The Sun.
London, England, 1847-12-01 00:00:00

thought he had shown they had acted successfully.—
(Hear, hear.) But it had been urged that they ought to
have acted much more largely, and that it was the duty
of the Bank of England to have discounted every bill
that came to them. They did so ; but then parties said
it was usury to charge more than four-and-a-half or five
per cent. If such demands were conceded, it was useless
to talk of the convertibility of paper. There would be
a time, early or late, when the Bank would hare been
compelled to take some stringent step ; but it was said
that such a step was unnecessary when the Bank had
8,000,0001. of gold in its coffers. Why, it was the pos.
seassion of that sum of 8,000,0001. that gave safety to
the step which was taken.—(Hear, hear.) The Govern-
ment had felt assured that with exchanges in favour
of this country, with 8,000,0001. of gold in the Bank,
that there would be an influx of bullion into this coun-
try before any drain could be made on the gold in the
Bank. And to what were they indebted to the posses-
sion- of that 8,000,0001. but to the operation of the Act
of 1844?—(Hear.) If the Bank had gone on during the
summer discounting at four- and-a-half or five per cent.,
what check could have been given to over-trading and
over-speculating ? If railroads could have gone on
borrowing at four and five per cent. by an unlimited issue
of notes, they alone would have swept away more titan
the whole circulation.—(Hear, hear.) If by a drain of
bullion the amount had been diminished to 2,000,000/. or
3,000,0001., could anybody doubt but that, under the
alarm and want of confidence which existed at the time,
there would have been a run upon the Bank for gold ?
Former experience had shown that such would have
been the case, and, instead of taking the measures they
had, the Government would have been in imminent
danger of being compelled to suspend cash payments, and
to have asked Parliament for a Bill of Indemnity. If
they had avoided that danger, it was to the operation of
the Act of 1844 that they were indebted.—(Hear,
hear.) He was not prepared to say that he
thought all the difficulties and all the pressure
was over. He had said last year, that, from
the changes which had taken place, this country had
a hard time to go through. He was of the same
opinion still. He did not, like some, attribute the
present pressure entirely to the adoption of free-trade
principles. There had been the pressure of a panic in
1825 and 1837, under a protective system. Now there
was a pressure and a panic in the state of change from
protection to free trade, through which the country was
now going. His belief was, that when the s) stem of
free trade was fairly established, the prospects of the
country would be fixed on a firmer basis than ever, but
at the same time he never had expected that the change
would take place without being accompanied by some
evil. Neither ought the present state of things to be
attributed exclusively to the Act of 1844. Why, after
the passing of the Act of 1819 there was hardly a cala-
mity which affected the agricultural, the commercial, or
the manufacturing interests, which had not in like man-
ner been attributed to that measure. But now the ma-
jority of the world considered that the Act of 1819 had
operated moat beneficially to this country ; and in like
manner he anticipated that when the pressure of the
present time had passed over, and people looked back
at the events of the last few months, they would
be inclined to entertain similar opinions of the Act of
1844. A complaint had been made that the operation
of that measure had nut saved this country from com-
mercial revulsions aad distress. He for one had cer-
tainly never held out any expectations that it would do
so. All he had said was that it would prevent over-spe-
culation, by the absence of an ill-regulated currency.
Mr. Jones Loyd, in the pamphlet he had already quoted
said that to guard against commercial revulsiona was not
the object of the Bill. That was so: the object was to
combine a paper with a metallic currency. There were
objections to a metallic currency, inasmuch as it was
not the cheapest or most convenient, but it was the
safest. It was the currency of the two greatest com-
mercial communities in Europe—Holland and Hamburgh,
and yet those countries had not been free from commer-
cial revulsions. To say that, under such a system,
expansion of the currency was prevented, was contra-
dicted by the events of the summer of 1848, when a
larger amount of notes was issued. He had never
prophesied or thought that the operation of this system
would be other than it would be under a metallic
currency. Whatever evils might happen under a metal-
lic currency might happen under this; whatever advan-
tages might be attained by a metallic currency might
be attained by this, with the certain addition of economy
and convenience. It was perfectly clear that the amount
of reserve in the Bank of England, in the summer of
1846, had prevented any action on the notes in the
hands of the public for some considerable time.—(Hear,
hear.) It was perfectly consistent, he admitted, with
the provisions of the Act that no such action on the
public should take place; and there was, therefore, no
legal obligation upon the direction of the Bank to act
otherwise than they had done. He thought it would
have been wiser and better if they had given timely
warning, and had taken longer precaution.—(llear.)
But the obligation to do so rested simply upon the dis-
cretion of the directors of the Bank; and he was far
from saying that that discretion had not been wisely
exercised. It was utterly impossible that an establish-
ment which possessed so large a capital should
not be most powerful, either for good or
evil, upon the commercial interests of this
country ; and it was a matter of vital im-
portance, that the management of that banking
establishment should be conducted soundly and dis-
creetly.—(Hear, hear.) He feared that recent events
had somewhat shaken the confidence of the public in the
direction of that establishment.—(Hear, hear.) It
might be difficult to suggest a mode of improving that
direction ; but he was certain that this was a subject
well worthy consideration, and might be a fit subject for
inquiry in the Committee he was about to move. Though
the Bank Charter did not expire for some years, ho
believed the B ink parlour would be fully disposed to
concur in any measure which the wisdom of Parliament
might suggest.—(Hear, hear.) He believed they found
some difficulty in inducing persons to undertake the
heavy responsibility of the office of Governor of the
Bank of England—(Hear, hear)—and he was assured
that it was a subject to which the Bank parlour would
most willingly direct their attention, and that they
would gladly co-operate with Parliament in anything
that might be considered an improvement in its manage-
ment.—(Hear.) He was anxious not to go further at
present into those controverted subjects connected with
the currency ; he had referred to them, as he promised
and intended, no further than was necessary to illus-
trate the view which the Government took of the pre•
sent state of affairs, and the view which had induced
them to pursue the course they had pursued. He was
not ignorant that many men of great authority, great
experience, and great practical acquaintance with busi-
ness, differed from the views he had ventured to state.
lie believed they differed also in na inconsiderable man-
ner among themselves as to the course that ought to be
pursued.—(Hear, hear.) In the opinion of Government
it was most desirable that all these views, differing as
they did from each other upon a subject of vital import-
ance to the country, should be well and carefully
weighed.—(Hear, hear.) They had thought it unad-
visable that, so soon after events which had excited so
strong a feeling, any attempt at legislation should be
made, because on no subject was the exercise of calm
deliberation and impartial judgment more urgently re•
quired.—(Hear, hear.) But the Government did think
it expedient that an inquiry should take place when all
these events were fresh in teen's minds, as they
were at present.—(Hear, hear.) He thought no
one would deny that, in the course of the last year
and a half, phenomena had occurred well calculated
to throw light on the subject, and to illustrate any
opinion which gentlemen might have entertained on the
question. Few of us could say we had not learnt some-
thing by the experience of the last 18 months
(Hear, hear, and a laugh.) And, for his own part, be
thought it most desirable that a Committee, composed of
persons of various opinions, taking different views of
the subject, should inquire into the matter, and that, by
the collision of their opinions, and the result of the evi-
dence that might be laid before them, they might be
able to throw additional light upon this complicated and
difficult subject. Many of those gentlemen who had
taken a most decided part against the Act of 1844 in the
course of the last session, had voted for that Act three
years ago. Amongst those, were one of the Hon. Mem-
bers for Lincolnshire, his Hon. Friend the Member for
Oxfordshire (Mr. Henley), and one of the Hon. Mem-
bers for the City of London.
Mr. HENLEY said he had not voted for the Bill of
1844, but for Mr. Munta's amendment.
The CHANCELLOR of the EXCHEQUER said
there were several Hon. Members who had voted for
that Bill at the time, but who had since seen reason, and
doubtless good reason, as it appeared to them, to change
their opinions. All he wished to say was, he trusted
this inquiry would not be considered in any party spirit.
—(Hear, hear.) Ho did Not deny that he should go
into Committee with an opinion certainly biassed one
way by the result of the inquiry made in a former Com-
mittee, of which he bad had the honour to be chairman;
and he certainly shoald go into that Committee, as he
trusted and believed every other Hon. Gentleman would
do, with the fullest determination to weigh impartially
the whole of the evidence that might be presented, the
whole of the considerations that might be laid before
them. He believed that such an investigation, conducted

before a Committee fairly and impartially constituted,
would, in the end, tend to promote the bests interests of
the country. He would now conclude by moving the
resolution of which he had given notice, for the appoint-
ment of a Committee.

The SPEAKER having read tho resolution from the
Chair,
The CHANCELLOR of the EXCHEQUER again
rose, and said, an Hon. Friend had reminded him that
ho bad omitted to state that, as to taking any course
immediately, it was not the intention of the Government

to propose any measure at present. They believed that
there was not the slightest probability of any such mea-
sure being required. The state of the Bank was such
that no person could entertain the slightest apprehen-
sion as to its power of meeting any demands that might
be made upon it. The amount of the Bank's reserve,
last night, was 5,800,0001., and of bullion 10,600,000/
(Hear, heat.) The mere statement of these sums was a
sufficient warrant to the House that there was littlo

probability of any occasion f; alarm. Tho bullion in
reserve amounted to six millions and a half in reund
numbers. It should also be remembered that Parlia-
ment was assembled ; and if any emergency, the possi-
bility of which he certainly could not contemplate, should
arise, Government would have the power of immediately
applying; to Parliament to sanction any measure which
in their opinion might appear to be necessary.—(Hear.)
Mr. J. WILSON said, it was because he cordially
agreed with the Right Hon. Gentleman who had just
spoken, in the appointment of a Committee, that ho
thought it necessary to move the amendment he in-
tended to move before he sat down. He thought that
the Right Hon. Gentleman d
had mae his motion incon-
veniently extensive; for, from the terms of it as it then
stood, the time of the Committee might be occupied by
a variety of topics; and the object he had in moving his
amendment was, to obtain the sanction of the House