The British Press; or, Morning Literary Advertiser.
London, England, 1825-06-28 00:00:00

Mr. A BERCROMBY only wished the Right Hon. Gentleman
distinctly to state whether he thought the provision giving the
note holder summary redress was repealed, and if it was, whether
there wes any reason for its omission in the Act of 1822.
Mr. Secretary PEEL was not prepared to answer the Hon. Gen-
tleman's question, which was entirely a question of law. There
could be no doubt, however, that the banter was bound to pay hie
notes in gold.
Mr. :IA SEELY thought it was idle that every one who holds '
a note should come before the House of Commons with a complaint
if the banker refuses to pay in gc'J. If the summary law proposed
by the Hon. Gentleman was introduced, it would change the whole
existing law between debtor and creditor, the most delicate and
complex part of the law of the land. lie thought this the most
monstrous proposition he had ever heard, and especially coming
from a legal gentleman. In his opinion the petition should be rc-
jected altogether. (Hear, hear.)
Mr. Smretary CANNING thought there could not be a shadow
of doubt, that by the law, as It at present stands, a banker is liable.
to pay the one pound notes he may issue. in gold. Any attempt to
legislate on that which was already eufficiently clear, could only
tend to create doubts where none at present esisted. If he was
asked by what law a banker was obliged to pay his issues in gold,
he should answer, by no particular law. 137 the law of the land
gold was the only legal tender, and therefore the note-holder need
accept no other. Any additLinal regulation which obliged the
banker to pay in gold would put the creditor in a worse situation.
To get back to the state we were in before 1787 was the object of
every rational man by the Act of 1822. When for public conve-
nience a small circulation was permitted, the Bank Suspension Act
was in force, and the new circulation was necessarily guarded by
new laws to meet the existing state of things under the Bank Sus-
pension Act But the machinery of the Bank Suspension Act was
now gone. There was no species of paper currency requiring a
particular sanction, and any attempt to discriminate could only
produce doubt and uncertainty. Honourable Gentlemen opposite.
he was sure, agreed with him on the subject. but they thought it a
good opportunity to harp back on those opinions which they were
so fond of promulgating some years ago. An Hon. Gentleman
(Mr. Ellice) seemed to think that difficulties might arise which
would require the renewal of the Bank Suspension Act, but on this
subject he should only say, that he (Mr. Canning) could not allow
his imagination to conceive any difficulty which he would not rather
submit to than depart from the present system.
Mr. BARING said, the objection was not that the holders of
noteanere not entitled to gold, but that if the gold was refused, they
had not the same summary process as before. if the circulation et'
one pound notes was allowed, the public should be protected. In
his opinion, it would be expedient to renew the provision affording
a summary remedy. Bankers were not like common creditors ;
they were pritileged persons, and it was the duty of Parliament to
grant them privileges, under such restrictions as would make the
public safe. One pound notes were the current money of all small
dealers in the interior. lie thought the sooner the circulation of
one pound notes was withdrawn from the country the better. There
was no expectation of any immediate difficulty, but the currency
was liable to convulsions, if the country was not wore saturated
with gold than at present. Though great convenience may have
resulted, and there was no immediate danger, yet great dan
ger may
.arise under the present system. Great injustice had been
done to individuals by tampering with the currency ; masses ot.
people were ruined by it. It should be looked upon in any light,
therefore, rather than a triumph, by Right lion. Gentlemen op.
posite.
Mr. HUSKISSON agreed with the Honourable Gentleman,
that the currency could not be altered without inktry to individuals.
The question of one pound notes was one that admitted of con-
sideration, but it was not a question of such urgency. in the present
state of the Session, as to render an immediate provision necessary.
A special remedy had neverexisted in Scotland for the holders of
one pound notes, and it only existed in England whilst the
Bank Suspension Act was in force—such a security WWI then
highly accessary ; Lie no such necessity now existed. There was
then a suspension of cash payments, and country bankers were
compulsorily obliged to•pay on demand ; but when we returned t.)
cash payments, we also returned to the old law. If such a sum.
mary method was necessary in the case of one pound notes, the
same arguments may be applied to five pound notes ' • holders of
these had a right to equal security. sneer, hear.) One pound
notes did not circulate in Lancaster, yet bills of exchange were
issued for five pounds and less, and the holders had no other sem-
i city but the law of the land. No banker in town or country could
issue s security that he was not prepared to pay in gold. This is
as perfect a state of security as any country could have with regard
to its currency. (Hear,. hear.) As to the limitation of the cireo.
'mien, that question had nothing to do with the summary mode of
obtaining redress. Every banker would pay his notes in gold, be.
cause his whole character was at stake if he refused to do so. il e
wished it to be generally understood, that no banker issues rots
who is not liable to be made pay as sight In the coin of the realm.
The banker had no alter mode of discharging hie obligation.
When the danger of the attempt to return to cash payments was in.
sisted upon, a clause empowering Lountry bankers to pay in Bark
of England notes was proposed. lie (Mr. Huskisson) had resist-
ed this clause, and bankers, lie WAS happy to say, could now only
discharge their obligations by payments in gold.
Mr. Sergeant ONSLOW thought, that if the summary mode of
redress adverted to was again resorted to, it would inrreate the Lir.
rotation of bankers' notes; whereas, the object of all parties seemed
to be, to restrict the circulation.
The petition was then brought up ; upon the motion that it be
read—
Mr. E. ELLICE rose to explain. The Right Hon. Secretary
for the Home Department had attributed to him the proposal for an
adjustment of the currency. He had never made such a proposal,
though he believed he had voted for it.
In reply to some observations of Mr.Jouw SMITH. the tenor of
which we could not distinctly collect,
Mr. Secretary CANNING observed, that notes of 11. if payable
in Itov form, could only be payable in cash. It might be supposed
that the obligation to pay a five pound note would be legally dia.
charged by exchanging it for five notes of one pound ; but as there
were no notes in circulation smaller in amount than one pound. the
only way of paying it could be by cash. Refusing to pay that cotes
in gold is substantially refusing to pay at aIL
A short conversation then ensued between Mr. Pont. and Mr.
liu IKE, in the course of which the latter observed, that under pre-
sent circumstances the possessor of paper was subjected to great in-
conveniences, and be thought it would he much advantage to the
country if a bill were passed, creating a more summary triode of
recovery than at nutmeat existed. If such a bill were not introduced,
he should feel it his duty in the course of the next session
submit to Parliament a measure of that nature.
Mr. Secretary CANNING agreed entirely with his Right Hon.
Friend, and though some doubts might exist on the suhject.
would rather the currency remained in its present state thin agree
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• 'on which
Mr. nIABERLV noticed some passages in the •petits...a
and
spoke of the object of its complaint as if it had been
ht under citric con-
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petPaPericion"wrreatincthyen brought up, and ordered to be printed.
COMBINATION LAWS.
viMTthhrae. F. PALMER presented a petition from certain coma-•
spinners in the town and beighbouthond of Stockport. against a
renewal of the Combination Laws.—Ordered to lie on the table.