The Sun.
London, England, 1847-05-11 00:00:00

TELE SUN, LONDON, TUESDAY EVENING, MAY 11, 1847.

interest, and had said nothing either that had to do with
the currency of the country. He expected that the
Right Hon. Baronet would hare assigned some reason
for the changes which had taken place since 1844, which
would have been an explanation of the extraordinary
pressure which was now felt ; but he had not done so.
He had taken the trouble to make a long extract from his
own speech, certainly. In 1844 the Right Hon. Baronet
the Member for Tamworth (Sir R. Peel) had
ma►le an alteration in the law, and had separated the
banking from the issue department, he though& very
wisely; but he was not prepared to say whether the
reserve of fourteen millions was sufficient; but look-
ing at the large amount in the coffers of
the Bank, he should say that was ample.
The deposits which appeared to be in the coffers of the
Bank were more than those of former occasions.
Be that, hoWever, as it might; having provided a
bank to settle or fix the amount of paper issue, it
mattered not whether that bank were continued
at the west or the east end. There was a bank estab-
lished for doing that, and that being done, what was the

next great change that took place? It was to place the
Bank of England,with all her resources, exactly in the same
position as any other bank in any other part of the country,
leaving her to limit the extent of her discounts at her
own discretion. It was expected that such an

arrangement would have the effect of preventing a
pressure of the kind the country was now witnessing.
In that respect it had failed. It might be owing to the
conduct of the Bank authorities therwelves, but he
did not possess sufficient information as to the
contents of their papers and books to enable him
to criticise their conduct. He had no hesitation
though in stating that it was never held out by any
body at the time the Currency Bill was passed
that the Bank of England was to make the
same advances as before upon good bills. He
must say that such a proceeding as that just now
stated was never contemplated ; as far as he could
recollect the speeches of the Right Hon. Baronet, he
never made any speech anticipating such an advance,
On the contrary, he found that he provided cash in the
Exchequer to render it unnecessary to have these calls.
He believed that when the Right Hon. Baronet lett
office there was money in it to pay any demands
made upon it. They had been told that the
Bank had timely notice. Yes, he knew the quarters
were corning round ; but what notice had they of the
present state of the money-market ? Could any
man have believed that circumstances would have
led to the present pressure ? He considered
that it was not fair to tit e Bank of England to have given
such an interpretation, which was decidedly incorrect.
He would be free to ;ay that the publication of the
Bank accounts, showing a deficiency, had spread
an alarm in the country. He believed that more of
this pressure arose from alarm than actual scarcity,
and it only showed what a delicate thing credit is to a
country like this. He might probably err in the views
which he had taken. He had approved of the
first step taken by the Right Honourable Baronet,
but he objected to two measures ; the one was his
placing the Bank of England in a different situa-
tion from the other banks. It was not fair
to the Bank of England to require them
to pay in bullion, while the others were
permitted to pay in Bank of England notes, thus
rendering it necessary for the Ba❑k of England to
hold bullion for the greater portion of the other banks.
He objected to this as extremely prejudical to the bank.
The next error which he considered Goiernment
committed was that they should have any con-
nexion whatever with the Bank. If they
wished Government to stand upon an independent
basis, they must not permit it to depend on the
Bank for the payment of its dividends. One
of the first and most important duties of
the Chancellor of the Exchequer was to see
that Government had the means to pay all the just de-
mands which might be made upon it. If this were the
case there would be no embarrassment or difficulty felt
in the money-market, and the Bank would be free to apply
itself to the accommodation of the public. He believed,

therefore, that this dependence on the Bank was a great
error. There were other measures also to which he
wished to direct attention. The currency of this country
was gold. They had a gold currency based on paper.
Hon. Members should bear in mind that the Bank had

14 millions of issue based on securities, and for any excess
beyond that they must have gold in their coffers.
Be this sum large or small, it must be paid in gold. He
asked the Government why gold should be placed on
a different footing to other articles, such as tea, coffee,
and sugar, on which merchants were allowed to make
issues ? He maintained that free trade should be al-

lowed in banking as well as in other things,
taking cave that the notes issued were to be redeemed
in gold if required. If the Right Hon. Gentleman the
Member for Tamworth could not give a better reason
than had been given by the Chancellor of the Ex-
chequer, he (Mr. Hume) thought they ought
to retrace their steps. At the present time
it was wrong to maintain the issues, when corn
was I2os. a quarter, at the same rate as it was when
corn was only 50s. What hai been the case in Scotland
for the last century? There they had a different
system of banking, and he would ask them to give one
instance (of error which had resulted therefrom. On
these grounds he thought the Government ought. to
retrace its steps, and that the House should resolve itself
into a Committee to investigate the whole question, with
the object of placing the currency on a new basis.
Mr. MASTERMAN said that nothing in the proposi-
tion of the Chancellor of the Exchequer had been stated
which was calculated to alleviate the feeling of uneasiness
that exists in the commercial world. IN fact there ought
to have been a joint consent between the Government
and the Bank. The arrangement made by the Right
Hon. Baronet the Chancalor of the Exchequer would
simply be taking a sum out of the Bank, in order to
place the Exchequer in the situation in which the Go-
vernment ought to be placed without such an effort. It
was not to be expected that at these several
quarterly periods of two or three millions of
deficiency
that the Bank should advance the money
without some Government surety, and he would there.
fore propose some addition to the resolution which the
C. hanceflor of the Exchequer had proposed. It was his
impression that the assistance in the present difficulty
ought to be obtained by some other means, and he would
therefore state that the effect of this addition would be
that the Committee were of opinion that nothing would
tend so much to relieve the present pressure on the
money market as an assurance from the Chancellor of
the Exchequer to Parliament that he had arranged with
the Bank for an advance out of the issue department of
the Bank, such advance to be repaid out of the public
securities like the remainder of the loan.
Mr. GREENE conceived that the Hon. Gentleman
was not competent to move the amendment, inasmuch
as the motion for going into the Committee of the whole
House was for raising the interest on the loan in the
future instalments.

Mr. MASTERMAN said that he had shown that the
amendment was part of the proceeding.
Mr. BROWN was commencing his address to the
House when loud cries of "Speak out " were heard from
several sides of the House, and the Hon. Member stated
that his voice was so weak that he could not exert him-
self more than he did, and then proceeded to say that
one portion of the nation was not consistent with the
other. They were aware that in the export and import
trade there was at the present moment great distress.
Much effort had been made in the provinces, and he be-
lieved that part of the object of the present motion was
to relieve the depression of foreign trade. No confi-
dence whatever was felt in the United States, and though
there were large orders at this time in Liverpool, there
was no suffic'ent inducement to send out the goods. The
case was the same in the interior among the manufac-
turers, and in Manchester there was the utmost
uneasiness prevalent in the several houses with
respect to the imports and the exports, and busi-
ness had indeed assumed a very serious aspect.
The condition of the country was this. The business of
the country was stopped, and day by day thousands of
her manufacturing labourers were being thrown out of
employment. It was a fallacy to tell him that there was
not sufficient money to carry on the business. At pre •
sent there wero from thirty to forty millions of
sovereigns in circulation, end if a portion of that
amount were called in, and one-pound notes substituted
for it, there would be amply sufficient gold placed at the
disposal of Government to enable it to relieve the
country from the prevailing depression without touching
upon the principle of the Bill of the Right Hon. Baronet
opposite.
Mr. NE WDEGATE felt it to be his duty to state
that he had long predicted that the result of the mea-
sure of 1844 would be what it had been so graphically
described. It was impossible that any other result could
happen, for there was no practical man in the country
who did not agree with him, that his anticipations would
be fully justified. Let them, however, not incur greater
future danger by their endeavours to escape from the
past. He was of opinion that an issueootf
beb maintained.ullion
accord-
ing to the present standard could not
On a fair calculation the issue was twice as much as the
bullion remaining in the bank. In 1798, the standard of
Elizabeth, which was silver, was altered to gold. He had
the high authority of Lord Ashburton for such a state-
ment, and that silver standard was one of which the me-
mory of man did not run to the contrary. The Right
Hon. Baronet was in error, therefore, when he said that
the present standard was the one of Queen Elizabeth.
He could not hell) feeling—when he saw the Right Hon.
Baronet prepared to pass the mighty measure of free
trade in the last year, and, at the same time, determined
to maintain a system of currency adverse to that advo •
cated by the advocates of free trade—that the people of
this country were about to be exposed not only to a
foreign competition, but a heavy pressure in their
monetary difficulties. By their present system, accord-
ing to the words of the member for Lancashire, they
must either send their gold abroad or starve the people.
One of the greatest dangers that could befall the coun-
try was to permit to have any power over the Bank of
England ; it would give the executive a despotic in-
fluence which they ought never to possess; it would give
them a control over every man's propt-rty in England,
which was a power which they should never permit
either to be held or exercised. He hoped that the
noble lord at the head of the Government would
deeply consider this matter, and although he
might be compromised by his former votes
and although he may be anxious to retain the assistance
of those who were stiil more deeply compromised, to act
like
home
countryuhagorhkn tee
fromtsatsesnairsatt
tnahhn,eec aneese:eeiheli he
sts
hsbieteryl
pressingfier
forov er
from
uuthhppeeop
nlwieoistu would, and save
thhotheyenabroad,pressure lh
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they
htv
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yer
were met by this Act of 1844. For years himself and
friends had laboured against that policy, and it was with
no exultation that they found their fears realised now.
The Hon. Member proceeded to read extracts from
speeches of Sir Robert Peel delivered in 1819 and 1844,
to show that the effect contemplated by the measures
had not been realised. With the fact before them of
the Chancellor of the Exchequer advancing the discount
on Government bills, with the mills and workshops
standing idle, and yet at the same time nine millicuis

of gold in the Bank, he thought it was high
time to retrace their steps. Could they forget that in
oc-
casion the Bank having only 600,000/. in gold, and
11v803n31
d, wi
havet h o us tt
et hp
pe
ends si
p satya nmceen ot
;f tahned Bt
anl t:
eoTf
iFranceanother they
420,0001. in silver, applied to Mr. Rothschild to change
the silver, and by which he cleared, it was alleged,
tlhoeonl,ootool. trustedthe tehneasrea
ec i rtchueniy stancesh a d
h e e
nw opunlrds
uli en agd.
and place the currency on a better foundation in
re-
gardedfuture.
Scotland. In 1843 they were a contented people,
reconsiderHe
of 1844, they had
Mr. FORBES wished to say a few words as it
but ever since the passing of the
suffered the greatest difficulties, arising from the ope-
ration of the measure, and he trusted it would be re-
pealed. He could not see how the law should be altered
•
in regard to corn and other produce, and gold be made
an exception. He submitted that gold should be placed
on the same footing as any other thing that was con-
tinually changing in value, and he called on the Chan-
cellor of the Exchequer and the Government to reconsi-
der the question, and have the subject fully investigated
with the object of effecting a remedy.
Mr. FINCH said it was no matter what a currency
was made of, provided it fulfilled the function of distri-
bution. The best form of currency for this country was
a properly restricted paper currency, because it would
then protect the commercial interest of the country from
such pressures as that under which it was now suffering,
by affording the amplest facilities for the interchange
of commodities. If, however, they continued the pre-
sent system, none of the speculators would venture to
send out for corn, and the people would be starved. He
did, therefore, hope that Government would take this
matter into their serious consideration. Already ruin
was impending over the manufacturing community, but
still the pressure had not yet reached its height, and it
was the opinion of all parties, that if Government were
at once to take decisive steps, the commercial world
might be restored to a healthy position.
Lord GEORGE BENTINCK said it appeared to him
that the proposal of the Right Hon. Gentleman the
Chancellor of the Exchequer would go but a little way to
improve the state of the country, though it might in
some degree relieve the Chancellor of the Exchequer
himself from immediate and pressing demands. Ihe
Right Hon. Gentleman had not told them whether the
contractors for the loan were prepared to accept the dis-
count he had named. It was certainly below the amount
now required for goods bills, which had only 60 days to
run, and whatever might be the anticipations of the
Right Hon. Gentleman, he very much feared Govern-
ment must yet have further recourse to the coffers of
the Bank of England. The Right Honourable Gen-
tleman had told them that the money market was
easier now than it was a short time back, but
when it was remembered that wheat had reached the
high price of 120 s. per quarter ; that the stocks on
hand were exceedingly low; that the importation of corn
Gwo
rvee r
nna
m do
et
nt cote a
w somes e e
re for
legislative
anxious
m
and cotton was considerably, above the quantities im-
ported in the corresponding period in former years, it
was not unnatural to suppose that the drain of bullion
would
e
some
ti
m to time
enactment.t
prevento c om come
tthe
e I
gf, o
Ittdhreeircnefountrrhseee,
country from being exported the present law must be
continued, but, then, what must be the result of that
continuance ? Why, it would have a tendency to keep
up prices, reduce supplies, and still further depress
trade. The exchanges with America were against Eng-
land, while the exports were falling off to an enormous
extent, and unless something were done instantly the
price of corn must rise and the drain of bullion become
greater. The prospects of the supply of provisions from
Ireland were very bad if not exhausted, for from a re-
turn which he held in his hand he perceived that
in December last, 15,000 dead pigs were sold in the
Cork market, as against 3,000 in the corresponding
period of the previous two years. It was sufficiently
plain, therefore, that the country must depend for its
supplies upon foreign sources. Now this state of things
had not been brought about, as in the year 1825, by
over-speculation on the part of the people, but it was
attributable to the system pursued by Government.
Out of 161,000 mills in the manufacturing districts,
728 were either working short time, or not working at
all, and as that circumstance alone would have a ten-
dency considerably to reduce the exports, he confessed
he did not look for a speedy return of the gold which
had gone out of the country. Money must, therefore,
of necessity rise in price, and, in addition to the manu-
facturing labourers thrown out of employment, it was
clear, that unless something were done, most of the
new railway companies must reduce their operations,
and throw an immense number of labourers out
of work. Now this distressing state of affairs could not
be attributed to want of money, because it was well
known that the coffers of the Bank of England, although
locked up, were full, and all that was wanted to restore
, prosperity • was to set the credit of the Bank and the
country _at liberty. The position of men of the
highest credit was at the present time most perilous,
and he was assured, on the highest authority, that be-
fore a month elapsed, many of them would be obliged
to stop payment, in consequence of the present difficul-
ties. lie was informed, on the best authority, that one
house in Lancashire, which had no less than 60,0001. in
bullion, were unable to carry ou their business. Was
not this, then, a monstrous state of things, that
they were obliged to prevent the importation of
food, and to starve the bellies of the people
for the purpose of keeping up the Bank Restriction Act
of 1844. Mr. O'Connell said in the course of last winter
that rapidity in the supply of food was with regard to
Ireland the essence of humanity and of political saga-
city. He fully agreed with him, and called upon the
Government to have no longer recourse to temporary
measures, but to proceed at once in a rapid and effective
manner to procure food f r the people, otherwise far
more disastrous results would take place than they had
hitherto witnessed. The famine would visit their own
shores, and he now called upon the Government to look
to the great interests of this country—which were not
limited to cotton speculators or to railway promoters.
Those who were walking in the steadiest manner in the
legi•iinate pursuits of trade, would be involved in the
general ruin. Those who traded to the east, and those
who traded to the west, had to suffer in
the impending distress. From all the indica
tion of the late elections in the United States,
it would appear that the tariff of America would become
more restrictive than it was at present, and he very much
feared that America would not be disposed to adopt
those free-trade measures which had brought this
country to such a crisis. Russia, also, that formerly
could not go to war, unless the Barings and Rothschild%
came to her assistance, had shown no symptoms of
meeting this country on free-trade principles. He
trusted, therefore, that her Majesty's Government would
imitate the example of the great Ministers of this
country who had preceded them in power, and would
come forward with measures to take off the present
monetary restrictions; and would also make an advance
of Exchequer-bills to meet the embarrassments of the
country. He hoped they would not persevere with the Act
of 1844, and he was highly gratified to hear the Right
Hon. Gentleman (Sir R. Peel) say;that no feelings of pater-
nity would induce him to advocate its continuance if it
reared to be mischievous in its operation. Now he
1) •
(Lord G. Bentinck) thought that this dangerous opera-
tion was discernible in the complicated embarrassments
in which they were at present involved, and that all
these indications were grounds, at any rate, for the
suspension of the Act. The Noble Lord then cited
some statistics to show that the Bill would become more
restrictive in future than it was at present.
With regard to the conduct of former Ministers,
he found thst in 1793 Mr. Pitt came foward
with 5,000,000 of Exchquer-bills to relieve the
then monetary pressure of the country. In 1816, when
there were 2,000 bankruptcies, cash payments were
postponed; and in 1819 further relaxations were afforded.
In like manner in 1825, and in 1826, Mr. Huskisson
issued a number of bank notes to relieve the embarrass-
ments in which the country was then involved. Lately
the Bank of Fiance was much in the same predicament
as they were at present, and it got 800,0001. as a loan
from this country, which greatly relieved the pressure
under which they laboured. To show the effect of this
credit to the Bank of France he would just state that
200,0001., the last instalment of the 800,0001, had never
been called upon, as the pressure ceased to be felt. Now,
if the same system of credit was applied to this country,
he had no doubt that the same results would follow.
They had now three years' experience of the Bank
Charter Act, and they found that its influence was most
injurious, and that, like the barren fig tree in the vine-
yard, it deserved no other fate than to be destroyed for
its unproductiveness.

Mr. CARDWELL said, he could not but coincide
with the Hon. Gentleman who had addressed the House,
that when an Act had been passed, and had been
found to be impracticably inoperative that then the time
for its repeal had arrived. The Noble Lori opposite,
who had voted for the Bill when it was brought forward,
would allow him to say, that those who heard his pre-
mises must have been most grievously disappointed
at the conclusions to which he had arrived. He (Mr.
Cardwell) had heard that Noble Lord make statements
in which he concurred, though he totally differed from
the results which ho drew from those statements. That
Noble Lord had said that he saw no reason why the pre-
sent distress should be permanent. All his suggestions ,
had been directed to the circulation of the currency.
He believed that those who directed their attention to
this subject would find it to be the fact that they never
would be able to extract any artificial advantages they
might arrive a t.—(ldear, hear.) Adam Smith had
likened the currency to a wheel, which in its course
spun round anything that was placed upon it. They
had a certain quantity of articles, and currency was the
wheel that bore them round. What was the cause of
the pressing under which they laboured ? Not long ago
they had bad harvests. This country undertook, under
an intoxication, to execute larger works than it or any
other country was capable of performing at
that time. The predictions of the time had
been realised, and the country was labouring under the
effects of that intoxication. He found that the Bank of
England at the time had not contracted its issue at that
time when the danger began, and when considerable as-
sistance was demanded. He thought, in the respect to
currency, that in the first instance they should have
truthfulness for their standard, and in the next

instance economy in its application. With
regard to the first they had adopted a measure which
was merely a complement of a preceding measure,
namely, that of 1839. A tetroation had been offered
to individuals which was too great for individual pru-
dence, and circulation was increased at the very moment
when it should have been diminished. But they were
in great danger, therefore it was a mistake to say that
there was any new principle in the Bill of 1844. The
effect of that Bill was to drain the gold in the country,
which went into the private coffers of the bankers of
England and Ireland. That Bill had saturated the coun-
try with gold. It was now said that that Bill had
done much _mischief because it contracted circulation.
lie contended that it they send abroad gold they
diminished the circulating medium of the country. He
thought, therefore, that the effect of the Pleasure would
be the direot reveres of what no asserted.

After a few words from Mr. BROWN,
1 Gentlemanr.BAlLlNG
whosaid had just addressedthathecouldnotco thncure Housewiththe
Hon.
(Mr. Cardwell). Other countries wanted corn, other
countries were importing corn; France wants corn, and
is importing it, but in France there is not such a state of
financial difficulty. It might be said, that it was the
metallic circulation in France which effected this, true
it was that there was a larger proportion of metallic
currency there than in this country, they had
eighty millions of gold for fifteen millions of paper,
while we have thirty millions of paper to fifty millions of
gold. With regard to railways, he was one of those who
believed that railways had been carried to too great an
extent. At the same time he did not underrate the great
advantages of the economy of labour, and the develop-
ment of the resources of the country which were obtained
from it.—(Hear, hear.) People had invested their
money in securities, which were unavoidable, and there-
fore he was of opinion that railway enterprise had been
carried too far; but there had been other times when there
had been speculation twice as great, but there never has
been such a want of power to meet the engagements of
the day. It was not the Bank of England which had
mismanaged the matter. He did not mean to say that
the reduction of interest was not a wise measure ; he
believed that it was. It there was any principle in the
charter of 1844, it was this, that the bank should in-
crease its paper circulation in proportion to the bullion
in its coffers. There may have been want of discretion,
but it was not such a want which produced this monetary
pressure ; he believed that the realcause of it sprung from
the limitation of the powers of the bank. The very fact of
a limitation, produced the evil. He did not take any
part in the discussion which arose on the Bank charter,
as he did not feel himself competent to enter upon the
subject of what should be the currency of the country.
He did not mean to set himself against high authorities,
but he would state a fact, that for ten days there was
an impossibility to obtain money under any pre-
tences, and all from the want of power in
the Bank. Well, then, ought not these facts to
be taken into consideration by those who were
the advocates of this proposition. There were sixty
thousand pounds of silver, and not one shilling could be
raised upon it; its owners sent to the bank to buy it, the
bank refused; it dare not, in consequence of its limita-
tion. They might say then, why not send to Hamburgh
or Paris? But bills of a fortnight were even refused to
be discounted. Did they wish to keep an unnecessary
amount of bullion in the bank, until they could
see how far the screw had to be driven until the whole
commercial interest of the country was shaken to its
centre ? They wished by the charter to make trade
secure and certain, why they would make it the greatest
lottery in the world, if they made money bear three
per cent. in April, and in August thirteen per cent.—
(Hear, hear.) There was undoubtedly a great pressure,
and they might make it a panic if they refused to grant
facilities to commerce. The Bank of England should
have power to borrow of other countries, and not
borrow in our own market ; where, the very fact of
it so doing, only increases the scarcity.—(Hear, hear.)
He thought, under the present circumstances, that the
Government ought to have the privilege of extending
the issues upon securities, so as to admit of its granting
larger accommodation to the trading classes. He did
not blame the Government for the present difficulties
which had arisen, only so far as the policy they had
supported ~had contributed to this result. They had
goae on step by step to take duties off a variety of arti-
cles, and so long as business was good all operated well;
but now they found a falling revenue and a disordered
market, with difficulties of such a character as to force
the Chancellor of the Exchequer to take the course
which he had that night proposed. He thought the
Right Hon. Gentleman would have pursueda wisereourse
if he had not taken the narrow view of a needy Chancellor
with an empty Exchequer, but had taken the wide and com-
prehensive range of all the great interests of the country,
in the proposal of some large measure to relieve the
pressure which at present existed.—(Cheers.)
Sir GEORGE CLERK could not agree with the Hon.
Member that the present monetary difficulties of the
country were attributable to the measure of 1844. Under
such a system as would satisfy the Hon. Gentleman,
there would be continual danger of over issues of paper
as no test of any paper that might be issued would exist,
but the alleged solvency of the issuer. The surplus ca-
pital of the country was not an unlimited quantity which
could be increased to any extent by an issue
of notes, but it was limited by the real produce in the
country which was forthcoming for distribution. This
regulated the disposable capital of the country. This
year they had had a scarcity of food, perhaps to the.
extent of twenty or thirty millions. Other nations were
suffering from the same cause. There had also been
large investments in railways. The effect of all these
causes was to restrict the disposable fund for the pur-
poses of trade and the employment of the people.
He could not see how this evil could be lessened
by the relaxation of the present system, and
allowing the banks to discount bills with their notes.
Were this so, the bullion would be all driven from the
country, and a general monetary crisis would take place
like those of 1826 and 1839. Though the issue of one-
pound notes might induce a short period of prosperity,
the day of reckoning would eventually come, and the
distress then be far greater than it could be
under the present system. The only safe founda-
tion for a currency was a metallic basis, and
not one of paper. Certain ho was that the
measure of 1844 was not the cause of the difficulties.
Under these circumstances he very much regretted that
a debate should have arisen on the Bank Charter Bill.

The lion. Member for Huntingdon held a high position
in the commercial world, and if it were true, as the Hon.
Gentleman represented, that that measure had produced
such distressing results, it was his duty to move that it
be repeated, in order that Parliament and the country
might have an opportunity of expressing an opinion on
e relationsun w
the subject.—(Hear, hear.) 'With regard to the question
of the currency, the value of a pound had long been
it would
commercialb
attempted to re-open
settled,
tal ale up panthdeeictoiuvonutrlyd,einftitrheelyy
distress was to be traced to one natural
cause, namely, the country had undertaken too
many heavy works, and, like an individual
who attempt to do more than he had the means to is
on fa yt
that question. The present
ac-
complish, it had overreached itself. The fact was, the
country had embarked in too many railways, and they
must wait with patience till it had recovered its former
flourishing condition. Tampering with the currency
would only aggrevate the evil, and he therefore trusted
the House would adopt none of the suggestions which
had been thrown out upon the subject, but leave it for
time and the natural course of things to restore the coun-
try to a state of prosperity.
Mr. DISRAELI was glad the Hon. Member for Hun•
tingdon had not made the motion of the Right Hon. Ba-
ronet the Member for Stamford, because such a motion
could have nothing to do with the question before the
Committee, and therefore would not have been entitled
to their consideration. The Hon. Gentleman, the Mem-
ber for Clitheroe, had touched upon all those subjects,
which he seemed to think they ought not to treat of.
en but which certainly had no re
The Hon. Gentleman had laid down certain principles
for the establishment of a sound currency, which might
he difficult to challenge,
ference whatever to the circumstances with which they
had to deal. The Hon. Gentleman also passed a very
warm panygeric upon the Bill of 1844, which had it
been discussed would have at once decided the question
they were discussing. The Hon. Gentleman told them
that the object of this Bill was to saturate England with
gold. That might have been the object of the Bill, but
the truth was, there was more gold in the country in Sep-
tember, 1844, than there had been subsequently to the pass-
ing of the Bill. The Hon. Gentleman then endeavoured
to trace the present depression in the commercial world
to the fact, of the alarm not having been earlier taken.
Now he maintained that they had no right whatever to
criticise the conduct of the Bank. The Act of 1844 de-
fined its functions. By that Act they invented for the
regulation of the Bank a machinery that was almost as
perfect as the sliding-scale itself. The regulations for
the issuing department were enunciated by the Minister,
matured by the House, and received by the country, and
they had therefore no right to criticise the conduct of

the Bank, because that conduct had been defined by
themselves. Oh ! but the Hon Member for Clitheroe
said the Bank did not take the alarm early enough.
Well, it was true in the month of August last the
Bank reduced the rate of interest, but he wanted
to know what them was then in the country
which should have made the bank look with
any alarm to the future. It had almost an unprece-
dented amount of treasure in its possession—he believed
perhaps the largest amount they possessed for the last
two years or two years and a half before. It was in
a position to command the precious metals throughout
the land, and being placed in that position, the bank
had a right to suppose that it was justified in assisting
every well founded commercial movement. True, it
might have heard of a Member of that House moving
that the ports should be opened; but did the Right Hon.
Baronet the Member fur Tamworth or the Government
give the proposal their sanction. The bank, too, might
have heard of other Hon. Members complaining of
the coming scarcity, but their complaints were
put down by the Government, and therefore the Bank
had no cause to look with alarm to the future. Ho
wanted to know whether that document, which no one
could falsify, and which any ene could appeal to—he
wanted to know whether it was not a sufficient justifica-
tion of the Bank of England ? There, however, was
the Act of 1844 in a state of distress, and, as a cry must
The charge
be found to come to the rescue, it was found to be the
and cheers.)
Bank of England.—(lfear,
of imprudence on the Bank was first made by the Hon.
Member for Tamworth, and was re-echoed by the Mem•
ber for Clitheroe, and it was asserted on all sides that it
did not take precaution in time. He denied, however,
that these allegations were true, for had it not been for,
the foresight of that body in reducing the rate of interest
in the course of last summer, they would not now be in
a condition to meet the crisis in which the country was
present
at involved_their merchants would not have
scoured all parts of the earth for supplies of food—they
would not have been able to procure 6,000,000 quarters
of wheat to meet their own deficiencies—they would not
now be exporting large quantities of corn to France—
nor would the exchanges in Europe be influenced in their
favour.—(llear, hear.) And though that Act had been
so political, so sagacious, and so beneficial in its opera-
tion, it appeared from the statements that had been
made in that House that the Bank of England was the
g eat criminal, and all upon the authority of the Right
lion. Gentleman the Member for Tamworth. He be-
lieved
if the Act of 1844 was properly examined the
House might be led to a result highly beneficial to the
country. What appeared to him to be imputable to it
was that it could not preventh any of the mischief that
whic was previously in
arose out out of the system
ence, but it could and did prevent the benefits which
from that system. It failed in every obect that
sprung
first 'place they were
it held out. In thetold that it
like the financial disturbance
would •event ything
were called by the name of panic.
and disorders, thatconsequence of the embarrassment of
Now, it was 11 House was led to past the
1836 nal 1839, that the

measure; but he maintained, that if the Bill had been in-
troduced before 1836 or 1839, that the disturbances
which then took place, would have really occurred; and
he would show that by the records of their own House.
The bullion in the Bank at the commencement of the
difficulties in the former year, was 8,000,000/, which,
in the course of one month, it fell to 3,900,0001. Now,
if the Bank had been controled (that was the word)
the same results would have followed. The Hon.
Gentleman then read a statement of the amount of
bullion and the amount of circulation of the Bank of
England during those periods, which, he said, amply,
completely, and indubitably proved, that had the Bank
Act of 1844 been then in operation, it would have had
no effect in preventing or mitigating the embarrassments
which then occurred. Then with regard to controlling
the exercise of the discretion of the Bank, this Act would
not have prevented the evil of 1836. During the drain
of 1839, the Bank was obliged to raise its discount to 6
per cent., and it was only by the agency of the Bank of
, France that it was saved from stopping payment. Now,
see what would have been the result if tho Act of 1844
had been then in operation. The circulation of the
Bank would have been nearly the same as it really
was. It appeared therefore perfectly clear that the Act of
1844 would have operated no sensible difference in 1836
or 1839. Now, with regard to the fluctuation of notes,
with regard to the bullion in the Bank, that was another
part of the office of that Act ; but it as ould appear from
the facts ho had before him that this relative proportion
had never been maintained. On the 21st of September,
1844, after the passing of the Act, the bullion in the
Bank was 15,100,000/., and the circulation was
20,600,0001. But at the close of the year the bullion
was 14,800,0001., and the circulation fell to 20,100,000/.
In January of 1845, the bullion was 14,500,000/. and the
circulation 20,600,0001., and three months after the bul-
lion rose to 16,200,0001., while the circulation remained
exactly the same. So that while the bullion increased two
millions the circulation remained the same as it was
at the previous return. Now, he wanted to know, if
this Act had no power to control the fluctuation? All
must own that it had failed in the objects which it pro-
fessed ; then how could it be proposed to retain it any
longer on the statute book ? They all knew the pre-
sent state of affairs, bordering, as they did, on bank-
ruptcy; and the way in which the Bank of England was
fettered from giving relief in this emergency. With
these facts, therefore, before them, ho wanted to know
what plea could be argued for the continuance of this
Act. It had failed in every respect ; it had failed in
exercising any control in the discretionary power of the
Bank of England; and it had equally failed in regulating
the proportion between the fluctuation of notes and bullion.
All he desired was, to convey to the House, that this
subject was one upon which there could be no second
opinion with sane and substantial men. He thought
the Hon. Member for Birmingham should not mingle
with this subject, matters which were not connected ;
and, he would ask Hon. Members, generally, to
look to Lombard-street. If the Bill had not
produced the benefits it pretended to do,
were they to endure the inconveniences it had pro-
duced? When they could not have a perfect metallic
currency they must consider that they had a perfectly
worthless currency, and they should not pretend to give
the country what no Government could do. In conclu-
sion, he hoped that the House would not arrive at a
crude opinion on this question. He had shown the
House that the measure of 1844 was only a delusion.
It was a reality only in respect to that treasure which
was locked up in the department of issue of the Bank—
it was a reality when the public wanted that treasure to
embark in the ordinary operations of commerce; and it
was ultimately for the House to decide—and he left it in
the hands of the House to decide—whether or no that
treasure should continue to be so locked up in the
coffers of the Bank, as useless to the people as though
it rusted in the bottom of the Thames.—(Hear, hear.)
Sir ROBERT PEEL—I wish, Sir, that the phrase
in the last sentence of the Hon. Gentleman—that he left
the question in the hands of the House—l wish that
that phrase were strictly correct. But, unfortunately,
the Hon. Gentleman does no such thing, as it is utterly
impossible that the House should pronounce any opinion
on the matter. I think we are discussing the principle and
practice of the currency question in the most incon-
venient manner that we can do. The Right Hon. Gen-
tleman the Chancellor of the Exchequer, makes a pro-
position of which, I must say, I cordially approve. An
Hon. Friend of mine attempts an amendment, and he
has not an opportunity of explaining himself before
there is another proposal, therefore it is very improbable
that the House can come to any satisfactory cenclusion.
on the subject. Before the House forms any opinion on
the propriety of taking some new course with respect to
the currency, I hope we shall look at the matter on all
sides on the present occasion. I wish the House to
consider whether or no this is a small modification of the
Bill of 1844, or whether those who press but for that small
modification do not seek to open thedoor for some subver-
sion of that measure. My Honourable Friend near
me proposes that the Chancellor of the Exchequer
should give ihm an assurance that he will not draw
upon the Bank in case of deficiency. But that is a very
small measure. Supposing, however, the Right Hon.
Gentleman able to give him the assurance that in July
he will not require any assistance from the Bank—if
he would give him that assurance, my Hon. Friend
would be content to permit the Bill of 1844 to remain.
My lion. Friend thinks that the Government would act
wisely in taking the course most likely to enable them
to dispense with the aid of the Bank when the next quar-
ter's dividend becomes due. That is the proposal of my
lion. Friend. He who leads the City bankers has no
other proposition to make than that the Chancellor of
the Exchequer should give an assurance that he won't
rak the Bank to lend him any assistance. My Hon.
Friend desires that for this purpose the Bank of Eng-
land should be allowed to issue notes upon the amoui t
of deficiency bills.
Mr. MASTERMAN—Out of the issue department.
Sir R. PEEL—Out of the issue department! That
is a different proposal from what was submitted by my
Hon. Friend.
Mr. MASTERMAN wished to be allowed to exp'ain
what his proposal really was. It was this, that the Chan-
cellor of the Exchequer should apply to Parliament for
power to enable the Bank to take money out of the issue
department, and allow it to be replaced by the growing
revenue, leaving the banking department to manage it-
self.—(Hear, hear.)
Sir R. PEEL-1 thought I heard something from my
lion. Friend that it would be desirable that the Chan-
cellor of the Exchequer should give an as .0 -ante to the
House that he would not borrow money from the Bank
for the purpose of paying the dividends.
Mr. MASTER MAN—From the banking department.
Sir R. PEEL—Yes, the banking department; de-
cidedly so. There was nothing in the proposal of my
Hon. Friend, whatever object he may have contemplated,
with respect to issuing notes from the issue department.
Then followed the Hon. Member for Montrose—
Mr. MASTERMAN—I must say a word as to what I
really did propose, for it does not seem to be properly
understood. What I actually did say was, that I thought
the proposal submitted by the Chancellor of the Exche-
quer would tend to alleviate the inconvenience now felt
by the public. I did not say that it was the best mea-
sure that could be adopted, but I did conceive that a
modified measure of that kind, going forth with the au-
thority of this House, would be extremely desirable
under the pressure now existing. My object in the pro-
posal which I made was to remove any demand of the
banking department upon the issue department, and to
leave the Bank to act upon its own idea of what was
right and proper for the national interest, for I conceived
that the Bank had no power under this restricted
Bill to grant accommodation to the Chancellor of the
Exchequer without incommoding the public.
Sir ROBERT PEEL—My Hon. Friend has con-
firmed my statement, that the proposal he made was,
that the Chancellor of the Exchequer should give an as-
surance that he would not require money from the
banking department to pay the July dividends. Then
came the Hon. Member for Montrose (Mr. Hume). His
proposal was this—that there should be unlimited cons-
, petition in respect to banking.
Mr. lIUME—Free trade.
Sir R. PEEL—That there should be free trade in
banking, and that the country banks should be allowed to
issue 5L notes to any amount, but that they should be
required to pay their notes in gold. I beg to say, that
I do not think the adoption of that proposal would have
any tendency to diminish the present pressure. The
Hon. Member is satisfied with the general principle of
the currency; he only objects to the country banks be-
ing restricted in their accommodation, and not having
imposed upon them the necessity of paying their notes
in gold. There was next the proposal of the Hon.
Member for South Lancashire (Mr. Brown). That
Hon. Member proposed that the Bank of Englandshould
be permitted for a limited period to issue 14 notes, and
that they should hereafter be withdrawn. He might de-
pend upon it, that when permission is once given to the
Bank of England to issue 1/. notes in lieu of gold, he
would find it exceedingly difficult to persuade the House
to retrace its steps, to recal the 1/. notes, and again to
have a gold circulation distributed throughout the
country.—(Hear.) The Hon. Gentlemen the Member
for Rutland admitted that his object is an incon-
vertible paper currency. He says he would have
a limitation of the amount, but that he is in fa-
vour of such a proposition. That was the third. Then
there was the fourth—the member for Warwickshire
(Mr. Newdegate.) The Hon. Gentleman said he must
distinctly deprecate any palliative, or partial measure.
(Hear, hear.) He said there was no more in repealing
the act of 1844, as the act of 1844 was a natural conse-
quence of the act of 1819, which, he said, was a miser-
able failure.
Mr. NEWDEGATE rose amid loud cries of
" Order." He said—l distinctly stated that that
was the answer which the Right Honourable
Baronet gave me in answer to my question in 1844 ;
and that as he admitted it was a failure, I thought I
would take his authority on the subject, and I did so.
Sir R. PEEL—Did not the Hon. Gentleman say that the
repeal of the Act of 1844, alone would be merely delusive, and
that an attempt to increase the standard imposed by the Act of
1819, was utterly impossible ; that the country could not bear
the standard of 1819, and that some entirely new plan must be
introduced.
Mr. NEWDEGATE rose again, and said—The Right Hon.
in
Gentleman has misunderstood me this respect. I said that
the proposition of the lion. Gentleman, the Member for Mont-
rose, for a strictly convertible bullion coin was incompatible
with the standard at present adopted.
Sir R. PEEL—Then did tae lion. Member admit that the
standard of 1819 could be managed ? Did he not say that he had
often heard that it was a new thing to talk of the injury
caused by the Bill of 1819 . Did he not ask me if the standard
of 1819 had not added to the public burdens ? Did he not
say that the evils caused by the measure in 1819 temained,
and that it was not too late to bring consolation to the families
of those who might be no more—(laughter)—but who had
been injured, and that we must reverse the standard of 1819 ?
(Laughter.)
NEWDEGATE again" Order,;" rose amidst loud cries of
M rbut he proceeded to say—l stated that I
heard it said that the injury inflicted upon the sufferers of
temporary— a it fell with them.
th t
1819- was merely
I said that I did not believe that. (Laughter.)
think we are relic nearer approaching to
Sir R.

aiclear understanding than at the time I commenced.—(Re-
newed laughter)—and I must say that I rejoice that the ar-
guments which I thought fell upon my ear, were not intended
to be understood by the Hon. Gentleman as he spoke them.—
(Laughier.) I rejoice at the willingness that there seems on
the part of the Hon. Gentlemen a admit them when they are
no longer affected by subsequent events. I rejoice that he is
in favour of the standard of 1819 —( Hear, hear, and laughter)
—that the Hon. Gentleman occupied that intermediate posi-
tion between an unwillingness to adhere to the standard of 1819,
and a readiness to alter it.—(Roars of laughter.) That
was the proposition made by the Noble Lord ( George
Bentinck ), and the Honourable Gentleman the Member for
Shrewsbury, namely, an alteration of the Bill of 1819, they
were in favour of a convertible paper currency, but they ,
thought that the evils from which we are at present suffering '
may be cured by the simple repeal of the Act of 1844 ; but be-
fore we repeal the Act of 1844, or before we make any modifi-
cation of it, let us well consider the evils under which this
country is labouring ; let us well consider whether or no we
desire to obtain some improvement of the present state of our
finance—whether or no we are not incurring the risk of a sub-
sequent aggravation of the evil ? I don't want any better
description of the present condition of the country, and
the real nature of the pressure with which we
have to deal than that which I find in the able statement of
the Hon. Gentleman the Member for Huntingdon. He says
this country is suffering from unexpected scarcity of provi-
sions. Now that. is the fact, A calamity, of which none of
us calculated has arisen. The Noble Lord (J. Russell)
calculated that the loss of capital in this country, in conse-
quence of the failure of the potato crop, and of the failure of
the crops on which we in this country depend, for instance, has
been 16,000,000/. sterling.._( Hear.) What must be the
effect of the abstraction of capital to the amount of 16,000,0000
but, above all, when it is caused by such a calamity as the
scarcity of food. It is not merely the loss of capital, but it is
the calamity which has caused it.—( Hear, hear.) Is it not
a fact that this calamity has occurred in other countries in the
northern parts of Europe ? How it was that so little
calculation was made last year I know not. Whether
the state of the atmospheric influence which caused the failure
of the potato crop has affected some other descriptions of vege-
table produce I know not ; but what we all know is that in our
own and other countries in Europe, after the harvest had been
gathered in, there appeared no prescience of the calamity
which followed ; not even in this country only, but in ether
countries from which in scarce years we are accus-
tomed to draw supplies. France is suffering, and so
is Holland and Belgium, and as 1 have said
in other countries in the north of Europe—all along the
banks of the Rhine a large portion of the crops have failed.
Even the counties in the northern7parts of Europe have
parted with their crops—particularly rye—and I am told that
the pressure, in consequence, is extremely great upon them ;
and that those countries who have supplied us with grain,
are suffering severely themselves ; and, therefore, we are in
this condition—not only are we suffering from the want of
food, which has led to great distress, but we are informed by
the Noble Lord, that the loss of money has amounted to
16,000,0001. ; but, concurrently with that, that a similar
misfortune had visited other countries in the northern
parts of Europe, and we are dependent upon the United States for
our common supplies, Why, what an effect this must have
upon commerce ! Do not talk of the failure of free trade.
Has it as yet—could it have had as yet a fair trial ?—( Cheers ).
Is 'it not quite clear that the ability of this country and
of other countries to consume manufactured products must
have been materially impaired by the superior necessity which
has befallen us, by having to devote the whole of our available
means to purchase food? Therefore the consumers here and
in other countries of Europe have been compelled to devote
their
surplus revenues to the purchase of the means of ex-
istence. Then, says the Honourable Gentleman, there
never was a year in which speculation ran so high
as in 184.5. If men will speculate, and will run
riot, depend upon it, whatever Legislative enactments
must pass, they must suffer the consequences— (Hear, hear)
—it is inevitable. But, says theHHonorable Gentleman, " I
don't deny the great importance of railways. I admit
b mit that
railways may be the foundation of future prosperity;"
I say, that if the capital of the country ordinarily
applied is in extravagant quantities locked up inrpailwayts
then there would arise a severe pressure in consequence
(Hear, hear;) and in addition to the failure in food, you have
had speculations running riot so far as railways are concerned,
and 1 think in the course of last year applications were
made to Parliament which if they had been acceded to
would have required capital amounting to 340,000,000 i. (as we
understood) for their construction.—( Hear.) Is there no
course concurrently with those to which I have referred, to add
to our difficulties? There has been a failure in that most
im-
portant material of manufacture, the cotton crop ; it has fallen
short far beyond any reasonable calculations, and the conse-
quence of its failure has been an enormous increase in the
price of that material, which is one of the most important ele-
ments of our manufacture ; and therefore we are at this mo-
ment suffering from an insufficient supply of food, and anenor-
mous amount of capital locked up in railways. You may think
it advisable to throw the blame upon the Bank charter of 1844,
but if you had an inconvertible currency, or any modification
of paper and metal, depend upon it, there is no one country in
the world, exposed to the triple operation of such calamities,
which would not feel the greatest pressure, which no increase
of bank-notes could remedy. 1 assure the Noble Lord that
no consideration of personal consistency would induce me to
throw any difficulties in the way of an alteration in the law, if
my experience taught me that it was necessary, and for which
after all Parliament was as responsible as myself. No, I as-
sure the Noble Lord that I claim the same privilege which I
exercised upon the corn law, if experience convinces me that
the interest of the country—in matters of this kind, where no
political principle is involved—require a modification of a
law which I myself have proposed, no personal feeling would
sway me to offer any opposition to such a step, Now, Sir,
with respect to the Act of 1844. The Bank Charter was
about to expire, it was necessary to make some new regula-
tions ; those proposed by me were not adopted without five
years of protracted inquiry. The Committee on joint-stock
banks, which sat during the years 1836 and 1837, collected
the evidence of some of the highest authorities in the country.
and it was upon their testimony that this Act was constructed,
and it was not one of a mere speculative character upon the
currency of the country, without any experience of the past
evils. On the close of the war in 1819, the Honourable
Gentleman says, I dwelt upon the prosperity of the
country, and the triumphs of our army, and our sta •
bility of faith, but I did so as an inducement to the
House of Parliament to sanction the fulfilment of the
promise held out that on :he close of the war ;aid the return of
peace, cash payments should be resumed. I did call on the
people to fulfil those engagements. But did the Hon. Gen-
tleman, when preparing himself upon this subject, forget to
read the history of the years fourteen, fifteen, and sixteen ? Is
he aware that from the period of 1819, which followed the
resumption of cash payments, no less than 240 private banks
failed in this country, and why so? because on the return of
peace they were unable to meet their engagements, and the
altered position of the money market led to such a state, with
which the present, grievous as it is, is nothing to be compared.
Are we to restore the law of 1844, that is to say,
shall there be an unlimited issue on the part of the
Bank ? Shall there be, on the part of the Bank, a right to
issue notes upon their own discretion. We have been told of
what took place in 1837 and 1838; then the bullion was re-
duced to 600,000!. If you do consent to repeal this Act, and
restore the old state of things, you have not the slightest se-
curity against a return of these disasters which took place in
1836 and 1839. The main object of that Act was to prevent,
in times of difficulty, the temptation, which it is so easy to fall
into, that of giving accommodation and purchasing temporary
ease, and afterwards aggravating the commercial pres-
sure which led to the demand for gold in exchange for
paper. It is of the utmost consequence that you
should not be exposed to these other difficulties of a de-
mand for gold. At present there is not the least panic ; there
is not the least doubt as to the solvency of the Bank. There
is, to be sure, severe pressure, but that is all. But what
would be the state of things if there was an apprehension
as to the solvency of the Bank ? What would be the
state of things supposing this Act had not passed, and it had
been in the power of every country bank to foster the spirit
of speculation which existed? It is said that the object of the
Act of 1844 was to introduce a machine which would work
itself. Why, that is perfectly trus with respect to the
issue of the Bank. The issue is a machine which works
itself. I almost regret that it has not been separated
from the Bank altogether. It might have been so, and then
we could not have heard anything more about these different
departments of the Bank, which were wholly repealed, and
had no reference to each other. But the reason it was not so,
was on account of the expense which the erection of a good
office would occasion. With regard to the Bank the Hon.
Gentleman the Member for Montrose (Mr. Hume), said they
had no right to criticise the connuct of the Bank. Is it pos-
sible that the House of Commons can maintain that doctrine?
Not criticise the conduct of the Bank t You cannot deny the
influence which the Bank must exercise over the currency and
the circulation. With regard to the criticisms upon the con-
duct of the Bank in August, I never complained of the conduct
of the Bank. What I said was, that for three months, from

mitt eci.

the Ist of January, 1847, there had been a continuous drain o
gold ; and I ventured to express a serious doubt whether a
great part of the subsequent pressure might not have been
obviated, if the Bank had not, in January, when a full know-
ledge of the extent of the calamity in Ireland must have
become known, continued to discount at four per cent.
during those three months, when a continuous drain of
gold was taking place. The night Hon. Baronet proceeded to
say, that the Hon. Gentleman said he had told the House
what the Bank had done in 1837, 1838, and 1839; and he did
not actually venture to prophesy ; but he gave the House the
assurance, that if the Act of 1844 had been in operation in
these years-1837, 1838, and 1839—there would have
been no amount of difficulty felt. Well, it would have
been difficult to see what would have been the consequences of
an Act which, five years afterwards came into operation. But
one element, which the Hon. Gentleman had quite neglected
in his calculation, was the country circulation. Let them take
that as it existed about the year 1823. In November of 1823, i
the amount of bullion in the Bank of England was 13,760,000/.,
and in November of 1825 it had fallen to 3,012,000/. ; but
between the November of 1823 and the November of 1825,
the country bank paper had increased from 4,000,0001. to
8,000,000/. Again, in the year 1834, the amount of bullion
was 9,948,0001., and in 1837 it was fallen to 4,000,010/. ;
but during the same period, when the amount of bullion
had fallen from nine millions to four millions,
the circulation of the country bank paper had
increased :from 10,000,000/. to 11,000,0001. in 1837; and
in the mouth of August, when the country was in the middle
of the crisis, the country bank circulation bad actually in-
creased to 12,000,000/. In 1838, the amount of bullion was
9,732,000/. ; and in 1839, it was 4,344,000/. ; but the country
banks circulation was at that time 11,740,0001. But the Hon.
Gentleman omitted from his calculation the whole of the issue
of country paper, and, moreover, he disregarded the very
principle on which the whole rested—namely, the foreign
exchanges. At least the Hon. Gentleman must admit
that the country bank paper was a material element
in his calculation. But what then was the object of the Act
of 1844? The object of it was expressly to prevent this very
evil by imposing a limitation on the issue of the country
othe bank
paper ; but if that was its purpose, if there was no r_ pur-
pose, then it gave the Bank of England a direct control over
the paper currency. The Bank of England not subject to 1
criticism! He could bear testimony to the high honour and
strict integrity which influenced the directors, but the Bank
was a national institution, it held great and exclusive monopolies ;
it held an exclusive privilege within sixty-five miles of the
metropolis, of issuing paper. It excluded all others entirely
from competition with it. Such was its position, just that it
might have a control over the paper circulation. The Batik of
England would tell them that the country paper exercised a
material influence. The Act of 184% contemlilated that in
its provisions; it reposed confidence in the Bank directors,
and they were proud both of the Act and the confidence re•
posed in them. The Honourable Member for Huntingdon him-
self stated that the Bank of England exercised a material
influence on the country circulation and exerted considerable
control. But the Honourable Gentleman man had the memorial
w
of the Bank directors. Why that
before the House in
1844. The Honourable Gentleman asked why the House did
ll
not follow the suggestion made in thatdocumentThe ? That sug-
gestion was discussed. Th House discussed it, and thought
right to give the Bank a discretionary power.
But supposing that the Government had foreseen this pressure
on the Bank, and that it could not give the accommodation
which was required to the commercial interests of the country
—supposing that the Government in that case gave the Bank
the privilege of issuing three millions on additional securities,
did they suppose, on the slightht apprehension" or appearance
would
overnmen
,
of pressure, the Gt be appealed
Ito for

the exercise of such a privilege to the manifest in -
jury and inconvenience of the trading interests of the
country. He was, therefore, not inclined to take suel t a
course because he felt that Parliament alone should decide the
grounds on which any such a relaxation should be made.
( Hear, hear.) It was after the fullest consideration of • the
question, and after the memorial which had been presented, he
believed by the Hon. Member for the city of London (Ma'.
Masterman) had been discussed, that he (Sir Robert Pecli
recommended the House to take the matter into its hands-
Parliament refused to give the Government the discretion
sought, and he thought it was the Hon. Member for the city
of London that made the motion for e
. power to be given to
the Government founded on the memorial which he had pre-
sented.
r.
MASTERMAN said that he had had a good deal to do
with preparing the memorial, and had suggested the idea, but
he made no motion on it.
Sir ROBERT PEEL—Wen, afterfro due consideration, the
information which I had derivedvarious sources on this
question,from what I had learned of banking in the United
States, and the proceedings of the country banks, I felt it my
duty to propose the Act or 1844. I entirely agree with the
course which has been taken by the present Government, and
at the same time I cannot but feel that thepressure is most:
severe and the danger great. But the
is
not alone confined to this country, but has extendedres ts
eu roe
other
h
nations, and it might be expected even to be still more severe.
I am glad, however, to hear the Chancellor of the Ex-
chequer say, that there are prospects of improvement. I
deeply lament the present state of the money market, and the
consequent embarrassment to trade and commerce. I quite
admit that no prudential adherence to principle should be
allowed to interfere with the granting relief : and if the re-
laxation of the provisions of the Bill of 1844, would give that
relief, I would have no objection to it. But it is my firm
belief, with all the information I have gathered on the subject,
that the temporary issue of two millions of paper, without in-
creasing the real capital of the country, would not be efficacious
for relief. Whether by the issuing of more paper, or the in-
creasing of the rates of Exchequer-bills, I have great appre-
hension that the tendency would be only to increase still further
the difficulty. At the present time there was a gradual in-
crease of the importation of gold, and he trusted the
Bank would do everything in its power to extend its accom-
moda.ion. I think the Bank may he considered
perfectly safe with ten millions of gold in its coffers. There is
also at the present time from thirty to forty millions of gold cir-
culating in the country, a circulation which I maintain is the
foundation of the Scottish and Irish Banks, and constituting
at the same time the security of the Bank of England. That
gold was capital, and if they choose they might under appre-
hension and dread of pressure, relax the system and part with
this money. And this principle of action, if good for you, is
also good for other countries. The Hon. Member for
Huntingdon, has referred to the case of France as not
suffering from this pressure; but he should bear in mind that
the proportion of gold in circulation was as 80 to 30 millions.
But supposing this was reversed ? Do you suppose that the
Government, or the Bank of France, would be in such a po-
sition as they were now, or that the difficulty of a scarcity is
provisions would have been so easily dealt with. Sir, Ido
hope that we may be enabled to pass through the present diffi-
culty without a necessity for any measure which shall deprive
us of all the advantages we at present possess. I do
implore the House not to tamper now with prin-
ciples which have been, with great difficulty, re-established.
After all the experience we have bad from the yearrl7B7 to
1819 ; and, depend upon it, if you do purchase a present're-
lease by endangering the convertibility of paper, my belief is,
that you will inflict a severe blow on the prosperity of this
country, and do more to shake confidence in property and in
the value of property than any other course that can be taken e
you relinquish the advantages of past experience, on account
of a mere temporary pressure, and forego the essential
welfare of all classes of the empire, and more particu-
larly of that class to whom the fixity of your circulating
medium ought to ensure a command of the necessaries of life.
—(Cheers.) I cannot take any other course, because
there is none other left open than that of adhering to
the principles of the currency which have been sanctioned
by past experience, and taking every step in my power to pre-
vent any necessity for altering the existing state of things.—
(Cheers. )
The Marquis of GRANBY rose, but was interrupted by
Lord J. RUSSELL, who trusted that the Noble Lord
would permit them to close the discussion that evening, as it
was very desirable that his Right Hon. Friend's resolution
should be agreed to, for if it were postponed beyond that night
it would not be passed before the Whitsuntide holidays.
The Marquis of GRANBY was sorry that he could not ac-
cede to the proposition of the Noble Lord.
After a few words from the CHANCELLOR of the EX-
CHEQUER,

Lord G.EIENTINCK said there was a considerable degree
of interest felt in this discussion throughout the country, and
many Hon. Gentlemen wished to express their opinions upon it..
The resolution might be considered as virtually agreed to, and
the Right Hon. Gentleman the Chancellor of the Exchequer
might act upon the measure with respect to the arrangements
to be made with the persons to advance the loan as though the
measure were actually carried.

The CHANCELLOR of the EXCHEQUER repeated the
necessity of proceeding with the measure immediately.
After a few words from Lord G. BENTINCK,
The motion for the adjournment was withdrawn, and the
original resolution was agreed to.
The House then resumed, and the report was ordered to be
brought up to-morrow.

HEALTH OF TOWNS BILL.
Mr. SPOONER wished to know what course was proposed
to be adopted with respect to the Health of Towns Bill ?
Lord MORPETH hoped that he would be able to proceed
with his measure as soon as possible. The great pressure of
the public business in the House had prevented that measure
being brought forward. Several Gentlemen had proposed to
him that some portion of the measure sliGuld be proceeded
with. In accordance with those opinions, the Government
had come to the conclusion to confine the operation of the
measure to the country corporations formed under the municipal
Corporations Act. The metropolis would be reserved for a
11 separate Bill. Power was proposed to be given to other cor-
porations to apply for the powers to be granted under this
Act. Oxford and Cambridge would be included under the
operation of the Act. Gas and water-works wuuld be en-
abled to be purchased by the authority of the Act. The
Government proposed to waive the right of the Crown to the
'Ho
appointment of any of the Commissioners. If the House would
w him to read the Bill a second time, pro form o, in order
ktat the altered Bill might be brought before the Hnuse, he
would pledge himself not to bring the measure forward again
until after the Whitsuntide holidays.—( Cries of " No, so. "
The Service of Heirs (Scotland) Rill, the Heritable Secu-
rities (Scotland) Bill, and the Crown Estates (Scotland) Bill,
went through Committee.
The Naval Service of Boys Bill was read a third time.
The report on the Poor Rclief Supervision (Ireland) Bill
was brought up, and ordered to be read a third time on Friday.
The Poor Removal (England and Scotland) Bill went
through Committee.

SUPPLY REPORT.
The report of the Committee of Supply was brought up
and agreed to.

DRAINAGE OF LANDS BILL.
This Bill was read a third time and passed.
AGRICULTURAL STATISTICS BILL.
The second reading of this Bill was postponed till Monday
next.

.OUSE OF COMMONS COSTS TAXATION BILL.
This Bill was read a second time, and ordered to be co-n-

The other orders of the day were then disposed of, and the
House adjourned at a Quarter-past One.

COURT CIRCULAR.

The Queen and Prince Albert took their usual walk yes-
terday in the pleasure grounds and plantations of Osborne.
Their Royal Highnesses the Prince of Wales and the
Princess Royal went in a carriage to the sea beach yesterday
forenoon, and took riding and walking exercise.

Their Royal Ilighnesses Prince Alfred, the Princess Alice,
and the Princess Ilelena, accompanied by the Dowager Laiy
Lyttelton, left Buckingham Palace yesterday for a drive in
an open carriage and four, . . _

We are authorised to state ',that ro tickets to view the
Royal pictures by Winterhalter, in St. James's Palace,
be issued from the Lord Chamberlain's Office after Thursday
next, the 13th instant; and that on and after Monday next,
the 17th instant, tickets may be obtained (in the same man-
ner as ordered to view the State Apartments in Windsor
Castle) upon application to :
Messrs. Paul and Dominie Colnaghi, printsellers, No. 14,
Pall-mall East.
Mr. Moon, printseller, No. 20, Threadneedle-street.
Mr. Mitchell, librarian, No. 13, Old 139nd-street.
Messrs. Ackermann and Co., printsellers, No. 96, Strand.

Among the visitors to view the royal pictures on Saturday
and yesterday were the Duke and Duchess of Bedford, the
Marchioness of Exeter' the Bishop of Winchester, the
Countess of Zetland, the Earl of Cawdor, Earl and Countess
Brownlow, Earl of Morley, Lord Alford, Lady Charlotte
Copley, Colonel Hugh Bailtie, Lady Elizabeth Dawson, Lady
Caroline Somers Cocks, Lady Charles Fitzroy, Lady Wil-
loughby Gordon, and Lord J. Fitzroy.
Her Majesty the Queen Dowager, attended by the
Viscountess Barrington, Lady in Waiting, took an airing
yesterday in an open barouche and four. Iler Royal Highness
the Duchess of Kent visited her Majesty the Queen Dowager
yesterday, at Marlborough House.
Her Royal Highness the Duchess of Kent left town yes-
terday morning, for her residence, Frogmore House, near
Windsor. Her Royal Highness returned in the afternoon, at
six o'clock, to Clarence House, St. James's.
Colonel Mure, M P., had an interview with the Right
Hon. Edward Strutt yesterday, at the office of the Commis-
sioners of Railways, in Great George-street.
Dispatches were received yesterday, at the Colonial-office,
from the Governors of the West India Colonies. Dispatches
I were also received yesterday from the Governor of Malta.

THE THREE COESINS.—A NOVEL. BY MRS.
TROLLOPE. —ln this novel Mrs. Trollope maintains, with
unabated spirit, her reputation for vigorous character draw-
ing. " The Three Cousins" represent the three states of
womanhood; the first is a wife, the second a widow, the
third a maid. Their ages climb the sc-Ale in the same way.
Mrs. Cobhurst, the intriguing widow, is capital—a lady of
thirty-four and upwards, who claps her hands joyously like a
girl of sixteen, and looks into gentlemen's eyes as if her
young soul within were melting with its first emotions. But
the most perfect characters in the book are the gentlemanly
dinner-giving Bishop of Solway and his wife, Mrs. Morrison.
They stand out from all the rest. "The constitutional good
nature of the lady showing itself through the conventions
toof
her position, the smoothness" of the Bishop, who loves
live in good repute, and whose selfish pleasures take an out-
ward shape of social enjoyment that might almost be mis-
taken for geniality, are hit off with a knowledge of human
nature which places them amongst the most successful of
Mrs. Trollops's satirical creations.”—Ailas.
FUNERAL OF LORD COWLEY. The mortal re-
mains of this lambnted nobleman reached the Custom-house-
stairs on Sunday night, having been conveyed from Boulogne
by steamer. Lord Charles Wellesley and Mr. C. Culling
Smith wereto ornecebho,eartdheasboedarly as eight o'clock yesterday
morning,
forthwith removed to the MarquisY
Arlington-:trect. The - of the deceased, which was
of Salisbury's residence in
the Marchion !Marquis of Salisbury, accompanied by
ess,canie to town from Walmer Castle shortly
before eleven o'clock; and immediately after his Lordship
had arrived, the Duke of Wellington, the Marquis of West-
meath, the Earl of Mornington, Lord Fitzroy Somerset, the
lion. and Rev. G. Wellesley, and other members of the de-
ceased Lord's family, assembled to attend his remains to the
tomb. Precisely at half-past eleven o'clock the funeral cor-
tege left Arlington-street fur South Audiev Chapel. On the
arrival of the funeral at the chapel, the officiating clergyman
received the body, as customary, at the entrance, the several
mourners following in succession, when the Rev. Mr.Nepaine
commenced the solemn and deeply impressive service for the
burial of the dead. At the conclusion of the religious cote-
niony the body was deposited in a new catacomb in the rear
of the chapel, where are the remains of Anne Countess of
Mornington, theflaamteilEy.arlTohfeADlournkiengofto‘nv,ealiniodgottohne,rtrheolaAtivare_s
and Lord Charles Wellesley departed
ofAg url eey° 1-Nhrepoluloessueiroei, Ym immediately after the funeereasle;yandeptahretelNdlaforr-
quis of Salisbury departed in the course of the afternoon for
Weimer Castle, Kent. Lady Cowley continues in a very de-
licate state of health, at Paris, and has no intention apre-
.
sent of rettuittug to this country.