The Sun.
London, England, 1848-02-18 00:00:00

THE TEA DUTIES.

Mr. COWAN presented a petition from the Uham-
her of Commerce of Edinburgh, praying fair the
repeal of those duties.

CHURCH-RATES.

Captain PRCIIILY: presented a petition from
Brighton, praying that Dissenters might be exel opted
from the payment of these rates.
LOCAL TAXATION (IRELAND).
Mr. P. SCROPE gave notice that he would, upon
an early day, move for leave to bring in a Bill to ex-
empt small tenements from local taxation.
ISLE OF MAN.

Dr. BOIVRING moved for tabular ret urns,
showing the number of vessels, with the atnou nt of
tonnage, that have entere i the ports of the Lite of
Man during the years ending the sth day of Jam: ary,
1847 and 1848, distinguishing each port ; shwa :ing
the several quantities of goods allowed to be imp() rted
into the Isle cif Man under license, the quantitiq s of
such and other goods subject to duty car ried
into the island, - with the rate of (i uty
charged thereon, and the several amounts re-
ceived, and amounts of revenue received &wing
the years ending the sth day of January 1846, 11;47,
and 1848 ; also showing the several amounts of public
moneys in the late Clerk of the Rolls' hands in the Isle
of Man, on the 13th day of March, 1847, with the
names of each estate to which they belong, and
showing where the said moneys were deposited
on the said day ; if in any bank or bankers'
hands, in what manner the interest on the
said money was appropriated, and by VJ hat
authority : and the number and names of the sevt:ral
high bailiffs, magistrates, judges, and members of the
House of Keys, who preside as judges in the civil or
ecclesiastical courts in the Isle of Man, who are pr ac-
tising attorneys in the said island, and showing the
names of the several courts where they preside as
judges, and the courts wherein they practise as ad-
vocates or attorneys.—Motion agreed to.
SHANNON NAVIGATION.

Dr. BOWRING also moved for copies of the evidei ice
taken before the Commissioners in November a,nd
December, 1847, for inquiring into the conduct of
the Shannon Navigation Commissioners, with copy
of their report, and of any report of the audit bon.rd
thereon ; and of the first report of the Commissioners
appointed to audit and report upon the accounts of t he
Commissioner, of Public Works in Ireland, with copy
of any report of the audit hoard thereon : also for re-
turns of the Shannon Navigation Commissioners, and
of the persons employed under them, with their sala-
ries and allowances : and of the Commissioners
of the Board of Works in Ireland, and of
the persons employed under them, with their
salaries and allowances: and. of the Commissioners
and others specially employed in arranging and
examining the accounts of the moneys advanced by
the Board of Works in Ireland, and expended under
the Acts 1 Vic., c. 21, 9 Vic., c.l, and 9 and 10 Vic., c.
107, with their salaries and allowances, and incidental
expenses; also, the funds out of which the payments
have been made, and the authority for payment.
Motion agreed to.
THE SOLICITORS OF THE COURT OF
CHANCERY.

Mr. C. ANSTEY moved that the petition of the
solicitors of the Court of Chancery, presented on th©
10th of February, be printed with the votes.
Motion agreed to.
JEWISH DISABILITE S.

Mr. BUMF presented a petition from the burgh
of Montrose in favour of the removal of Jewish dis•

Sir R. INGLIS presented several petitions against
the measure for the removal of the Jewish dis-
abilities.

Mr. LAW also presented a petition to the same
effect.

SUNDAY TRADING.

Mr. HUME presented a petition praying the House
not to interfere in any manner with Sunday trading.
OATH OF SUPREMACY.

Mr. LAW presented a petition praying the House
not to pass any measure calculated to remove the
oath of supremacy, or to allow Romish ecclesiastics
to appear in the public thoroughfares in the dress of
any of their orders.
GAME-LAWS.

Mr. BRIGHT gave notice that, this day fortnight,
it was his intention to ask leave of the House to in-
troduce a Bill for the amendment of the game-laws.
PETITION S.

Lord INGESTRE presented a petition from a
place in Staffordshire, in favour of the health of
Towns Bill

Mr. FORBES presented a petition from a town
in Scotland praying for a redeal of the Bank Act
of 1844.

Mr. lIERRIES presented a petition, signed by
130 of the merchants of Liverpool, praying the
House to relax the restricting provisions of the Bank
Charter Act.

Lord NUGENT presented a petition praying fcr
the abolition of capital punishments.
ELECTION COMMITTEES.

Mr. B. COCHRANE wished to put a question
to the Right Hon. Gentleman, the Chairman of the
General Committee of Elections. He wished to
know whether it was not the duty of an officer of the
Howe to give notice on 'Wednesday, at twelve
o'clock, to the several Election Committees
that the house was sitting. No such notice
was given yesterday to the Committee of
which he was a member, and the consequence was
that many Hon. Gentlemen who wished to be present
during the debate on the motion brought forward by
the Hon. Member for Youghal were prevented from
being in the House. He thought it a great hardship
that Committees should meet on Wednesdays when
the House sat on that day. However, he wished to
ask the Right Hon. Gentleman, whether it was the
duty of any officer of the House to intimate to Com-
mittees that the House was sitting, and whether
upon that intimation the Committees had power to
adjourn ?
Mr. FOX MA.ULE said he did not feel himself
called upon to answer the question, but he appre-
hended Committees had power to adjourn for short
intervals.
NEW HOUSES OF PARLIAMENT.

Mr. G. THONIPSON wished to know from the
Hon. Member for the University of Oxford when it
was his intention to move for the appointment of a
Committee relative to the New Palace at West-
minster?

Sir R. INGLIS said that he should bring forward
the motion on Thursday, the 2,1 of March.

FINANCE.

Mr. HEB.RIES then rose to move the following
resolution, of which be had given notice :—That,
locking to the state of distress which has for some
time prevailed among the commercial classes, and to
the general feeling of distrust and alarm by which
the embarrassments of trade have been aggravated,
it is the opinion of this House that her Majesty's
Ministers were justified, during the recess of Par-
liament, in recommending to the Bank of England,
for the purpose of restoring confidence, a
course of proceeding at variance with the
restrictions imposed by the Act 7 and
8 Vic., c. 32. That this House will resolve itself
into a Committee of the whole House upon the said
Act. He proposed further to move in Committee, that
it' is expedient that the limitations imposed by the
Act 7 and 8 Vic., c 32, upon the Bank of England,
and the Act 8 and 9 Vic., c. 46 and 37, in relation
to the issue of notes payable on demand, be suspended,
subject to such conditions as may be provided
by any Act to be passed for that purpose.
His motion consisted, in point of fact, of two motions,
and it would be the most correct course if he blended
the tsvo motions in one. The subject of the motions
arose out of the operation of the Bank Act in the last
year. The events of last year created more alarm,
distress, and pain than had ever been produced within
the memory of any person present. Never was there
seen such a period of perfect prostration. The
fai urea which occurred in the latter end of the
year were in point of magnitude andim-
portance never surpassed. There were no less
than 220 failures of considerable amount, of
these 85 represented property to the amount of
12,000,0001. The total loss occasioned by the whole
of the failures had been estimated at a sum of not
less than 30,000,000/. Such events as these ought
not to be passed without the most anxioo and serious
consideration upon the part of those connected
with mercantile affairs—(llea;, hear)—in order
to ascertain if possible the causes of such calamitous
results, and to endeavour: to find out some remedy to
prevent their recurrence in future.—(Hear, hear.)
The object of the first part of his resolution was to
record the opinion of this House respecting the con-
duct of her Majesty's Government, in taking steps
to stay the desolation and ruin which then swept over
the commercial establishments of this country, to
record their opinion that the Government in taking
that step were well advised, because they found
that by taking that step a remedy was really found,
and the mischief as erted.—(llear, hear.) What was
the position in which this House was now placed ? It
was this. Her Majesty had announced to them that
she had. been advised to adopt a most extraordinary
course, which, however, was justified afterwards by
the result, and had authorised the violation of a law
recently enacted, having for its very object the en-
forcement of the strictest obedience to its provisions.
—(llear, hear.) Up to this time the House had not
expressed any opinion.on the subject of that violation,
nothing had been done to ascertain or record the
opinion of this House upon that violation of the
law.—(Hear, hear.) He held that her Majesty's
Government were justified for what they had done,
but it was necessary that some public record of that
opinion should be made.—(Hear.) Why bad not

}this been done before ? He must say that her Ma-
jesty's Government had not acted, in his opinion, so
fairly or frankly to the House as he thought they
ought to have done.—(llear, hear.) There had
been an evident desire upon their part to
avoid any debate upon the subject.—(Hear, hear.)
Upon the very first night of the session the Right
lion. Baronet the Chancellor of the Exchequer had
made a sort of a rush down to the House for the
purpose of appointing a Committee to sit upon the
question, instead of having a debate upon theisubject.
But still this Committee, though appointed, would not
touch the point which he now brought before the
House. Ile felt it his duty, therefore, to bring for-
ward this subject with a view to its being properly
discussed and a deliberate opinion recorded upon it.
It was maintained by some Members of that
House that the Act of 1844 did not create
the difficulties that occurred last year. Well,
if that were so, what necessity was there for
relaxing its provisions in October ? Upon what
other ground could Government justify the policy
they then pursued than that the Act had produced the
mischief?—(hear, hear.) But there could hardly
be a doubt that the Act brought into existence
the mercantile difficulties this country suffered
under last year, and he would venture to tell the
House that had the relaxation of its provisions been
delayed one week longer, the commerce of London
would have been stopped. Ihe reduced state
of the Bank securities had given rise to the
utmost alarm, and those who had money in their
possession were exceedingly cautious to whom they
advanced it, if, indeed, they would lend or part with
it at all. But it was said this state of things was
not necessarily the consequence of the Act of 1844,
but arose out of the mismanagement of the Bank.
Now he thought he should be able to show that it
was no such thing, and that no skill or ability on the
part of the Bank directors could have averted the
crisis which happened last year. He would
give a simple relation of the events that oc-
curred in 1847. The Act gave rise to dis-
tinctpanics at two distinct periods of the year.
In the early part of the year the demands made upon
the Bank for the purposes of food gave rise to the
utmost alarm, and when the coffers of the Bank be-
came reduced to the lowest point tolerated
by the Act, a crisis arose that shook many
noble commercial houses in the country.—(Hear.)
It had been said that great mismanagement had taken
place on the part of the Bank of England ; he had
looked most carefully into the subject, and he
saw no reason for saying that there was any
mismanagement on the part of that establishment.
Added to this, he was convinced that the acts of the
Bank had not led to the monetary crisis that took
place last year. He believed that the inherent vice
was in the Act itself, and not in those entrusted with
carrying it out, and believing such to be the
case, he should move the suspension of that Act.
It, was probably true that the issue of bank-notes
had not conformed itself to the fluctuation of the
bullion. The real effects of the operation of the bul-
lion upon the issue was in direct opposi-
tion to the theory of the Bill. The
Hon. Member for Portsmouth had himself admitted
that although there was a considerable reduction in
the amount of bullion in the coffers of the Bank,
still there was no corresponding diminution of the
issues of bank-notes.—(Hear, hear.) The rule was
that for every million of bullion decreased in the coffers
a corresponding restriction of one million in the cir-
culation should take place. Now the decrease in
the bullion at one period of last year was
about 9,000,000/. ; there ought therefore to
have been a corresponding reduction in the
circulation of 9,000,0001. What would have been
the effects of such a reduction in the circulation of
a country where it was assumed that 20,000,0001.
was a sufficient amount to meet all the
demands for the circulating medium of the country ?
The operation of the Act of 1844 prevented
the Bank of England during the late pressure
from issuing a single note to relieve the pressure
of the crisis, although at that time 8,000,0001. of
bullion was lying idle in the coffers of the Bank.—
(Cries of " Hear, hear.") It had been said that the
Bank of England had acted in error in reducing
their rate of discount to so low a sum as 2i per cent.
It might be that for the interests of the country they
had acted erroneously, but the directors were bound
to act in the best manner they could for the pro-
motion of the interests of their constituents.—(Hear,
hear.) The framers of the Act had no right to corn-
plain of this conduct. When the Act passed there
were 16,000,000/. of bullion in the Bank of England,
and although they charged a low rate of discount,
still up to the middle of 1845, not only had no
diminution taken place in the quantity of bul-
lion, but it had actually risen to the sum of
16 ,600,0001. (Hear, hear)—a larger amount
than the Bank had ever possessed during the
whole period of its history.—( Hear, hear.) At the
same time there was no doubt that the Bank of Eng-
land was in some measure responsible for the undue
expansion of commerce, which was consequent upon
the low rate of discount which they charged.—(Hear.)
The rate of 2i per cent. discount was, however,
continued when there was a sensible diminution in
the amount of bullion, caused, no doubt, by the failure
of cne of the staple articles of food in this
country. The rate of discount then rose to three
and a half per cent. Again the bullion rose in
amount to the sum of 16,356,000/., and the discount
was again lowered to 3 per cent., which was conti-
nued from that period to the month of January, 1847.
On the 26th of December, 1846, there was more than
15,000,0001, of bullion in ;the Bank. But in January,
1847, the pressure upon the metallic resources of the
Bank began to be severely felt, for it fell from upwards
of 15,000,0001. in December to almost 14,000,0001. The
Bank was not wanting in taking precautionary mea-
sures, for in January, 1847, it raised the rate of interest
to 31 per cent. The next week the drain continued, and
the Bank once more raised the rate of interest to 4 per
cent., at which they kept it until the diminution of the
bullion to 9,867,0001. in September or October, when it
was raised to 5 per cent. He thought he had now shown
that there had been, at all events, no neglect, no absence
of watchfulness, upon the part of the Bank; that, with
the rise arid fall of their bullion resources, they had
diminished or increased the rates of interest; and that,
in short, they had sedulously followed in the very foot-
steps of the Act, which, it could no longer i.e dis-
guised, was the real cause of what had occurred.—
(Cheers.) But it had been said that if the Act had failed
in securing the public against a great monetary derange-
ment, it had at all events been effective in one respect—
securing the convertibilitya the paper circulation. Now
he (Mr. Herries) would say with, great deference, that
the Act had done nothing whatever to secure the con-
vertibility of our paper circulation.—(Hear, hear.)
There was a great difference between saying that con-
vertibility was secure, and saying that the Act had
occasioned that security.—(Hear, hoar.) The Act was
passed when there was 16,000,000/. of bullion in tho
Bank—in its progress that bullion had declined to less
than 10,000,000/. Were they to laud this Act for its
having prevented a still further decrease?—(Hear, hear.)
If they would give it such praise, they were bound to
show upon what grounds it was entitled to that praise.—
(Hear, hear.) But in what state was the Bank in
October last? Why did the Government send their
persuasive or recommendatory letter to the Bank if this
Act worked so well? Was there not a want of con-
fidence? Was there not a general want of credit? Was
there not an almost universal fear and distrust? and
where then was the security afforded by the Act, and
where was the use of securing money which could not
be used?—(Hear, hear.) He would contend that they
were much better off under the old system; and he con-
tended, with great deference to the high authorities by
whom his opinion was opposed, that the country would
have been in a much better position if this Act had never
been passed.—(Hear, hear.) That as his strong, sin-
cere, and matured conviction, after the fullest and most
careful deliberation upon the subject. Ho thought
it would not be altogether useless to endeavour to show
to the House what might have taken place under the old
system under similar circumstances. What would the
Bank have done under similar circumstances to those
which occurred between January and October, 1847, if
it had been unfettered by those new regulations and re-
strictions, and if it had been at liberty to make use of
all its resources for the purpose of discharging all its
liabilities ? It would have looked to the circumstances
which had occasioned the drain, to the possible pressure,
to the causes of the drain, and the probability or im-
probability of its duration ; it would have considered all
its resources, its gold, and notes—its reserve ; and it
would have, as on all former occasions, have done its
utmost to meet the exigency, and to have provided, not
only for its own internal interests, but for those of the
public, which, he felt bound to say, the Bank had never
neglected.—(Hear, hear.) Between January and April,
1847, the Bank would have carefully looked to
the state of the foreign exchanges, and if it
had it would have found them favourable—it would
have looked to the course of commerce, and would have
found that no great falling-off had taken place there ;
it would also have considered the failure of one of the
principal articles of food, and seen that great exer-
tions would be made for procuring provisions from
abroad—exertions that 'would require a considerable
drain of gold. But the Bank, if lett to itself, would not
have caused alarm by suddenly raising the rate of inte-
rest to a high figure—they would have felt perfect con-
fidence in their gown resources—they would have felt
perfectly assured that there would be full convertibility,
and they would have altogether prevented the demand
which unfortunately arose for internal purposes.—(Hear,
hear.) Ile hoped the Government would not altogether
trust to the Committee which had been appointed. He
believed the danger still impended, and that the mone-
tary affairs of the ccuntry were on wrong principles, and
that there was no guarantee that what had happened
last year might not happen again in the present year, or
in the next.—(Hear.) The Government might, perhaps,
find it more convenient to wait until the Committee had
reported, however tedious that delay might be.—(Hear,
hear.) The Government might wish to avoid the
responsibility of any interference with the pre-
sent Currency Laws, awl might wish to throw the
responsibility upon the Committee ; but immediate
legislation upon the subject was necessary. They
were, beyond all dispute, in a position of great dan-
ger—([Tear)—they had, he repeated, hanging over their
heads the possible recurrence of that catastrophe which
had occurred last year. It was the duty of the Govern-
peat and of that House to do all they could to remove