The British Press; or, Morning Literary Advertiser.
London, England, 1826-06-01 00:00:00

That, coincident with the present system of currency, if not int-
, mediate!, owing to Its effects, there has been a great and progres-
cite Increase in the manutactures the agriculture, the commerce,
the population, sod the general Wealth of the country.
That during the civil enmmotions of the lam century, In the re-
bellions of 1715 and 1745, the confidence in paper securities,lo
tiostland was not shaken ; and that she Scotch flanks maintained
their etabilit", aid were not called upon for any extraordinary issue I
of gold In exchange lot their note', during the shrcks to which met-
candle credit win exposed in tide country in the years 1793, 1797.
and more recently in 1115. That it cannot he assumed, therefore,
that a circulation of specie is necessary in Scotland for the purpose
of guarding against the crests of sudt.en panic.
That while Scotland had a paper currency for the discharge of
all sums above twenty shillings, England had at least, for twenty
years previously to the Batik rretrietion, a currency consisting of
the preen).* metals, to die exclusion by law of notes below five
pounds. hat theee cliff:rent eyetentero-exerted, and that no woof
can be adduced that the paper circulation of tecotland displaced
or interfered, in any material degree, with the metallic currency
of England.
That.frotn the date of the first establishment of a bank in Scot-
land to the present time, the instances of the actual failnrceef a
Scotch. Lank have been extremely meet and that there have been
only two instances In which the creditors did not ultimately receive
the whole amount of the principal and interest of their debt.
Lastly, that the inducement to the Scotch Banks to continent
their Branch Banks in many remote parts of the country In which
they now exist, would be destroyed ; end that the whole system a,
deposits and cash credits would he most materially affected, if the
banks were compelled to forego the profit now derived from the
issue of notes below five pounds. it•
For the opinions in detail of the witnesses from Scotland, cm
these and outer points connected with the small-note circulation4a
that country, your Committee must refer to the evidence annexed
to this Report. So far as the interests of the Bank of England are
concerned, It will be seen that the Directors of that Bank, who
were examined before your Committee, urge no objection to the
continuance of the present system in Scotland, provided that the
paper circulation of Scotland can be effectually restrained within
the limits of that country.
Upon a review of the evidence tendered to your Committee, and
forming their judgment upon that evidence, your Committee cannot
advise that a law should now be passed, prohibiting, from a period
to be therein determined, the future Issue In Scotland of notes below
fiee poends.
There are, in the opinion of your Committee, sufficient grounds
in the experience of the past, for permitting flambee trial to be
rende of the compatibility of a paper circulation in Scotland with
a circulation of specie in this country.
Looking at the amount of notes current in Scotland below the
value of fire pounds, and comparing it with the total amount of the
paper currency of that coentry, it is very difficult to foresee the
consequences of a law which should prohibit the future ISMSe of
notes constituting so large a proportion of the whole circulation.
Your Committee are certainly not convinced that it would affect
the cash creditato the extent apprehended by some of the witnesses;
Lut they are unwilling, without stronger proof of necessity, to incise
the risk of deranging, from any muse whatever, a system admirably
calculated, in thole opinion, to econontiee the use of capital, to ex-
cite and cherish a spirit of useful entetpriee, and even to promote,
the moral habits of the people, by the direct inducements whichin
Wilde out to the maintenance of a character for industry, integrity,
aid prudence.
At the same time that your Committee recommend that the sys-
tem of currency, which has for so long a period prevailed in Scot.
land, should not under existing circumstances be disturbed, they
feel it to he their duty to add, that they have formed their judgment
upon a reference to the past, and upon the review of a state of
things which may hereafter be materially vatied by the increasing
weahh and commerce of Scotland, by the rapid extension of het
commercial intercourse with England, and by the new circum-
stances that may affect that intercourse after the re-establishment of
n 'retailer currency in this country.
Apart from these general considerations, beatin
chnlon at which they have arrived, there are two _ _
which your Committee most more particularly advert.
ft is evident that If the small notes issued in Scotland should
be current beyond the Border, they would have the effect, in
pre/portion as their circulation shrfuld extend itself, of displacing
the specie, and even in some degree the local currency of England..
Such an Interference with the system established for England,
would be a manifest and gross injustice to the bankers of-thia part
of the empire. If it should take place, and if it should be found
Br:possible to frame a law consistent with sound and just principles
of legislation, effectually restricting the circulation of Scotch
stoles within ihe limits of Scotland, there will be, in the opinion
of your Committee, no alternative, hut the extension to Scotland
of the principle which the Legislature has determined to apply to
this country.
The other circumstances to which your Committee meant to
refer, as bearing materially upon their present decision, will
arise in the event of a considerable increase in the crime of forgery.
Vont Committee called tor returns of the number of prosecution,
god convictions for forgery, and the offence of passing forged notes
during the last twenty years in Scotland, which returns will be
found in the Appendix.
There appear to have been during that period no prosecutions
for the crime of forgery ; to have been eighty-six prosecutions for
the offence of issuing forged promissory notes—fifty-two convic-
tions • and eight instanom In which the capital sentence of the
law had been carried into effect.
It ought not to escape observatinn, that nut of the total number
of prosecutions for issuing forged notes In the last twenty years,
thirty-eight have been instituted in the years 1823, 1024, and 1825;
fact which seems to warrant the apprehension that the crime of
forgery Is upon the Increase in Scotland. It ought, however, to be
observed, that the retum does not specify whether the forged notes,
for the issue of which prosecutions have taken place, were in all
instar.ces notes of the Bank of Scotland. It is possible, therefore,
that some of the prosecutions may have been directed against
forgeries committed en the Bank of England, or on Banks other
than the Banks of Scotland.
Your Committee will here close their observations with respect
to the circulation of Scotland. They are well aware of the great
advantage that would result from being enabled, in a matter of
this nature, to expects a clear and decisive opinion, unembarrassed
by any qualification or reserve; but they consider it to be their
duty, in a complicated question that involvet many important con-
federations, and upon which the decision must be subject to future
tortingencies, to present the whole of those considerations fairly to
the House' and to qualify their present conclusions by a reference
to possible circumstances, by the occurrence of which they migh
he materially affected.
(To be continued to-morrow.l

upon the con-
Ireumstanees to