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

I though slowly, the trade and commerce of the country
were now gradually reviving; and there was no likeli-
hood of any public demand which the reserve fund
would not be able to meet. If the Right Honourable
Gentleman's motion had been brought en in December
last, when notice of it was first given, and when Parlia-
ment was about to separate, perhaps theremight have been
some plausibility for it, though even then he should have
opposed it. Not the slightest case had been made out for a
temporary suspension of the Act of 1844; for the dan-
ger, against which they were asked to provide, was one
of the most problematical kind. But the Right Hon.
Gentleman had intimated something more than a
temporary suspension of that Act; he proposed to sus-
pend it until Parliament should otherwise provide;
and therefore he might 'as well have asked the
House for a repeal of that Measure.—("Hear' hear,")
from Mr. Herries.) Then he liked things to be called
by their right names—(Hear, hear)—and he thought it
would have been far better if the Right Hon. Gentleman
had directly proposed what he inteeded to effect under
the guise of a temporary suspension.—(llear, hear.)
But he could not conceive anything that would so com-
pletely stultify the proceedings of that House as to en-
tertain this motion now, having before Christmas unani-
mously appointed a Committee to inquire into the whole
subject--(Hear, hear.) That would be to judge first
and hear the case afterwards. The Honourable Gen-
tleman himself might bo satisfied with a suspension
of the Act of 1844; but another Honourable Gentle-
man near him thought that, unless they altered the
Act of 1819, they would do no substantial good.
The Honourable Member for Birmingham thought that
the Act of 1844 was only a necessary consequence of
the Act of 1819; and many others were of the same
opinion. Then in that conflict of opinon, upon what
ground could the House proceed? Therefore the Com-
mittee had been appointed; gentlemen of various shades
of opinion were members of it, and he hoped that
much valuable information would be obtained. Of
course the Right Hon. Gentleman must follow up his
motion by another to rescind that Committee, because
it would he perfectly idle for that Committee to coutinne
its labours throughout the session, if the House should
now, at once (whatever might be the result of those
labours), take upon itself to decide the whole matter.
On a former occasion the Right Hon. Gentleman had
thought it quite essential that they should know the
whole state of the Bank of England. Now, the Governor
and Deputy-Governor were to be examined before that
Comintttee, and he looked to their examination with
very groat interest, as likely to afford the fullest in-
formation on that subject. It seemed to him, therefore,
a most premature proceeding—to use no stronger term
—to call upon the House to decide before it had ro
ceived the information stated to be so necessary.—
(Hear.) The Right Hon. Gentleman had said that
he was anxious to avoid a general discussion on the cur-
' rency; and he (the Chancellor of the Exchequer) quite
agreed in that wish; slid, if they got into the merits of
the Act of 1844, ho did not see how they were to avoid
the general discussion, and if they could not avoid
it, they were embarked on an ocean of which the shore
or any haven was very distant. They had now arrived
at a period of the session when the public business must
be proceeded with. To-morrow his Noble Friend would
make his financial statement; the time would soon come
when the estimates must be voted, and he did not sup-
pose that the estimates of the present year would be
passed in so peaceable and quiet a way as they had been
in former years. He hoped, therefore, the House would
not encourage any lengthened debate on the subject; no
practical advantage could come of it, and he, at all events,
would not set the bad example of embarking on that
endless sea of discussion. But there were one or two
points to which he wished to advert merely to prevent
misapprehension. The Right Hon. Gentleman had said
that the promoters of the Bill of 1844 had thrown blame
upon the Bank for reducing their discounts to 2} per
cent.; but he did not know who those promoters were.
He knew, on the other hand, that several opponents of
the Bill had laid down the doctrine that the Bank of
England ought always to discount at one uniform rate.
—(Hear, hear.) And if, therefore, blame was to be
cast upon any one, he hoped the Right Hen. Gentleman
would place it on the right shoulders.—(Hear, hear.)
Again, the Right Hon. Gentleman had said that the Bill
entailed upon the banks the necessity in England, Scot-
land, and Ireland, of holding bullion to the amount of
about 3,000,0001.; but what was the fact? In England
it did not entail on the country bankers the necessity
of holding one single sovereign, though it gave them an
issue of 8,000,0001. In Ireland also, it had not entailed
the necessity of holding one sovereign more than before,
and, in point of fact, last autumn, when it was said that
this measure was so mischievous in its effects—that au-
tumn, the experience of which was pointed to as fatal to
the measures of 1844 and 1845, the circula-
tion was 1,000,0001. below the authorised circulation.
In Scotland the case was rather different; for there
the circulation was higher than the authorised
circulation by 4 70,000 /. ; so that they were
bound to hold gold to the amount of about 500,0001.;
and taking all the three countries together, under
500,000/. in gold was all that the Act had required. The
Right Hon. Gentleman had also remarked upon a dis-
crepancy between his statement on a former occasion
and that of his Right Hon. Friend the Member for
Portstneul (Mr. Baring), and had said that he (the
Chancellor of the Exchequer) had stated that there was
no great diminution of circulation, whereas his Right
lion. Friend had stated that there was a great diminu-
tion. But the statement of his Right Hon. Friend ap.
plied to the interval between August, 1846, and April,
1847; and his statement applied to the period between
August and October, 1847. It had been said that the
groat distress last autumn was caused by the diminution
of the notes with the public, which, since the Act of
1844, was a snuck more correct expression than circula-
tion; and ho had answered that that could not be so,
1.-cause from August to October there had been no
groat diminution. His Right Hon. Friend, on the other
hand, had said that, according to the principle of the
Act of 1844, there ought to have been no considerable
diminution between August, 1846, and April, 1847; but
that there was that diminution, Ho merely alluded to
these points to prevent misappreheusioa; ho did not wish
to set the bad example of entering upois a general dis-
cussion of the currency; he hoped the House would not
do so, and would not now prejudge a question which
was undergoing full investigation.
Alderman THOMPSON said that ho would not en-
courage a general currency debate, but would confine
his observations to the question under consideration.
The Right Hon. Gentleman the Chancellor of the Ex-
chequer hail rested his opposition to the motion on three
grounds; first, that the present position of the Bank,
compared with its position in October last, was so much
improved, that no danger was now to bo apprehended ;
the second was, that Parliament was sitting ; and the
third, that a Committee had been appointed.—(Hear,
hear.) As to the first, he had the satisfaction of agree-
ing with the statement of the Chancellor of the Exche-
quer as to the improved condition of the Bank ; but he
must remind the House what was the state of the Bank
this time last year.—(llear, hear.) In January, 1847,
the Bank had of bullion 15,000,0001.; and in the reserved
banking account 8,000,0001.; in April the bullion was
reduced to 5,000,000 L, and the reserved account to
6,ooo,oool.—(Hear, hear.) It might be said that the
price of corn influenced that diminution ; but ho would
ask the Chancellor of the Exchequer whether he saw
perfect security in the present state of Italy and France,
and whether they might not be involved in such difficul-
ties as would produce again a great drain of bullion
(Hear, hear.) The present position of things was, there-
fore, not such as could be safely relied upon.—(Hear.)
As to Parliament sitting, ho must beg them to remember
how the last House of Commons had treated the petition
of the merchants of Londoa, pointing out the dangerous
position of affairs, and the remedy which seemed to them
applicable. Had they attended to it iu the least ?
(Hear, hear.) And what security had they that the
present House of Commons would pay more attention to
their representations than the last ? As to the Com-
mittee, he would only say that that Committee met on
the 4th of February. This was the 17th, and they had
examined two witnesses.—(lfear, hear.) Considering,
then, what had been the suffering of the country, did
they think that the country would be satisfied to wait for
the repot t of that Committee as to the causes of the late
distress and the proper remedy fur it ? lie believed
that if the country entertained any such hope it would
oily end in disappointment.—(Hear, hear.) Those who
witnessed the calamities of the past autumn must
know that it was utterly impossible for this country
to endure again such a financial pressure and its coin•
merciial and manufacturing interest continue to exist.
His Right Hon. Friend the Member for Stamford had
stated that ISO houses had failed, with obligations
amounting to 30,000,0001. ; and he was sure that his
Right Hon. Friend did not overstate the case ; they
know those who had fallen, but they did not know all
those who had been ruined by that pressure.—(Hear,
hear.) The trade between the continent of India and
this country was prostrate ; there was neither credit nor
capital to convey our manufactures in India ; seven or
eight millions of dishonoured bills returned to England ;
and without the intervention of the East India Company
the produce of the East Indies could not be sent hero ;
but he placed full reliance upon that great Company.
The Right Hon. the Chancellor of the .Exchequer had
said that there was no doubt a great deal of pressure
through the failure of bill-brokers ; but that was not all,
for ho ventured to say that there was no establish-
ment (he did not except even bankers of the highest
repute) whose credit did not suffer suspicion during
that pressure. It was impossible to negotiate bills to
any foreign country against shipments of goods ; for,
on the continent of Europe they believed that
all London was baukrupt.—(Hear, hear.) What
was the state of Newcastle ? Why, but for the inter-
ference of Mr. Grote, the manager of the branch bank
there, the most disastrous consequences must have fol-
lowed, and Mr. Grote did himself immortal honour by
the course which he had pursued ; he (Alderman
Thompson) even doubted if the public peace could have
been maintained but for the timely assistance rendered
by that gentleman. The same state of things existed
in the wont of England. What was the cause of it all?
He was glad to hear now, from the Chancellor of the
Exchequer, because on a for near occasion he had ex-
pressed a different opinion, that he believed the panics of
1847 was not to be attributed either to the management
of the Bank of England or to the Bill of 1844. Then
to what was it attributable ? On the e3d of September
the Chancellor of the Exchequer assurtelleta4e(yti
beak
which waited upon him, that there were p
notes to be had, and that ad the difficulty arose from
speculation and miscalculation ; but he thought it might
now be fairly asked, whether he was not the miecalcu-
lator—(Hear, hear)—and whether,if he had been aware
of the mischief that was to take place before the 23d of
October, he would not sooner have written that letter to
the Bank, the necessity of which he fully admitted? Now
money was abundant ; it might be had on good security
upon easy terms ; and yet now there were two millions
less of Bank of England notes with the public than
there were on the 25th of October, when every one was
complaining of being ruined, on account of the difficulty
of getting bank-note. 13etweezt the 25th of September

and the 30th of October there was an increase of notes
to the amount of 2,754,000/, and of gold coin issued to
the public of 2,202,0001., making together 4,956,0001. ;
and yet money was not to be had under or par
cent. IS
cent. It was that monstrous discount which bruught
down so many houses. But this was not all • for, as
the value of money increased, the price of produce fell.
—(hear, hear.) With regard to speculation in the
commercial world, if they looked to their imports, with
the exception of sugar, there was not a single article in
excess ; and what were the particular circumstances of
the case ?—(lfear.) They had just made great altera-
tions in the duty—(Hear, hear)—and the Chancellor of
the Exchequer had said that the vastly increased impore
' tation and consumption would help to supply the defi-
ciency in the revenue. Was not there, then, great
inducement held out to merchants to import sugar
largely ? As to corn, at the beginning of the year the
Government were importing it themselves; and, in con-
sequence of the high price, questions were being asked
in that house whether the Government had considered
the expediency of paying a bounty on its importation?
Further, a day of humiliation was appointed on account
of the distress with which the country was afflicted; and
what was the consequence? All these things made the
British merchants ransack the world for corn—(llear)
—and, instead of being abused as they had been, they
were entitled to the gratitude of the country.—(Hear,
hear.) The average price of wheat in London was in
May, 1847, 105 s, per quarter; and in August 51s. Such
changes baffled all calculation; but he contended that
no man ought to be called a speculator who imported
goods for the market, taking his chance of the prices—
that was legitimate enterprise, which British merchants
had always followed; but lie was a speculator who
bought up articles of necessity and general consump-
tion, and stored them for the purpose of keeping them
out of the Learket, diminishing the supply, and raising
the prices. The promoters of the Bill of 1544 had said
that if it did not prevent, it would mitigate panic. Ile
would take no blame to himself on account of that Bill,
because he had opposed it from the first, and had yen
tared to offer his opinion that it would produce very
mischievous effects. They had been told that as the
bullion came in the Bank would issue notes, and as it
went out the Beek would contract its issue of notes; but
that had been found wholly impracticable. When the
foreign exchanges were favourable it was exceedingly
easy to manage the Bank of England, but, in his
opinion, when the exchanges were adverse, and discredit
prevailing, it was utterly impossible that the Act of 1844
could prove available for the purposes it was intended to
serve. We were told by the promoters of that Bill that
the way to prevent an inconvenient demand for bank-
notes wee to raise the rate of interest ; but the fact was
that the higher the rate of interest the greater was the
demand for bank-notes, because the greater the discredit
the more anxious were solvent commercial men to pro-
vide themselves with bank-notes to an extent exceeding
their actual wants. 11. had already alluded to the feel•
ing which existed abroad as to the state of English
credit, and as showing the opinion which prevailed in
the United States as to the commercial and financial
position of England, he would read an extract from the
New York Herald of the 10th of November. The
extract as read by the Hon. Gentleman, was to the
effect that the monetary crisis, and the frequent financial
changes which had taken place in England, had greatly
diminished her commercial influence, whilst the influence
of the United States had been proportionably auemented.
The writer went on to describe England's difficulties
from the large amount of her national debt, the state of
Ireland, and so forth, whilst he depicted the glowing
prosperity of the United States, and the rapid advance
it was making as a manufacturing country. As showing
the state of public credit during the crisis, the Hon.
Gentleman referred to the reduction which took place in
the price of Consols, and the large discount which had
to be submitted to to secure the sale of Exchequer-bills.
Was it not essential, he asked, that measures should be
adopted to prevent a recurrence of so disastrous a state
of matters ? The Chancellor of the Exchequer had
called upon those Gentlemen who disapproved of the Act
of 1844 to tell him what they actually wanted, and not to
attempt to do indirectly what they hesitated to do by
direct means. For himself, ho did not say that he
wished to repeal the entire Bill. He was anxious, how-
ever, to see that part struck out which limited the issue
of the Bank to the extent which it did, and also the
limitation placed upon the issues of notes upon the se-
curity. There never was a greater mistake than this
latter limitation.—(Hear, hear.) Ile was positive that
great advantage would have arisen had the Bank been
allowed to issue notes upon the security of silver to the
full value of that silver. He was anxious to maintain the
convertibility of the bank-note. Ile was opposed to all
doctrines about a domestic currency. In his opinion a
domestic currency meant nothing more nor less than a
depreciated currency.—(llear. bear.) Were such a
policy adopted, England would soon be in the position
of Russia, where there was a silver and a paper rouble.
In England we would have one bank note payable in a
fixed amount of gold, and another note payable in
nothing at all. He would allow the Bank of England to
issue notes to the full value of silver, because silver was
the standard in Europe. When the exchanges were un-
favourable silver left the country, and when silver was
exhausted, gold followed, and, according to this 'view,
silver might be regarded as being available to the pay-
ment of gold. With regard to the country banks, he did
not think that all the threatenings of the Chancellor of
the Exchequer would prevent the evasion of the Act
which restricted the use of silver, should a deficiency in
the ordinary currency respire it. Ile would not tres-
pass longer upon the attention of the House, but would
implore Hon. Members to adopt the motion of his Right
lion. Friend, and net allow the character and credit of
the commercial and maculacsurina interests of the
country to be sullied—interests which he bud vlways
looked upon us cssC nti al to the prosperity and stability
of the country. —(I [car, hear.)
Mr. W. BROWN, who was very indistinctly hemmed,
having adverted to the causes of the late commercial diffi-
culties, observed that the Bill of 1844 was a dead letter
until the panic came, and then, so far from doing a het
its promoters had promised—prevent fluctuation of
prices and secure confidence—it had aggraa eted the
evil. There had been greater oscillation in the price of
money under this Bill during the late crisis than in any
former period of financial difficulty during the last 25
years. In 1825 the rate of discount was--the lowest
3i, the highest 4} ; and in 1832 the lowest was 21, the
highest 4 ; in 1837 the lowest was 3i, the highest 5i ;
in 1839 the lowest was 31-, the highest 6i, being a diffe-
rence of 2/ ; and in 1847 the lowest rate was 2:;, and
the highest nominally was 6k'; but with commission it
was in fact from 15 to 20 per cent„ and even at that rate
in numerous instances solvent houses could not obtain
advances. The Bill had also occasioned hoarding. In
Liverpool alone he believed he could show that a
million and a half had been hoarded to meet con-
tingencies, and to enable merchants to meet their
engagements, and to take up such bills as might come
back dishonoured, especially such as might be in the
hands of the Bank of England when the protesting of
any bill was attended with some discredit upon the houses
whose names it bore. He was an advocate for freedom
in banking, perfect security being taken for converti-
bility. The question was riot now, however, whether
they were to maintain or abolish the monopoly of the
Bank of England; but he contended that they should
make it efficient for the public good. So far as the Act
of 1844 carried out the principle of convertibility em-
bodied in the Act of 1819, and required payments to
be made in metallic currency, based on a fixed price for
gold, he concurred in it. Ile was aware that many
argued that as the national debt was contracted in a
paper currency it was unjust to require its repayment
in gold; but when the contracts for the loans were
entered into it was stipulated by Act of Parliament that
six months after the restoration of peace payments in
specie should be resumed; and had it been supposed
that payment would be made in a depreciated currency,
Government would never have obtained the loans on
the terms they did—perhaps not at till—and had that
been the case this country would now probably
be a French colony. Ile saw no great advan
Cage that could result from a mixed standard of silver
and gold. Silvor would always buy gold, and gold was
much the more easy and portable medium for commere
cial transactions than silver. He thought there was
extreme danger in allowing the growing commerce of
this country to rest on an issue of 14,000,000/. based on
securities. He believed the Bank of England had done
what it could to preserve the public credit, and while it
was necessary that a discretionary power should rest
somewhere, he did not think it could be in better hands
than that of the Bank. To show with what attention
the Bank of England was regarded, he cited the case of
a merchant in America, who, on being remonstrated
with for overtrading by his English correspondents, said
that he was governed in all his operations by the con-
duct of the Bank of England. Now, if the Bank was
thus regarded in foreign parts, it was most necessary
that the Government of this country should have the
power of putting it on the most stable foundation. But
ho knew how uninteresting the subject was to the House
generally, and he would only further express his regret
that he could not go with the Right lion. Baronet in
his measure. It would be desirable, he thought, not to
amend, but at once to repeal it.—(Hear, hear.)
Mr. HUDSON regretted that this subject had not
been brought forward at an earlier period, Nothing
was more calculated to disappoint the country than the
course pursued by the Government in referring this
important question to a Committee. They had been
naked if they were prepared to repeal the bill of 1819.
That, however, was not the question at issue. They
were told by another speaker that railways caused ale
distressed state of things. But the fact was, that the
railway calls in January, 1848, were larger than in
Janutsry, 1847, and yet money was now only at 3 per
cent. It' railways, then, had anything to do with it,
why was not money as much in demand now as it was
last year ?—(llear, hear.) They were told they were
consuming the capital of the country; but if they
looked at the coffers of the Bank of England now, they
found them full even to repletion. The truths was, the
importation of corn was entirely the cause of the crisis.
—(Hear, hear.) That importation had now ceased,
and, therefore, our stock of money remaiued undrained.
No doubt the country had been in a desperate state
last October. In Newcastle, for example, if some-
thing had not been done to prop up the local banks,
it would have boon necessary to introduce mili
tary into the town. 'What they had principally to com-
plain of was, that solvency at that time was not-pro-
tected. If the reason of' their not affording each pro- '
tee:ion was the operation of this Act, then, he said,
repeal it.—(Cheers.) Who defended the Bill ? «hat
commercial man in that House would get up and argue
in its favour ? Common consent condemned it. No
member of the Government said that it seas necessary.
—(Hear, hear.) He hoped when the Government next
I wanted money, the Bank would only let them have so
much as they could afford in justice to other customers.
It was notorious that the Bank let the Chancellor of the
Exchequer sweep away in one day a great part of their
reserve, which obliged them to limit the amount of their
discounts afterwards. This was a very blameable mea-
sure. But he thought this was about the oialy act of the

Bank to be complained of. The Chancellor of the Ex -
chequer, on the other band, had decidedly made very
great mistakes, and it was now quite time that he made
up his wind as to what he meant to do, and as to the
principles on which he would act in future. For his own
part, he (Mr. Hudson) thought the Bank ought to have
almost unlimited power of issue, always, of course, pre-
serving the convertibility of the note.
Mr. MACGREGOR, representing a large and most
important constituency, felt it to be his duty not to give
a silent vote. He was compelled to consider that the
Bank Charter Act of 1544 was not an Act adapted to
the wants of a great commercial country. He believed
it was as impossible for Parliament to regulate the price
of money as to regulate the expansion or contraction of
the mercury in the barometer. He knew no parts of
the world for which the Act was calculated, except a
village in Holland, where the population had not in-
creased for the last 600 years, and where no young
couples married until their fathers and mothers died.—
(Laughter.) It was all very well to attribute the panic
to over-speculation. But was it possible to carry on the
commerce of the country without speculation? He had
heard it said that the great houses which failed during
the panic were unsounl. When ho consi.lered the ra-
mifications, the engagements, the enterprise of those
houses, he lamented to hear such observations made. In
his opinion, it was most necessary that Parliament
should deliberately, but speedily, settle the subject. lle
'believed the Act of 1841 was one in which tho country
had no confidence. For some time to come it might be
of very little consequence whether the operation of that
Act was limited or net; but, at some future time, the
measure would be assuredly of the greatest national im-
portance. So much with regard to England. With
respect to Scotland, he thought the operation of the Act
f 1844 was universally vornplained of in that country.
If it had not been for the Scotch bahkii;g system, the
prosptty • • of the British Isles could never have risen
to its present height. Ho condemned the alteration
in foto.

Mr. MASTEItMAN trusted that the House would
adopt his Right Hon. Friend's motion. lie had, in
1844, strongly insisted upon the Government retaining
a discretionary power, and experience had since demon-
strated the necessity of such a provision.
Mr. HUME considered it essential that some distinct
inquiry should be made as to the reason why these
monetary panics were constantly recurring in this coun-
try, in a manner quite unknown elsewhere. He had
objected to the Government Committee, because he fore-
saw that its appointment would be made the excuse for
such an answer as that of the Right lion. Baronet to
such a proposition as that now before the House.—
(Hear, hear.) The Hight Ilon. Baronet had talked of a
foolish judge, who first decided and then inquired. It
appeared to him that the Government, in the matter of
the Bank Act suspension letter, had been precisely this
foolish judge, fur it was admitted that it had acted.with-
out any previous inquiry. lie had said on a former
occasion that 150 000,0001. had been lost by the recent
operation of the Bank Act; but, in point of fact, the
actual less sustained was quite incalculable.— (Hear.)
The conduct of the Government in seeking to evade a
discussion of its measures in relation to the Act of 1844,
by referring the matter to a Select Committe, was most
reprehensible.—(hear, hear.) The feeling of the House
on the subject, however, seemed pretty clear, Every
gentleman who had spoken that night on the subject,
with the sole exception of the Right Hon. Baronet, had
declared that the measure of 1844 had wholly failed in
its professed objects.—(Hear, hoar.) There seemed to
be, in the House as well as out of it, a decided convic-
tion that the Act ought to be repealed. It was out of
the question to suppose that the country would submit
to continue exposed to such jeopardy as that to which
the Act of '44 subjected ia—(Hear.) The result of that
measure was only another proof of the fact, that what-
ever branch of business in this country was protected,
fostered and hedged round by monopoly, was always
involved in disasters. The East and 'West India inte-
rests, the shipping interest, the silk trade, were all proofs
of the same proposition. Ho attributed the whole of our
late distresses—and we had not yet seen the worst, he
feared—to the circumstance of the currency having
been placed on a false basis of protection and mo-
nopoly. No paltry attempts merely to palliate the
evil would avail. The mischief must wholly
be eradicated.—((ries of " Hear, hear.") 'There was one
feature in the Act of 1844, of which he approved, that
which established a fixed standard ; but alt attempts to
restrict the circulation of the country, to shackle the
means by which commercial transactions were carried
on, must be utter failures.—(Hear, hear.) He wished
the Right lion. Gentleman opposite had come forward
at once with a motion to repeal the Act; but if the mo-
tion he proposed were adopted, it would lead to repeal.
—(Hear, hear.) The letter of the Government to the
Bank directors manifested very cleatly the opinion of
the Government that the measure could not stand.—
(Hear, hear.) It was on the face of the thing absurd,
that with the increasing commerce of this country there
should be laws to limit the means by which commerce
was conducted.—(Hear, hear.) As to the Act relating
to Scotland, he had never heard of any man connected
with Scotland who did not denounce it as most mis-
chievous. What had been the practical effect of the
measure upon the immediate circulation in that
country ? In 1542 3 the average of gold in the
Scottish banks was 428,8431. ; in 1846-7 that
average was 1,119,0001., being an increa,e of nearly
800,0001. ; and representing the average amount to
which the banks found themselves compelled by the Act
to refuse to trade the accommodation essential to its
conduct. What was the average of notes in circulation
at the same period. ? In the former period, 2,700,0001.
in the latter, 0,325,000/. He did not blame the direc-
tors of the b inks, is ho had a most difficiil; task to per-
form. The blame lay with those aho imposed these
i:pon th"m.
Worm! TllWlP:.'so.N.!upperted themotion. The Act
if 1844 wit, a inea,ure for fending IT all such demands
For aid for traders as should pass beyond a cortaie rule
hich Goaernineut e.midered to mare tlio li.nit of dia-
cretbn. The queat:ou was, whether this rule bud been
established as proving the pt., cenceiced discretion, or
whether it was a rule which, as being intitscret t, should
be set aside. lie had heard it said that the concession
made by the Government in October seas a virtual con-
cession of the fallacy of the Act. He did not adopt this
proposition as a necessary consequence, for the Govern-
ment might have been induced by the cry for assistance.
Mr. MUNTZ reminded the House that there had been
panics before the one or last year, and that
In tilathey,,c.ohuelad
not be attributed to the Bank Act of 44
the occurrences of October, 1847, were ascribed to the
operations of the Right lion. Baronet's (Sir R. Peel's)
Balking Act, these who did so committed a gross
blunder. The Government certainly had no right to
meddle with banks, either public or private; and as long
us that interference existed he feared he should see con-
tinual crashes in the money market. The whole of the
cause, and the only cause, of the monetary panics was
that the theory upon which the Chancellor of the Exche-
quer and the Right Hon. Barouct opposite based their
system was wrong. 'The theory to which he referred
was that which supposed there was such a thing as a
standard of value. There was no such standard; and
the sooner that false and erroneous system was abolished
the better. If the Bill of 1844 was repealed the evil
would still rennin in full force. As long as the standard
of value system was adhered to, the country would ex-
perience panics and be exposed to all the misery result-
ing fruits such a state of things. lie felt perfectly satis-
fied he was right upon this subjeci; and the Right Hen.
Gentleman opposite (Mr. Herries) must not flatter him-
self ho would remove the causes of distress by repealing
the Act of 1844. It was not that Act which had occa-
sioned the mischief. It gas the Bill of 1819.—(A laugh.)
lie would, however, vote fur the motion before the House,
because he deprecated a NIT which was nullified the mo-
ment it came into operation, as the Bank Act of 1844
had been by the letter addressed by thu Government to
the Bank of England in last October.
Mr. LABOLTUBERE said that the Right lion. Gen-
tleman opposite had urged on the House not to allow
• itself to be drawn into a general argument upon the
subject of his motion, as there was much danger, owing
to the nature of the subject, that lion. Members woulai
stray (ruin the immediate question before the House. He
should endeavour to follow the Right Hon. Gentleman's
injunction in ofterieg his reasons to the House for not
giving its assent to the proposal. One thing had beets
universally admitted by nearly all the speakers—
namely, that if the motion were agreed to, the decision
would reverse that which appointed a Committee to in-
quire into the monetary question —(No, no.) He heard
it doubted that such would be the virtual effect of
the motion being carried, but he must again affirm
that the fact had been candidly admitted by all who had
spoken on the motion that evening,. By the appoint-
ment of the Committee the Government had en-
tered into an agreement with the monetary interests
to consider. maturely the laws which affected
the whole question, and he was not prepared to say
that after the subject had been fully examined the law
might not be relaxed. The only effect which the motion
would have would be to unsettle the public mind as to
the results of the Committee. Some Honourable Member
, had said that the law stood condemned by nll, and by
the Government in particular, by whom some of its
, provisions had been suspended. He must beg to deny
the truth of that proposition. lie denied that the sus-
pension of the Act for a temporary purpose was eon-
demnatory of the measure. There must exist pi power
•of relaxing the laws upon great emergencies, but that
did not tend to prove the law to be a bad one. lie did
not mean to say that it might not be found necessary to
modify the law, but he must affirm that suspending.h it
was
without n oti
outfeeling condemnation.elinggreat commiseration coecwoulwis d not
nsopeafok rotthost
e wh
e lateo
panic
had suffered by it. But the Act of 1844waa
not acees-
sory to that panic.—(Hear, hear.) Something had
been said about havingover-spbecubutltsmtliieoenhmadustb ee
observe
onesvte
thatf
the principal causes, and UlOll
'attendiug the late
upon examin-
Itilemsesho"uhld°
mg intouumstuarupercissed
rash speculations, which
crisis, those engaged in the importing trade ware ac-
quitted thefseac d c ranchisr c 0
After the length-
ha
muchvngoef entered
lag inttli'stress,
ened discussion of that evening h would not trespass
audi tteeldusoeta
further on the time of the House than to express his
hope that they would not reverse their former decision,
which a Co •
by Committee Was appointed to examine into
the monetary etate of the co it• • s. Is might be said
that coaenittees were all a farce, hut he reminded the
'House that no great changes had ever been maile in
the monetary laws without the previous inquiry and re-
port of a Committee.—(Cries of" Divide.")
Mr. 11EII1tIES would only offer a few words in reply
to the observations of the Right Hon. Gentleman. lie had
'laver bafore witnessed a debate, the speakers on which,
with some exceptions. were all on one side of the ques-
tion. Amongst all parties there was a growing feel-
ing that the Act of 1844 ought to be repealed.
The only objection of any weight against his motion was
that there was a Committee sitting on the subject up
stairs, and that the House ought not to prejudge the
question. But there were many topics which were 110 k
'6to come wader the consideration a that Comraiike ;