The British Press; or, Morning Literary Advertiser.
London, England, 1826-02-25 00:00:00

For Mr. Ellice's motion 40
Apinstit_ - . - 222

Majority . • ..--182
rpon our re.admitaion to the gallery we found
CALCRAFT upon his legs. The noise In the gallery

I prevented us from hearing what fell from tho Hon. Gentleman
tor some minutes. We then understood him to say that be had
already given notice of a motion, the object of which was to give
the country banks a concurrent privilege with that proposed to be
given to the Bank of England. namely, baring their notei stamped
until the 10th of October. He intended to bring forward this
motion iu order to endeavour to induce Parliament to show
acme conaideririon for that body of persons from which, in his
opinion, the circulating medium of the country must stilfissue.
By introducing the power given the Bank of England, the Chan.
cellar of the Exchequer bad certainly improved the measure; but
unless the same power was Fiven the country banks. he appre-
hended that a .stagnation might still take place, which would
he most detrimental in its effects upon the country. No
one disputed the danger attendant upon a Bank circulation of
small ,notes—he had never heard two opinions on the subject;
and when the Government withdrew that circulation, no doubt
they hail done what was most beneficial to the country. If the
Right lion. Cent. doubted that crying down the country banks was
detrimental, he reed only attend to the communications from the
country. The want of confidence in the banks which had stood
the storm was mainly attributable to the measures of Government.
He solemnly assured the House that these observations were not
in accordance with the solicitations of the country bankers. The
country banker, were anxious to get rid of this sort of circulation.
and thought that a metallic currency would be better for them and
for the poorer classes. His object. however, was to glee credit to
those esteblishmentet but he felt couvinced that the measures of
Government had tended to revive the panic. He had seen a letter
on the laic evening, desiring a large quantity of specie to be re-
mitted, and adding that the measure of crying down the circulat-
ing medium had the effect of putting an end to the country bank-
ing business. lie did not know whether the Chanceller of the
Exchequer would consent to his motion, or to any modification of
it. He should much regret it' the Right Hon. Gentleman should
not assent to it. At all events he persevered la his determination
of taking the sense of the House upon the subject at the proper
season.

The Cof the EXCHEQUER observed that
the Hon: Gent..(3lr. Calcrafra) object would be effected by substi-
tuting the huh October for the oth February io the Bill.
31r. CALCRAFT assented.

Sir JOHN WROTTESLEI did not conceive that the issue of
small notes would be of any advantage to the country bankers; but
the great objection was the inconvenience which would arise to the
country from the withdrawal of that circulation. Some persons
were of opinion that the measure proposed could never be carried
into effect, although the House had decided otherwise. lie wished
to know what the Right Hon. Gent. (the Chancellor of the Ex.
chequer) really intended as to the Bank notes. If he understand
right the Bank of England was allowed to issue 100 millions, if the
Directors pleased. The only condition was that the notes should
bear date before the 10th October. Perhaps there was an under-
standing between the Bank and the Government upon this point;
but Buchan understanding was not sufficient for the House nor the
country. When the Bill left the House it would go into another
place, and he implored those who should have the conduct of it in
that other place nut to add insult to injury. and not make this Bill
a stalking horse for abusing the country bankers, who were some of
the most respectable men in the country.
The CHANCELLOR of the EXCHEQUER said he under.
stood it was the impression of an Hon. Gent. opposite that he
should move for a recommitment of the Bill. What he had said
to the Hon. Member for Aberdeen was, that lie would not squabble
about recommitting the Bill. He had never said he would move
that it should be recommitted. It was competent for Hon. !Item-
bees to propose clauses upon the bringing up of the report: but if
any Gent. now moved the recommittal of the Bill, he should not
oppose it.

Mr. 111531 E then moved that the Bill should be recommitted,
and the House accordingly resolved itself into a Committee.
Mr. CA I,C RA I.l' said he understood that this Bill repealed the
17th of the late King, by which it rewired the 15th of the same
reign, under which it was not lawful to draw a draught on a banker
fora less sun than Si.

The ATTORNEY.OENERAL said the objection-may be
obviated by the omission of the word draught.
The CHANCELLOR of the EXCHEQUER would feel great
reluctance in introducing any amendment which would have the
effect of producing a small note circulation under another name.
A desultory conversation then occcured upon some verbal amend.
ment proposed by Mr. Warre, in which the Chancellor of the Ex.
chequer, Mr. Monck, and Mr. Calcraft took part.
Sir J. WROTTESLEY repeated the inquiries he had before
made as to the extent of the issue allowed the Bank.
The CHANCELLOR of the EXCHEQUER said there was
not the slightest ground fur the apprehension of the Hon. Baronet.
The proposed permission to the Bank to issue small notes was in-
tended to meet any contingency, particularly any which may arise
in carrying the proposed measure into effect in the early stages. It
was only intended to meet a particular case, and he thought the
clause by which the publication of the issue was secured sufficient
to remove all reasonable apprehension.
Mr. HUME thought there was such a mass of legislation affect.
ed by what was now proposed, so much repealing and suspending,
that he thought it would be much better it all former Acts were re-
pealed, and one substituted. This alteration may be effected, he
thought, with little trouble.

M. DENMAN said that in his opinion the Bill now before the
House kept alive the 15th of Gee. 111, under which any person
drawing on a banker for less than td. was liable to a penalty of 201.
and on default of payment to go to gaol. There certainly were
great difficulties in the measure, and he thought the suggestion of
the lion. Member for Aberdeen (Mr. Hume), that all preceding
Acts should be swept away, worthy of serious consideration.
The ATTORNEV-GENERAI. differed with the Learned
Gentleman (Mr. Denman) as to the construction put by him on
the 15:6 of the late King; but he admitted that there was such
soinplexity in the various Acts on the subject, that after the Bill
now before the House had passed, he thought it would be advisable
to consider the subject, and see whether one Act might not be
brought in consolidating the whole.
Mr. 111311: was at a lots to know why the Consolidation Act
could not be introduced now ? The Honourable and Learned
Gentleman (the Attorney-General) could do it in three hours. (A
laugh.) The necessity was argent. When the two Learned Gen-
tlemen differed in their constructions, how could an unlearned per_
sun like himself be supposed capable of judging of the fitness of
the various enactments ?

Mr. GIiNSIAN remarked that. by the Aet of the 15th George
111. promissory notes and drafts tor sums under 288. were declared
illegal. and prohibited ; and such persona as might contravene this
prohibition were subjected to certain penalties, which, by the Act
of 17th tieo. 111. were extended to sums between 20s. and 51. The
present Bill re-enacted the 17th of George, and of course it re.
enacted all the penalties which had been incorporated into it from
the Act of the lath. By this law therefore, a common draught or
check on a banker was declared illegal, rind subjected to these
penalties, the Act of the 17th Geo. 111, which had been repealed by
the 48th Geo. 111. being now re-enatted.
111 r. GALCHA FT hoped an inconvenience of this kind. which
rendered it illegal for a person to draw a check on hie banker under
61. would be remedied.

The CHANCEMA)R of the EXCHEQUER said he would
look whether there was any truth in the observation previously to
making the report ; and if the Act did really impose penalties on
an innocent action he should be ready to adopt any words to secure
the ordinary right of making draughts.
Mr. DEN MAN observed that the House was not aware of the
state of confusion in which the Act now stood. The Act of the
17th George 111, incorporated all the penalties of the loth, which
had been repealed ; and all promissory notes under M. would now
not only be void, but would subject the parties to very heavy
penalties.
The CHANCELLOR of the EXCHEQUER said a clotibt
had naturally suggested itself whether the revival of the Aet of the
17th did not re-enact the penalties of that of the 15th ; but it woos
evident that the clause (A) had been introduced for the purpose of
imposing penalties, on the assumption that the penalties of the Act
15th George 111 had been repealed. This clause was a eulAtltu.
don for the penalties incorporated in the Act of the 17th, and did
therefore actually repeal them by implication.
Mr. DENMAN said these were at least very strong considers.
lions to induce a reconsideration of the Bill.

Mr. IfU3lErepeaieciiii;Ziiisiiiin7Obierelufc that the differ.
ence of opinion between the Learned Members of the House was
so considerable that It was no wonder If he, who was unlearned,
found a difficulty in comprehending the Act. It was desirable that
the law should be exactly ascertained ; he proposed, therefore, that
the three Arts should be condensed into one, and he was sure that
the Bill in that case would be got through the House with half the
trouble and in half the time.

The CH ANC ELLOR of the EXCHEQUER said there was
nothing to be condensed or consolidated. 'the Act of the 17th had
been made perpetual by the 27th Geo. 111, which laid restrictions
on notes under five pounds, and imposed certain penalties on the
issue of such notes. In 1797 the Act of the 17th was suspended,
and that suspension was continued so long as the bank restriction
was continued. The operation of that Act had since been pro-
longed till 18.33, and the effect of the present Bill was merely to
accelerate the removal of the suspension. It merely brought back
the law of the 17th limo. 111, adding specific penalties which are
not to be found in that Act. There was therefore nothing to con.
mandate. There were not a great many laws, as bad been supposed.
There wag Only that one.
Mr. HUME insisted that it was better to ratiell them at once.
These successive suspensions of Acts created perpetual tionflasion.
Dlr. lIUSRISSON observed that several Ants had passed the
House op a former occasion, which had been repeal ied n the same
Session, for the purpose of consolidating them into a single law.
Such a consolidation might therefore take place after the passing of
the Bill. He agreed with the ea. Member for Aberdeen that
such a consolidation was eat desirable.
Dlr. DENMAN said, oo ng at the Act a doubt tug-
gested !teen' to him whether the Act of the 17th Geo. 111. were
not still in existence, ineeeporating as it did the penalties of
that of the 15th. Then these penalties ought to be repealed by
some clause in the Act; and that was praise!, what his Hon.
Friend the Member for Aberdeen had suggeoted. Let the old
structure be entirely pulled down, and something new erected to ha
place.
Mr. Alderman WOOD said, that any person acquainted with
the manner in which business was carried on in the Bank of Eng-
land would be aware that balances were frequently due uncles five
pounds, and it would by this law be Impossible for any man eau
to draw them out.
lily. HUSKISSON observed, that it had been stated long be.
fore that the provisions of the Act were not applicable to baalma•
checks.

Mr. J. SMITH said, if the DIII was passed in the conftdenee
that these Acts would afterwards be repealed, he would venture to

r say, froth his knowledge of human nature, that they *mild
r.ever In repealed at all.
Mr. MA DER IS rose to propose an amendment relative to the
publishing of the accounts of notes issued. As a proof of the
necessity of this measure, in the csse both of the tountry banks
and the :tank of Enginnd, he stated that an increase of six millions
in the aitioont of the circulation of the Bank of England had at one
time taken place in seven days. Every mats must be aware, how-
ever Let:votary this increase might be in itself, tha it Was very
necessary at the same time that it should be known. The
Bank, it may be said, has a charter and he should be the last
man to break in on chartered rights but the public has a right to
know how the Bank comports itself in the exercise of the p:eroga.
rive which it has bestowed upon it. The Bank might continue to
issue a million every day as long as they pleased, if no such ac-
counts were required. Such Issues, would undoubtedly affect pro—
perty in • very considerable degree. The property of the public
would tittle be put up and down at the will of the Bank. Ile did
not suppose that the Bank could act with such ah isstention ; and he
supposed therefore that they could make no objection to the chase.
If there were any such improper motive for the conduct of the
Bank, the House would see the necessity of the amendment still
more chatty. He would therefore propose thea in the clause which
had just been read, after the words "such acccunta," there should
be inserted the following addition : "And also an account of all
the notes of the said fiovernco and Company Bank of
England, actually in circulation on the last day of the preceding
month inclusive."
The CHANCELLOR of the EXCHEQUEIi, admitted that
publication was absolutely necessary with regard to the one.pound
notes, and that there ought to be a check on Ch's undue exercise
of their power with respect to small notes, during the limited period
which was assigned tut the duration of that power ; but there was
not sufficient ground to impose upon them an obligation to give an
account in this way of all their issues. When particular cases
arose on which the House might think such inform:stied oesessary,
it certainly had a right to do so; but it was usireasorlable to re.
quire that the Bank should publish such accounts in the Gazette
regularly every month.
lord ALTHORP (as we understood him) observed that the
Bank might make issues of small notes before the time sibervbeir
power of witting small notes would cease, which would be autticient
to depreciate the value of property to an Incalculable anent. If
the amount of their issueswere published the House would have
the means of guardirg against an undue excess.
Mr. HUSK ISSON observed with respect hi the remark of the
Noble boni, that all who took the same view of the subject with
himself would agree that the amount of hank-notes in circulation
W 341 no criterion to judgeof their excess. The fact stated by the
Hon. Member tor Abingdon was the best proof of the truth of this
observation. If we saw the circulation increased to the amount of
six or seven millions in the course of a fortnight, and the exchanges
still continuing favourable, we must necessarily infer tie
there is
no connexion between the amount of the bank-notes in circulation
and their effect on the exchanges. lie knew that this was a fa-
vourite observation with those who maintained the opposite doc-
trine • but no inference could be drawn from the accounts of the
Bank, when not compared with the state of the exchanges. He
was quite sure that the Bank would do their duty, having regard
to the course of the exchange as the criterion by which they were to
regulate their Issues. When they know that gold is teten from
them in exchange for their small notes, in order to send it abroad,
they must contract their circulation, because more gold would thus
be drawn from them than would be consistent with the maintenance
of their treasure. He protested against any such alteration in the
Bill.

Mr. CALCRA FT observed that there was a clause in the Bill
which obliged the Bank to furnish an account of its issues as far
as regards one and two pound notes; and if it was found netessary
that it should publish accounts of such notes, it could not be
foreign to the principles of the Bill to extend the measure to its
other issues. It would be better to do so for the Bank itself. It
would be a more delicate exercise of the power of Parliament than
to bring in a Bill for the production of those accounts whenever an
occasion 'night occur which might be supposed to render it neces-
sary. Having this information concerning the number of notes
issued, and being at the same time aware of the state of exchange,
it would be pay to judge whether the issues of the Bank had been
excessive or not. ft is true that it is not the increase of six
millions that constitutes an excess ; but these six millions might
have been issued when the exchanges did not render it proper.
The Bank had the power to issue them whether the exchanges were
favourable or not. Under these considerations he would vote for
the amendment if it were pressed to a division. The less mystery
there was in the affairs of the Bank the better it would be for the
Bank itself, and the better it would be for the public ; nor could
the Bank now have any inducement to keep its proceedings secret
at a period like this, when the negotiations of Government about
the purchase of Exchequer bills had made all its dealings so
familiar to us. He had now in his hands a paper from the House
of Lords, relative to the interference of Government about the pur-
chase Of Exchequer bills; and if the affairs of the Bank had now
become so familiar to the public, it was for the benefit of all parties
that there should be none of this mystery.
Mr. PEA RSE observed that the publication of the amount of
issues would only give rise to a thousand false conclusions and rea-
sonings on the subject. It was not for the sake of mystery that the
Bank withheld the account of its issue,, for God knows there is
now no mystery in its transactions. It was more convenient that it
should do so, not to the Bank, but to the public.
Mr. HUSK ISSON could not think what the amendment had
to do with the Bill betbre the House; it would be a great incon-
venience to renew the 17th Geo. 111.
Mr. HUME was surprised to hear the Right Ron. Gentlerrlan
say the amendment had nothing to do with the Bill. The object
was to obtain a return of all the circulation in the country, and he
could not see why it should be refused. It was the practice in all
parts of the world. There was no mystery respecting banking
business in France, nor in America, and he could not see why the
people of this country should not have the fullest information. For
the purpose of giving time to introduce an entirely new measure as
a substitute for acts of the subject of banking, he would move that
the Committee do now report progress, and ask leave to again.
Mr. AM lIERLY would ask what possible harm it would do to
give the public information remeetingthe state of the circulation. Out
of 24,000,0001. the Bank had Issued nearly 20,000,0001. The hank
was making enormous profits by the public, and ought to give
publicity to their proceedings. It should be recollected that the
Bank had not used a proper discretion when exchange was against the
country. One half per cent. would draw the specie of the country ;
one quarter per cent. would pay freight, insurance, anti other
expenses to Paris, and consequently when exchanges were against
the country gold would go out of it. If the state of the circulation
were known, every man would be on his guard, and take proper
precautions. The Honourable Member said he would press his
amendment to a division.

Mr. PEAR;E-eX;gned.
Alderman 'THOMPSON hoped the Honourable Member for
Abingdon would not persevere in his moition. It would be inex-
pedient to compel the Bank at all times to publish the state of their
circulation, although it might be useful that the public should
sometimes know it.•

Mr. HOISHOUSE thought the more was known of the affairs
of the Bank the better, and he should wish to sec the clause ex-
tended to country bankers also. What wss to prevent the country
bankers from failing with 51. notes as well as with smaller notes?
They had no capital, and though he thought it unjust to inquire
into the private concerns of other trades, the peculiar nature of
country bankers, whose business was so connected with the welfare
of the communiy, justified Parliament in requiring from them a
return of their issues.

---
Mr. GORDON could not agree with the Hon. Alderman in
stating that it would net be prudent to inquire too closell into the
affairs pt the banks. He hoped the Hon. Member for Abingdon
would penierere in hie motion.
Mr. MONCK was anxious to know the reel amount of the cur-
rency. It was desirable that the entire amount of the circulating
medium should be known, The issues in 11117 amounted to
31,000,000/. He hoped the Hon. Member for "(Westminster would
persevere In his attempt to get the amount of bank.notea issued by
' country bankers im well as be the Bank of England.
The CHANCELI,OR of the EXCHEQUER could not avoid
reminding the lion. Gentleman opposite that it was competent for
them, at future stages of the Bill, to introduce those amendments.
The present mode of proceeding was only causing delay, and be did
hope they would not pervevere.
Lord ALTHORF would add his request to that of the Chan-
cellor of the Exchequer, that the Bill might be allowed to pass the
present stage ; on future occasions there would be abundant op-
portunities of introducing any amendments.
Sir ROBERT WIL!.ON made a similar request.
Mr. HUAIE said 'if the adjournment were refused he had still
five clauses to tiropme. (A laugh.) He had one respecting depo-
sits. (Here the Hon. Member stated some of his inteoded amend-I
merits.) His wish was to put banks upois a solid footing tlt was
well known that some bankers had isstied tou,peet. who woe not
possessed of 10,000/. The Bill betas the noose be psosidered
good for nothing. There wee so mach ambiguity in the state of
the law that it was quite unintelligible.
Mr. HUSK ISSON was certain a the Hon. Member for Aber.'
deen would consider the magnitude of the subjem lie would not
embarrass their prueeedinge by the course which he had announced
his intention of doing. It was contrary to all Parliamentary priori
plea. All tile present Bill proposes is to prevent the issues of one
and two pound notes. That was the simple proposal bethre the
House, and he considered thmeotber topics quite irrelevant to it.
He did no texpeel such a proceeding.
Mr. HUME said that be bad giyeo notice of by intentions,
and had not taket the house by surpruw.
Alderman WOOD said hut Honourable Friend, dm Member
for Aberdeen. had always shown a teadiness to yield when the
point was only one of form, but the present was one of Oonsi derable
magnitude.
Mr. GORDON would recommend to his Honourable Friend,
the Member for Aberdeen, to bring in five se to bills'. (A
laugh.) Ile hoped his Honourable Friend would yield to the
wishes of the House, his perrevetance would shiner no real pur.
pone of business. At that late hour it was inconsiderate in Gen-
tlemen who had come late down to the Howie to ptolung the die.
cession.
Alderman WOOD insisted on the night et his Honourable
Friend to persevere.
Mr. HUME would take the sense of the Hoot.
Strangers being ordered to withdraw, a division talk place, when
there were for Mr. Hume's motion 11, and against It 66.
When we were readmitted to the gallery.
Mr. GORIXIIiI was addressing the House he said that the,
conduct of the Hon. Member, (Mr. Hume) itu detaining the House
upon such unimportant matters was calculated to bring the pro.
ceding. of the House into ridicule.
Mr. F. PALLIER said that he entirely agreed with his !inn.'
Friend (Mr. Haute) that that was not a proper time to press to--