The Sun.
London, England, 1840-08-31 00:00:00

The Commerce upon this document asks—" Is it
true that reiterated declarations were made by the
Grench Government that it had nothing to say against
the arrangement which the four Powers wished to im-
pose upon Mehemet Ali ? Is it true that the French
Government promised in no case to oppose the
measures for compelling the Pacha of Egypt to
accept the treaty of London? Is it true that it
was said that the only motive which prevented France
from joiningthe other powers, and taking part in coercive
measures against Egypt, was dictated by considerations
of different kinds—in other words, by the fear of de-
claring itself too openly to the country ? And, finally,
is it true that the Ministry has submitted to the un-
heard-of-humiliation of being told that the powers might
expect, from its friendship, its moral support, at least
in the hostilities which had been resolved upon against
Mehemet Ali ?"

The official evening journal, the Moniteur Parisien,
contains the following :

" Several journals -are urging the Government to ex-
plain itself relative to certain reports, such as the des
patching of a Turkish plenipotentiary to notify to the
Viceroy the treaty of London, and the order given
to Admiral Stopford to act immediately. It ought
to be borne in mind that the Government cannot
every day and instant explain itself respecting re-
ports which are in circulation. To affirm or deny
them is equally serious, and sometimes impossible.
The public may be assured that the Government will
not conceal any authentic fact which is highly inte-
resting to it, and the revealing of which would not be of
a nature to impede the march of affairs. Beyond that,
it is the duty of the Government to be silent, however
pressing may be the demand for publicity. As to the
two reports in question, we may say that a Turkish
Plenipotentiary has been sent to notify the treaty to the
Viceroy. The orders given to Admiral Stoptord are
and must be the secret of the English Government. We
believe that those who speak of them do not know what
they are, and exaggerate their character. Without
doubt more than one event may take place in the East ;
it is with that prospect that the Government endeavours
to place France in a condition to guard against dangers
which might menace her honour or her interests. All
parties may be well convinced of one thing. The Go-
vernment is aware of the extent of the responsibility
which presses upon it. It appreciates its duties and
will fulfil them all ; and it reckons amongst the most
sacred that of not leaving France unprepared tor the
eventualities of the future. We continue to believe that
these eventualities will be pacific!"

REPORT OF THE SELECT COM-
MITTEE OF THE HOUSE OF COMMONS
ON BANKS OF ISSUE.

Your Committee, in prosecuting the inquiry entrusted
to them by the House, have examined evidence and
called far various accounts, for the purpose of eluci-
dating the management of the affairs of the Bank of '
England since the last renewal of its charter, and also
of ascertaining the amount of the circulation of the
other banks issuing notes payable on demand, through-
out the United Kingdom, during the same period.
Accounts containing the most minute information,
upon every point which it appeared to your Committee
desirable to call for relating to the Bank of England,
have been furnished by the Bank.
The private and joint-stock banks in England and
Wales have sent, through the Stamp Office, returns of
their issues, from week to week, for the last six years.
A similar account has been furnished by the various
banks in Scotland, which information is the more va-
luable from its never having been hitherto laid before
Parliament.
The Bank of Ireland has sent in returns of its
liabilities and assets for every week during the same pe-
riod as has been required from the Bank of England.
The private and joint-stock banks in Ireland have
furnished accounts of their issues similar to those of
the private and joint-stock banks in England.
Your Committee consider it to be only just and due
both to the Bank of England and to these various
parties to state that the greatest readiness has been
shown by them in furnishing all the accounts which your
Committee have required.
With regard to the evidence which your Com-
mittee have taken, they, in the first instance, examined
several witnesses, who stated generally the evils which
in the last few years had, in their opinion, been caused
by the management of the circulation. They then
called before them two of the Directors of the Bank of
England, who have given detailed information as to the
management of the affairs of the Bank. It was their
intention to have proceeded, in the next place, with the
examination of such witnesses as might have afforded
similar information respecting the management of
other banks of issue. Towards the close, hew-
ever,of the examination of the witnesses on the part'of the
Bank of England, it became evident that it would be
impossible during the present Session to conclude the
evidence of the witnesses connected with the other banks
of issue ; and, under these circumstances, your Corn.
mittec thought it more advisable to postpone the exa-
mination of this class of witnesses, hnd to summon one
or two persons who were known to have paid particular
attention to the management of the Bank of England,
and whose evidence upon this point it was, therefore, de-
sirable to have before them.
Your Committee trust that this statement will suffi-
ciently account for their not reporting any opinion to the
House on the main subject of their inquiry ; and they
feel that they shall best discharge their duty, by merely
submitting to the House the evidence which they have
taken, although they are fully aware of the imperfect
character of that evidence, arising from the circum-
stanco of their being prevented, by the approaching
termination of the Session, from examining witnesses
whom they proposed to call, on other important branches
of their investigation.

They also submit, in the appendix, the accounts to
which they have before referred ; in which, as well as
in the evidence, they feel confident that much valuable
information will be found upon the subject of their in-
quiry : a renewal of which they would earnestly recom-
mend to the early attention of the House in the next
session of Parliament.
In the course of the inquiry into the management of
the affairs of the Bank of England, the attention of
your Committee has necessarily been directed to the
principle by which it was stated in the evidence taken
before the Bank Charter Committee, in 1832, that the

Bank was in ordinary circumstances guided in the re
gulation of its issues. The principle has been re-stated
to your Committee, in Mr. Horsley Palmer's evidence,
in the following questions and answers :
" Chairman—As it was mainly your evidence given
before the Bank Charter Committee in 1832, which
contained the exposition of the principle by which in
ordinary times the Bank is guided in the regulation of
its issues, will you have the goodness to re-state that
principle to the Committee ?—I will re-state it in as
nearly the same words as I can. The principle, with
reference to the period of a full currency, and conse-
quently par of exchange, by which the Bank has been
guided in the regulation of its issues, always excepting
special circumstances, has been to retain an investment
in securities, bearing interest, to the extent of two-thirds
of their liabilities, the remaining one-third being held in
bullion and coin ; the reduction of the circulation, as far
as may be dependent upon the Bank, being subsequently
solely affected by the foreign exchanges, or by internal
extra demand.
" Did you not also state it as desirable, in ordinary
circumstances, that the securities should be retained
at nearly the same amount ?—Yes ; the object of re-
taiaing a fixed amount of securities by the Bank at the
period alluded to, and continuing it afterwards, as far
as may be practicable, is to throw the action of the
in Tease or decrease in the circulation upon the public,
with reference to the state of the foreign exchanges,
in the import or export of bullion.
" Are the answers which you have now given a fair
exposition of the principles upon which the conduct of
the Bank has been regulated since the period of the
renewal of its charter ?—I should say certainly, always
taking into consideration the extraordinary circum-
stances that have intervened."
Your Committee would upon this point wish to call
the attention of the House to the evidence of the two
Bank Directors who have been examined, Mr. Horsley
Palmer and Mr. Norman, from which it appears that
in several instances since 1832 the rule then laid down
has not been adhered to ; and doubts have been ex-
pressed as to the soundness of its principle as applicable
to the Bank of England, from its mixing up deposits
and circulation, It appears, however, at the same time,
from the following questions and answers in Mr. Nor-
man's evidence, that the Bank Directors conceive that
this rule has received some sort of legislative sanction,
in consequence of which they feel bound to adhere to
it, as nearly as circumstances will permit, and that on a
particular occasion they were fettered by this impres-
sion
" Referring to the accounts of the Bank, does it not
appear that the drain, in the first quarter of 1838, fell
almost entirely upon the deposits of the Bank, and in
no degree upon the circulation ?—I believe that it fell
almost wholly upon the deposits.
" The effect, then, which you anticipated in a former
part of your evidence, from any reduction of circula-
tion during a drain, did not take place during that
quarter ?—No, not to any considerable extent.
" Would it not have been expedient that the Bank
should in that quarter have taken some further measures
for the reduction of the circulation, looking to the rapid
drain which was going on ? The Bank considered
itself at that time bound to adhere as nearly as it could
to the principle of holding a fixed amount of securities,
that principle having been to a certain extent recognised
by the Legislature and the public; but if lam asked
now, with in) present experience, whether it would not
have been wise in the Bank to have taken earlier mea-
sures, I must say that I think it would have been wi▪
se
so to do."
Without entering into the question either of the
soundness of the rule, or of the degree of sancti▪
on
which it may be supposed to have received from the
Legislature, your Committee are clearly of opinion that
such an impression on the part of the directors of the
'Dank of England ought not to prevent them from