The British Press; or, Morning Literary Advertiser.
London, England, 1826-03-01 00:00:00

of the currency was put out of circulation; and then what did
Parliament do the first thing after it met ? It produced a
measure that went to knock an the head a great portion of
what little cutrency remained. Two or three years ago an
Act was parsed to keep this trash in circulation, and but
now a new light had broken in upon the country, and this
(rah must no longer exist. And Jilt was done in the very
midst of the distress occasioned by the want of money ! Was
not that interference by Government anti by Parliament ? But
all this was mere peevinli and puerile complaint. The question
not whether it would he an interference with trade, but
whether it would be a benefit to the country. The Mi-
nisters said it would indeed do good, but it would
be setting • bod example. His own conviction was, that it was an
example eittremely rare to he followed, that nothing but a case of
great-difficulty would justify Government to adopt it, and that
many examples had unfortunately been set Mt which would be
more honourable in the breach than in the observance. Cases of
particular distress might be left to the friends and neighbours of
the parties ; it was only in cases of a general an extraordinary na-
ture to which such a relief as was asked was to be applied. The
case of 1793 was one founded in perfect good sense and
sound discretion. Each case must be taken upon its own grounds.
It was admitted on all hands that the interference of Government
may be useful on particular occasions, anal If it could ever he use-
fully applied it was in the present woe:. In fact an issue of Exche-
quer bills by the if lovernment was exactly what was wanted. It
would act as a medium, and produce confidetme between indivi-
duals possessed of snlid property. The Right Hon. Gentleman (the
Chancellor of the Exchequer) said that Exchequer bills would
come back to the Bank, but that he denied. 'the bankers of Lon-
don and the mottled people have now as much money as on any
former occasions. Every prudent man of businee% bed abundance
of money. If it were not impertinent to speak a himself he had
twice as much money as on ordinary occasion,. But there was no
necessity for this money now. Exchequer bills were that siecies
of security which capitalists would be justified in taking. The&
was more gold and more Bank notes in the country than had
esed to been
for a longtime ; hut seeing dint Governmeht 4site not disp
assist any one, and attributing that indisposition, on the part of Go-
vernment hi a panic, of which none knew the fetndation, it induced
every monied man to take care of himself. The peopneed remedy
of an issue Of Exchequer bids was, in his opinipm peculiarly
adapted to meet the present emergency. But the Goyernment
be pre
ferred the Hank interference, although the Bank begged to ex-
cused when its interference was called for. Now if
.there was
danger in either of the proposed remedies, what danger could be so
great as forting the Bank to extend its Issues. The Whitt lion.
Secretary for Foreign Affairs said that nothing should induce hi o
tosonsent to a suspension of cash payments, yet there was no ob-
jection to throw err attetitimeol burden of three roil/Lions upop the
Bank without asking whether it was able to bear it. Ile did not
I mean to say that the Bank was in any danger, or that it would be
endangered by the proposed measure ; for the state of the exchanges
' would warrant the Bank in taking any reasonable latitude ; but if
there was danger any where it was with the Bank. Until the
1 present occasion he had never I'nown that the Bank was empowered
by its charter to lend money on goods. It could not be said that
such a proceeding was ever intended. The true construction of
what was termed " the permissive power" was, that if the Bank
should take goods as a security for bad debts, they might have
11 power to sell those goods. This was clearly the meaning if the
permissive clause. At all events the power now proposed to be
exercised was of a most dangerot e character. ("leer.) Parliament
could not set such a precedent upon light ground.; but, the mo-
ment the precedent was established of the Bank's lending upon
goods, there Was an end to the real banking business. Idstead of
establishing a pound principle of banking. Ministers were doing
the greatest possible injury to the banking business, by ac-
ceding to the measure hinted at. He thought if something
had them done earlier too, it would 'have been much better,
and that less would have been necessary. The merchants had
been held at arm's length, and were refused communion with'
and assistance from Government in a manner the most unprece-
dented. As to what had fallen from die Right flonourable Gen-
tlemen (the Chancellor of the Exchequer), with respect to the
merchant and factor law, the operation of which it was Intended to
accelerate, it was a matter of serious consideration. When that
law was first proposed, the Lord Chancellor yielded to it, as he did
to everything new, with great reluctance, only because it was
novel. At length, however, the Bill passed, and the Chancellor
then had a clause added, postponing its operation. He said that
the old English commercial laws had been so long in operation that
foreigners were acquainted with them, but that they could not be
expected to be acquainted with the new law. Therefore, said he.
give sufficient notice, that persons consigning goods may know
that those to whom they consigned had the power of mortgaging
their property. The object of the new Bill was, that evidence of
property should be evidence of title to enable the holder to transfer
or borrow upon his goods. For the reason stated by the Lord
Chancellor, the operation of the measure was delayed until Octo-
ber, and whether that reason was sufficient or not. he (llr. Baring)
would not say, but at least It was an honest reason, aid he did not
know whether it would now be honest to alter that arrangement by
shortening the time. He did not know whether it would not be
breaking faith the foreigner. The former issues of Exchequer
Bilis were under the old system of law ; money was then lent on
property, and not a sixpence was lost ; and the question now was, I
whether it would not be better to run the chance of losing a little
than prematurely to alter the law. As to secrecy, it was a ME-
ter of the first necessity. The Report of the Commiseioners in
17ffd showed that they thought the strictest secrecy necessary. It
was ture, however, that persona in all parts of the country would
have opened their, affairs with more confidence to Parliamentary
Commissionersthan to the Bank; he did not mean to the Bank
Directors, as gentlemen, but as a public body. In conclusion, he
was glad that something was done, but he would say lie thought
Government had ungraciously retarded, and by delay diminished,
the value of what had been done, and were now putting the relief
they heal reluctantly granted into the most objectionable shape in
which it was possible it could come.
Lord A LTHORP did not look much to precedent in a case like
the present. It was a case of great distress, and the only question
was, whether the Government ought or ought not to step forward
with relief. He approved of the measures of Government for altering
the currency, but thought they ought first to have relieved the dis-
tress, and then to have brought forward some permanent remedy
to fervent its recurrence. An unusual measure was required, and
the only question was, what that unusual measure ought to be.
The measure of issuing Exchequer billy hal been tried with suc-
cess. The measure with the Bank was a new experiment, the suc-
cess of which must be doubtful.
Mr. T. WILSON said that, for the sake of the Bank and of the
country, he wished to have rite question fully discussed ; but in his
own justification he thought it necessary to say a few words.
Every one had a right to choose between two extremes, but the
Government hail a right to show some reason for its preference of
one of the remedies now proposed. It' much time was allowed to
slip, no good whatever could be effected by either meosure. He
understood it had been held out that accommodation for tiro or
three months would be sufficient but he was confident, no man of
business had given such an answer. (Hear.) The commercial com-
munities of Liverpool, Manchester, and Glasgow would never col-
sitter an accommodation for two or three months sufficient.
As to the general question Whether the relief could be
afforded by the Government or the Bauk, it should be
considered that If the system was once acceded to, of the
Bank lending on goods, the Bank would be exposed to
assaults from month to month, and from year to year, upon
every occasion of temporary distress, whereas the Government
could only come forward in a season of national distress like the
present. In case of national distress, the Government, be thought, !
was the best. The Bank OILS now pushed into a corner, and
the Government stood upon high grounds. They would not dee
viate front the principles which they had laid down. Though the
distress was not local, and confined to any particular interest or soy
particular part of the country, yet he understood the Right Hon.
Secretary Fur Foreign Affairs ( Mr. Canning) to say, that if the gene
timents of the commercial community and of the country were con-
trary to this, they ought not to be acceded to. lie must rny, that
in tits opinion the servants of the Crown ought rather to listen to
the petitions of the country than to consult their private opinions.
He thought the trading, the shipping, and commercial interests '
had been neglected, and were treated with a levity which was not I
becoming nor deserved. The Government had much better have
left themselves at liberty to accede to whatever measures the exi-
gency of the time required than to have pertinaciously adhered to
a course of policy which, at one period, they thought fit to adopt.
Under all the circumstances the House had better pause before they
brought the Bank into a situation in which it would be exposed to
assaults from month to month anti from year to year.
ATT WOOD said that if the House considered the pewees
from whence the petitions and applications came, they must be
convinced that the whole commercial interest was in a state of
distress and emergency which threatened its total prostration.
It was required that the channels of commercial circulation
should be opened, that the communication which was now choked
up should be made free; and the only question was, whether it
was the peculiar province of Government to open the channels and
remove the obstructions. The commercial community wanted
means of communication which did not exist. To the measure of
issuing Exchequer bills there seemed no material objection. It
was proposed, upon die high authority of Mr. Pitt, and had
been found productive of no inconvenience. Yet this relief was
refused iu a season of peculiar distress, and burdened as the
country was with a heavy debt. In his o: onion the advancing
of money by the Bank was a much more objectionable measure •
for should any inconvenience arise from the Bank issues, the
Government could not turn round and blame the Bank fur the
consequenzes of a measure which was evid,mtly forced upon them.
The Right Hon. Secretary for Foreign Affitirs, when speaking of
the Bank Restriction Act, said that was one of the measures in
which Mr. Pitt was obscured. Mr. Burke also approved of that
measure, though he disapproved of the issue of H. notes ; so that that
Right Hon. Gentleman must also have been in an eclipse. In fart
Mr. d'itt'o measure was the necessary consequence of the state in
which he hail placed the country. When the Bank coffers were
emptied, the restriction bill passed as matter of course. That ne-
cessity would be produced if the Bank was urged on to make
advances which it was not diepsed to make. The Honourable
Secretary (Mr. Canning), whilst he said he never would consent to
the re-enactment of the Bank Restriction Act, was taking measures
which would lead to that as matter of course. lie wished to know
why the Government could not give effect to the measure of relief
by Exchequer bills ? He wanted to know what price we were to
pay for the menettre relative to the currency ? lie had heard
enough of its advantages-en Wan said to be calculated to prevent
those ruinous fiuctuationa to which the country was peculiarly sub-
ject ; but he wanted to know the evil as well as the good qualVies
of the Bill. He had no hesitation in expressing his cotiviction,
that the reluction of the notes of the Bank, forced on the Bank by
the neceisily of pitying in gold, had led to the present panic, and

to the present unprecedented want of confidence amongst com-
mercial men.
Mr. Peter Mom, and Mr. Whitmore rose at the sante moment;
the Cornier Hon.. Gentlenum gate way.
Mr. WHlT:tiff/RE said that in his opinion the measures Pcir
posed by 31 inietver were the Irma under all the erten-ounces of the
country. They were, best adapted to meet the present distress.
Ile was convinced that the rename of an issue by the Bank would
be equally beneficial ,with an inglit of Exchequer bills by the Go-
vernment, and would teed in a greater degree to restore that con-
fidence which war so desirable. He agreed that there was consi-
derable inconvenience and danger in fouling the issues of the Bank,
and that it required all the intuition or the Government sod the
Bank Directors to prevent the contequentes which may_reeult from
forced issues. The Honourable Mymbee for London (Mr. Wilsons
had found fault with Ministers fee taking a line of policy and ad.
hering strictly to itr but he (Mr. \l'hitrriore) thought the :Mi-
nisters did right to stake Meitteputation and their ploces,by perse-
vering in the line of policy WI& they had once adopted. (Hear).
With respect to the observations of the Hon. 3lember forCallington
(Mr. Attwood), he implored the Howe not to minor a measure,
the effect of which woojd be an aberration. from: principle and a
virtual act of national fotaktuptcy. Ile hoped, therefore. that the
House would pause Iselbee they permed a course which circum-
stances of the greatest difficulty alone could justify. lie called
upon them to pursue an open, honest line of conduct, and not one
which was calculi ett to undermine the credit of the cauntey. AC
the same time it was his whit that the House should consider the
' circumstances of difficulty in which the country wee placed. Com-
, menial affairs were in 11 slate of the greatest confusioo, and credit
wu destroyed, 140 that it became an incumbent duty capon the re-
presentatives of the nation to weigh well before they came to a
decision the measure which was proposed for their consideration.
He could for his own part honestly declare that he had no con.
nation with the administration of the country. but lie felt that the.
measures which had hitherto beet proposed by his Majesty's 31i-
.nisters were an well cakolated to benefit the nation, to well cal-
culated to enable the errantry, to struggle through its distresses,
and to replace itself once
:more in a state of great prosperity, that
he called upon the House, end updn the country not to withdraw
from them their confidence?--not to withdraw from them that sup-
port which they hitherto cfforded them, and he had no doubt but
they would hereafter ceneeetulate
.themselves that they had not
abandoned them in their It was net his intention to.
occupy more of the time of the House than to cleave that he en-
tirely approyed of the count of the proceeding adopted by his 31a-
jetty's 31imsters—(Cheers.).
M r. ATT Wet) D explaintel.
Mr. PETER 3100 RE attributed the distresses of the country
to the vicious system of calumny, falsehood, and general atrocity
pitesued at the Stock Exchange. (Lttnghter.) The real question
was what was tribe done with the Stock Exchange. (Great laughter.).
It was a pandemonium of falsehood and vice. overbearing every
transaction of Government as well as of private life. To be a
hmker on the S,oclt Exchange a man Must have certain Introduc-
tions, otherwise he was turned oat, kicked out, and thumped
out. Wrest laughter.). He believeAthe Lord Mayor had the power
of checking the nuisance, as Sir Pjcliard Bitnie had the power of
putting down similar houses In FA-mall. He might be tatted
how it was to be got ricl of ? To 141:!ch he would reply, " make;
me Lord Mayor, and I will engage tc rid you of it in 24 hours."—
(Immense laughter)—He should consider that the House did not
do its duty unless it put a atop to the gambling upon the Stock
Exchange.
Mr. ELLICE replied. He said that, in the year 1822 Lord Cat.
tleresgh had carried a mersure through the House for the purpose
of relieving the then embarrassroents of the country, by adding
four millions to its circulating medium and this measure it was
that led to the subsequent reduction of the interest upon the public
securities. The great object at present be attained was a restore-
lion of confidence, and that, he contentleti, could be better elected
by an issue of Exchequer bills than by. any Getter means; because
an increase of circulating medium must have the effect of raising
prices. He regretted the measure whichisart been adopted, for he
lied hoped theta wholesome disagreement had taken place between
the Bank and the Government. Ile regretted that the Bank should
have consented to become an instrument in the hands of Ministers,
to carry a half measure into operation whieh could be produrive
of no good effect. If the connexion between them was dissolved.
and if Government ient their Eechequer bills at once into the
money market, whefe the Bank might go and perches' so as to re-
gulate the exchanges, he would venture to predict that they wookl
see no renewal of such circumstances as had so recently spread Con.
sternation throughout the country.
The question was then put and agreed to without a division.
PROMISSORY SMA Id. NOTE BILL,
The CHANCELLOR of the EXCHEQUER mewed the bring,
ing up of the Report of the Committee upon the Promissory Small
Note Bill.
Mr. JOHN SMITH rose, but from the low tone of voice in
which he spike, we could only hear an occasional observation.
lie had, he said, heard various charges alleged against the country
bankers. In the first place that they had, encouraged the specu-
lations to which so large a portion of the distresses of the country
had been attributed by an extensive its-rue of their paper—in the
next place the. were charged with occasioning the distresses of the
nation by plying off their paper too rap,dly. These were heavy
charges‘however inconsistent, but in audition to these the Hon.
Member for Aberdeen, (Mr. Hume) on the previous evening pro-
posed a clauM to compel them to pay their paper within a week,
under penalty of a distress warrant. All this was exceedingly
unfair, because it was calculated to throw discredit upon the count
try bankers, who had, in his opinion, rendered an essential service
to the country. If he were asked who was the author of the letter
which had occasioned so nrneh =Vermilion, be wowldmeply,
that though he might not he able to say who did write it, yet ea
could say who did not write it. He would my that it bore internal
evidence that it was not the composition of the Right Honourable
Gentleman the Secretary foe Foreign A glair( ; neither did he con-
ceive that it could be the, production of the Right Honourable
Gentleman Who was at the head of the Board of Trade. • There
was perhaps of late years no subject which could he so accurately
decided upon es the internal evidence of enmpoeition, and from
that species of evidence More he would affirm, and lie believed
the House would agree with him in the opinion, that it was not
the production of any of the Right Hononrable Gentlemen
opposite to him. lie wished to make an observation in
reply to what had fallen from the Hon. Member for Callington
(3lr. Attwood) as to the clause which obliges persons issuing notes
to make them payable at the place from whence they are issued.
He believed that all country notes were made payable it the place
horn whence they were issued, although many of the Midland •
counties might have made them Payable in London Aso. If such
were not the case, he could assure the theme that he heartily re-
joiced that an Issue of that description was to be put aiaind to. He
was of opinion that the mature ought not to be put fntnoperation
until next July ; indeed the proper course to have pursued world
have been to have brought the matter before the House in a different
manner altogether—the whole subject should have undergone the
investigation of is Committee, and the result might have been tae
formation of a measure free from the clijections which caused the
present Bill to he opposed in almost every stage.
Mr. ATTWOOD, in explanation, stated some insainces in
which country notes were payable only in London.
Alderman HEYGATE said that his observations on the pre.
ceding evening had been misunderstood. It had been Stated that
he said that the country bankers were satisfied with the measure. .
whereas that which he did say was; that they did not wish to throw
any obstructions in its way.
Mr. FYSII E PA I, MER took that opporturd y of expressing
his thorough dissent from the measure before the !louse. He was
no advocate for high prices, for lie knew that the manufacturer ut
this country could not compete in the fereign market unless corn
was moderately low. But Were Ministers resorted to a month*:
currency, and to principles of tree trade, they should place a check
upon the boundless extravagance which characterised the manage.
ment of the affairs of the country. (Hear, hear.) If the country
was to pay the interest of the debt., the moat rigid economy ought
to be adopted. (Hear, hear.) He thought also the public creditor
ought to be contented to be paid in the same currency in which lie
had advanced his money ; far it was somewhat hard that that
which was lent when a guinea was worth Ms. slibilldite repaid
in MI when the value of the guinea was 'only 21a. *Ult was
however to be done, it could only be effected by adopting a system
of the closest economy.
The Report was then brought up. -Upon the question that it be
now read—
The CHANCELLOR of the EXCHEQUER said that be
wished to introduce two clauses which would slightly alter the hilt
in two particulars: one was to expunge the penalty clausal, or rise
ther those clauses which gave a rower to a justice of the peace to
levy summarily, and in lieu of that to leave them to the usual
course of proceeding at the Stamp-office. The other alteration was,
that draughts under st. might not be precluded from being given by
the operation of the law.
Mr. JOHN SMITH explained.
Mr. HUME wished to call the attention of the Right Hon.
Gentleman (the Chancellor of the Exchequer) to a cilium to which
he had alluded on the previous evening. He desired to know if
them could be any objection to requiring an account from every
ba iker of the amount of his issues, so us to be mailed to ascertain
k amount of the total circulation of the country.
The CHANCELLOR of the EXCHEQUER said that it cm.
taiAly was a matter worthy of serious consideration, and would be
mutt advisable if it could be done without occasioning s diaclueure
of the private affairs of the bankers. If any means could be de-
vised to obtain so desirable an end, he should be happy to attend
to them, and in the mean time would give the euhloct every consi-
deration, and endeavour to gain information as far as he was able.
Sir M. W. RIDLEY said that he wished to have the authority
of the Right lion. Gentleman who had just resumed his seat, to
contradict an opinion that was very generally prevalen... It was
supposed that that Bill was to prohibit altogether the issuing of
one and two pound notes, in consequence of which scarcely any
body would take them. In order to put an end to all suspense upon
the subject, he hoped the Right Hon. Gentleman would just say a
word to ea the ni ott r right.
The CHANCELLOR of the EXCHEQUER said that be had
no hesitation in complying with the request of the Hon. Gentle-
man. The Bill most decidedly meant to effect the ultimate ex-
tinction of small notes; but it was in contemplathm to effect that
object by gradually withdrawing them from circulation during the
next three years. The Bill expressly authorised their circulation
during that poiod„ anti if under any other impression the baokers"
had withdrawn their raper, or if persons applied to have gold foe
it, he could only say dot airy laboured under a complete miscon-
ception as to the tenderev of the Bill.
Mr. GURNEY wished to know if draughts under 5/. payable to
bearer were to he considered as illegal.
Mr. MARTIN said a few words, which were inaudible in the
gallery.
leas ATTORNEY-GENERAL raid that, ty the 13th of