The British Press; or, Morning Literary Advertiser.
London, England, 1826-03-11 00:00:00

hands of the Bank. Phis balance of public money was usually
five, six, or seven millions, while the amount of delicienc) bills
seldom exceeded two or three millions ; and considering the nature
of the debt, he suss sure an occasional excess in its amount did not
deserve any censure. But why did gentlemen impute to Govern-
ment so much blame for overloading the circulation with the un-
funded debt, and producing distress ? This was an unfair argu-
ment, and inexcusable when so many public documents were on the
table to elucidate the truth. If Gentlemen would look at the
amount of Exchequer-bills in the Bank in November last, and also
'of deficiency bale, they would find that the total amount did not
exceed the balance in favour of the puttee. The greatest amount
of advance, made by the Bank to Government was fifteen mil-
lions, and not twenty-four millions, as had been stated ; and from
that sum was to be deducted nine millions of public money in the
hands or the Bank. It was not just to conclude that the Bank was
embarrassed by Its dealings with Government. Ile had never asked
his Hon. Friend behind him (Mr. Femme that question, because
he was sure it could only be answered in the negative ; when the
greatest prevailed, and when it was necessary for the Batik to come
forward, it was not found that those alleged emit ments pre-
vented that body from extending accommodation to all who were
entitled to it, and lie (Mt. Herries) took that opportunity of stat-
ing, that from all the communications he had keit with the Beek,
he had derived the conviction that they were in all their dealings
actuated solely by considerations of public utiltty, regardless of all
private accommodation or emolument. But the Hon. Gentleman
was in the habit of running races wt h the Chancellor of the Ex-
chequer, and he then wished the Hum& to agree to resolutions re.
Icing to financial arrangements within these days of the financial
statement. Thamourse would be exceedingly inconvenient ; nor
would the House deal fairly with his Right lion. Friend it they
tutored those resolutions. With respect to the retrospect which
the Honourable Gentleman had taken of the financial conduct of
Mit isles, he (Mr. Herries) had endeavoured to show that Govern.
nieti: were neither negligent nor unwise, and he should there-
fore oppose those resolutions which tefiected a censure oo their
measures.
Mr. RARING amid that he agreed with his lion. Friend as to
the impropriety of entering into that discussion then. Ho was at a
Inns to.know what Government intended to do with the unfunded
debt, whether they intended to diminish or to increase it; but lie
was still sure that it was wrong to enter into the question on Fri.
day, when the Chancellor of the Exchequer was to make his state-
IDOOt on the Monday following. With respect to the unfunded
debt et appealed too little or too great, according as particular tie-
' eemstraces would allow it to subsist widiout deranging the cur.
' rency. 'Hie lion. Friend and he did not differ, in a general view,
with respect to the conduct of Government ; but he thought that
IGovernment ought to have reduced all dome debts which they were
liable to be called on t t pay in money ; for iteitance, a debt of 14
or 15 millions due by them to the Hank, indeed all their debts to
the Bank, were of that nature; those debts, lie thought, they
ought to have discharged when stock was high, instead of assign.
' ing mock at 93 or 95 in lieu of all claims they were liable to be
called on to pay in m'iney ; the inconvenience arising from this
neglect would be rode Oar!, felt when the period arrived for the
renewal of the Bank charter, because then it became a positive
obligation on the country either to renew the charter or to liqui-
date those debts. lie thought also that Government ought to
have funded a portion of the unfundets debt. They might have
lost something by the transude:l—they might have had to pay
some additional interest, but that would not have overbalanced the
advantage of funding when stock was at 93: at all events part
of the unfunded debt, snit the debt which Government was liable to
pay On emnadd, ought to have been got rid of. It would have put
Ilie country in a sound state, anti set the currency on a proper foot-
ing, which ought to be the principal objects of a financial Minister;
that would hate been better than saving one or two millions in in-
terest. The sound mete of the country ought to be the first object,
and dotnestic economy the second. l'hien he had taken the liberty,
on a former occasion, of speaking of the choke of the Bank, he had
called the attention of the House to the embarrassments which their
dealing* with Government occasioned to that body. He had re-
ferred' to the ceinmercial dimmest' of former periods, 1793 and
1797, and showed the danger and excess which were likely to atterd
on the issue of deficiency bills ; the greatest difference of opinion
between his Honourable Friend and himself was with respect to
these deficiency bills. The Bank ought to be governed in its deal.
inge by the same practical pr.:deuce which regulated the conduct of
private individuals, and ought not to invest their property in capital
which was not easily realised ; but by their dealtngs with Govern-
ment they were 'frequently forced halo that predicament, and made
advances on security which, was not convertible. Nor could he
Lind any circumstances which seemed to palliate the misconduct of
Government in screwing up. as it were, the affairs of the Bank.
and forcing that body to tun into danger. Hie Honourable Friend
had forgotten that the Bank was ready to come forward to lend Its
•aid in the general dietresaebut that it was at the same time screw.
Int; up its own resources ire order to support the circulation. All
that he (31r. Baring) assereed was incontrovertible; it was written
in figures, and placed beyond dispute. About April and Slay
last dm •iverage amount of the Bank Issues was twenty-one
millinnee which ran down to lee end of August. Shortly after the
commercial difF.coilties began to make their appearance, the ex-
changes became unfavourable, and the Bank was obliged to reduce
its issue, to seventeen nellionsenur hundred thousand pounds. Was
it not evident that the Bank tr: eseed on the trading activity and in-
dustry of the country in endeatturing torelieve themselves from this
'Doke ?.The result of this contraction of their issues was **intolerable
that their detetenined at every rink to have a change, and accord.
ingly tarried their issues teethe enormous extent of twenty-six mil.
lions. This was nothing lest' than sporting with the property of
the country. Such enormous traraitions in the course of a few
weeks could not fall to be productive of evil consequences. The
Bank's Issues were the barometer by which the property of the
country eru adjusted, and it would E. utterly impossible:for him to
represent in light colours such palpable misconduct. (Hear, hear.)
If the Bank was not to beraddled with the odium of these trans.
actin" anti if Goternment wished also to stand acquitted, still he
must say that between Clem, at all events, must the blame be di.
sided. There had been no symptom of distress until the Bank
commenced belling Exchequer bills. it had been said that they
bought and sold Exchequer bills continually, but such was not the
fact. Ben hippened that they never did sell Exchequer, bills until
the period to which he had alluded. The custom of the flank was
to stamp all such Exchequer hills as they had purchased, and never
to reassue them ; consequently, when it was known that the Bank
had entered the market fee the purpose of selling Exchequer bills,
an impression was immediately crated that s miething was wrong.
It was true the amount might :lace been inentsiderable, but the
Bank could not sell Exchequer bills, nor could they sell off any
portion of the dead weight without producing alarm and difficulty
throughout the country. (Hear.) The advance on the part of the
Bank hati been eight millions, but if this system of advances was
suffered to continue they would run up to thirteen millions. Prices
at present stood much as they were when that negotiation wan en-
tered into; so that it would of course be a :miner of Indifference
to the Bank if that sum was to be confined to its present amount,
chands
al its being so would be the means of taking off their
a po:tion of Bank Stock which it w mid be inconvenient for
them to sell ; because, if the Bark sole mirk it was paid for in
their own notes, and the effect was different from sales between pri-
vate individuals; in the latter case the notes circulating front one
person to another; whereas, in the former cam there was so much
money cancelled, and consequently more distress mum be produced
than where such sales took place under any other circumstances. If
the Husk was to advance five millions more to Goieenment an in.
cumbrance would be thereby created which there would be great
difficulty to get rid of. (Hear, hear.) With respect to military
pensions he could rot help expressing his surprise at the manner in
which they had increased. It had some years back been stated that
there would in that department be no further increase ; and tables
of calculations had been entered into to slew teat within a given
time they waled be got rid of altogoher. ( Heir, hear.) Yet
what was the feet ? Why, so far fr im getting rid of them they
had increased, and that to no inconsiderable extent. (Hear, hear.)
lie was sorry to have trespassed so long upon the serration of the
House, and should not have done so hid it not been fur some ob.
servatiens which tell front an lion. Gentleman opposite (Mr. Bee-
tles.) As it was not his wish to promote spy discussion upon
topics which might come before the Hoese more regularly or Mon-1
day evening, be would conclude without any further observations.
The CHANCELLOR of the EKCHIeqUER said that-after
what had been seabed by his Honourable Friend near him (Mr.
Berrien) lie would not trouble the House with any very extended
observations. Indeed it would be unnecessary to do so, as on
Monday night the subject would be discussed with greater ad.
advantage, and of course with greater propriety titan could attend
a debate at the present time. The Honourable Sleinber for
Abingdon (Mr. Maberly) wished to know the amount of the
unfunded debt of the country in the year 182.6, under such circum-
stances as could not fail to lead to seek utter confusion as would
poule even the acute observation of the Hon. Member himself.
Without entering Into a long argument upon the subject, he would
just make one or two remarks as to whist Government had done
with the unfunded debt, in order to show that they had not been
guilty of the roes neglect imputed to them by die Hon. Member
tor Abingdon, In doing so he did not feel that he was called upon
to go back to those years antecedent to me own accession to office,
nor would he argue whether Exchequer bills ought or ought not to
have been funded prior to that time. It might or it might not have
been proper to do so, but that which he moult to show was that
great etittrot had been made to reduce the unfuteled debt. In the
yez, 1816, which was the first year of peace, the country did labour
under the satire necessity as previously, and consequently the
Government turned its attention to relieve it of a portion of its
burdens. In January, 1816, the RIIIOUIIt of the unfunded debt
was sixty-one millions. In January, 11136, it amounted to only
thiny-one millions; so that it appeared there had been a reduction
of very nearly one-hair, which was a prime forie proof that Go.
vernenent had not been inattentive, as had been alleged by the
Hon. Gentleman. (Hear.) MTh respect to the last three yeses.
during which he (the Chancellor of the Exchequer) had himself
been concerned in the finauctel arrangements of the country, he
must declare that in his opinion the Honourable Member had not
fairly represented the case to the House. The lion. Gentleman
complained that in the year ine:s Government had not funded
Exchequer bills ; but the Honourable Gentleman forgot that the
value of the funds in that year was not so great as in the year sub-
sequent. In that year the funds never came near lie—they eerie('
from 72 to 74, the latter being the value in April 1823. Under
such circurnstanees surely netlike; could have been more impolitic,
nothing more rash, than for him to have come down to the
Hotter and advised the funding of Exchequer B neat such a perish.
(Hear.) Had he possessed the hardihood to hate done so, he would
venture to assert that the Hon. Member would have been more
loud and mere vehement in his condemnation of such conduct than
lie bad now shown himself, because that tine of conduct had not
been adopted. (Chemise In the year 1824 the Hon. Gentleman
Rommel that nothing had been done. This he (the Chancellor of
the Exchequer) denied. The Fact was, that when the unfunded