The British Press; or, Morning Literary Advertiser.
London, England, 1826-02-10 00:00:00

aexiona, in tatroduchig to their Lordships so important a subject
Lf. that of the currency, to make • few observations on die distress
which, had prevailed, and which, he was sorry to say, was Still pre-
v.iiiing in the country. He did not presume to offer a remedy. It
was a peculiarity in the nature of these evils, that they must work
their own cure—that they must work their remedy. His object was
to get as much information as possible before their Lordships at.
tempted to legislate upon the resolutions of the Noble Earl.
He was tar from feeling or intending to express any hostility to the
principles of the measure which it was in the contemplation of
11l misters to propose, if in the interval every thing would be done
which was necessary to facilitate the acquisition of such informa-
tion as was requisite to form a correct judgment. With respect to
the issue of small notes, he thought it would have been much better
for the King's Ministers to state candidly the grounds which had
originally caused them to be introduced to tpe community. By
this means Minister' would retrace their steps with some advantage
to the public, end in some degree redeem that ill-advised measure.
' 'While-he expressed these sentiments, however, lie did not mean to
deny that he himself ought to take a full share of die blame which
the Parliament deserved for so readily yielding to the recommenda-
tion of Ministers in this respect. But the period had arrived when
any one, even the person least conversant with the details of financial
affaim, might perceive, by reference to the papers for which he in.
tended to call, that the exportation of gold from this country has
been produced by the small note bill. l'he matter which he now
introduced had been already very ably attended to by a Learned
Gentleman (Mr. Tooke), who. with the accomplishments of a
finished scholar combined great practical knowledge. This
gentleman had very dolly shown that it was the nature of small
notes to increase the artificial capital of the country ; and if this
fictitious produce be employed in speculations, it will acquire a
further tendency to augment artificial property, and thus to extend
the evil to Its extreme point. It had surprised him (the Noble
Olarquln) that in the statements which had been made with respect
to the payment of small notes, the certainty of this consequence
had not been contemplated; but front the nature of the process to
which he had already adverted, it must require a longer time before
the excess of the evil attendant on this distribution of artificial
property can be fully known. When this capital is forced into
circulation, a reduction of interest is the first consequence. To this
succeeds an increase of prices, after which the metallic currency
vsnhhes out of the country la the purchase of commodities. The
glut thereby occasioned produces proportionate ruin and destrue-
: tom, as from the wants end 'idles of the various competitors,
sales must be effected at reduced prices. It would be unfortunate
if this ruinous system should be permitted to hold until 1833. It
was the duty of Parliament to check the evil as soon as possible.
He had heard with great surprise. and within the last twenty-four
bouts, of a step taken by his Majesty's Government, which to
him appeared unconstitutional and exceeding the law. He did
not know why a vote of the Privy Council snould be allowed to
form a precedent fro dispensing with the law. The matter to which
he adverted was the stoppage of stamping the small notes, so as to
prevent any further issue. The policy of the measure may be good
or may be bad, but the precedent would be mischievous. Though
he dirt not disagree with the principle of the proposal in the con.
temptation of Minister., to ameliorate the condition of the country,
•heby no means approved of the adjunct. lie thought there should
have been a proposition submitted on the subject to both Houses of
Parliament. In fact, his Majesty's Ministers ought to provide a
bill of indemnity for their conduct in this respect. With
to the measure itself, he knew it was the opinion of some rilef:trnd.
hers of that House, and of some persons outside, that the country
stands in need of it to renovate its energies. It had his full and
entire approbatior. But their Lordships should consider the na.
ture of the accommodation meant to be afforded, for he did not
think it advantageous to apply the same principles to real capital
as to capital raked on an artificial system. Ile knew of no system
which could cause an artificial rise of prices without a revolution,
fixed as that of the plenets round the sun. He did not think the
consideration of any expense which might be Incurred by the
[adoption of .. metallic currency deserving of notice. The attains-
, dens which might ari,e in a metallic or paper currency would be
productive of leas injury in the former than in the latter case. If
the deviation of paper currency were to be taken from 100 to 114,
and of the metallic from SOO sus fist, and that gold were to be sent
out of the country, the reaction of the excess would be productive
of greater ruin in the former instance. lie had formerly said, on a
1 discussion iffeettng the state of real and fictitious capital, and he
row repeated the assertion, that it appeared absurd that the most
1 wealthy country in the world could not command a sufficient
supply of precious mash. Ile knew the contrary to be the tact ;
and he was convinced, thorn documents lying on the table, and from
other causes, that when gold was wanted it was always brought here
from the Continent. • He knew that in the course of two years the
Bank of Englatall hrldrraised the amount of sovereigns in their cot*.
fen from three. millions to fourteen millions, thus making a dif.
Terence In that shrwtperiod of eleven millions. This was a proof
that the gold woold -return to suit the emergencies of the country.
He was deNirotta if expressing his approval of the conduct of the
Bank of England lowly, whether it would turn out to gocd or to
bad purpose. In the recent transactions between the Bank of Eng.
land and the Government concerning the cession of the privileges
enjoyed by that astablialiment for the purpose of forming country
bankil' the Bank certainly deserved great credit. It readily stepped
forward to'arresit the progress of calamity by the issue of small
notary. Bort it wascmly candid to express his opinion that the issues
myteioutiy epistle had considerably aggravated the evils of increased
otsov table,
From the papers on the and those presented to
a
would
arß appear
of
England thatcirculated a
eviery Fed u
great adctilittoioninwas3,
a alt:lnoteslolltheouse t
otf th
bej particularly to 1824. Such proceedings were injudicious and
injurious at these periods, and the remedy proposed to be effected
came too late to rectify the mischief. In the inquiries connected
with the Bullion Report and the Bullion Committee, when sonic
ill the most resuectable and intelligent men were examined on the
,übjeo, it was their opinion that the exportation of the precious
inetsle resulted front the excessive circulation, as at the very time
hawking about paper mo-
res the case there could be
don was the baleful cause.
_ the Bank of England had
beginning of last autumn had
'I is motion would include the
years, and he hopal, after
i the Noble Lord opposite
obstruction would be offered
cet to snother measure,—the
hanks—he should be happy
fur at present he enter-
proposed security. The
..,e chief attention of the Le-
promote as much publicity as
latter were feasible, that public
should be given at stated pc-
Ile to the mode of acquiring a
establishments. There was
r make in respect to the psi-
:Kites to the holders. He
AS plan to make all the notes
they had been issued in the
• where, from the dis-
' apply. The obser-
founded on the mese
.ejesty's Ministers meant
ienee of such proceedings
n theotate in which it was at
co cause to decide, from the
would prove pernicious. He
the country was incapable of
such were the fact, it would
e it, and not to allow the
I prosperity. S .eh a ficti-
it detrimental fluctuations,
stability of his affair. lie
and sonic sudden revolution
It would he well to rescue
qtly increasing prosperity.
its cannot be kept up let it
Ile did not however tear
:the Noble Earl, while he'
was animists that the stability elle country should be notorious.
There may exist some local circumstances to oppose the extension
of the principles to Scotland and Ireland. Ile should like to know
if this were the roe, but at all events he hoped that these countries
would not be lost sight of. The principal object which he was
auxiuua to effect was, that when false and wild speculation should
pane abortite, the distress -which would be likely to ensue might
be corrected. In that expsetation he 'timid propose the follow
resolutions :

" For an Acenunt of the nomber of Note, issued by thlibank
of England In It'brtutry, May. Aogust, and November, from 18110
to 1524, distinguishing the Notts antler 111. and Bank Yost Bills,
and the same for Scotland and Ireland.

. „..
" Also art Account of all noes issued by Country Banks for the
same period; and the same for Scotland sod Ireland.
" Also an Account of all Bunk Expenses from 13111 to the pm.
sent time, with copies of all Matters granting privileges to Bank-
ing !louses."
Lord LIVERPOOL did not mean to oppose the principle of
the resolutions, but he wished to say a few words on the mode.
When the Datil of England was under restriction it was the duty
of Parliament to inquire into the issues ; but the restriction having
expired, he did not think that Parliament was entitled to do so.
There was another way however--by referring to the Stamp.olfice ;
and though it might no be so complete in some minute respects. it
would fully answer the purpose intended. In regard to the other point
—the directions given to the Stainp.otfice to prevent further stamp.
ing—this measure was not adopted until notim of an alteration had
been given in another place. It was done to obviate any obstruction
to the measure under the consideration of Parliament. Those banks
in the neighbourhood of the metropolis would °thaw's. receive ,
partiality, as they might in the interim have access to the Stamp
Office, and thus defeat the proposal measure.
The Earl of LAUDERDALE, though he could not find fault
with the resolutions of his Noble Friend near hint (the Marquis of
Lanelown) did not think that the Noble Lord opposite (Lord Li-
verpool) could claim much praise for his consistency on the occasion.
Ile had predicted last Swaim that the present evils would
ensue, and it was then his duty to the country to propose
those measures which be had deferred to the present hue period.
'!'he Noble Lord (Lord Liverpool) had forgotten that he had made
to the prediction, and yet he afterwards traced the evils (instaul of
the speculative rage) to the state of the currency. The Noble
Earl then proceeded to di‘cuss some other parts of the measure,
and eulogised the principle of the Scotch batiks.
The Earl of CAIINARVON said that he thought much evil
arose from the present formation of bai,king companies. Ile wished
that the property of emu iudivolual who was concerned in a bank.
ing establishment, shoo d be male liable for the debts of the com-
pany. This would give touch greater security to those banks, mad

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