The British Press; or, Morning Literary Advertiser.
London, England, 1804-05-28 00:00:00

EXTRACT

TROY MINUTES Or EVIDMICT
kim twiny* the Committee appointed to enqu;re into the
Stew of Ireland,as to its Circulating Paper; its Specie arid
Current Coin; and, the Exchange between that pan of the
Unit,d Kinrlont and Great R,it.in.
The Right Hun. JOHN WS rER, in th• Chew.

John Paget, Esqt's Esammation, enntinrred tom nut Paper s(
Saturday last.
Do you think paper or gold the moo natural cir-
culating medium ?—1 should think in all great
transaCtions, where there is confidence, paper with-
out a doubt.
What difference would the circumstance of the
trade of the North of Ireland, not being cartied on
in guineas, produce upon the exchange between
Belfast and England ?—Probably raise it.
If guineas were now no longer to circulate in the
North, from being all exported, or any other cause,
would the rate of Exchange be lowered in conse-
quence between Ireland and Great Britain generally?
No, I think not, because the evil would still remain,
which I conceive to be the surplus of debt ; those
guineas, if exported, would certainly tend to lessen
the evil as far as they would go.
Do you then think the present rate of exchange to
depend wholly on the balance of payments due to
Great Britain, and not to be affected by any thing
relating to the circulation of that country, as it at
present stands ?--I am inclined to think that the cir-
cumstances alluded to are suificient to produce the
evil. Ido not say there may not be other circum-
stances which may contribute towards it. I allude
t the balance of debt which Ireland owes.
What are the other circumstances ?---It is possible
that the alarms of individuals may induce them to
increase that balance by remittances, or to hoard
guineas.
1)o you think that the want of a common medium
between the two countries is in any cause contri-
buting towards the present high rue of exchange ?
—I do. No other material circumstance occurs to
me which contributes towards it.
Supposing any large distrie of Great Britain was
to adopt gold as its only circulating medium; and
_ supposing also, Bank of England Notes were to pass
as they now do at par, would not a higher exchange
be gi .en at Hambro, or any other exchange on
Europe, or, in other words, a greater value for bills
payable in specie than for bills payable in Bank of
England Notes?--I do not think it would.
Supposing the Bank of England were to supple
its notes on the exchange of Dublin at a rate below
the present exchange, would not such an •peration
he in f.,a a loan made 1•y the Bank of England to
Ireland ?--It might be called a loan of the dif-
ference._

Would not by this operation a debt accumulate
fram Ireland to the Bank of England gradually
Beyond :a doubt.

If this operation afforded a temporary relief to the
exchange, would it not revert to its former ram
when the BAnk required payment of this loan
Certainly.
Do you not conceive that a too great issue of
11.tiik paper in Ireland may have been one of the
causes which has contributed to raise the exchange ?
—I am not aware the:c has been ton glee n issue
of paper there.
Supposing an extraoldinary issue to have taken
place, do you not conceive that it r: Enid has e a
tendency to raise the exchange ?-1 should think it
might.
Supposing the balance of debt to have been the
cause of rai;ieig the exchange, do you not conceive
that iliminutisr of the paper circulation of Ireland
may have a tendency to counter:l.cl the rise in the
exchange so produced —ll. the opinion, that too
great an issue of Bank paper is one ot the causes of
the high ratii of excliare, be well founded, the
other must I 11,0 w t t cout

You have rot, do net think that there could
be a depreciation of paper tii less there wa, a forced
issue, and a discount on all i-tec in ; etylain what
you mean by a lanced ensue :—t file.:ll art attempt to
issue more than the public are divo,ed or willing to
take off. _ _ _

Suppose. for example, the Bank of Ireland to
issue notes at an interest ef 5 per cent. the current
and legal rate of interest being 6 per cent. do you
not conceive that demands would be made on the
Bank of Irelaud for discounts on the security of
safe bills of exchange, which would be greater than
the Bank of Ireland could grant, without so much
enlarging its paper as to create in it an excess which
might affcEl the exchange ?—I should think while
the legal rate of interest is 6 per cent. the Bank of
Ireland would of course be called upon to discount
at 5 per cent. to the amount of all the good paper
which could be procured.
Might not many bills of exchange also be created
for the purpose of being discounted at this cheap
rate ?—lt would be a great temptation.

Might there not therefore be a very great excess in
the quantity of Bank paper, without any issue which
could properly he said to be forced ?-1 think not,
as I consider this operation as forced.
Supposing the legal rate of interest in Ireland to
be 6 per cent. and money nevertheless to be deemed
worth more than 6 per cent. might there not be an
excessive issue of Bank paper, even though the Bank
should discount at ti per cent?—No doubt that must
depend on the discretion of the DireCtors, and would
apply equally in any other country.
Are not then the Bank DireEtors in Ireland under
a temptation to issue paper to an excess, supposing
the rate of interest at which they discount to be less
than the rate which money is deemed by the mer.
chants to be worth ?—Yes.

Do you mean to consider an instance of this :.ind
as a forced issue ? —To a certain degree ; tit that
was not what I meant by a forced issue before.
What do you consider to he the best criterion of
the depreciation of paper currency, an alteration of
its value compared with the general property of any
country, or its alteration compared with a given Ar-
ticle, viz. guineas think the first the best crite-
rion, because guineas may be wanted, as in the
present case, for special purposes.
Supposing the issue of paper not to be excessive
in amount, or any cause to &ilia its credit not at-
taching to the property of the country generally, is
there any reason why such paper should be depre-
ciated iu value ?--I know no well-founded reason.
May t:ot many causes give a temporary and local
•alue to guineas, particularly when the Bank, the
great medium of supply, is prohibited from issuing
the same ?—Many.
If then the value of gold coin may rise under cir-
cumstances not calculated to produce or justify any
diminution of the value of paper, is the difference,
in the apparent value between the gold and .he pa-
per, any necessary proof of depreciation or loss of
value in the paper, either compared with i.s former
value or the general property of the country ?—I
do not consider it any.

Supposing the difference in value now prevailing
in Ireland to have arisen principally from an increase
in the price or value of guineas, vd not from an
excessive issue of paper, what would be the effefl in
the circulation generally of that country, if mea-
sures were taken to produce a diminution in the
quantity of paper now in circulaion ?—Taking for
granted there is no excessive issue, it would only add
to the distress.

Are there not many circumstances at present in
operation satisfattorily to prove and explain that
guineas do at present, for the purposes of circula-
tion in that country, bear an increased pricet----Yes,
there are.

Is there any distina evidence of a diminution
in the value of Bank of Ireland paper, as com-
pared with other property of the cautery, guineas
excepted ?—Not that I have heard of.

Is therenot a disposition in all cotmtries excbanT.
ing with each other, regard being had to all the cir-
cumstances Jetting the state of debts, &c. on each
side, to build their calculations upon the common
medium gold, and if they receive payment in any
other medium, to charge the difference, or a consi-
derable proportion of it between those two in addi-
tion to the exchange as measured in gold ? —So much
is that the case, that on some places, w:iere the va-
lue of the paper is depreciated. it is customary to
draw Bills payable in efleaire (that is, not in
P3l'e'r•
Alay not persons exchanging u ith Ireland, in their
calculations untruly presume a diminution of value
in the parer to have arisen from excessive issue, and
ran sufficiently taken into their calculation, and con-
sequently not allow for it, the increased value which
guineas hay. there acquired ?—1 dare say it may be
the Cafe.

Under the prelim circumstances, would you de-
scribe the Exchange between Great Ilritaiin and Ire-
land. to be in favour of Irel.tuJ. or the tererse ?
I should think very much against IreLurd.
Do sou conceive an exchange at 106 to be against
Ireland ?—I do not.

Mr. J. liaamatas Examination.

Is not that the present st•nte of exchange with the.
north ?—I have understood so. _ .

..-..... ______..
Do you suppose that the 104 there paid in specie,
does, in point or valu- from local circumstances,
possess a greater value than its nominal amount ?--
I am mt prepared to answer accurately ; but I
should think the premium paid for guineas, ought
to be added to the rate of exchange.
Did you ever hear of any bills being drawn on
Ireland payable in effe6tive
(that is, not in paper),
previous to the Restridion lull, when tl • rate of
exchange was at times much above par?—No, nor
since.

To whit circumstance do you attribute the ex-
change being more favourable to Belfast than anv
other part of Ireland ?—To the circulation of gold,
and for which they must pity a premium, which
must be added to the exchange.
Would gold sufficient for the sue of any great ma-
nufaeturing &stria in Great Britain, should the in-
habitants of such distriia refuse the paper as a circu-
lating medium, be obtained in your opinion, without
some advance on the price of guineas ?—At this
time clearly not.
Suppose that advance to be I, 2, or 3 per cert.
would not bills payable in gold be worth such ad-
vanced price over hills paid in Bank of England
Notes ?--I conceive so.

Supposing the premium on guineas, when ex-
changed for paper, to result from a locally high
price of guineas, and not from a depreciated Paper,
will not the amount of that premium be limited by
the expence of bringing gold from the nearest parts
of the world, where there is a current market for it ?
—lt ought to be, and I think it would.
What should you think the present expence of
bringing guineas to Ireland from the nearest parts
of the world, in which there is a current market for
gold ?—I am not prepared to answer.

[To be cotamueril