The British Press; or, Morning Literary Advertiser.
London, England, 1825-06-28 00:00:00

Mr. J. S3IITH differed materially with almost all that had fallen
from the Noble Lord (Folkestone) and the Hon. Gentleman (Mr.
Hume.) It had been asserted that 99 parts out of WO, of the cir-
culation of the country consisted of one pound country notes. This
was by no means the case : a large part of the notes circulating in
tie country were payable in London and also in the country ; and
it should be remembered that a considerable part of the country
notes consisted of• tire pound notes. As to the petition
from which this discussion originated, it only detailed the
particulars of a quarrel between an individual and a country
banker. There could be no doubt that the banker was unjustib.
ably and imprudently wrorg ; but what was this ? What could
be deduced from this isolated case ? If it was stated that rues was
the common practice of country bankers, he (Mr. Smith) would
positively deny it. As a banker he knew something of the pray,
rice, and he could assure the House that it was the every-day
practice to send large quantities of gold to all parts of the country.
In the largest county of the kingdom, the county of Lancaster,
there arc :to one pound notes in circulation. All payments of small
sums are made in specie. He had heard with great surprise the
observation which fell from the Hon. Member for Coventry, that in
case of public commotion we must expect a deficiency of specie.
Ile (Mr. Smith) was at a loos to know how the greatest commeteal
nation in the world should want spece. He thought we should
hare specie enough, and felt no alarm at the apprehension which
existed in the mind of his Hon. Friend. (Hear !,) As to the case
detailed in the petition, he repeated, it was a singular ease, and one
in which the banker was clearly wrong, and in which the Injured
individual as clearly had a remedy. If he is a banker and refuses
to pay his notes in gold, he may ; but his credit, on which his ex-
istence depends, is utterly lost. If the Hon. Member for Aberdeen
had brought forward 20 or 30 cases like the present, something
may be inferred ; but a singular cue like the present was no exem-
plihcation of the existence of the alleged practice. He sincerely
believed that there were not three country bankers in the kingdom
who would refuse gold for their notes. The extent of the circula.
tion of country banker's notes was complained of; but it was a
question whether we could divest ourselves of all the paper cur.
rency in country towns. Of all the modes of banking that could be
adopted none was less profitable and more dangerous than the cir-
culation of one pound notes. every country banker of any emi-
nence endeavoured to contract this kind of circulation. As to the
law relating to country bankers, and the payments of their notes in
gold, it now stands exactly oa the same footing as it had done
to 1797.
Mr. ELLICE and Lord FOLIZSTONE severally explained.
Mr. A BERCROM BY did not think this question involved any
of the difficulties adverted to. If the simple statement made was cor-
rect, it required the serious consideration of (government. The whole
case rested upon the difficulties which an individual found in ob-
taining gold for country banker's notes. If this difficulty habitually
occurred, it was true the banker's credit must be ultimately injured ;
but if redress. was only to be obtained by a tedious and expensive
process, the public, under the sanction of the law, was exposed to
a very great inconvenience. A very great part of the holders of one
pound notes would sooner retain them than resort to an action. No
doubt, such a state of the law was a diminution of the cheek upon
the tooemended circulation of country notes, it was also an obstruc-
tion to the converitbility or paper money. The law on this subject
was the same from 1797 to 1816. But Mr. Peel's act in 1022 al-
tered the then existing law. By the law of 1797. if a banker re-
fused to pay gold for a note he had issued, after three day*, a vna...
giatrate may order the seizure of the banker's goods. The time
was afterwards altered to seven days, and so the law remained for
modemwne yoefaonttainiTnhgenredrecamses,theto wacthicohfhelB.had2.2" vwert4hichthweass=