The British Press; or, Morning Literary Advertiser.
London, England, 1826-05-27 00:00:00

glaring. By the returns of Scotch bankruptcies since the corn-
mencetnent of the year HIM, it appeared that in that country there
had been but one instance of an application for a sequestration
against a banker ; while in England it appeared that, during the
same period, no less than 158 commissions against bankers
had been issued. (Hear, hear.) The Right lion. Gentleman might
say that that was the system to which the people of Scotland might
well reply, " and this is our system." (Cheers.) " In our system,
in the coarse of one hundred years. there are only two instances of
bankruptcy, and therefore we ask that you will not disturb it, be-
cause your own system is bad." (Cheers.) Scotland tells the Par-
liament
of the kingdom to look to 11113 experience of those years '
prior to 1797, when there was a paper currency in Scotland and a '
metallic currency In England, and yet neither deranged the
other ; and• then calls upon it, to judge by farts, and not by, general
principles which cannot easily be applied. It had been said, that
although paper might do for fair weather, still, upon the occur-
renee of a panic, it would prove ruinous. To this Scotland re.
Plied, that such an occurrence never took place, even in titres of
distress, difficulty, and even of rebellion. (Cheers.) The chief
system upon which Scotland relied was cash credit. The bankers
established branch banks in various paths of the Highlands, with
the hope that. although they might not pay at first, yet that, by
the encouragement which they would give to the agriculture of the
district, they would ultimately answer the purpose of those who
established them, and at the sante time prove highly beneficial to
the country. All those gentlemen who had been examined enter.
tamed the strongest impression that, if notes under 51. were pm-
hibited, those branch banks could no longer be maintained. (Hear.)
He had attempted to ascertain the amount of the circulation in
Scotland, and he confessed that the returns made presented facts
totally knew to him. In England, in the year 1319, the total
amount of circulation, as nearly as it could be aaeertained, was forty
millions, and of that twenty-four millions was country bank paper.
To this was to he added the gold in circulation. The amount of
notes in circulation below 5/. was calculated at four millions ; but
he rather imagined that six or seven millions might be an estimate
more nearly approschitig to the reality. If this was to he compared
to the small note circulation of Scotland, the House might easily
infer that the assimilation of the currency in both countries, upon
the principle about to he enforced in England, might lead to conse-
quences not easy to foresee. In Scotland the amount of the circus
lotion was 3,390,000/., of which amount no less than two millions
were in notes, in value below 51. Thus. two-thirds of the whole
currency was in small notes, and Ile much feared that the utmost
d roger might attend any sudden alteration, and that nothing but
imperious necessity could justify the enactment of a law, at once
to do away with so large a portion of the circulation of that country.
If it could be proved that the two systems were incompatible,then in-
deed a change would be indispensable; but be b lieved that at
present, at least, such prdof could not be easily elicited. In conclu-
sion, he would observe, that he was not so enamoured of the Scotch
system as to be resolved to listen to no proposition which might tend
to its improvement ; but he was not prepared to pass a law to assi.
mutate the currency of both countries under existing circumstances.
Ile had now discharged his duty. (Cheers.) He was sorry that
the Report did not meet the wishes of the Right lion. Gentleman ;
but he could solemnly declare, that never had lie, whether as a
Minister of the Crown, or as a chairman of the Committee of that
Muse, presented a Report, in the formation of which he was so
well satisfied with the part he had taken. The Right lion. Gen-
tleman then sat down amidst loud cheers.

Mr. A BERCROM BY contended that it would be unjust to
have one law for England and another for Scotland. The general
principles contained in the Report were correct, but he objected to
the recommendation with which it concluded, and which was not
warrantei by those principles. In fact, the Report stated that the
Committee did not think that the proposed alteration could affect
credit in Scotland to the extent supposed by the persona who hail
been examined. They were, in his opinion, compelled to Minnie
the measure upon Scotland in mere justice to England, unless some
stronger and firmer statement was made than that contained in the
Report. The Right lion. Gentleman alluded to the number of
bankruptcy commissions issued against bankers in both coon.
tries : but he had, is doing so, admitted to state the inequality of
the laws which led to the enormous disproportion. In England the
Bank Charter Bill had been in operation., which prevented more
titan six persona from becoming partners in a banking establish.
ment. The Right Hon. Gentleman argued as if no distress had
existed in Scotland, whereas an over:inane had prodereil distress
more than once in that country. Indeed such banks as those in
Scotland ought to be required to give security more than any other,
because in proportion to the confidence which would be entertained
of their stability, in such proportion would exist at all times a
temptation to an over.issue. It was a fallacy to say that the only
evil which a poor man could sustain would be the loss of his one.
pound not , in the event of a bank failure. The fact was, that an
over-issue produced a penalty equally severe, and of much
longer endurance. It was idle to say that Scotland hail suffered no
distress ; she was approaching England more closely mil, day in
all that was bad as well as in all that was good. The Report also
recommended that steps should be taken to prevent the Scotch bank
notes from finding their way to England, and that a penalty should
be imposed upon their circulation at this side of the Border. Now
a law to that effect he would characterize as vicious, odious, and de.
testable—iinimaing a penalty upon thosy notes cronsing an itnaginary
line, which he had often crossed without even knowing it.
It would be legislating against that in which there was no
pill, and in which no feeling of morality was violated.
That Report had left a breach in the system through which the
enemy could inevitably enter; the law should be made, in Itis
view, equally applicable to England and Scotland, And without
that he could not anpport it. He thought the course adopted by
Government truly prejudicial, and the two systems which they re-
sorted
to incompatible the one with the other. He could not sup.
port the won), which he was confident was calculated to produce
serious injury.
Mr. J. P. GRANT said he did not think it at all necessary that
the systems of the Scotch and English currency should be assimi-
lated. Front every information which had been given oft the sub-
ject, it appeared that no injury could accrue from the plan pro-
posed. They had it from three Directors of the Bank of England
that the paper circulation of Scotland could not interfere with that
of England, and could not have any injurious influence on the
affairs of the Bank of this country. The whole loss sustained in
England In a century, from any Connexion which she had had with
Scotland, did not exceed MAO/. Con/tittering the present situa.
tion of Scotland, he thought a very strong ease ought to be made
out to warrant any interference with her currency. 11'Itatever ad.
vantages were enjoyed by the banks in Scotland by the banking
system which prevailed in that country, were participated in by the
entire nation. By the evidence which had been adduced before the
Committee,it appeared that the banking system of Scotland had been
advantageous, by stimulating the industry of the country, and giv.
ir.g circulation to capital. If the monopoly of the Bank of Eng-
land was broken down, it might be advisable to assimilate the cur-
rency of both countries ; but without that, he could not approve of
any alteration in the banking system of Scotland.
Mr. WILLIAM GORDON said, he thought It quite fair that
Scotland should retain that banking system under which she had
prospered. No failures had taken place there tinder the severe
pressure of distress which was so extensively disseminated. The
system in this country was quite different ; it had a metallic cur.
rency until the year 171 M, when cash payments were suspended ;
but the system in Scotland bad been invariably the same. He was
not unfavourable to the paper currency, and had been one of the
small minority of seven who voted in favour of the Small Note
Bill.
Sir M. W. RIDLEY said he did not wish to interfere In the
question, and he would state his reasons for that reluctance. As a
country banker he had an interest in the measure, and did not
think he ought to interfere in treasurcs which were proposed
to protect the people from him as a country banker. He thought
the country bankers had been very unfairly dealt with, and lie was
most anxious that an inquiry should be instituted into the present
state of those banks. Ile knew no reason why the country bankers
should shrink from inquiry ; for his part he was anxious for it;
and on the part of the country bankers he challenged Liquify. He
considered that the only mean, of refitting the foul aspersions
which had been thrown upon them from high quarters, and
which had tended more to injure them than any thing else
which had been done. Ile would not say that the Right Ho-
nourable Gentleman who had thrown out those imputations in-
tended them to produce those evil consequences, but such had
been the Cast. It had been said that the system of the country
banks was so gross that it should be altered ; but there was nothing
In the circulation or in the exchanges of the Scotch banks, which
could not be found in those of England ; the same syste,n of con.
ducting business was spread through all the English banks. He did
not think it fair that the English country bankers should be told
they were unworthy to he trusted, while those of Scotland and
Ireland were considered worthy of confidence. It was thought
that capital would go over to Scotland. in consequence of
the superior facilities which the banking system of that country
afforded. Ile could assure the House he (lid not grudge Scotland
any advantages she might derive from her banking system, but,
he complained of any partial measures of Legislation. He should,
in the course of the night, move that an inquiry should take place
early in the next Session, into the effects of the system on both
countries. He thought they should either assimilate the currency
of Scotland to that of England, or return to the old system. In
the year 1707 there were from 1k) to 70.0001. Scotch bink notes in
circulation in England. It was said that the circulation of Scotch
notes was to be put down by a penal law; but he thought no penal
law Could prevent a man front receiving bank notes. In fact, by
denying the English country bankers from exchanging Scotia,
bank notes, they placed them in a very unpleasant and oolong Si-
tuation ; he was sure that any gentleman applying to him at New-
castle m exchange Scotch notes, to enable hint to pursue his jour.
hey to London, being refused that fa' our, would consider him.
self cell unkindly treated. If he had the honour of a seat in the
next Parliament, he should certainly bring forward the Resolution
which be had already adverted to.
Mr. H. GURNEY said he was not a panegyrist of the Scotch
system. Ile thought, though cash accounts had a %valency to
cause over-inane*, the exchange with London corrected it. He
thought an Inquiry should be instigated into the system of the cur.
rency. They were at present purchasing gold nt so high a rate that
ft cost England one-half more thin its nominal value. The (hatred
and stagnation of commerce which occurred in the year lilIU, which
was produced by excessive circulation sad over.speculation, front
which they had not yet recovered. Ile thought that some means
should be devised to mitigate the distress of the country, either by
introducing silver into the standard coin of the country, or a pri•
vdeeed paper currency similar to that of the Bank of England.
Ali. ROBERTSON said, a currency on a metallic basis was
the only security for the country.
Mr. 'l'. ‘V I I.SON said he was averse to any restrictions being
placed on England while Scotland was exempted, convinced that
such a line of conduct would be injurious.
Mr. Alderman HEYCIATaI said ranch injustice might have
been avoided by an earlier toqutry. If security had been required