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

A. IP 111 1847.

of gold in the Bank, he thought it was high
time to retrace their steps. Could they forget that in
1833, without the assistance of the Bank of France they
would have stopped payment; and that, on another oc-
casion the Bank having only 600,0001. in gold, and
420,0004 in silver, applied to Mr. Rothschild to change
the silver, and by which ho cleared, it was alleged,
100,0001. He trusted these circumstances would lead
them to reconsider the course they had been pursuing.
and place the currency on a better foundation in future.
Mr. FORBES wished to say a few words as it re-
garded Scotland. In 1843 they were a contented people,
but ever since the passing of the Bill of 1844, they had
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, arid have the subject fully investigated
with thefobj yet 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 bee, 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. ahe
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 abort 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
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 not cease for some time to come without recourse
were had to some legislative enactment. If, therefore,
Government were anxious to prevent the gold in the
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 au 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. He was informed, on the best authority, that one
house in Lancashire, which had no less than 60,0001. in
bullion, were unable to carry on 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. lie fully agreed with him, and called upon the
Government to have no longer recourse to temporary
measures, but to proceed at once is a rapid and effective
manner to procure food for 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
legitimate 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*
Caine 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. reel) say;that no feelings of pater-
nity would induce him to advocate its continuance if it
proved to be mischievous in its operation. Now he
(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 that 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 France 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
200,000/., 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 Lord opposite,
who had voted for the Bill when it was broughtforward
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 he 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 at.—(Year, 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 temptation 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 cgirocidulattihoe;n
He contended that if they send
diminished the circulating medium of the country. He
thought, therefore, that the effect of the measure would
be the direct reverse of what was asserted.

After a few words from gr. BROWN,
Mr. BARING said that he could not concur with the
Hon. Gentleman who had just addressed the House
(Mr. Cardwell). Other countries wanted corn, other
is countries
importingwereit, b
importing
a France there i
is notwantsancesuch
astate
a nd,.
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 ht.s
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. Tbere may have been want of discretion,
but it was not such a want which produced this monetary
pressure ; he believed that therealcause of it sprung from
the limitation of the powers of the bank. The very tact 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
back 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 nresent 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 bad
supported had contributed to this result. They had
gone 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 havepursuedawisercourse
if he had not taken thenarrow view ofaneedy 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 arid 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 he 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 llon. 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
the subject.—(Hear, hear.) With regard to the question
of the currency, the value of a pound had long been
settled, and it would be unwise, nay, it would entirely
break up the commercial relations of the country, if they
attempted to re-open that questiou. The present
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 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.
The Hon. Gentleman had laid down certain principles
for the establishment of a sound currency, which might
he difficult to challenge, but which certainly had no re
ference whatever to the circumstances with which the 3
had to deal. The Hon. Gentleman also passed a very
warm panygeric upon the Bill of 1844, which had
ii
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 thepass-
ing of the Bill. The Hon. Gentleman then endeavoured
to trace the present depression is 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. I
matured by the House, and received by the country, and
they bad therefore no right to criticise the conduct of.
the Bank, Itecause 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 there 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 halt 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 for 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. He
wanted to know whether that document, which no one
could falsify, and which any one 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
be found to come to the rescue, it was found to be the
Bank of England.—(Hear, and cheers.) The charge
of imprudence on the Bank was first made by the Hon.
Member for Tamworth, and was reechoed 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
at present 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 ia Europe be influenced in their
favour.—(Hear, hear.) And though that Act had been
so political, so sagacious stand so beneficial in its opera-
tion, it appeared from statements that had been
made in that House that the Bank of England was the
great criminal, and all
iNufon the authority of the Right
IHi
eovne.d Gentlemanif
the
Aet ember for Tamworth. He be-
House was properly examined the
House might be led to a result highly beneficial to the
Huse What appeared to him to be imputable to it
was that it could not prevent any of the mischief that
arose out of the system which was previously in exist-
ence, but it could and did prevent the benefits which
sprung from that system. It failed in every object that
it held out. In the first 'place they were told that it
would prevent anything like the financial disturbance
and disorders, that were called by the name of panic.
Now, it was a consequence of the embarrassment of
1836 and 1839, that the Holm wa led to pass the

measure; but he maintained, that if the Bill had been ins
trodueed before 1836 or 1839, that the disturbances
which then took place, would have really occurred; and
ho would show that by the records of tneir own House.
The bullion in the Bank at the commencement of the
difficulties in the former year, was 8,000,0004, 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 retard 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
ii,,,erracneene ttla s.tnittl
witawsassa,ed io_ryl f-rbos m. agencytshteoppl
np a
goyf the Bank of
see what would have been tie result if themseknett.ofNlBo4W4,
had been then in operation. The circulation of the
Bank would have been nearly the same as it really
saw It appeared therefore rertectly clear that she Act of
1844 would have operatsd 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 vi
the facts he had before him that this relative
had never been maintained. On the 21st of Septensber,
o.uld apppeoapror from
1844, after the passing of the Act, the huilion in She
Bank was 15,100,000/., and the circulation wets
90,600,000/. But at the close of the year the bullion
was 14,800,000/., and the circulation fell to 20.100,0001.
In January of 1845, the bullion was 14,500,0001. and the
circulation 20,600,0001., and three months alter 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, he 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 inceass
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 the door 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 Hon. 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
Hon. 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
ask 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 amount
of deficiency bills.
Mr. MASTERAINN—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 explain.
powercs se• hatllt,
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her, reallßankyr es
t•
haoos
take.ulldt awmpapos i
rt.
ehyti
os
out,
Pt ha aroltfi
at
thmheeeCni
issue
safuoner-
department, and allow it to be replaced by the growing
revenue, leaving the banking department to manage it-
self.—(Hear, hear.)
Sir R. PEEL—I thought I heard something from my
Hon. Friend that it would be desirable that the Chan-
cellor of the Exchequer should give an aswaranee to the
House that he would not borrow money from the Bank
for the purpose of paying the dividends.
Mr. NIASTERNIAN—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 f .by the public. I did not say that it was the best •
sure that could be adopted, but I did conceive
modified measure of that kind, going forth with t
thority of this House, would be extremely des.
under the pressure now existing. My object in the
aosal which I made was to remove any demand o'
nanking department upon the issue department, e
leave the Bank to act upon its own idea of w'
right and proper for the national interest, for I e
that the Bank had no power under this
Bill to grant accommodation to the Chanceli
Exchequer without incommoding the public.
Sir ROBERT PEEL—My Hon. Friend I
firmed my statement, that the proposal he ma
that the Chancellor of the Exchequer should give ..
surance that he would not require money from
banking department to pay the July dividends. 1
came the Hon. Member for Montrose (Mr. Hume).
proposal was this—that there should be unlimited 0,.
petition in respect to banking.
Mr. HITME—Free trade.
Sir R. PEEL—That there should be free trade i
banking, and that the country banks should be allowed t.
issue 54 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 1/. 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
goldcountry.—(Hear.)
Tahendoitrins.Gbuentetd throughout
lementhe Memberthe
cthooaruvnetrya circulation
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
B:v
aaoars Mr.
Order. He
, N,eg Ea
vWaenn DsomwEee
aGr a
:And
W_ThEli
c hdri
answer
of the act of 1819, which, he said, was a miser-
able failure.
os
distinctly
m i dstated
ud
that criesth oa
tf
tthoe
1323 R, Right
question H oinnoultzir IT,:
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 mast be
introduced.
Mr. NEWDEGATE rose again, and said—The Right Hon.
Gentleman has misunderstood me in this respect. I said that
the proposition of the Hon. Gentleman, the Member for Mont-
rose, for a strictly convertible bullion vein was incompatible
with the standard at present adopted.
Sir R. PEEL—Then did the Hon. 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
not added to the public burdens ? Did he not
caused by the Bill of 1819? Did he not ask me if the standard
say that the evils caused by the measure in 1819 iemained
and that it was not too late to bring consolation to the of those who might be no more—(laughter)—.but
been injure)Ed,wanDdEtGhAatTwEe maugsatinrevrenrssee tab:lts...aura
(o,efoitaiurlrdeB.ehir9t:Nrh:dhair;" but be proceeded to saiyd—st of 1819 ?
tederithesatof
Ilosutad
heard it said that the injury inflioted upon the sufferers of
1819 VMS merely temporary—that it fell with them.
I said that I did net believe that. (Laughter.)
Sir R. PEEL—I thick We are much aura` pgroachiug to