The British Press; or, Morning Literary Advertiser.
London, England, 1815-03-03 00:00:00

ttona t cittlettinti then procee►tect to state; tint
within the last year, the pitrehasel of cdrii front
foreign countries had tint fallen short of two mil-
lions—and to this, adding the monthly payments
of one million in dollars to Portugal, and the neces-
sary payments to the army in Belgium, it was not
surprising that wild was raised in price in this coun-
try. while it fell in others. As soon as ever these
drains were stopped, he had no doubt that bullion
would fill to the mintprice ; hut till that had conic
to pass. lie was or opinion that it was not in the
power of the Bank to pay iu specie.

Mr. HORNER commenced, by expresser!, his
surprise at what had fallen from the Right lions
Gent. opposite (llr. Rose), namely, that there
never was a question which came with less ground
before the House. Surely the Right I-lon. Geo-
tleman could not have heard the real question be-
fore them, when he uttered this opinion. Tiy
greater part of his speech went to spew the imprac.•
ticability of the Bank's paying in specie at the pre-
sent moment, as if the question was, that it shouhl
now commence its cash disbursements.—(•' No,"
from Mr. Rose.)--" Then," resumed Mr, Horner,
•• I am glad the Right Hon. Geinleman himself
admits the ineoasisteney of his own argumeist, for
if it leads to any thing, it leads to the points to
which I have referred."—There was an utter mid
unacc:motable inconsistency—after ten mouths had
elapsed since the return of peace—in proposiug the
continuance of a measure which legally expired
within six months after the termination of hostilities.
It was not enough to say, its renewal was utmeces-
sary—thut did not settle the question ; but it was
imperative to convince Parliament of that necessity
before 4 prolongation was at all admissible. To-
wards the uttaiament of this information, a previous
inquiry was essential ; and, he was at a loss to see
what objection could be urged against such a pre-
liminary proceeding. It lia.l been stated, that the
circumstances of the Bank were now tht• same as
when the restrictions were enacted in 1797, and
that the state of exchange was an all respects cor-
rtaipatalent.—(•, No," front Mr. Rose across the
table.)—Mr. Homer here apologized for his mis-
conception of the Right Hon. Gentleman, whose
winds he thought he had perfectly collected, nor
would he pursue this point, after the disavowal
windh had just taken place.
The Right Houourahle Gentleman opposite (the
Chancellor of the Exchequer.) had held out a
prospect of the resumption of cash payments on the
ltith July, 1816. - This was merely pursuing the
old plan, promising a definitive period by a sort of
sanguine anticipation. He (Mr. Horner) did not
refuse credit to the Right Hon. Gentleman's sin-
cerity in the delivery of this opinion, although lie
could not participate with him in the same ban..
;mine hope ; on the contrary, it was his firm 6e-
r lief, that in 1816, after twteyears peace, the Right
1 Hon. Gentleman would come down with the same
cote, and would have it in his power to make pre-
viarly the same excuse relative to the price of gold
as he did on the preseut occasion; for in his (Mr.
H.'s) opiniou, there could he no material reduction
in that, until the Bauk was restricted in the issue
of its paper.--(Hear./—Three years ago the Bank
Committee laid determined that the arrival of
peace would he the proper time for the re-issue of
specie, hut that a reasonable interval should he
!Mowed to make the necessary preparation. To
that he had not the smallest objection ; but the
time should be a definitive one, previously ascer-
tained by the deliberate inquiry of a Select Com-
mittee of that House.—(t/ear.)—Let it be two,
three, or four years hence, if necessary, but let it
not exceed the positive and bona Ale time for the
fair accomplishment of the object.—(llear.)
Thp Right Hon. Gentleman (the Chancellor of the
Exchequer) hint said, that much of the restrictions
of the Bank must depend upon the future state
of the country. It' every war was to etubruee
this operation, what security was there, he would
ask, Liar public! property ? tither countries, to
be state, had dune the same, sod had done t 4.1 ill
the manic uncontrolled and disreputable propor-
tion. France had pursued this system with her
assignats ; let she got rid of that burden, certainly
with monstrous perfidy to the public creditor—with
iirofliguey and injustice to a large portion of iudi-
viduals in that nation ; but she got rid of the bur-
den, and the consequence was, that, since that time,
France nithehl a largi metallic currency. She did
this, the Right non. Geode:nail ithe Chancellor of
the Exchequer) said, by ',louder. But the mn-
sideration was, bow did the specie remain in that
contary ?--itaiety have arrived there by plunder and
dishonesty, lint hoW happeoed it to remaitt ? It was
at fact that it did so remain, and that when France
had aerial her armies almost to the extremibet of
the eat ih, she Ain maiiitaiited act house Wil Innindalit.
ni:onee I'LlfteneV. It was certainly true, that the very
fact of such a floatiog suet at home, proved strongly
the impoveridied state of commerce in France. It
was in Itself nU solid proof of national wealth. Ile
( tlr. limner) did not. waist to see this unapplied
circulation of 'Tern. in this minty? ; lie, as well as
these, with whotn he acted, were totally tuismnler-
stood, it they were suppo.ed to want u total metal-
lie circulation. All they wanted was, not to restrict
the circulation of Plink notes, but to make them,
at any time, voneettil:!e into male and mod some
arratigement to effect this was dosie, nothing final
could be properly adopted.—l Lbw, hear, hear.)—
With reference to the allusion to Jew brokers, he
could nut see the force of the argument. Ilinnintl.
t10)11 LIMA be sought for there, if any could he
Initial in such quarters. IVhen Sir Isaac Newton
was Muster of the Mint, and drew up that celebrate
ed statemetit on the comparative value of the car-
reney, Hot only of this country, but of the other
mafiosi of Europe, which, in fact, was now the text
. of every subsequent inqniry, lie (Mr. II.) had no
.doubt that the celebrated character whom he had
muned, felt it necessary to resort to every source of
information which was open to him, and perhaps,
among the rest, to Jew brokers. It wool.' thew-
fore be no iliagrace for a Committee to avail it-
self of the same channels of inquiry which were
deemed essential by so celebrated a mum But lie
(Mr. llortier) held it imperative that Parliament
• should ascertain how the Bunk stood in point of
speeie to trivet their engagements., Whether it had
deranged its own concerto, or the Govermneut had
t
I done so for it, the it:spiky was equally occessury—
above all, how it stood since the restriction wan rim-
Wed in 17y7. Of the. character of the Bunk Di-
rectors lie had the fullest confidence.; but he could

•
hot erErtu~ that cOndeke
'Mil, The question was Apt ita to tke dhstract pro-
fits of the Baok, as TO. the ''6ollatent; ong aris-
ing from the p;fc•ater to 101.01 tht reitiietion
pl:teed at their diaposal.-41/044,4:Tning to thl
advanbrge, they became larger purrhasersan th''
could have bPen otherwise oflooldieseenritiefw. All
this was of less consequence than the plain and ob-
vious consideration, that, throifgh the system of
Goverauhmt, paper was 18;r0 imocireulation,, the
profit of which solely cedtcred in the Bank.—
So•long as the Bank paid in speeie, and became the
purchasers of Exchequer Bills, then the traimaction
'vas open and fair; hut when this coutraernAed,
and the Bank took 10,0D0,000/. of Excherpier Bills
for, their own notes, and received exclusively the
interest accruing therefrom, what Willi it, in fact,
but an issue to the Beak, of (ioverimient paper, for
the discount ofavhich they alone received the emo-
lument. —(1-le tr.)—With referenre to the itight
Hon. Gentle al la's statement of the rates of Ex-
change, and the foreign expeaditure, there acre
some contradictory points which rendered previous
inquiry. necessary. it Icad been already laid down
that the standard price of metal wag not dependant
upon the price of other•commodifies, hat that these
bore a relative proportion to ire nominal value; but
li' the price of commodities so affected that manilla!
currency that it far exceeded its due proportion,
then the standard of money was lost, and its.value
became a (batting regal:46,M.
fit the former Committee up stairs, it appeared
that conimereial minters affected the currency, but
when 5/. pis. tries paid as the market price of gold,
it was never conceoed that this depreciation arose
from the Bank restriction, but from the state in
which Europe was placed two years ago. Those
circumstances had ouw passed away. The return
of peace had rentoved those causes which, by the
expenditure of transferring vast armies, had given
a vacillatiou to the pecuitiary resolvers of the conn-
try, and it was full time to tuquire itito the subject
with a view to its permanent adjustment..
In 1810, the price of gold was 4/. 84. 6.1. to 4/.
10s.the exchange at ten per cent. The prices were
now correspondent, and althoughalie exchange was
nominally in our favour, it was, in fact, ten per
cent. against us. How was this to be explitioed hut
by the depreciation of the currency.--( Hear !
The Right Holt. Gentleman had said, as a proof
of the prospective redaction in the value of guild,
that it was now to be laid fur 4/. '24. or 4/. 44.
Now this may he accounted for in a variety of ways.
The sudden influx gf leold driven from the Con-
tinent; the failure of the country banks, limiting
the circulation of bunk paper, and thereby reduc-
ing the relative value of specie. Other causes may
have contributed to produce thii effect. But it was
an important fact, that there was generally a rise
in the value of gold throughout the world. Inde-
pendent of its consumption in carrying on the
Northern wars, the internal state of the new
world, by preventing time working of the mines,
greatly interrupter) the supply ; similar muses
operated at Brazil ; but the state of Mexico parti-
cularly affected the quantity of silver. Troia
circumstances not unconnected with them arose
that artificial circulation .4 Bank mica which M
its effect not only depreciated the currency of the
country, but embraced the nomey market in all
its bearings, involving. the feitional finance in a
manner not to be coutemplated without a forebod-
ing which it was impossible for the Bank to re-
move in the mode likely to be adopted, unless they
set out forthwith by a diminution of its paper issue.
(Hear, hear ./)

Mr. Rosa and Mr. Honseft explained.
Mr. MARRYATT contended, that the restriction
pia into the pockets of the Bank a profit of
900,0001. annually. The Hon. Gentleman went
throogh a minute detail to prove this fact. Exclu-
sive of jltis profit, which in a great degree arose from
Exchequer Bills, were their mercantile discounts,
• which had increased seven-fold. Formerly they
bonny opened se di count with unv man, now they
had accomits every where with the London Bankers,
who., in fact, were agents for the country ones; and,
front hence arose that- hiauspicious iucrease of the
latter, who spruag tip like mushrooms, and were us
ephemeral, • Connected with this, was that mono-
poly which.upheld tl e price of produce beyond lz;
per cent. and thereby created 4 greater evil that the
Property Tax. The Hon. Gentleman then ad-
verted to the unfavourable state of foreign exchange
and to the comparative value of guineas and Bank
notes in several parts of the Continent, which eras a
practical illustration of the depreciation of the cur-
rency. When the Batik culled for a further re-
striction, it was for the House to consider the pro-
tection which it would ;And the community. He
could easily aecennt for the interest taken by the
Government to promote this object—for it was the
saying of a wise man (Solomon) " that the bor-
rower was the servant of the lender;" and here it
was exemplified. The Honourable Gentleman
concluded by enforcing the necectity of a Com-
mittee.

Mr. TIF,RNEY said the inquiry was not what were
the profits of the Bank.; but when the unnatural
system of its paper issue should cease, and whether
any reasonable expectation was to be indulg,ill-that
cash payments con:d be resumed in J ulv, 1816 ?—.
For his own part, It* firmly believed tbere was no
chance of that. The asz•istance of the llouselto in-.
quire into the subject was wanted. This, it was said,
would be iacutiveitient --so it would continue to be
us luag as the present cutinecttuil between the Go-
vernment and the Bank continued to subsist ; and,
in fact, he (;11r. 'l'.) never saw a set of gentlemen
more willing to submit to restrictious.—( A hut gh• )
Ile would not ask what were the profits of the
[hulk, but he would like to know what other cir-
cumstance but this connection between the parties
caused the adjournment during this Session. Ile
shrewelb, suspected that the 3,000,0001. would not
hay,. been fort licoming if the renewal of the restriction
was not agreed upon. It was not uncharitable to sup-
pose that the Parties plated into each other's hands,
and that t►e• Bank tendered its aid, and the Minister
repaid it. He reineinbifred, when the Act was first
brought iutu pine, liming asked the Governor of the
Bank whether the proposal tier the continued restric-
tion emanated from liim or front Mr. Pitt? The
latter met tl* question with one of his eloquent sen-
tences, which was cei tautly very tine, but did not con-
tain nue tiurtl to the point. Tile wade tissue of the.
system of Exchequer bills, as discounted by the
ba4 of Englund, was nothing else bat au advance

les dovermicui. whickihstr oat -u L.
...41341 • • •
tither All iliTen Pirriaisr•s; or the
lag. three years, Ministers *ere -iteateable of re'
their 'financial iithpositions, without the
toricurrelice of the Bank. Here veus,-tit mire, a
vast- advantage to Mose conserned in the Bank,
from the pre-iiiformaiion thereby obtained, and
its influence in. the monied market:—(//Car.)—
Now that peace had returned, a new system should
be adopted. IVhatever exist-Me it entailed, a ba-
lance should be attack, and the Government at all
events should stand indepeudent of the: Batik.—
Without this adjustment nothing could satisfacto-
rily or usefully be effiscted. Here the !tight
Himourahle Gait. entered into all able and
rate review of the proceedings of the Bullion Com-
mittee iii 19 to, and sobsequently ; amp ably exposed
the policy of the Itstik, and the injurious connection
which subsisted between dieGoverinneut and its Di-
rectors. The Beek of Euglaiul has never observed a
juit impartiality bete een the differ-eta Administra-
tions of this country ; or could any Minister, whom
the Sovereign may wish to place at the hrlrn, retain
that situation .unless supported by time Bank ; but
if the Directors were hostile to him, he could
involved in seek flume:lid difficulties, as it would
be impossible for hint to surmount. Ile even firmly
believed, if at auy time a Menibei' were deter-
wined, front a sincere desire of promoting the
public interest, to enamel the Bank to tesume its
payments in cash, that the nuthority of the Batik
would proctire a call of the House to oppose the
measure at its commeneesseut. The House itettlf
was certainly ce;:simible foi this, but no blame
could attach to the Bunk. Theo. reasons induced
hint to desire the appointment of a Committee to
examine into the measures adopted fur the resump-
tion of payments in specie.
Mr. Ma RaYarr explained.
Mr. Hystussost declared, that the sentiments
which he formerly entertained on this subject, as
they were the result of a dispassionate inquiry, still
remained unaltered. Ile acknoaledged, that •on
the occasion of the Bullion Committee he had ex-
pressed his opinion, that on excess of paper would
tend•to depreciate the enrrency of the country, and
it' any arguments were adduced in invalidate that
opinion, lie would never be ashamed candidly to
avow his error. But. he would still maintain that any
deviation from the general stand:kill, whether it be
metallic or of paper, Would cause au ittisound state of
the circulation. liaising thus far alluded to his senti-
ments, and the general principle, he would eon-
flue himself fo the ,cooeidenition of the question
practically. As to thrsaseertion of our being for
Mae months iii testate of peace,* lie did not con-
ceive that the question was in the least utfected by
that; fur as to any eircuinstances comiected there-
with, the advantages of peace have not as yet been
felt. Our foreign expenditure has sti i continued
to a great extent ; and as those causes which in-
ducede the necessity of originally imposing the re-
striction as yet exist, the ineasuce itself cannot be
expected tie terminate. It is true, that the suspen-
sion of cash payments is a great political evil, and
an atiotnaly in the 'circulations of the country ; but
.he cancel veil, that us the Bullion Committee in their
Report thought •the resumption of payments in
specie could not safely take place until the expira-
tion of two years after the conclusion of peace,
and as the present time is accompanied with all the
disadvantages of war, that the period of 15 mouths
now demanded is by no means too distant fur the
issue of specie by the Bank of England, particii-
lark' as not es-en the Minister himself could say,
how long the foreign expenditure may continue;
and that the former opinion, respiaaiug the resump-
tion of cash payments, was expressed before the
great exhaustion of gold which has since occurred
in this country. The Right Honourable Gentle-
man next alluded- to the hopes entertained by
the Chancellor of the Exchequer, that a specie
circulation would he alihrded in July, 1916,
declared his confidence, that those expectations
would be confirmed by the Directors of the Batik,
now present. Nor could he believe but that, when
a responsible Minister of the Crown would make
such a sautement in the !louse, in consequence, as
he supposed, of a previous cornmunicaitiou with
the Directors, these gentlemen would feel their
characters committed with the country to fulfil time
expectations thus publicly raised. But hewers free
to confess, that every investigation into their affitirs
appeared to him as tending to obviate any measure
undertaken by them to effect the wished-fur ob-
ject. It had lien proved, that in consequence of
the Bunk entering the market for the purchase of
bullion, that article must necessarily become dear;
but, besides this, the Batik had to contend with
another difficulty, in "the way of obtaining a sup-
ply of gold ; he meant the great purchases that had
been made during the war by the Treasury, for the
supply of our large armies, and in proportion
to the magnitude of those, the difficulties of the
Batik must be increased. He was extremely happy
that the opteeition lie had formerly made to the re-
stricting usensure lisd been unsuccessful. Nor
when he now made this confession, did he conceive
it to imply u vacillation in his policy ; for surely
no human foresight could have contemplated the
glorious result of the great exertions of this country.
And it would be likewise fseely confessed, that the
facilities afforded thereby of procuring money were
a fair object of constitutional jealousy. And he
had no hesitation iu saying, that if the Batik made.
good its paymeWts in 15 mouths, the country wou!el
be perfectly satisfied. The Right HMI. Gentleman
opposite (Mr. Tiesney) had anticipated that this
would not take place, mid had spoken much of a
system of favouritism existing in the Bunk between
different Administrations. 'Tis true that it that of
Lord 11. Petty, SI per cent. bud beeti changed on
three millions advanced hy the Batik ; but that
caused a difference of only go,ooo/. —( Loud cries
of Hear! from the Opposition Benches.)--He
begged leave not to be mismiderstoed ; but be
conceived, from what fell front the Right Hon.
Gentleman, that the principal object to which lie
alluded was the advance of the money, and that the
expense attenditig it was of little coesideration.---
But, in fsct, the-Right Hon. Gentleman had ccei-
founded two different sums of money : that en
which the interest was paid, had been advanced for
the renewal of the Charter, while the: the exigencies of the State was
tiered with that charge. He would
that no war but inch as we have he
could justify a recurrence to spelt a

the Facilities it A;` .rJs Utor inetlrritig eat reuse ttottj
from the regular standard innst .couleise all ti,
pecuniary concerns in the empire. lie eoulc
therelore, enter Ms protest against it; but tliougl
that iii the present circumstances no advauta6
arise the proposed irivestignboo.
Mr. Bseisin. desired it to be distinetly.ondel
stood that the opinion lie was about to give on tl.
present question; Shou:d not be considered as the
of the Dtrectors of the Batik generally, bat as li
own individual septitacists. But as the quern('
seemed to ufh!ct the conduct of the Bank, I.
thought it proper to say soutethieg relative to st
several iiisinuations which hail been uttered u..;ailt
it, respecting the peatirdity said to litive heed di!
played tniendi a favoured Administration ;
begged leave to disclaim it alto;.;ether, ns far t
lte ever sus concerned, nor would lie sit in sin
Court %here serCh seotimeots could be e.,tei
taithel. Ile vise; read}' to ackinotle.dge that til
Bank did refuse to Lord Henry Petty a sum t
mmicy, suhscquently!..rituted to his succ!ssor. lii
the case was this : idenind had beet' wide b
Governmeut in the fOriner ad ininistratron, which
acceded to in the latter, after a fair comes', whit
had been equally to tint:tined agaiust both. an wit
which the iniprit..d favouritism had no co mi.:silt
The Emil: has at all firms liberally met the publi
wishes, and did not merit the accusation of
blindly devotAl to their private interests. So to
from putting out their notes, like a banker in
couutry village, the object of their wishes evt
was to cheek the issues. The restrietiou we.
never a Bank question, but one of State pc
lies; and he would say of tins, as many lair
said of die Property Tax, that without it th
vast expenditure could never be met with. Th,„
were the two main pillars of our public strength
and among the many heroes who hove d.vided tl
public opinion during the great contest, these poi
sonuges claim a distinguished rank. As to the asset
not], that Government are dependant on the Bald:
this must be understood as far only as the nionit
interest is concerned. Every Government must 1;
depeinlaut, in a great degree, on the means of tit
tinning its pecuniary supplies; but as to the cat]
trolling influence, that could exist in no other mite
ner than us the advice of well informed men,
their opinion on the general effect of monied train
action:;. The state of this country is now quit
and is consequence of the high prices t
corn, &c. an artificial circulation is necessary. h
Hon. Gentleman, however, considered that :my it:
q Airy into the uffaies or determinations of the Bank
relating to the paytneut of cash, would he attentle
with pernicious consequences, and therefore uppust,
the motion.
Mr. PoxsonnY thought that the opposition c
opinion between the Chancellor of the Exchequt
u..d the Hou.Crentlemati who spoke last, and who,
sentiments, us being a Bank Director, ate of ion
portance on the question, with respect to the ton
of the resumption of cash payments' was a sulliciee
cause for instituting an inquiry. The Chancellc
of the Exchequer explained the cause of the dc
preciatian of the currency to be the great rorc.4
expenditure; but can he (asked Mr. Ponsatiby) as
plain by such means why gold, which had fattenl'
41. 6s. should now rise to 41. 9i. when all our g
foreign expense has ceased ?. The Chancellor tit th
Exchequer has given his promise, that cash papaw
shall take place in July 1816. While the Hon. Gen
(Mr. Baring) has declared such cannot take plat
for five years. This was good reason for approi
ing of his Noble Friend's proposition. He shoal
be anxious to hear the opinion of the Governor t
the Bank of England. He believed that the Bau
and others were interested iu keeping up the pr,
rent artificial state of tliv country • and the How
should resolve on eompelliOg the Directors to tad
immediate steps to issue a circulation in specie.
Mr. SMITH spoke in favour of the motion.
Mr. W. Smurfit said, that he should biter fire
the silence of the Governor of the Bank, that II
hopes of the Chancellor of the Exchequer were tt.
sanguine. He next alluded to a prediction of NI
Fox, the very day after the Bank had l'u'st stmt pc
paymeot. flaring observed to Mr. fox that ti.ei
was seine consolation in thinking it could not le.
long, that great Statesman replied, tint lie shun'
never live to see the end of it. He did ,sot see
slightest chance of the Bank ever opening ugan
Nothing but vague hopes and expectatious wei
held out on that head.

Mr. Bur: it A slll,. W contended, that the coin
try had benefited us %%ell the Hank by the 1114..;
sure ; sand as he had every confidence in the hitt
grily of the Chancellor of the Exchequer, he suw n
rew,un sufficient to induce hint to vita fur th
motion.

The CllANccumn of the ExclixuvEu spoke
consideralile length in explanation.
Mr. CaEN FELL said, that if the motion was a
agreed to, be should move au amendment in ti
Committee on the Bill, proposing that to the wort
" sth of J iily, I 8 lti," should be added the wort
" and no longer,".as was the case in the rroPero
fax Bill.

After some observations from Lord A. HAMTI
TON in reply, the House dividati, when there at
pared— _

For the Motion
Against it
Majority
Immediately crier the division, Mr. PoissoNa
addrtseed the Nleinhers in the lobby, declaring lc
intention of dividing the House on Mr. Gie.;kil
annindinent. The result would skew wi.44 coati
deuce the Chalcellor of the Exchequer had in It
own prophesy.
On beiug readmitted to the Gallery, we bona
the House in Committee on the Liaiik Restrietio
Act, and the CHANCELLOR. Of the EXCHLQUEIt or)
jecting to Mr. Grenrell's amendment, upon tl:
ground that it would stein to (link the discretion u
the Houk,.

Mr. HOIINEII inferred, end wns sure the firms
would infer, front the silence of the Governor of
Bonk of England, that he looked to tie event
the resuniption of cash payments with ugly thini
but hope cud satisfaction.—(A laugh.)
Tten:mr thought the words or the Amend•
tnent would she, hut they ---

' went would chew that they were more ta e.4rra.
sum g'lVeli to thou' was usual oil such subjects. If k CASSC could 61,
t$ uueucual" made out to justify the adolitimi of the me s !:e
acknowledge terwards, it would be competent to the
may -suffered tiourrible Gentlrma., to inure ir.
measure; cut sir. o ssoistsl called upon the noose to