The British Press; or, Morning Literary Advertiser.
London, England, 1826-02-21 00:00:00

BANK CHARTER.

Lord KING said he had heard many good eperebes in support
of Dad measures, but rarely heard good speachea in support of
good meaniree ; after the speech which he had heard from the
Noble Lord onpoeite in ettpportof the Act now its pro.greuthrough
Parliament, he did not expect to tile titer such an uthrniity of pur-
pose—he did not expect to see that measure frittered doWn. On
Friday the Noble Earl convinced the Bowie that a great portion of
the late calamity was attributable to the state of the currency, and
it appeared that gold and smell notes could not circulate concur-
rently ; but at the very time the Noble Earl was announcing
those opinions, his lieutenant in another place was stating that the
country was still to have those ribeeil note.. It was a matter of
regret that his own speech should be coptradicted by his own act ;
by the alteration which was now made in the Bill, tt was deprived
ot its greatest recommendation. After the sound views which had
bean taken of the subject, and atter :he measure had received the
almost universal support of all parties. alte country was again to be
thrown into a state of agitation. The Bank had an excess of issue,
the country bankers had too. great an testae, and it was to be hoped
some measure would be devised to reduce these issues to &safe limit.
Country gentlemen were anxious for high prices, hut they ought
to reflect that a season of high pricy WAS followed by rnother of
low prices. The high prices of 18121 were followed by the middling
prices of 181 e, and the low priceithat 21, 21, and 22. There were
the high prices of 1824, end the low inices of the following year.
Thus the system went on in jerks and tons, instead of the natural,
easy course of a metallic currency. it was to the state of uneer.
tainty in which the country was kept that hir Lordship ascribed a
great deal of the distress. The difficulties were twofold—inseeu.
rity and irregularity ; but for the one evil which insecurity brought
with it, irregularity caused nine. He should like to see a metallic
basis-2he should like to see twenty or thirty millions of coin in
circulation • but when there was a prchabilityof mach an event, the
Noble Eerfat the head of the TreaeurY, to use the language of a
distinguished Statesman. " turned hie back upon himself.
The Earl of LIVERPOOL could not avoid saying that no new
course, no proposition had been made which was at variance with
the principle of the original Bill. It was the duty of Parliament to
bring the celtintry to a metallic currensi with all safe expedition.
It was tie opinion that small notes s..ed a metallic currency could
not exist together ; but in the course at' Ida speech on Friday, his
Lordship had stated that it was the wish of Governmert to get rid
°loos and two pound notes. The tint measure • taken to secure
that remelt wee to stop any further ise a of stamps for such notes.
Though is au, .alasezablesesraseereteute niAteltie swereney, ft could
not be dime suddenly. A temporary ::xpedient was tried lu De.
umber last, and the present clause was not to be extended beyond
a short periol. The circulation of small notes ens an inconve-
nience to the Bank. The treasure was only intended to meet a
possible case, and if there were a necessity, the Bank might issue
small notes, and his Lordship had no objection to accompany it
with any guard that would be thought necessary.
The any
of LA NSDOWN thought if this clause should be
admitted unguarded, it would ;eve a power to the Bank to defeat
the whole scope of the Noble Earl', principles. The Bank might,
before the 10th October, take out as many .414101 as would enable
them to deluge the country with amen notes at any period they
might choose. Ile was sure It was not the wish of the Noble Earl to
give them any such power. It was not for the Parliament to grant
any such discretion. It would be necessary to examine and ascer-
tain the extent of these issues, and the Noble Marquis expressed a
hope that this clause would be accompanied with a guard, to pre-
vent any abuse of it.
The Earl of LIVERPOOL bad no objection to any amendment
that went to secure the public againstany abuse on tile part of the
Bank, and he would support any proposition to that effect.
The Earl of ROSEBER It y conceived the measure before their
Lordships to be of a prospective nature, and leered the introduction
of this clause would only aggravate the
.prevent evils. The Bill
its If he thought a sound and good,one ; it would tend to establish
the system ut banking in England on the sante principle with that
which afforded so much security in Scotland. It was his Lord.
ship's wish to see the connexion between the Government and the
Bunk of England narrowed as much as possible, but he entirely
condemned their dealings in annuities. That business had encum-
bered the Bank with an unconvertible security. It appeared that
Government had made overtures to other public companies to par.
chase the naval and military pensions, but they were declined.
Ili' Lordship hoped that Government would pause and consider
seriously the propriety of extending the present measures to
Scotland. The system there was quite satisfactory, and any
revolution there would create an alarm of a most dangerous tend-
ency. An inquiry should be made before any interference
INS attempted. There was one other point--he meant the
Usury haws, which, in his Lordship's opinion, had a great share
pruducing the late calamities ; they prevented accommodations
in the quarters where they were most wanted. Money was not al-
lowed to flow to those who were willing and able to pay for it ; and
it was well known that enormous interest was paid, in a most rnia.
ous and indirect way. Ills Lordship said he would give his cordial
support to the Bill before their Lordehips,with a reserve that it should
not be extended beyond England. With regard to Ireland, he
would leave it to those Noble Lords more directly connected with
that country to devise the best course to be pursued there ; but his
Lordship had strong doubts whether the measure was suited to the
conditien of that country.
'rite Earl of LIMERICK said that as small notes and gold could
not circulate together, and as the only seirculating medium in the
South and South.west of dlreland wee small notes, principally of the
Bank of Ireland and of the provincial banks, the people of Ireland
were unfortunately situated ; with the bestsotland climate they were
poorer than their neighbours, sod among the poorer classes small
oozes were principally circulated. If any attempt were made to
withdraw these notes, his beedship hoped an ample supply of gold
would be fn resdiness to supply their place i and if exchange be.
tween England and Ireland was to prevail against the latter, gold
would be sent at an expense of I per coat. to this country, and
thereby Ireland would be drained of its circulating medium.
The Earl of BLESINTON thought the danger was lest
the notes might be withdrawn without baying a substitute of
gold. lid. Lordship had k3lOll/11 DOWS of 3s. bd. to be issued in
Ireland. He thought that making silver so a certain amount a
legal tender would have the most beneficial effects.
The Earl of LIVERPOOL 'Gabel' to any one word r
frig Ireland, as the subject had been introduced into the lieee
debate.
t
It was Dot the intention of his blisieety'e Ministers to introduce
any measure into Ireland without considering the peculiar eon.
dition of that country. It had been said that the late distresses
did not extend to Ireland; but it should be recollected that she I
had her convulsions two or three years ago, and is now recovering;
but his Lordship considered that the recovery was principally
owing to a measure similar to the one now before .Parliament for
the relaxation of the Irish bank charter. They never will have
gold until Parliament enacts it ; but no measure would be intro-
ducel by his Majesty's kliaisters without the fullest inquiry and
conlikleration.
The Earl of ROSEBERRY wished to know whether it was
the intention bf his Majesty's Ministers to introduce any mu.,
sure respecting small notes in Scotland. •
The Earl of LI VERPO(IL was not prepared to Make any
communication at present. He did not wish to mix that ques-
tion up with the present dissession, but It was the intention of
Government to bring the Nikkei under the consideration eel
Parliament at a future period.
The Earl of LAUDERDALE said he did not rise Ihr the
purpose of putties any questions to the Noble Earl at the bead
of the Treasury, bet to say that what he had prophesied would
occur, and that all classes is Scotland would express *wit sad..
faction at thy premat system of banking there. It was in a great
measure to the Judicious mods in which it waa conducted that
Scotland ones her swipe from the late difficulties : but Mi.
ousters might say they foresee • eisange. lie would recommend
to the NoWs Easi not to meddle with a system which was so snub
approved i if he did he wotild ball petition. from ail quactess. if
then roomy, pippaiips their nuestisfarticm of say such rosy.
ference.
The Order. of the Dpy howl road. the Ham n• 01.14 kWf
into a Committee twat the Danz Charter BBL
The Rol of LIVERPOOL withed to briar, their twedigdpe
atteutiou to a pufat of some importance. The bank of England

had the power of estabiahing branch banks, but a doubt had
arisen whether they bad the power of giving the necessary die.
cretionary pow..rs to their agents, which are requisite to transact
the ordain', Mishits.% of banking. In order to give them this
pewee, and to oiatile theni practically to carry into effect the in.
minion of the Act, he intended to propose a clause which he
then held in bit hand, and which he wished to he read to their
Lordships.. It might not lead to the establishment of branch
banks' but he was stare the liberality df the Batik of England
would permit banks to be established where they did not set Meat
up themselves. The clause might he read now, and printed with
the Bill, which would be recommitted on Wednesday or Thursday,
when any diacuasiun upon the principle of ate clause might take
place.

After a ennvenation between the Earl of LAUDERDALE Ana
Lord LIV►aPoOL, Friday WAS fixed upon for the re•coouuiunent
of the Bill.

The Marquis of LANSDOWN did not wish to oppose any
clause which erabled the Bank of England to establish branches,
but he should wish to have Lbw branches compelled to pay in
gold whenever they issued mites. Disputes had arisen in Ireland
upon this point, and the Noble Marquis believed that by legal
dedsions the Batik was obliged to pay where their notes were
issued. But an alteration was made, by which the law was evaded ;
and he should like to ace the Bank compelled to pay, not only in
London but wherever their notes were issued. The subject he con-
sldeved of considerable importance, and he would reserve the dis-
cussion of it, as well as of the clause proposed by the Noble Earl,
until Friday, when he would take the opportuitity of crating his
opinions.
The Earl of LAUDERDALE wished the Otiose to be read.
The Earl of ILA FT ESBU It I', as Chairman of the Committee,
read the clause.

Lord iii.VENBOROUGH thought the wording of the clause
did not give as much power to the branch as was exercised by
it-y bankers. There ought to be a great latitude allowed them. It
would be difficult to establish any number of them, and every
facility should he afforded them.
The LORD CHANCELLOR did not imend to Propose any
amendment, but at -the future stages he avoid state his opinion.
His Lordshipthen proceeded to make some objections to the manlier
in which it was drawn up, and pointed out some inaccuracki.
His alms lions were not audible. %Ve ivdersitiod his Lurdaliip to
be friendly to the principlo of the Bill, and he was anxious to have
it drawn up without any ambiguity.
The clause was then agreed tn. -
The Earl of LAUDEILDALE wished the recommitment to
' take place on Friday.
The Kai of LIVERPOOL thought it would be as convenient
to recommit the Bill on Wednesday. but he had no objection to a
postponement until Friday. The Bill. with the amended clause,
might be reprinted, and recommitted on Friday.--( ordered.
Their Lordships adjourned a half past Six o'clock.