The Sun.
London, England, 1865-02-11 00:00:00

THE UNITED STATES.

On the motion for going into Committee of Supply,
Sir J. WALSII asked the First Lord of the Treasury for
information relative to the circumstances which have led
to the notice by the Government of the United States of
North America to terminate the convention under which
England and the United States mutually engaged not to
fit-out naval armaments upon the Canadian lakes ; also re-
specting the abrogation of the treaty of commerce between
the provinces of British North America and the United
States by the late Lord Elan; and moved for all papers
and correspondence connected with these subjects.
The hon. baronet entered at some length into details
to show the importance of this subject. He contended that
the greatest advantages had resulted to this country, as
well as Canada, from the convention which it was now
sought to set aside, and that a spirit of great hostility
existed, both in the Northern and Southern States of
America, in regard to this country, arising from the neu-
trality which it was thought expedient to adopt in regard
to the belligerent States.

Lord PALMERSTON said that he did not intend to
enter into any discussion as to the present state of there-
lations between the United States andthis country, as he
did not consider such discussion would
be conducive to
countryr e h aadn beendthe
the public interest. (Hear, hear.) He said
two arrangements entered into between thi
s related
on to
United States. The first was in 1817, and it
the limitation of the naval force which was
to be k
the coasts of the United States and Canada. That w
a convention, but merely a formal arrangement. Ts nothere
was a treaty in 1854, which was a treaty of reciprocity.
With regard to the first arrangement it was merely of a.
temporary character, and the desire on the part of the
United States to terminate it did not prove hostility to this
country. (Hear, hear.) With regard to the treaty of 1854
Government had received no official communication on
the subject, and if such were received the papers would be
laid on the table, and he appealed to hon. members not to
be influenced by paragraphs that appeared in the American
newspapers, or to suppose that they represented cor-
rectly the views of the Government of that country.
COMMITTEE OF SUPPLY.
The house then went into committee of supply, and
Passed the usual general resolution in regard to the
estimates.

COMMITTEE OF BANKS OF ISSUE.
The CHANCELLOR of the -EXCHEQUER moved the
1011°Iving resolutions :-1. That it is expedient to make pro-
vfriosirn eonfeor empowering county banks of issue to obtain relief
of a
certain
restrictions, upon payment from time to time
sation chargeb in respect thereof. 2. Any compen-
Payable
privileged bank fory
tthe Bank of England to any such
notes shall be re
he determination of its right to issue
United Kingdo paid m
of .Grout of the Consolidated Fund of the
adopted
dßritain and Ireland. These re-
solutions had been adob a committee, and were to be
the foundation of a bill which
would afterwards intro-
duce. Tho proposal did not bearho any material or tan-
gible manner on the important qguaersiition of the issue of bank
notes. It was not a measure re
would. it interfere with the existing 1131rgivIculTency bill, nor
beegaes or legal ar-
rangements made with banks. It would
Fast
means of
facilitating the btu;iness of banks of issue.
of all he
would remind the committee that the act oftrltg
issuers of bank notes in the possession of the privileges left the
had theretofore exercised, without giving them th a they
%nee of the countenance of that possession for any gmisvilr-
tne, and imposing on them a limitation with respect to tell
"`-,- of the issue they were entitled to make. The bene-
fit of the power of issue was left in their hands, but con-
-ted with that benefit were serious burdens and restric
and, consequently, some of the banks possessed of
;ssue were so hampered in their banking func-
restrictions, that they showed a disposition

quanta

power of

by tt

to escape from the operation of them. About three years
ago an application was made to the Treasury for the re-
moval of the restrictions imposed by the act of 1844. The

answer of the Treasury was that they could not undertake
to consider the restrictions referred to without also consi-
dering the regulations with respect to the issue, because
both departments were correlative in the view of the act of
1844. Another application was made to him on the part of
the National and Provincial Bank. That b ink was invested
with the privilege of issue to a consider Able amount, and
its operations were large and widely diffused over the
country. That bank signified to the Government its willing-
ness and desire to purchase a release from the restrictions of
the act of 1844, by modifying its issue. Of course, so far as
that bank was concerned, it did not belong to the directors
to speak on behalf of parties other than themselves. But
finding no reason to decline the consideration of the ques-
tion proposed, he felt that it would not be possible to ask
Parliament to pass a bill allowing that particular issuing
bank to place itself under a new condition without
offering similar facilities to other issuing banks. These were
the circumstances which led him to propose the resolutions
upon the table of the house. Those resolutions did not
require any extended explanation, but he would say briefly
what were the leading particulars with regard to the differ-
ence between the present position of the banks of England
and Wales, and the new conditions of all issuing banks
acting under the proposed arrangements. By the present
law a bank of issue was prohibited from carrying on business
in London, it was also prohibited from the issue of notes in
London, and if it was a joint-stock bank it could not issue
notes within the radius of 65 miles of London, nor could it
extend itself to a greater number of partners than six, nor
could it amalgamate itself with any joint-stock bank. The
present issuing banks were looking to the intervention of
Parliament, whenever Parliament should think fit to deter-
mine their power of issue, which they possessed since 1844,
for a statutable title in the way of compensation. Those
banks were also under the restraint that they were not
permitted to transfer the right of issue which they held from
one issuing bank to another. Under the bill proposed the
National and Provincial Bank would have power to open
an establishment in London to pay their notes, but not to
issue them within three miles of it from any part of England
or Wales. Being a joint-stock bank, they would be released
from any restrictions as to the number of partners. And
another proposal of the bill was, that banks acting under
its provisions shall take a lease of the right of issue for • a
certain number of years, and that right shall only be taken
from them on the payment of a certain compensation.
Those banks coming within its provisions shall have power
to purchase the right of issue of other bankers, and it so
far altered their issue that all existing banks could dispose
of their right in this respect. They must also pay to the
State, as compensation for stamps on their notes issued, £2
ss. per cent. on the amount, to be ascertained in the manner
prescribed by the bill. These were its principal provisions,
but there was another as to the mode of issue in cases
of bankruptcy. In the event of any bank included in its
provisions becoming bankrupt, the bill allowed a certain
sum for compensation for its amount of issue, to be paid by
the State and chargeable on the Consolidated Fund. These
were the principal provisions of the bill, and it was there-
fore unnecessary to detain the committee at any greater
length.

After a few further explanations by the CHANCELLOR of
the EXCHEQUER, in reply to Mr. CAVE and Sir H. Wu,
Loucamx, the resolutions were agreed to.
HER MAJESTY'S REPLY TO THE ADDRESS:

Lord PROBY appeared at the bar and jead her Majesty's
reply to the Address of the house, in which she said—" I
have received with much satisfaction your loyal and dutiful
Address. I thank you for the assurance you have given
that you will direct your earliest attention to measures of
public usefulness, and you may rely on my desire to pro-
mote the happiness and prosperity of all my subjects."