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

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creased ey 30s. a q ....
'pro babili t uarter, and that there was every
y of a further increase. He wished, under
inch circumstances, to know whether it was the inten-
tion of the Government to prohibit the use of grain in
distilleries for a limited period?
Lord J. RUSSELL said, that in the absence of any
that notice
on this subject ho was not prepared to answer
question, and
howev ehc shoul therefore take time to do
farther
t Hre might, r, sdtate that he should bring
beforerbe the House on an early day a measure for the
suspension of the duties on corn for three
Incliths--(Cheers from both sides of the House).
rose to bring DISCOUNT ON LOANS.
The CHANCELLOR of the EXCHEQUER then
before the House the present monetary
condition of the country. He said—Mr. Speaker, lam
not aware that I need add much more-
Mr. HUME—Speak up.—(Laughter).
HThe CHANCELLOR of the EXCHEQUER—I
need Hot add much more to what I stated to the
souse on Friday last as to the intention of the
Government with regard to the present state of the
til,"eY Market in this country. I stated on Friday
night that I proposed to submit to this Committee a re-
solution enabling the Government to allow interest by
li, of discount on all sums of money made
by the contractors or contributors to the loan, in
~_anticipation of instalments due on a future day.
What is the resolution which I propose, Sir, to put into
Your hands. I stated then the allowance which the
government is prepared to make, and I also proposed
to state the amount of the discount which we are pre-
pared to allow. But perhaps it is necessary, for
the satisfaction of the House, that I should make some
additional statement by which all depressions and all
Peres May be avoided, and by which the Government
ecurities may be admitted as available in the market.
lan" free to allow that I did not apprehend, and that I
could not be aware of the high price which corn would
I,„litt'aiut and the pressure which will necessarily
felt in all commercial circles. The natural
tonsequence of the high prices of corn is to create a con-
able pressure on the springs of commerce. By this
aneasure I hope to prevent that pressure, and I feel cer-
tnia, that if rightly used, it will prevent any such result
as that which many have anticipated. I am quite aware
that by the measure which I am about to propose, that the
'tenth will be to impose a great additional burden upon
the public. Hon. Members are aware that it has been
Illecessary, from the high rate of interest in the commer-
cial market, to elevate the price of all securities, and the
consequence has been that Exchequer-bills suffered a
great depreciation, and it was necessary to raise their
'yalue in order to give a greater facility to trade. This is
necessary, not only for the transactions of mercantile men,
bat for the interest of those artisans whom they employ.
Z believe, therefore, this measure is absolutely necessary
fnt the credit of the Government. From representations
',__.lllttleh have been make to me, I find that the traders and
• ..Luken of the country have been unable to obtain the
ary supplies of money to enable them to carry on
,theit transactions. The bankers of the country
la
1* linable to discount bills as they could do
of Prosperous times, owing to the scarcity
Intiney which at present prevails in all
`s . brunches of trade. I have also been told that the in-
44`;`1: .IcStment of large sums of money in railroads has had a
r,.' cnesid
i,.. - ~. orable tendency to withdraw capital from the or-
l.-1
uillarY sources of trade, as well as to render money
•,•,,_ more scarce than it otherwise might have been. I have
o.r,i heardh. that
„, many parties in Lancashire who have invested
-,.;" their
`"°lleY in railroads have preferred to sell their shares
~ 'at a discount rather than pay up the calls, and of course
',
~ that circu
~ • ,a_ . Instance has naturally tended to increase the
-.• scarcity of money.
',its _ Mr. fitp,,,,,
5,.
-,.
..
also
I,iteahnacdt
liala;
I.° speak with
laughter.
st)back turned to the
--Speak up. It is not usual for a Member
House.— (Hear,
;CELLOR of the EXCHEQUER—I find
soon.
_,. system has prevailed amongst the moneyed.
,___ cr London. of withdrawing their money from
w'rernroent securities, and purchasing, with the
- snouey
' share so withdrawn, goods, bills, and railway
- 3 at -
.:441111:ttarlz_bralerlYof Tory large discounts. At first this
led to a great increase in the
bills brought into the market, and when the
, ... et or pan-
Au came, the bankers, in whose hands the
advanced
placed, found it the more difficult to get money
,:i
....,... , .
toretaia.::, :tiel.heme
I• :seed upon them, except at very heavy discounts.
. 4as further represented to us, from the unsaleability
quer-bills, that many men were unable to
' -0 [We
... 4):13, money on those which they held, and conse-
''' -14°141./ the effect of the measure lately passed will be
~
4111/,:ilitate them in such efforts, and it will also en-
to dispense with calls upon the bill-broker,
, .
zilit;:urther, it tuust alleviate the pressure on the money
locked t by bringing into circulation capital, until now
`'Would 1:113. Now, Sir, lam not prepared to say that it
exc., t ale been possible for the Bank to have dune this,
the 11; With the concurrence of the last measure, enabling
ktehe arikerS to pay their loans by advances with Ex-
. inept ; however the object of the Govern-
pae t vas to put themselves in funds, by the
aeh,nt: the money now lying in the banks. Sir, the ex-
ofii.,._' the demand upon the Bank has been exceedingly
',-oited. I made no more than the usual call. I bad
forewarned the Bank what the amount would be.
110 t was there any reason for alleging that an
*antra:ice or pledge was given at the passing of the
Charter that such assistance would not be required. I
can find no such promise; but I did observe, that in
consequence of another measure, the equalization of
• dividends, there would be less occasion for a large
demand on the two quarters, when the larger
amounts were paid, but on the other two quarters the
demand must of necessity have been greater. I think,
therefore, that it was an exceedingly wise measure.
If I may be permitted to read an extract from a speech
• which I myself made on that occasion, it will be seen
that I then predicted the result of the measure. The
'sight Hon. Gentleman here read an extract to that
' effect from a speech he made in 1844, and continued—
: Now. Sir, I quote this to show that the operation of the
• • measure was foreseen, and that no expectation was held
eat of an excessive demand being made. I have thought
`6 right to snake this statement for the purpose of cor-
• tooting a misapprehension which a great number of gen-
, tlemen have fallen into on this subject. It will be
seen,
' therefore, that the time when advances would be required
'Was amply foreseen, and time given for preparation to pro-
'tide for them. With regard to the contributors to the loan,
It has been my object to give every facility for the purpose
of easing the money market, and my experience in public
ad private life has taught me this, that driving
lt !lard bargain was advantageous to neither party.
In n' ao doubt true, that when trade is bad, and the
aZincY market feverish, the revenue suffers. During the
that fortnight there has been a considerable reduction in
few receipts at the Custom House, yet within the last
hopreaYli. I am happy to say, matters have much
', and resumed their usual elandcourse—(Hear,forizi things are much easier than they
stnh Y were. The funds have also fallen; but now I
are -uPpy to say, from the report of to-day, that they
has arisen
and there has been an easy day. This
ad, from the reduction of the loans to be
In the eXchanges with America. This is, therefore,
I,l4°Jeti account, and I would have hoped for
atutudreed
_, prospects in the future, were it not
, An far u with a rise in the price of corn.—(Hear, hear.)
is decideas London is concerned, the pressure for money
4,_edly relieved, and I hope that it may extend to
e'L.p.„,rovinces, so that a restoration of trade may be
14„-"`e". It is, however, impossible to deny but that
--ril had risen to a fearful price; but the Noble Lord
Id the head of the Government has given
Ootice of the only course by which to prevent its therfur-
increase. No doubt to some extent this might
nave arisen from the exportation of corn ; butl3l2moaoyo
observe that while the exportation has been o
about
quarters.
t for h 3
narters, the quantity imported was
44.8 week the amount entered home consumption
Was hi proportion to 17,000,000 quarters per annum.
The entry for the week of bread stuffs was equal to
200,000 quarters. The entries for all kinds of grain are
333,273 quarters, or, at an ordinary calculation, at the
rate of 17,000,000 quarters.
Lord G. BENTINCK—For what time?
The CHANCELLOR of the EXCHEQUER—In the
Veu,k--(Laughter.)
Low G. BENTINCK—Is this the amount imported,
br entered for home consumption ?
The CHANCELLOR of the EXCHEQUER--It is
the amount entered for home consumption. I have
said that the entries for all kinds of food is 333,273
qtlarters. I cannot give the imports of all kinds
t-euro, but the import of breadstuffs has on the whole
1 Pt on in a pretty equal increase, the differenc being
less than 3,000 quarters per week. Ido not know
.that
Isrriltieed state anything further on this head. Since
an,.'lll night I observe a slight alteration in the pay-
sitille.tsroade into the Bank of England, and the autho.
hot,: there report to me that a good effect might result
foe the extension of the period of payment. I there-
of 7oPropose to give to every contributor for every sum
te „°;rleY, in regard of these instalments, which shall
'
5 psi,-`14 on or before the 18th day of June, interest at
ever cent,, and in like manner I propose to give to
18th, eentributor, for any sum of money paid from the
e ef
tat °f June to the 10th of September, interest at the
A
rase '
e,, Per cent. per annum. The Right Hon. Gentle.
Whetherlr'
On itchided by reading the resolution.
4. motion being put,
Mr.
SIE rose and said that ho was not aware
the t ?in making the explanation the Chancellor of
tion xoecooeuer had explained anything to the satisfac-
that • n 11°11. Members, but he meant to say
naiadin the
but h explanation he had not shown to his
the eaaonriYe reason for the pressure which had arisen in
that the 'Y and commercial markets. He complained
Interest
e had - of naoney had risen
which had
occurred. glren no reason for the changes
to five per cent.,
Which Re stated, as it seems, that these changes
spinhad taken place had put the capitalists, who had
see moneyeineL of others in their hands, into great difficulty
e its
oenteneyate of interest had risen. Why he, speaking
f
o basherh had placed money in the hands o
. would, under such circumstances, only
be too to have it ready for a call. He, therefore,
`.lgttt th tth reisinees ad
e Right Hen. Gentleman had been much
ail j„___:lethat he had assigned no reason why
To,. 44;re se 01 the d
-4.0 14,1 tau, iscoluit should have taken place.
-11Qtlung as a reason;for any AltentiQu P the