The British Press; or, Morning Literary Advertiser.
London, England, 1826-02-11 00:00:00

THE BRITISH PRESS.

another quarter. Theme draughts on the mousers of thie Bank Um'
(lend it accessary for them to real their taper currency, through
fete of any sudden demands upon them, anti consequent) induced
dello-
induced
die Direntors to retime to cash payments. To supply th
ency iu the paper circulation he thought the conduct of the Bank
rendering so much of their capital unavailable very injudicious; they
had by this means brctight upon them a dead weight of eighr mil-
lions. They advanced two millions to Government to enable it to
pay off the 4 per Cents. They invested a million and a half in morn
gage upon land, and had altogether allowed 24 millions to VI so
completely locked up, that that sum became quite unavailable for
any casual
demand which might be made noon them. The greet
object of a bank should be to have all its funds available by every
possible means. He considered it a very aliened spier.: of finance
to draw upon the resources of the Bank as had been done by Go-
vernment. If any great distress prevailed, if any unforemen na-
tienel calamity had sprung up to destroy public confidence and
public faith, the importance of the case might justify such extraor-
dinary conduct; but, when the country was in a state of the
greatest prosperity, when the funds were up to 911, lie thought the
policy of Govemntent in this instance a most chimer piece of
lie considered that the Bank had acted eontrary to all
sound rfficiples of commerce when they were rendering 24 millions
of money guides.. The Bank had no capital. and consequently
could not be justified in lending money, which they might be called
upon to pay on demand. In the year 1783, upon the close of' the
American war, the Bank was reduced to the greatest difficulties.
It was so much embarrassed, that it was almost insolvent. At that
time Government was indebted to the Bank to the full amount of
ten millions; and he believed no one would deny that the difficulty
in which the Bank was then involved was mainly attributable to the
Government of that day. The year 1797 was a period of great die.
tress; compleints were made on all sides, and the Bank, to emerge
from its difficulties, was obliged to play pranks. It was disgrace-
ful to have recourse to tricks to support any line of finance. The
first measure he would recommend the Bank to adopt would be, to
give themselves morn elbowroom. By having their resources at
command they could bring them forward so as to obviate any tem-
porary derangement that might occur. Ile was convinced that the
difficulties which at present appeared so alarming, and struck such
universal panic among commercial men, possessed nothing of a
permanent character. He was convinced they were only temporary.
(Hear, hear.) This state of things grew out of the measures pur-
sued by the Bank. The Bank was the heart of the whole circulat-
ing medium. If that was not sound, the entire circulation must be
equally unsound. The aspect of affairs was, to a certain extent,
alarming; it originated in one of those manias which sometimes
happen, and which baffled the most experienced to account for. It
was like the wind " which bloweth, but not knows from
whence it comes or whither it goes." No circulation of the
paper currency could hove given rise to such madness. The
Bank had, by choking up its resources, produced those disasters.
They should have done as a judicious Government would do
in a time of peace; who would, though there was no immediate
danger, notwithstanding. have its ships reedy for any sudden emer-
gency. The Bank should have their means available for any mo-
ment of dfficuly—like a ship, which though in harbour. should be
always ready for a start. But the Bank, full of its foolish conceits,
paralysed its own resources, This was a great error ; the great and
real power of this country was centered in her treasury. She wns
nets military nation. During the entire war which wu carried on,
she never had more than 45,000 men upon the Continent at one
time. The great commander who achieved so much for the glory
of the country never commanded during that war a larger
British force. It was the money of this country that set in
motion the military force of Austria and Russia. They had
a naval force adequate to the defence of their commerce, and
they should always take care to have such force. That was the
best end most efficient defence this country could and ought to
have. The Bank, he would repeat again, had acted most absurdly,
and he would tell them that before they came to the conclusion
that the banking system was bad and would not work, they should
get rid of that mode of transacting business which choked up their
resources. The Bank should be always ready with four or five
. millions for any emergency. If the Bank was unincumbcred by
Government, they could have prevented much of the difficulty that
had arisen. The panic which prevailed was similar to that which
OMITS sometimes in a theatre ; an alarm is given which is imme-
diately communicated to the is holeaudience; the entireassembly rush
forward, and in their anxiety fur personal safety, crush each other,
without any knowledge of real danger. The Bank is the banker of
the country. In private commercial transactions, if an individual
get into difficulty, he applies to his banker for assistance, but if
the banker have not his resources within retch he cannot afford him
any relief. The Government will sometimes require the same ac-
commodation, and it is the duty of the Bank to be provided with
means to afford it. They have rendered themselves inadequate to
perform that duty, from the desire to derive too large a profit. He
would listen with great attention to any arguments which might be
offered to allow the expediency of establishing a new bank, and to
prove it was advisable on the expiration of the Dank charter to
raise up a rival establishment. He would hear any thing on that
subject with great attention. He was, however, satisfied such a'
remedy would Le inefficient, and could not look upon sachet rnea.
sure io any other! ight than u • trick. He thought the circulation
of the paper currency sufficient for ail purposes, as far as such a
bank would form a reconl,ofproperty, It would be useful, but any
thing that would check the circulation of the paper currency would,
he thought, only increase the difficulty (Hear, hear.) If they
had two banks, one east and the other west, those banks, far
from lessening difficulties, would increase the confusion.—
(Hear, hear.) Though the conduct of the Bank of England
had excited an alarm of danger. The establishment of a branch bank
would increase the confusion ; but if they could devise any means
of strengthening the Bank they would do much good. The Right
Hon. Geotlemun has said that the Bank had made concessions of
ila privileges, is allowing more than six persons to carry on a bank.
ing establishment ; but if out of all the banks in England only six
had availed themselves of this concession, it was fair to conclude
that no great confidence was reposed in that expedient ; and if any
persons were found to follow the advice of the Right Hon. Gen.
tleman, he was quite sure that they would be guilty of an
act of folly. (Hear, bear, hear.) He was favourable to the
establishment of joint-stock companies, because they would
form a record of the prosperity of the country. The affairs
of such banks would be under control and subject to annual
examination, and the consequence would be that no man could be
involved in any speculations beyond his inclination. lie thought
that silver and gold being made the circulating medium would be
productive of much ativanage to the country. In every other
country silver is a legal tender; he knew no objection to its being
' made so In this ; and if they looked into the history of the circula-
tion of this country, they would find that it had been a legal tender
in this also. Some persons had a fanciful idea of the value of the
standard currency; the value of that standard depended on ita sta-
bility. Its immutability wen: also an important consideration ; if
that was lessened, the value of the standard was likewise de-
creased. They were now obliged to get gold by merchandise, but
silver was at all times available. He thought that silver and
gold might with great safety be made the circulating medium.
In funnier times no injury had been experienced in consequence of
the use of silver, and he did cot see why we might not proceed on
a similar plan at the present period. When the Amewican war had
brought this country into a state of great distress, peace was con-
cluded In order to save the Bank of England from bankruptcy. In
the French war a &imaar policy would have been gladly adopted,
but the French would not terminate hostilities. "The history of
Pat tratsacnoes was necessary to be referred to, in order to show
that it was derivable and requisite to the safety of the country that
the Bank shou'd be independent of the Government. As the Bank
was subject to tee control of individuals, he did not like to mention
to the Committee all he knew on the subject. He could not under-
stand why this country should not have recourse to the mode of cur-
rency which was previlent throughout the Continent. Experience
of the difficulties which have been endured by perseverance in the
system of a gold stautiard, should have induced the Parliament to
try whether a rem thy for the evils so constantly recurring might
not be discovered in the adoption of the continental plan. The
corsequence of edlierieg to the gold standard is, that when from
any cause the Bank of England is obliged to contract its Issues, the
ruin and calainitini which T.:Tuley result to the community are of
a most formidahlo description. lie would instance the case of I
France, in which cottony gold and silver proceeded together in the
most perfect harmony. During the time that he wail in Franca,
the difference between the two descriptions of currency was only ten
pet cent. Since that period, however, it was true that there had
been an increase of one and a half or two per cent. This addition
was occasioned by the immense demands which were made by the
Bank of England, in cyder to uphold,the beautiful and philanthro-
pical system on whichl it had acted, and which it seemed there was
no determination to. alter, notwithstanding its pcniicieus effects.
Against the ten per cent. difference to which lie had adverted, he
would place the thirty or forty per cent. in the value of the various
articles affected by the gold standard system In this country. (Hear,
hear.) He was not, lodeed. very fond of the introduction of novel.
ties, for they were frequently found timorous experiments. He
liked to sift and to examine principle,' thoroughly before they were
reduced to practice, yet he thotight the present sule;ixt was a ease
which was entitled to a fair trial, for the mc.usure had been atteaded
with success In other phac a. Oa this matter lie wou'at make an
additional observation. He would give an ruleice that the low de-
nominations of silver coinage Omuta be left as they are at present.
With sixpeoceq, shillings, and half-crowns he would not meddle ;
but lie would call In the crown pieces. and ha would re-issue them
es a legal tender at the rate of 41 quarter of u sovereign each piece.
For this purpose, however, he would not adopt the present value
of silver as a test, for it was notoriously depreciated. The pro Tor.
lion betweee gold and silver in this county m was as fifteen and a half
to one. Ile was of opinicn that the French proportion of fifteen to
one would answer better, and would therefore suggest its adoption
in preference. That rate would keep them both uniformly togs-
thee, and couldcouldnot Injure the currency of the smaller coin. It
might be urged
objection 'JIM a personinnueh a ease might then,
wits 10 sixpences of the present curreacy,which it wee nut proposed
to disturb, purchase cormitudiths so the value of 12 sixpeuces at
the rate of the supposed standard. But sucb a proceeding might be
poetised at present. The standard would indeed remain timpani°
as it le now. but the Bank would posses. greater security. That
wee A COOSiastatiOU Of greut importance. Another argument might
be adnrced against the adoption of his suggestion in respect to the
inconvenience which would be experienced in the carriage of pieces
of such hulk as crown pieces, but it would not be difficult to ob.
viate this eanee of objection, for any person might easily relieve
himself of the annoyance, as by the payment of 2s. in the loot. he
might convert the silver into gold. If tide gold were to be sent out
of the country, according to the present system, the ruin would be
almost irremediable, but in the ether cue the silver standard would
affird a temporisation. According to the old principle, when the
excharge was against this country. it was difficult to remove the
gold from this country, but now mere was every facility afforded to
its transmiuion in fact there was a legality in the case of sending
aleoad. rot tnerly the transaction was of such a fraudulent chit.

meter, that respectable men loathe profit to be derived from it to
low peddling persons, who were hulloed to eon the risk. But now
it frequently happens that respectable merchants carry thou-
sands of sovereigns to foreign countries, as they may without danger
'eke them in a bag, and they are considered Refer than a bill. This
Is a common practice, and hundreds of thousands are Rent off in
th 1; way. The little speculations are lett to the small jobbers. But
if it were to be supposed that any slight impropriety sheik) occur
in the system, the double standard would rectify it ; there would.
also be some expectation of paying the debts Which hare been in-
curred by this country. In his humble opinion; the Right Hon.
Gentleman (the Chancellor of the Exchequer) has not suggested
any remedy for the prefer.' distress. Hie measure is, in both,
worse than nothieg, for ha tendency is to aggravate those evils
which he proposed to alleviate. The Right lion. Gentleman had
stated the circulation of country bank notes to amount to six mil.
lions, and to-night he has reduced them to four millions. Not
many eights since they were reckoned at eight millions by the
same Right Honourable Gentleman, who mem' to adopt in
this instance a mode of counting in the inverse ratio of
" Falstaff'e" men in buckram. It has been asserted that the
amount is of little consequence: but this leen° answer to the
existence of distress, for it is erroneous to judge of the effect pro.
duced on the country by reference to the metropolis. Here a sum
of 20.000/. would of course be regarded as insignificant in any
operation to affect the metropolis: but in a small circle or district
in the country, the injury that its loss might occasion might be of
corslderuhle importance. The Right Hon. Gent. has assured us
that a great deal has been already done to rectify matters ; but if
any thing has been effected, it has been by a process of screwing.
Alen who do not like to take the chance of the three years proposed
for getting their money, are now obliged to dun their debtors for
payment. He believed that a great many of the country bankers,
who were respectable men. had contrivesinirestly to remove some
of the diliculties which had been experienced during the late
penic; and that they were coetriving means to adjust the remainder.
But still great distress prevailed, and the Right lion. Gentleman
did not appear to he acquainted with ies Intensit. (Hear, hear.)
He would not give any opposition to the Right lion. Gentleman,
if he was either inclined to amend his resolution or to show what
his meaning was. lie (the Chancellor' of the Exchequer) had
merely stated that In three years the notes should be discontinued ;
but he had not told the House that no more shall be stamped.
He (Mr. Baring) would recommend that matters should be lett in
their present state for the period of three years, or that the coml.
iteration of the subject should be deferred to next pose lie was
sure that the country would soon arrive at the pint-the metallic
currency. But in the interim the principle that was wanted should
not be a a kind to screw and grind the country. The Right Hon.
Gentleman should not aggravate the distress which a perseverance
in his present project would necessarily tend to pmcnete. It was
injudicious to tamper with the state of affairs, for if people were
left to reflect on their present condition, they would loon discover
that three-fourths of the distress was purely the effect of the panic
which perveded all classes of the community. The proceedings
which attended the recent period of difficulty were similar to what
occurred during a storm—fear always exaggerated the danger where
there was the slightest foundation for apprehension. He would re-
commend the establishment of banks as joint-stock companies, as
he did not think that the difficulties were to be ascribed to the
banking system. In the next place, he would suggest the adop-
tion of a silver standard ; and in conclusion, he strenuously.recom-
mended that the bank system should undergo a fair trial, to order
to effect which, it necessary to relieve the Bank of England from
the incumbrancea which had been imposed on its capability.
Lord FOLKSTONE called on the !Louie to pause before they
assented to the Resolution which had been proposed by the Right
lion. Gentleman. He hail listened with great pleasure to the
statement cf hie Hon. Friend • and though there were many things
in which he heartily concurred, there were some points to which he
wished to cdvert. The House had been called on to remedy a
great evil without understanding the cause in which it originated.
It appeared to him, that an important crisis had occurred, which
had produced a serious revulsion of property throughout the coon.
try. No man knows on what to calculate as hie own, for from re-
cent experience it was easy to perceive that there was something
unsound in the principles which had hitherto regulated the country.
The Right Hon. Gentleman (the Chancellor of the Exchequer)
was mistaken if he thought him (Lord Folkstone) inclined to such
fluctuations as had taken place. On the unwary; be was of opi-
nion that nothing was more pernicious to the censor', than the
recurrence of such fluctuations. He thought that the Right Hon.
Gentleman was taking a wrong course in his endeavours to check
the evil by the measure wince he has in contemplation. In this
opinion he tees confirmed by the exposition which bad been made
on the subject by his lion. Friend (31;. Baring). If he did not
misunderstand the meaning, that Hon. Gentleman had stated that
the proper remedy was not seen by his Majesty'e Ministers.
The Right Honourable Gentleman never, in the course of
his speech, adverted to the real causes of the distress. He
had left them to peke about for a remedy, and they were
now in a state of ignorance as profound as if the Right Honourable
Gentleman had not opened his mouth oat the subject. Fome
apology was really due frem the Right Hon. Gentleman and his
colleagues to the House. The only remedy consists in the repeal
of the measure of 1842, in the promotion of which the Right Hen.
Gentleman was instrumental. He (Lord Folkestone) did nut think
it right that the Bill should pass without some concomitant
measures. The bill was brought fey wan; in 1822, after a period of
great distrem, but since that time the Right lion. Gentleman stated
that matters assumed a more favourable appearance. The great
distress prevailed in the year 1824.3. It was then miscued that the
11111 was introduced to increase the circuiating medium of the coun-
try. It has produced a rise of prices, for since its passing prices
have gradually risen. In IWO, the Bill which was called Mr. Peel's
provided that after 1C23 there should be no further issue of notes.
The consequence was that the Bank of England began to collect
gold to meet the exigency. and also to contract its issues. This
was a matter of prudence on the part of the Bank, though produc-
tive of great distress. To remedy this evil the Bill passed, and
the natural event followed. Now, will not the same cause bring on
similar distress y There was nothing more calamitous than the
fluctuations (hear, hear) to every description of persons in the
kingdom. There was di/geese in the first instance, and then Mr.
Peel's Bill followed—then succeeded a rise of prices—and now it is
proposed to proceed with similar incansistency. No person knows
what to do, or how to provide against the uncertainty that
_prevails
in this respect. The poor man, however, is the greatest sufferer in
these cases, to more ways than that stated by the Right Hon. Gen-
tlemen. The poor man Is affected by the rise and by the fall of
prices. Ni'hile all the fluctuations were going forward, the poor-
rates were accordingly progressively advancing beyond any com-
parison which the Corn l.aws would j
ustify. There might have
been a slight deviation or diminution, but the principle of the poor-
rates was progressive. The poor man might be employed in a
rise of prices, 'but at a fall he had no other resource than
the poor-rates. The poor man of the present day was not
of such a character es he was twenty-five years ago. The
rate is now changed to his prejudice. 'l'he poor.rates con.
I tinued to increase ; they were increasing during all the
periods of three fluctuations. The first scale of poor-rates
established in the county where he acted as &magistrate Sall Is. the
and a loaf of bread per week foe every man ; Is. 2d. and a loaf of
bread for every woman ; aril is. and a loaf for every child. In
another county, where he also acted as a magistrate, it was nearly
the same, but now it coq considerably reduced. These fluctuations,
which were always, he thought, principally attributed to the policy
of the Government, operated fatally upon the lower orders; at.
though the poor rates were increasing, the allowance to the poor
ass considerably diminished. He could not give his support to
the resolutions of the lion. -Gentleman, unless they were accom-
panied with some concomitant memures. lie was not prepared to
state, nor did he believe the House was prepared nesay, what these
measures were. There was not sufficient information before the
House to enable theirs to decide. A great outcry had been raised
against the issues of one and two pound notes, but he did not think
the fluctuations were at all attributable to them. Thee were not
the cause cf the embarrassments in 1783, nor of those of 1793. There
was something peculiar in this country which required explana-
tion. With respect to the other measure, there were many objec-
tions to it. If he understood these joint-stock companies,
%hien it was intended should be formed, instead of giv-
ing relief they must eperato injuriously. Tice distress upon the
Continent at this moment was as great as in this smithery, How
could this be captained ? And as to those measures giving relief in
time, of difficulty, it was impossible. There wns no security that
these measures would relieve the people. The Right Hon. Gentle-
man will get into a *crepe by attempting to withdraw the owe and
two pound notes. The Right Hon. Gentleman says those merle
surer are intended to give security to the holders of notes ; at an-
other time they were only intended to guard twain.% fluctuations.
These inconsistencies proved how unfit and how unprepared the
lion. lientlernau was to state his reasons for the introduction of
these measures. With respect to the correspondence between the
First Lord of the Treasury end Chancellor of the Exchequer and
the Bank of England, it was not perhaps necessary that either party
should know how to write correct English, but it was evident that
the correspondence contained the greatest inconsistencies. At one
time commerce was restored to its accustomed chanr.cls, but then
there existed difficulties. Once it is attributable to the revenue :
another time it was beyond all Parliamentary interference; and
now they were called upon to legislate: but the House would do
wisely to pause, and consider well before.they legislated upon the
subject. No person contributed more to the present difficulties
than the Right Hon. Geetlece.an who cried up the prosperity of the
country—the unexampled prosperity, as he called it—cud those
who thought his prosperity fictitious, and that there was something
hollow in there statements, were laughed at. It was this cry of
prosperity that led to the wild ,peculation; which produced so
much ruin.
Air. MA BE RIX—So strongly did he feel the dependence of the
Bank of England upon the Government that he would readily
acquiesce in any measure likely to disjoint the connexion, had it
not been for the way in which the Bank had come forward to re-
lieve the difficulties under which tho community laboured. Ile
could nut concur in the idea of a mixed currency, and though he
might incur the censure of his lion. Friend (31r. Baring) he
must say he preferred one standard to two. Such a course would
brieg the value of gold down to that of silver. Let the House
enusider what was the effect of such reguletitai in South America. ,
lie regretted with the Noble Lord (Folkstone) that the Chancellor,
of the Exchequer did not give the House more information, to
enable them to ascertain the canacs of the late embarrassments • '
but lie would state his views. The difficulties were not attributable
to the over-issues of the Hank of England ; he thought them mere
attributable to over trading, and to the mania for wild speculations.
It was maintained that prosperity produced a low rate of interest,
and that this led to wild speculations, but the supporters of this
opinion forgot that the speculations preceded the tall of interest.
Ile denied that there had been any over-issue ; if there had been it
would be indicated by the exchanges. This point was moat mate-
rial. If there had been an over-issue the Bank and the Government

producing
paper. and this again causing wild speculation--
are to blame, and they alone were to blame; but there was no over.
issue, and lie was happy in being supported in tine opinion by many
.
lie overeiion. Gentlemen
of .With regard to the low rate of interest
.-"eucing
ssue
he must contend that if there had been an increase of nommen I
Of our manufactures beyond the mummy( supply, item had risen in
coneequence of this demand. All this went on well for a time, Lai
it did not continue; the supply, after a time, equalled the demand,
and soon exceeded it. The consequeace was, that paymerse could
not be made; and when purchasers could not pay ard dinreis
commenced, which arose to a panic, and a wannof confidence are,
itehluat t.it
wailed throughout the commercial community, the Bask of Eng:
land stepped in, and by its liberal conduct arrested the panic. It
was by the over-trading that much of the embarrassments we,
caused. It was a sad lesson, hot he holed it would be a useful
one. lie would now come to the proposed remedies, the tint of
winch he thought totally inefficient. By what magical charm could
the Right lion. Gentleman edge solvent men to supply the place
of those who at present conducted the country banks ? Ile was
favourable to the establishment of branch banks from the Rank of
England. It was stated in thenorreepondeoce between the Govern
mend and the Rank that the withdrawing of one and two pound
ornoteges
cwi:Mgesdimbyiniserh
ed:edipnrgessitur:veinrciadewnitdtero ansu ruranfeaevou,
andntb
would cause such pressure to he earlier felt, and thereby insure
an earlier and more general adoption of piecautionary meatier"
necessary for counteracting the inconveniencies incident to an
export of the precious metals; but it should be reeollected that
the exchanges were the symptoms, not the effetta, of over.
trading. He (31r. 31aberly) coutended that the circulation of ore
and two pound note, were highly beneficial to the country. It hut
been suggested that Commissio.iers should be appointed by ho.
'moment to superintend and control the circulation of the country,
but upon commercial as well as political grounds. he must protest
against such a proceeding; it would give a power to (rovernment
which might be dangerous, and which he thought very unsafe.
The lion. Member then observed, that in former diecussiose ho
had uniformly supported the opinior.s of the late 31ember for Pont.
arlington (Mr. Ricardo), which were favourable to the continuance
of paper currency, which, whatever objections might lie against it
in • political point of view, had an undoubted superiority in the
eyes of the economist ; but, while he advocmed paper currency, he
objected to its being placed under the control of,any Commissioners
who possessing high privileges, under the denomination of barkers,
might have it in their power to increase or diminish the issues of
the circulating medium, as caprice or their interests directed. This
arrangement would be objectionable, even if the Commissioners
were totally disjointed from Government and exepapt from its trifle.
enee, but still entire objectionable when the Goiternment can, as in
a recent instance, prescribe to them the amount and manner of their
issues, and direct all their operations. But this inconvenience
would also extend to issues of gold and silver, ao that on this ground
could not be supported the proposition for the alteration of the cur.
rency; In fact, a bullion currency, with all its advantages, had its
concomitant disadvantages. To use the expressive words of Dr.
Adam Smith, " gold and silver currency resembled the public
highway, which. while they arc subordinate and accessory to the
increase of wealth, by eiroalating the fruits of the soil and the pro.
duce of labour, ere yet themselves withdrawn from the productive
surface and consigned to barrenness." It is the same with bullion,
when made the circulating medium, and every substitution of paper
currency makes an addition pro Panto so the wealth of the country ;
rimy substitution of it may he eoneidared as an accession of pro-
duetive capital; but the contrary edict takes plan when gold is
substituted 'or paper money. ant: the available capital is reduced
by the amount of the gold brought into ciremlotioa. This win a
very serious consideration, if the adoption of gold and barer cur.
rency offered no additional security against ductuatitem in the mo-
ney market. 'i'hese considerations, together with the sueerior can.
vet:deuce of small notes, rendered him decidedly adverse to the
idea of withdrawing them from circulation ; but tee Right lion.
Gentleman had completely demroyed hie own propositions when ho
admitted that they did by no means reach so the root of the evil.
The truth of this admission, indeed, would be evident, by referring
to the commercial history of the country. In the year 1793, when
the cannery had a gold currency, the commercial distress was se
great and alarming that Government was induced to issue Exche-
quer BRIe to a considerable amount for the relief cliche sufferers;
on the other hand, in Scotland there lies been no commercial con.
volition. no shock to the general credit within the last 3e years,
while the entire circulating medium of that country consisted of
paper. These examples corroborated the Right Hon. Gentleman's
own confession, and tended to show inefficient were the measures
he brought forward. But there was still another proof of the little
additional security arising from the subtraction of the paper cur-
rency ; if we Mere to lock to Liverpool. London, and .Manchester,
where the whole circulating medium was bullion, or, what wasequi.
relent, Bank of England paper, and noting all the fiilolll3t ions in the
price of commie:lints or in credit which took place in those markets,
if we compare them with the fluctuations that took plan in Scotland,
we should find the balance in favour of the latter country. What.
ever might be the otmetional disadvantages of a paper currency, he
did not think it could by any possibility produce such confusion as
was lately evinced in the commercial world. He (Mr 3laberly)
belit,ed this to have arisen from over-trading. He could fairly
ascribe it to nothing but to a spirit of mad speculation, nor was this
opinion paradoxical, it was borne oat by the events of a period so
similar to the present, that he would trouble the /louse by referring
to the original description of it, as drawn by Alacphersen in his
" Annals of Commerce." The House might easily conjecture that
he alluded to the South Sea bubble, a speculation so enormous and
visionary that all which we have witnessed was but a drop of water
In the ocean when compared twit. The author mated that, during
thee period, the nowt ^wee so great in 'Chaege-alley, from morning
till night, as to ender It almost impassable ; every week and day
had its new speculadons. On some of the shares was deposited one
shilling per hundred pounds, on some sixpence, line some were
sold so low even as one shilling on every thousand pounds. Some
of these speculations dieeppeared on the very day which gave them
birth, and the offices which issued the shares in the morning were
eyed at night. Persons of rank and quality, of every profession,
and of both sexes, were deeply engaged in these wild schemes, so
completely did avarice then prevail over every other consideration.
(Hear.) So great was the confusion which reigned in the markenam
cording to Slaepherson's account, that the same bubble sold ten per
cent. higher at one end of the market than at the other. The mad
spirit of these speculations would ba easily seen from the amount
of the subscriptions proposed. The Royal Fishing Association
wanted a capital of ten minions ; the Society for Jail riving Potter
four millions. Nay, there was also a Society for Bearing Silk.
worms and Planting 3lulberry Trees—(Cries of " Hear,' and
much laughter.) There was a Society to make salt water fresh,
end another to make a fish-pond to bring fresh fish to London.
However mad these schemes might appear, not only the shares.
but even permissions to purchase shares rate to a price of 701.
This rage of speculation (observed the Hon. Gentleman) exhi-
bited in every stage of the disease a close similarity to what we
have witnessed in the present day. When the ineolidity of these
schemes was become manifest a general gloom pervaded the com-
munity. They lamented the want of money, and sought nide-
nations of the universal distress, while many persons of respect.
Lisle rank sunk at once to abject povenn, and died of brakes
heart'. here unhappily there were many points of resemblance to
the present times, and this coincidence fortified the Hon. Gentle.
man in his opinion that we ought to attribute the late difficulties
solely to overttading. At all events, said the Hon. Member, I
plan: entire confidence in the intent ens of the Right Hon. Gentle.
man. I believe that he sincerely labours for the improvement of
the commerce of this country, after the most liberal and enligbt.
ened principles, ard I trust that he will he able to establish it on a
more solid and substantial basis.
Mr. II IeSKISSON began by observing, that although he could
not concur with the lion. Member who had just sat down, onto the
cause of the late embarrassments, he felt indebted to him for the
manliness and moderation of his language ; but his lion. Friend
and the Noble Lord who preceded had animadverted on what they
were pleased to call the insensibility of the Noble Lord at the head
of the Treasury and his Right Hon. Friend, the Chancellor of the
Exchequer. They commented in the correspondence carried on
with the Bank, without considering minutely the circumstances of
the time when it took place. It was not neemeary for him (Mr.
limitisson) to undertake the exculpation of his Right lion. Friend :
a reference to simple facts would do that. It was true his Right
Hon. Friend had said that the panic had subsided. Nuw he would
ask his lion. Friend the Member for Taursoin who was hunsclt
well acquainted with what took place in the City, what was the
state of affairs in November last Was there not such a panic es
caused a total suspension of confidence ? Was it not true that dur-
ing a space of 48 hours there wee so total a suspension of credit that
the beet public securities could not be sold ; nor was this from any
idea of the insolvency of the Government, but from the general dis-
inclination to advance money. This panic, or rather pendyels,
could not have continued beyond the 48 hours without producing
tremendous cor.sequenees ; it must have involved the whole coun-
try in incurable distress. But this panic hod subside!, and trade
had returned to its accustomed channels. When the correspond-
ence with the Bank took place, the Bank in fact stepped forward.
and by its prompt assistance had prevented the most calamitous
consequences, and perhaps, too. had prevented its own failure.
Nor had the Bank done this wholly of themselves; they attended
when they made three ',alumni, exertions to the suggestions and re-
commendations of his Right Honourable .Friend. But his Nnble
Friend and the Right Honourable Gentlemen, when they used
those expreinions„ made reference to a particular state of things.
They did not intend,thew to extend to all commercial distress, but
only to a particular pate of it. The lion. (lestleman who spoke
last had well distinguished between commercial distress and the
diuresis of the 'money market, which distinction solved the diffi-
culty in question. But it bad been said by his Linn. Friend that
there had been no instance of insolvency in Scotland. Could his
lion. Friend be so ignorant of facts es not to be aware of the con.
teary, or did he not know that the dealings of the Scotch banks
contributed not a little to the embarrassments we were lamenting,
and so long as we had paper currency we must subunit to run at
least all the rinks ti which the Scotch' system is exposed.
The Hon. Gentleman Caen proceeded to say, that there was no part
of the King'aSpeech in which he more heartily concurred than that
which deplored the general distress of the community, and puede°.
Ludy of the labountig claw.. lie was sorry also to fire: teat lee
lion. Friend had end in point of fact in representing the relntione
which the Beek stood in to Government; they were the voluntary
bankers of the Government, and there was nothing in their contract
which bound them not to part with any portion of the annuity
they pleased. lu like manner, his Honourable Friend did not
distinguish between the original capital of the Bank. which bail
been given so Government for their charter, and the free ca-
pital which"
they had since amassed ; they wets in effect the
bankers of the State. sod instead of advancing to Govern.
ment twenty-four millions, as the Honourable Gentleman stated,
never, perhaps exceeded six millions in their advances. His Ho-
nourable Friend had also blathed Government for not adopting
cash payments at the close of the late war, and rimming gold from