The National Register.
London, England, 1811-05-12 00:00:00

296

THE

..r •

France had produced such diaassrous consequences to her trade'
what livx tom: ist this- cetontrit,-ruder all the circum-
stances_of the present time, if the Bank a_Euw4ll4..Titte to .
WithdraiV fte paper, paper which it had been said formed the
Whole circulating medium of the country ? Would it not ruin .
the manufactures? Would it. pot destroy the agriculture ?
Would it not dry up all those sources of wealth which enabled e'
this country to make exertions proportioned to the exigencies of
the awful period in which we lived ? And for what object was
Parliament to incur the risque of all these dreadful calamities
Why, for the purpose of making an experinent to bring the rate
of exchange nearer to par !! But the Gentlemen on the other
side, in calling upon-Parliament to be guided by the wisdom of
our ancestors, had referred particularly to the events in 1196 and
1797. If there was any one passage in the Report which excited
his astonishment more than-another; if there was one part of it
more unguarded, more inaccurate, more unfounded, than ano-
ther, it was that part which referred to the transactions of the
period alluded to. Unless he totally misunderstood the question,
the case which had been quoted, it' it applied at all to the present
quection, made directly against the arguments of those by whom
it had been adduced. [Mr: Perceval read an extract from that
part of the Bullion Rey .rt, which stated, that soon after the
establishment of the Bank of England it.; notes were depreciated,
and considerable embartasstnents ensued; and that those embar-
rassments had been removed by a new coinage, and by reducing
the quantity of Bank notes.] The two operations, in toe opinion
of the Committee, which relieved the Batik in 1696 and 1697,
were the coinage, and the diminution of flip number of Bank
Dotes, and this was recomtnended to the notice of the House as
a eas..2 ict po:nt. Ile beued to observe, however, that if it was
a case is point, that that cete had occurred when there was no
upon the cash payments of the Bank. fist it was
skid there was at that time an excess in the issue of B nk notes.
Ile could hardly believe that the Bank would so soon after its
establisment issue more notes than was necessary ; the real fact
was not that the Bank had issued more note.; than were neces-
sary, but that they had isstied more than th .ir credit would
bear. Now, what were the remedies? First, die coinage. The
new coinage certainly did turn the balance of exchange in our
favour, because almost the whole of it immediately found its
way out of the country. The other remedy applied was the-
diolinution of the Bank notes. Now, vrliat was the fact? The
tal of the Bank originally was 1;100,0001.; in order to relieve
its embarrassments, the capital was augmented to two millions,
Rost the subscription for the additional VOUIOOI. was to be paid
four-fifths in Exciter': et- tallies,sand one-fifth in, Bank notes; so
far, therefore, the Gen lemon were right; one-fifth of the value'
of 800,0001. in notes was taken out of circtilation: but. by the
very same operation the Bank were authorised to issue fieo,oool.
In flesh notes, h 0 that the diminution of paper, which had pro-
duced such beneficial effects, consisted in withdrawing about
260,,, COI. worth of notes, and issuing fresh one's to •the value of
sco,coQl.! I This was the precedent which. the Committee'
bad recommended to be folllwed in* the present • instance;•
for the purpose of diminishing the cwantity of paper in
circulation ! [Mr. Perceval then read an extract 'from
Tindars Continuation of . which stated that the'
great commercial embarrassments in thg reign of, King.
William had been relieved by an issue of paper,F—Tre Right
Hon. bent. then took a view of th cab, of Ireland in 1804

which had been so often allud ti to. The evil then cum *tine 1
. of arose, not from excess of pver, but from a want of court-
latoce. I hat It %ao Lut. o.le effect of ;41 excess of paper. Was
proved, by the cireun%stanee of its being
.ctirec! befc,z.e any ditni-
nution of paper had taken *place. Subiecriently there was a
small eihniatition in the paper currency,. and then the -exchange •.
became nfavourable to trelzwd. He did not mean in say thin . '
this was cad by the redUction of paper, ti.ough afterwards,
NV 11C11 isAues of paper increased, the exchange recovered.
From the v.ew which he took of thief • sitbjr,ct, he itpprehended!
that there could be nothing. found in, the direr eases of the Batik
of Ireland, the ',lank of France, and the 'kink oFEngland, ;hat
could eilcourage them tci adopt the ofc,..nduct reconialended
by the Committee. *Adverting re what had been st"4:-Artth re- •
speet to the dollars, he wished to know whattimstpwho
sureti tit* late proceeding were of optiii:on should have
.leer•
done on such anoccgion ? that a soinctbing.svits necessary to!
be done, be believed none could deny; he hAd no-hesitation
trt saying. the measure adopted was stiA.ly prefereed*so-iny
• tither. On the subject of the ewhatiges, there was one point
Ishieh he wished to bring before the Committee. How • was it •
posslide the ptihelpie of the Bullion Ciuumittee could he right,
erimoly;
.that the excess aNd depreciation of Banct-vaper•eould.
occasion p'll the difficulties which bad occurred within- the ;few
years which lied elapse 4 One; the pas.shig of the 13auk R.tsric-
. Von Act That,A;A, ai they ail knew. was made in 1741.. "No
Alteration in ti.e et 04;111E6 was 'Mt for' some time; hitt in the!
'so° and the rcity cert. and givitt demi...lld for
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