The British Press; or, Morning Literary Advertiser.
London, England, 1826-04-15 00:00:00

EIROMISSORVr NOTES.

The Marquis of LANSDOWN said he ruse to move the am
Land reading of a Bill which he had introduced to the House on a
t.,rener occasion, for making promissory notes payable where they I
et • e issued. It was not necessary to detain their bnedehips wids
1-neelvened recommendations, nor to enter much in detail on what '
ciey were etready rally informed of. Bente entering Oil any thinmetith
re•peet to the merits of the Bill, he wished to cotrect tan un 'minded •
isaerehension which he understood had gone abroad. It had gone
;Joh that it was intended to ererent notes from being mode pay-
a.9:e in any place but where they were issued. He had no such
purpose, new did the Bill interfere with bankers in misting their
cotes payable at any number of places. It only provided that
at whatever number of places notes were payable, the place where
Vrey were Issued must be one. This prof:mitten might be considered
a' two distinct views—first, as it affected an excessive issue, it was
»ell known how greatly the amount of paper currency had swelled
ef late years; and, secondly, it migth he moldered as it should ar-
ten ennmetition, for it was desirable that all banking establishments
sei ild be on a fair and equitable footing as respected each other.
Al to the first point-1f it was admitted that a power of demanding
Ad for paper was the best check against an excessive issue ; it
eat be desirable that that check should operate readily and u ef.
',tidy as possible. There was no better means of pmdecing this
Ole& than giving a facility to the inhabitants of that part of the
couhrry where a bank was placed. It would be particularly useful
to :he pourer classes, who, upon the first alarm. would have an op.
Fortuity of bringing their notes, whether of 11. or any other dents.
venation, for immediate payment. This the public had ft right to
demand from banking establishments, which carried on a trade so
advantageous to themselves and important to the public. It would
have been must desirable if the facility now proposed had been at. 1
furled in every irotence during the last year. Had such an emu.
went been in existence, it would probably have deterred mane from
enteting upon the banking business with an insulliciel capital.
At the first run they would have been compelled to narrow their
tsavesln proportion to their capital, and the consemiences might
have prevented much that occurred. At nil events it was must ma.
terial that there should be a regular, gradual, check mann over-
issue', and this was best found in the place where issues were
trade. There the check would most effectually operate. As
a proof of the importance of this measure, in the opinion
of persons carrying on the banking bueireoLhe did not mean
those highly respectable banking establishments for which this
coantry was so remarkable, but he alluded to those person, who,
allured by the hope of profit, had made irruptions., to it were,
upon the trade. without suffieient capital—in proof of the import.
once of the proposed measure, he might observe, without mention.
frig names, that some of those persona were in the habit of allow.
irg paymasters of regiments a per emu, foe circulating their
rues in distant districts, and this percentage was in proportion to
tax distance where the notes were put in circulation. This shoired
the value that description of bankers put upon an artificial decals.
Lion, forced at a distance from the place where the notes were pity.
stele, or, In other words, convertible into gold. Now as to the
twond point, it wan most desirable that banking establishmehts
ehould be open to free competition. Bank. not liable to pay
their noire where they issued them, would be placed on most unfair
terms with regard to banks the issues of which were payable on de.
mind where homed. When no cenfintion existed all would ga well and
no inconvenience be felt, but when an alarm prevailed ar.d with it the
(emend for gold, the bank that was not obliged to pay where its
fourswere made, would-be enabled to pump out the gold from the
soner bank, arid, instead of keeping a reservoir for its eon warts,
would be enabled to drain the reservoir of its neighbour. Another
good effect that would arise from the proposed enactment was, that
the banker obliged to pay his notes where, issued. would gradually
alter the circulation, and keep it within limits which would prevent
nicotivertience. In the other state of things, when notes were pay.
reile at other places and not where issued, they were not so easily con.
avertible into a metallic currency, which their Lordships agreed
was the only real security. lit Ireland there wax proof of this
working of the system. In one place the notes of one bank were
at discount, whilst that of another was at par. He did not know
whether there would be any objection to the specific pro.
eosaions of the Bill ; but he thought the House was bound to
Bass a Bill of sirrilu principles. He understood that some
thought that peculiar establishments should be exempted from
the operation of the Bill. Ile believed some of hie Noble Friends
thought the banking establishments in Scotland ought to be ex-
empted. flaring observed the skill and perseverance with which
every object was pursued in that country, he should certsinly hesitate
before he said that the mode of banking prevailing in Scotland wax
tot such as entitled the Scotch lienks to exemption. This how-
'ever could not affect the general principle, anal he was sure that
WINSI the question was discussed as to the application of the Bill to
Ecotland, the interests of that cour.try would be sueported with a
teal. perseverance, and unanimity which were not always to be
limed on any subject in the south. He (lend Lenolowto had too
witch sincere respect for Scotland to wish to destroy any navawege
it possessed by its present system of banking; but he should certninly
expect to have the expediency of an exemption fully proved, before
consented to except Scotland from the operation tat the Dill.
The Noble Marquis theta stated that he could assert, on the audio.
rev of several highly honourable country bankers, that in their
,pinion, the measure would be gladly acquiesced In by all the re-
spectable part of the profession to which they belonged ; anti he
Was certain that if he wits to mention their names, their opiiiiinis
told carry great weight with the House. Those gentlemen further
said that no respectable bank would wish to issue outer not made
payable where they were baited. It anti desirable that the Act
etioulti be as prefect es possible ; and it wax of course the ditty of
their Lordships not to pm* it catmint tendering it is. ; and liar that
Lordship..
po. e he should be most happy to receive the assistance of their
Lord F.k RNIIA 31 said that at firs: he had felt prepared
to support the measure of the Noble 31arquis ; but on re-
flection, he felt some doubts on the subject. The doubt lie felt
arose from not being aware whether the nit:we're win iteended to
apply to notes already in circulation, tar in these hereafter to be
tomed. hit was to act prospectively to to notes brother to be
issued, he would give it his most decided support. There were
eat objections to the measure if it applied to notes now in circu.
neat
; because' hey must all be ceded in at a very considerable
expense to the parties, and it would be an extremely hardease upon
the bankers. The terms also of the Bilf,ets to where lessetl, it was
very difficult to define; but it was very necessary that it skaold be
alone. The circulatiou of notes in the mouth of Ireland, principally
coweisted of notes payable in Dublin, but it would he a great hard.
ship iftheamnotes wad not be issued at Cork nr Belfast, because
they were only payable In T)ubfin. The-Object of threnesiweimme
the Noble Marquis t Lansdnen) was one that all Noble hula musiki
wish to see accomplished, and when it came into the Committee,
they would be able to devise means for remedying those defects it
at prevent pomeased. With respect to the iastances cf forced circa.
khan, mentioned by the Noble iilarquie, by the commission al.
lowed to paymasters of regiments for tine eirmlation of country
'seekers' notes, lie believed they were by ho means recent cases,
but had occurred thurteen or fifteen years ago, and he was satisfied
that no such practice had of late existed.
The Earl of ItiOSSLYN said, that with respect as the measure as
it regarded b'cotland,he did hope it would undergo ifolloonsideratioo
to the Committee. With respect to Ireland. hmeonaideted that the
measure would do away the credit of the bank notes of Dublin.
Every Irish note most be recalled, in order to be dated at the piece
from whence it was issued, which would be attended with the
greatest possible inconvenience. Ile felt that It ittruld he very
difficult to make the Bill before their Lordships applicable, from
tee very serious inconvaiiences :hat would arise. He did not think
the word " Issue," as it stool in the Bill. would teach the agen t
in Scotland. Ile was not sure that it would de Roby the decision of
Court of Law. If, therefore, the Noble Marquis's view of the
question was just, then it must put an end to agency in Seirleed
eltogether. it'hether it might • bare a similar effect in Dublin he
weld nut say. The Noble el srquis had teemed into the ,et vice .
the late failures, grievances, and distresses which had orcorred. No
one :Resented these circumstances more than he (Lord liosslyn)
GO, said that they were aggravated by the badly established banks
he admitted; but they did not ions any ground on which the Nehle
Marquis might rest his Bill, for in the case of those banks zee
cotes were all payable at the places where they were issued. The
Evil before their Lordships would not have reached that evil, for it
a, alit rot have made them solvent ; and the argument, therefore,
that au raised upon the late unfortunate distressem did not bear
tip in trio question. He should be ready, when the Bill arrived in
the Committee, to lend his assistance.
Viscount MELVILLE TORO to give his intention of what he
should do in the Committee. The first subject be should notice was
ens to what effect the Bill would have in Scotland. and the questiori
was, whether it was ameasure that was fit or not tit to be done it All
regarded Scotland, he considered it es one of flagrant injustice. lie
would ask what was her present situation, and if it would he proper
to alter the banking system thereby doing that which would in effect
compel payn e it in gold under rd. ? The Committee that had b:en
typeunted to cucitiJer the question of Currency in Scotland and Ire.

lend. had not yet made their reportotor would they for torte time to
come; but he was anxious that they should &so. before the measure
under their Lordships' consideration changed the law in Scotland.
The Scotch banks viewed the measure with the greatest alarm. and
he eleimed far them an exemption from the operation of the Bill,
their case being entirely different from those of England ot Ireland.
I.e England an al•eraeion might be nicesaary--as to (relied he did
not uritervand the question ; but In Seo.lwal if the ayeteniof branch
hanks was change:l,i he beaks would he compelled to withdraw them.
Whetl•er such would he proved before the Contmiteee he could not
say ; but such was his idea. Ile beeped. therefore, that tie Noble
Marquis would consent to defer the measure as to Scotland until
the fullest information was laid before their bordshipa on the
subject.
'I he Earl of LAUDERDALE said, that after what had fallen
from the Noble Lords, he must sae he felt great doubts apott the
megenre. By referring to the printed copy of the Dill le Amid
that it was entitled, a Bill for makirg notes " payatle where
they werepayable." (A laugh.) Ills (Lord Lauderdale's)
.difli-
culty about the Bill was, whether in that stage of it ithad any
roaming at all, or some meaning. His opinion was, that en a
Court of Law the Bid would enact nothing at all. The object of
the Bill ha would take to be. to make bank notespayatie where
teased. The Bank of Ireland always issued in Dublin ; their notes
therefore would he only payable in Dublin, and her that only the
Act provided. Ile wished to know if, in remoing me evil,
their Lordship% were not called upon to create greater ? Two years
go Parliament gave to Ireland Cle Scmch system of ea. king,
which established agents in different situations. The q oeston was,
whether the hone of notes by the agent was to be discharge' at that
place alone. Ile would suppose there were branch bunks it:Behest
anti Sligo, and a customer took notes at Belfast and raid them in
at Sligo, was the agent there to take them out and Litman with
them ? No ; the Bill would not enable him so to do, he weld be
obliged to return the notes to Delluet. They had within a few days
been let into the secret ea to how things were conducted in .reland.
It was dear that if the Bill was entorced, the notes must he paid at
the place where issuedoind there was great difficulty in detrmining
what that term meant. By the limner Bill for Ireland they did not
chrome to give provincial banks the power of banking in Dublin, nor
within fifty miles of it. If the Bank of Dublin were not ta make
their notes payable at their respective bran**, it gold have the
Idea of throwing the providing of the circulation uedeilive pounds
upon the provincial banks. if-the measure was such as to put the
branch banks in hostility. It would have the effect of doing more
evil than the benefits which it proposed to extend. With regard to
Scotland. their banks carried their accommodation to the remotest
distance in that country; and if the measure wan to act hostilely, it
would totally destroy the system in that country. There would not
be a brunch bank in Scotland except in Glasgow. or one or twa.of
the most populous places. lie (Lord Lauderdale) lead tried the
question over and over again in his beach fifty timer, but he dreaded
the application of the rule. The Noble Lord said that if the Act
passed, men of integrity would rimer issue notes payable anywhere
except where booed ; but the law ought to provide for the case; of
persona who were sot of the nature described by the Noble Lard.
Upon the whole. he was of opinion that the baud proposed to be
derived from the o • of the Bill would be counteracted by the
evil it would ocean on.

• The Earl of LIMERICK said that at the first blush he was
prepared to vote for the Bill% but upon consideration, and after
whet had fallen from the Noble Lord (Melville), in wishing. to de-
fer the subject as regarded Scotland until the Committee had made
their Report, and as he had formed a cordny sae/Mira for that por-
tion of the empire, he bagged to take advantage of it for Ireland,
and therefore to wished for delay until the Committee had made
their Report.

Lord KING did not see any Rood cause assigned why the Bill
should be delayed until the Committee tnsde their Report, because
some old Scotch system was raised up against it. He reeallected
that 31r. Burke complained of the manner in which some of his
plans for reform were defeated ; particqlarly in the case of the
Royal Household, where the King's scullion was a Member of
Parliament. (A laugh.) lie supposed, from the outcry that was
raised as to the sweeping away of wine of those banks, that sonic
of the Scotch hankers were Members of Parliament.

The Earl of CA ',EDON supported the measure, and hoped the
Noble Marquis would go on with the Bill. He saw no reason for
waiting for the Report of the Committee.
Lnrd CLI FU E 1 considered that the small notes in Ireland should
be paid at any one branch. If the Bank of Ireland issued rotes at
Dublin,. they ought to be made payable wherever the bank had a
branch establishment. His Lordship said, that when a failure
took place, the loss did not fall upon gentlemen of fortune—for their
agents had good noses, and scented out what was about to happen
—but upon the lower classes of the people.
The Earl of LIVERPOOL said, that he thought the Bill of the
Noble Marquis most desirable; but it require,' a great tie it of con-
sideration before its principle could be applied. It was very ne-
cessary to take care, that in removing one evil another was tint
created : but he was quite ready to vote for its second reading, and
submitted to the Noble Marquis the propriety of tal(iug a longer
space of time before going into the Committee upon the Bill. The
Committee of laquity into the banking system of Scotland and Ire-
land had 'nada considerable progress • and he expected that in a
few days some most important evidence would be given
he therefore would suggest to the Noble Marquis, to fix the Corn.
mistook', Tuesday sencight. There was another reason why he
would
_MA for that delay ; the Bill that was in progress in the
other friiase or Parliament, which had been passed by their Lord.
ships, was likely to undergo considerable alterations ; it would,
therefore, be desirable to see what they were. Ile would recom-
mend the second reading ou the present occasion, in order to affirm
the principle of the measure.
The Marquis of LA NSDOWN rose to offer a few words by way
of explanation. He considered it necessary to state, that the error
which had been commented on by his Noble Friend, was merely a
clerical one, the word " payable" having been panted instead
of " issued." He was glad, however, that the mistake had cc.
tweed, because it had given the Noble Lord an opportunity of ex-
ercising his jocularity. In respect to the observation of another
Noble Lord (Farnham) as to time, the word " future" in the Bill,
showed that its operations were to be prospective. As to the
terms " issuer` and " branches," no doubt great difficulty ex-
isted as to their precise definition. He however bad taken the best
way of obtaining information, by consulting the first lawyers on the
subject. Ile had not the least hesitation to fix the Committee for
Tuesday xe'nnight. The Noble Marquis, in conclusion, said. that
he wished it to be particularly understood, that when lie took the
matter under his consideration at the commencement of the
session, there were between sixty and seventy banks who issued
their notes not payable where issued, and that was the grievance he
wished to remedy.
The Bill was then read a second time, and committed for Tues.
day, the -2.4 th.

CATHOLIC PETITION.
The Marquis of LA NSDOWN gave notice that on Monday
next he should have to present a petition from the Homan Catholics
of Ireland.

Earl BATHURST was understood to say that Itlonday would
be a ctry inconvenient day for that purpose.
'Their Lordships then adjourned.

HOUSE OF COMMONS, FRIDAY, Aran. 14.

The SPEAKER took the Chair at four o'clock.
Mr. LITTLETON presented a petition from the manufac-
turers and workmen at the Staffordshire potteries, and aim) one
from the manufacturers of earthenware on the river Ware, in
flvotir of the Staffordshire Potteries Bill, which, after some oh.
'creations from Mr. Calcraft and Alderman Thompson, and Mr.
Littleton in reply, were ordered to be laid on the tible.
Sir JOHN I% ROTTESLEY presented a petition from some
place In Stiffonishire.
Lord .CLIVE moved that the Liverpool and Birmingham Canal
Bill be re-committed; which, after some discussion, in the course
of which Mr. Calcratt, Mr. Littleton, Mr. S. Rim, Mr. W. Peel,
31r.:Sturgeslionme, and Mr. Lawley took part, ustS agreed to, and
ordered to be re-committed on Tuesday next.
SCOTCiI CURRENCY. •
General DUNLOP presented a petition from Kirkmallory, in
Kirkcudbright, against any alteration in the currency of Scotland.
Similar petitions were presented by Captain GORDON, front
Kincardine, in Aberdeenshire. and from ten perishes in the sanie
county.

Lord L XBRIDGE presented a petition from the land proprie.
tors and farmers of Anglesea, praying for the abrogation or the
isressepLairs.
Sir E. KNIATCriBef.I. pmented a petttinn from the Corowert
of Kent, praying for an increase of their allowance.