jeopardy. In
abort, the absence of the one-pound notes a the hat possible seems
fit), !!) the bankers and to the country. They may lose the peed(
gained on this description of hone. hut 1 don't thick that fur MS
mere take of the pmfit they would wish to continue such &erases.
I am confident it is a consideration of little coneerigience to the
solid, seethe, establiehmenta and there are many of them, with
abundant means to pay all their engagements, and offering as good
security to their customers as it is possible for any met to eta.
But thearestablishments, secure as they are, are likely to be eased
Yet by their own issue!, but by the issues of houses of a shlftweet
description. There are an immense number of establishments, the
namea of which are hardly known. they are so insignificant. and •
yet they issue considerable quantities of this kind of paper. These
books Issue tom great extent. end when their notes are remised
they have neither gold.eser theorem of other banks to pay eat&
The security of the solid and reeptesobie honk.- 'isgetenno vegetal
the remedy lam proposing. Again I ask, am I proposing any.
thing news anything which Parliament and the country Oar, sac
heard of before ? Quite the contrary. Laws were in force prohibit►
ing the issue of small notes. If I go back 50 or lig years three
was no law prohibiting such an lame. The lint law was in 1775„
not long after the reformation of the currency. which took piece, as
well as I recollect, in 1773. A law was passed in 1776, respecting
the issue of nets\ under twenty shillings. In 1777, Parliament
deemed notes under 51. a great evil, and not at all necessary to the
circulation, or beneficial to trade. A temperate Act was then
passed for the prohibition of this species of circulation: Cut Act
was continued from year to year until 1787, when it was made per.
petual. This is the model set us by those from whose practice some
deprecate any departure, and whom others conceive ahuald no(
be followed in anything. The circulation of small notes in those
times was not considered advantageous hut prejudicial. What
the Bank Restriction Act petted in 1797, unless the prohibitory
lams bad been suspended, It would hate completely restricted the
Sigma of the Bank. In 1819, when the subject was discussed.
Parliament end the whole country deemed it of essential Import.
ante that cash payments should be returned. The subject was then
referred to a committee, consisting of persons differing widely on
general politics and even upon she practical application of the prin.
ciples which govern the currency, butt there was no differeoce IS to
the policy then recommended. And where its the report of that
committee do we find the expression of an opinion that Ilia citesla.
tion of small notes was desirable ? Do that committee recommeost
that the suspension of the law prohibiting the issue of small notes
should be made perpetual ? Quite the opposite, tor that committee
appeared to deem it of great importance that there should be a cas-
eation of the issue of small mites in two years after the resumption
of cash payments, that is in the year 1825. So that Parliament
never dreamt of the possibility of allowing the issue of small notes
to continue for a series of years after the Bank was compelled to
pay in cash. I ever did regret anti shall always regret the step taken
by whirls the circulation of small notes was extended for a greatee
length of time. I did not fill the situation which I have now the
honour to do, at that time, but I always understood that in the
oninmunicatione which then took place with the bankers, for the
purpose of impressing upon them the necestky of making a depts.
sit, although they objected to making a deposit they stated that
the issue of if. and 21. notes was a matter of indifference. They
' used the same language that was used by the Hon. Member toe
Staffordshire, that they did not with to issue small notes. How-
ever, the suspension of the Prohibitory Act was continued till 1833;
so that what I am now proposing is not a new principle, but a pro-
onset to bring into earlier operation a system of law enacted so far
back as 1819. Will any one then persevere in arguing that the co-
' culation of. small notes is material to the well-being of the coun-
try ? I understand there ate permits so prepared to argue, end that
one Hon. Member mated that no land owner could get his rent paid
if small notes were prohibited. The Hon. Gent. must go farther
than the innovators; he must come down to the House and propose
not to let the suspension law expire, but to revive it. As a land-
owner I can arum that lion. Gent. that he and I both find
It more difficult to get rests, and would suffer greater evils
, from the firm of the system with which he seems so
enamoured. But though only a few will be disposed to carry the
argument to so great a length as the Hon. Oast. (Mr. One-
don) it may be said that the prohibition was not indispensably
necessary, and that no alteration should be made in the law
on account of the difficulty of proceeding. It may be said that
the proposed measure would cramp the currency, lowa prices,
I produce embarrassments, and such fatal consequences; but those
apprehensions appear to me quite visionary. l'he proceedings in
1819 afford some experience on these points. It beanie
at that time indispensably necessary for the Bank r-f England to
take legal measures to meet the law, and pay their notes on de-
mend. The only mode of efleesing this was to contract their
issues, to bring the exchange', right, and to lower the price of gold.
Betides, they were to keep in the country the supplies which they
procured. Since 1819 there was coined at the :Mint no leas a stun
in sovereigus than 25,236,000/. 1 will state to the flouse in what
proportions the importation took place, by which so large a supple
of gold was procured. A very large impartation took place in the
three years succeeding the passing of the Act. In 1820 the gold
imported amounted only to 9-19.1M101. In 1821 the importation was
9,622,0001., and in the year 11122 it amounted to 5,336,0061. It the
three years succeeding 1819 the Bank was employed in importing
gold, and also in getting down the exchange. The price of gold
was reduced, and 13 millions were coined. Ido not say that there
was no difficulty (luring the period when the Bank was effecting
this. The years 1819, 1820. and 1821, were certainly years of dis-
tress, but iii the year 1822 an alteration had taken place which
every one must recollect. The state of things was not worse
because of the great efforts which the Bank of England made ; on
the contrary, things were much mended. The paper circulation
was greatly diminished. In 1820 the average circulation was
23,875,00 W.; in 1821 21,757.00111.; and in 11k22, when whatever
degree of pressure remained was in a flinch less degree than in the
preceding years, the average circulation was 18 millions. It is true
the paper diminished as the gold was imported, but after the sub-
stitution of gold prices did not go down. There was nothing of
terror or dismay; in fact, every thing was in a state of progressive
advancement, and this is a clear proof' to my mind that the danger
is not so formidable from substituting gold for one and two pound
notes ; I think experience proves that gold may be eubstauted
without fear of occasioning any serious pressure. It would be well
to consider what is the actual circulation of gold at this moment.
for we must not suppose we are to proceed on the same principles,
nor expect the same effects, as in 1819. when gold was imported an
such large quantities, and when cash payments were so long sus-
pended. Ido not estimate the
present cireulatiog at less than 17
millions, There was coined at the :Mint since 1819, 25,238.0001.
There was exported during the same period, of British gold coin,
7 266,0001, ; of that a very large proportion probably returned•
There are no returns kept at the Custom-house, so that it is impos-
aible for me to state accurately, but a very large proportims cer-
tainly found its way back ; since last year, probably one million
found its way back. not in ingots, but in coin of the realm. Ttte
total loss then is about six millions, which leaves 19 millions in
circulation. Of this perhaps some part is gone into the pockets of
individuals, or for the paytnent of 'speculations in a certain trade.
which I have felt a great desire to put dawn, and in which, though
I have been honourably supported in this house, I must confess I
have met with sotne severe rebuffs. 1 need scarcely say 1 allude to'
the smuggling trade. There are 17 millions then in circulation,
and the exchange is now favourable, and is likely to continue so.
The truth is, therefore, that it is profitable to ihmort gold into this
country at present, sod there appears to be a larger baste upon
which to begin the system in contemplation. What the House
has to look to is the amount of paper which has been in circulation
during the last three years, that being the time from which I think
it necessary to take the average, and from the average upon thus
yeses, to form an estimate of the quantity of gold which will be ee-
eatery to fill the vacuum which the withdrawal of small notes
must of course occasion in the circulation of the country. The
House must be aware of the difficulty of ascertaining the precise
amount of country bank paper in circulation, but still an approxi.
mate guess might be made near enough to enable it to term a
judgment upon the subject. The number of notes staniptd in
each year affords a tolerable criterion by which to form an esti-
mate. lam now speaking, not of the general paper circulation of
the country, hut of the smaller description of it, comprising one
and two potted notes issued by country bankers. These issues
amounted in the year ending January the 6th, 18•21, to 1.M13.0U0‘.
In the year ending the Stli of January, 11e22, they increased to the
amount of 2,214,0001. that being the year in which the Bank of
k:nglartil began to withdraw their small notes from circulation. la
the near ending the sth of January, 1823, the issues amounted to
1,1168.0001. ; and in January, 1814. to ).969.00411. In the year
ending January 5, 1625, they increased again to 2,501.0001. I*-
thee if the amount of small notes stamped during the last Yale
were to be taken as the estimate of the circulation of small notes
during the same period, it would be much overrated. The better
way would be, to take the average of the total Arllo4ll.lt stapinosrottl
during the last three yews, which was somewhere about 2.3lt_t . .
and three times that average would give the quantity ()renal! notes,
itth cwrilitibideranOecale.nuf
necessary
itcob ,sluhp
supply
watt
Al-
though I have stated a large sum with respect to the guan-
-1 believe. that
tidy of notes in circulation in the year 1825.
Do each portion is !now in acwal circulation (hair, hear, hear),
because In the course of last July a question anise in that House
uarescirtal szoanboallt
gtoordropoz.

t Committee' relating to the Bank Act, arid he *label and sahmti°7l•ol
ter that were the ease ? I will take the ;
;CELLOR of the EXC H EQUIIR assured the Hon. cuter objection
at ague pato Mali noshing i!ss in* Howe, but by F,
mares that were about hr .-4,ltees der' lan, by his
lasetme ; I me
;CIIT,I,OR of the EXCHEQUER then moved tbet that It would ha
00,01161. should be grouted to his Mojesty, to pay of Ihitwlit with "mil
• Billsfoc the years 1824 and 1026, now remaining to!tlerabstoirt

~.ai/1111